Ports not involved in phase 1 of project: CEO

 PNG Ports Corporation says it was not involved in Phase 1 of the Lae Tidal Basin Project.

Chief executive officer Stanley Alphonse said in a brief statement yesterday that PNG Ports took ownership of the facilities after the Phase 1 development was completed in December 2014.

Alphonse was responding to a statement by Opposition Leader Don Polye on Monday which called for criminal proceedings to be taken against contractor China Harbour Engineering Company (CHEC) following revelations of defects in the K809 million Phase 1 development.

Polye had produced a report by Cullen Grummit & Roe, which said the work was “sub-standard in many respects”. 

The consultants were engaged by PNG Ports to review the construction of the new international container terminal.

Alphonse did not confirm or deny the technical report. He also did not indicate when the remediation work would begin to rectify the defects.

Kumul Consolidated Holdings (formerly Independent Public Business Corporation) had said in an earlier statement that an extensive remediation plan was being developed and work would begin soon.

KCH said the cost for the remediation works would be fully borne by CHEC under the Contracts Defects Liability Period.

Alphonse said: “We must point out that there has been some misunderstanding in recent weeks that the PNG Ports Corporation Limited (PNG Ports) is involved in some way with regards to the Phase 1 design and construction of the Lae Tidal Basin Project.

“We want to state quite clearly that following the completion of Phase 1, PNG Ports was handed the tidal basin port facility by the Independent Public Business Corporation (IPBC), since renamed Kumul Consolidated Holdings (KCH).

“PNG Ports was never a party to the overall arrangements pertaining to the stage 1 development.

“However since taking over the facility, PNBG Ports intends to have it operated in accordance with industry best practice through strategic partnerships with reputable international terminal operators.”

Alphonse confirmed that the procurement process for Phase 2 of the Lae Tidal Basin project was in the final stages and a recommendation would be made in due course.

The Opposition leader had claimed that CHEC was one of three companies shortlisted for the Phase 2 contract. 

He said CHEC had tendered for K276 million, New Zealand company Hawkins, which built the Kumul Flyover in Port Moresby, had tendered for K185m and China State Construction had tendered for K395m.