K3billion ADB loan for Highlands Highway

The entire Highlands Highway will be rehabilitated at a cost of K3 billion, from a loan that was taken from the Asian Development Bank.

 

Prime Minister Peter O’Neill announced in Goroka on Tuesday, that the loan of $USD1 billion will go towards the rehabilitation of the highway instead of mainainance which does not last long.

The first stage has started with $USD 300 million works being done by the department of works.

The PM said the population of the country is increasing at an alarming rate, and vital infrastructure like roads must be built must be built to serve the population today.

The loan comes at a time when the government has been criticized for its loans but the PM said the loan will be repaid over 20-30 years.

“They gave us 20 to 30 years to repay the loans with one of two interest rate. If you go to BSP to borrow that type of money, you will pay 14, 15, 16 percent,” he said.

The project will start in the next few months with the contract soon to go out.

“I want to tell the people, please let’s not give the contractors problems. Our population is increasing. We must build the infrastructure to serve the population today.

Tags: 
Author: 
Sally Pokiton