Deputy Prime Minister and Treasury Charles Abel today presented to Parliament a copy of the Loan Facility Agreement.
The loan was executed on July 29, 2016 with an amount of US$500 million to finance the Budget deficit.
Deputy PM Abel clarified that under the Loans and Assistance (International Agencies) Act, Section 2 (7) the Minister must present to Parliament a copy of the loan agreement after the execution of the loan agreement.
Abel added that from the US$500m credit facility, the State has already drawdown US$310 in two separate tranches.
He further explained that $200m was disbursed under tranche 1 in Aug 2016 and $110m was disbursed in January 2017 for budget financing.
The remaining balance of $190m will be disbursed by the bank once the State complies with its legislative.
Abel warned that failing to comply with this condition will jeopardize the Government’s effort to finance the Budget deficit.
The Treasurer clarified that the $310m disbursed was to finance the following projects:
National Bridge Programme;
- National highways;
- APEC related infrastructures;
- NCD roads;
- Waigani Court House refurbishment
- Correctional Services Infrastructures Development
- Police Housing and infrastructure;
- Election related infrastructures;
- PSIP, DSIP and LLGSIP Program;
- National broadband network;
- Port Moresby Grid Development;
- PNG Town’s electrification investment project; and
- Transmission Lines upgrade.