The National Planning and Monitoring Minister recently met with the Indian EXIM Bank to discuss the status of the tender and awarding of contract under the Line of Credit (LOC) of USD 100 million.
Discussions confirmed that delays were on the PNG side.
The Indian EXIM Bank clarified that they are at a standstill until the Government of PNG process, through the Ministry and Department of Treasury, clears the relevant formalities to complete the Loan Agreement, including the prequalification process that needs to be expedited to carry out the Detailed Project Report, which is a key determinant of approval to further utilisation of the LOC.
The EXIM Bank indicated that these requirements were communicated to the Treasury in January and again through formal communication in February 2019, and are still awaiting the Government of PNG’s response for next steps to be taken.
Critical investments under the LOC covering the Bayer-Madang road and the Hoskins-Kimbe road are critical economic roads for PNG and ensuring the important requirements for the Indian EXIM Bank and PNG’s processes are fulfilled in a timely manner.
Minister Maru expressed satisfaction that up to 30 percent of the loan required local content from PNG hence, is seen as an attractive feature of the loan that PNG can take advantage of.
Minister Maru expressed that further delays in operationalising this loan is not acceptable; it will require technical departments like the Department of Works, to urgently work with the Department of Treasury to provide the relevant EXIM loan requirements accordingly.