Local firms struggling: Exec

By KELVIN JOE
MANY local construction companies have struggled to maintain their operations and resolved to selling off their assets and properties due to capability issues, a business owner says.
Kana Construction managing director Roxon Undi, whose company won a multi-million kina road construction contract from the government recently, said when local construction companies were not given an opportunity to participate in major infrastructure development projects in the country, they would not be able to build their capability.
“We have all our machines, manpower and gear ready and have met other requirements with the hope to be awarded contracts over the years, but it has been very tough when we competed during tenders, because we were told that we had no capability in terms of resource and experience,” he said.
Undi said this after three local companies were among eight construction companies that signed six major regional roads development projects along with a new administrative building for the University of Goroka and a new laboratory for the Institute of Medical Research in Madang under the Connect PNG programme at Government House last week.
“It was an exciting time for us (local constructors) because we are fortunate to be given the opportunity to build our capability and capacity to deliver quality projects for the people and the country,” he said.
“We have been kept out form the selection process but it was like a light at the end of the tunnel when we are finally recognised.”
Undi thanked the government, Works and Highways Department and National Procurement Commission for working to promote local companies and small businesses over the last three years.
The Kana constriction was given the 148-kilometre long term road maintenance work from Bautama round-about to Imila Bridge in Central valued at about K74 million. The cost of the infrastructure development projects that were signed at Government House include:
l K139 million and K116 million for the upgrade and sealing of two 40km roads in Manus;
l K74 million long term road maintenance work for 148km and K164 million upgrading and sealing of 55.6km road on Central’s Magi Highway;
l K145 million for the upgrading and sealing of the 40km Aitape Highway in West Sepik;
l K140 million for the 40km Middle-Ramu highway in Madang;
l K76 million for the new administrative building at the University of Goroka; and,
l K24 million for the construction of a new laboratory building for the Institute of Medical Research in Madang.