PM: Our ports in dire need of repair

By GYNNIE KERO
Prime Minister James Marape says all ports in the country built during the Australian colonial administration in the 60s and 70s have fallen into disrepair due to lack of funding over the years.
He said the recent commitment by Australia for a K1.42 billion (AU$580 million) funding to carry out repairs on the ports was very important.
Last Friday, Marape, in Port Moresby, and his Australian counterpart Scott Morrison in Sydney signed an agreement virtually for the K1.42 billion funding.
He highlighted the dependence of coastal communities on shipping, domestically and internationally.
The K1.42 billion is made up of a grant and a low interest concessional loan.
The PNG Ports Corporation said a AU$97.5 million (K239.9 million) component was being given as a grant.
The balance is a loan to be repaid over a 35-year period.
A grace period of six years is allowed as an “availability period” during which time, PNG must draw down on the funding.
State Enterprises Minister William Duma said about AU$120 million (K295 million) would be spent on the Lae Tidal Basin in Morobe.
Kavieng port will get AU$27 million (K66.4 million); Kimbe, A$30 million (K73.8 million); Oro Bay, AU$30 million (K73.8 million); Vanimo, AU$29 million (K71.3 million); Wewak, AU$20 million (K49.2 million); and, Lorengau to get AU$19 million (K46.7 million).
The balance will be used to buy pilot boats for the ports and to upgrade other port infrastructure.
The investment is financed by the Australian Infrastructure Financing Facility for the Pacific, in response to PNG’s request to support the renewal of critical ports.
Australia’s minister for trade, tourism and investment Dan Tehan in a statement said: “These upgrades will improve Papua New Guinea’s ports allowing dedicated container ships that operate major trade routes in the Indo-Pacific to make direct calls to Papua New Guinea.
“This will create further opportunities for Papua New Guinea and the Pacific to engage in global trade.”
Australian minister for international development and the Pacific, senator Zed Seselja said: “Works will also include urgent repairs
and upgrades for deteriorated coastal wharves that are up to 70 years old.
“By improving community access to healthcare, education and livelihoods, this partnership will make a real difference to people’s lives.”
Morrison said: “As the support is put in place and economic opportunities are realised, the prosperity and the wellbeing of the people of PNG will rise.
“This has been about enabling and supporting the sovereignty, independence and self-sufficiency of PNG, and that has always been our absolute goal in all our intervention support and assistance.”
Marape thanked Australia for its continued support not just in the maritime infrastructure sector, but also in other sectors including education, health, telecommunications, aviation, electrification and road development.
When the agreement becomes operational, 30 per cent of the money will be used to engage local contractors, meaning the injection of foreign capital into the country to boost the PNG economy during the Coronavirus recovery period.