PNG loans from ODA hit K1.63bil

 PAPUA New Guinea has obtained loans from the Japanese government amounting to about ¥70 billion (K1.63 billion) since 1978.

Treasury Department’s principal financial analyst Lumbe Silai said the 17 loans were obtained through Japan’s Overseas Development Assistance (ODA) programme. 

She said the loans had concessional terms with low-interest rates and long-term repayment periods.

Silai said five loans worth K87 million had been repaid, while 12 others worth K435.5 million remain outstanding.

The loans went to the following projects: Airport upgrade – K56.78 million; hydro-power at Warangoi –K10.32 million; national road improvement (Mumeng-Wau in Morobe)  – K24.34 million; agriculture (coffee and cocoa production) – K38 million; and water and sanitation projects in Port Moresby and Goroka – K229.76 million

Apart from that, three structural adjustment loans worth ¥11.985 billion (K176.08 million) were obtained for the reform of the national, provincial and local level governments.

Silai said there were no delays in the repayment process and that there was opportunity for PNG to continue to borrow from the Japan International Cooperation Agency (JICA).

She said more projects for rural areas were lined up but landowner issues stalled their implementations.