Local contractors will participate in K1.5 billion worth of maritime port infrastructure development projects over the next three to five years.
PNG Ports Corporation Ltd (PNG Ports), the owner and operator of 15 declared maritime ports in the country, was recently awarded a blended financial package of AU$580 million (K1.5 billion) by the Australian Infrastructure Financing Facility for the Pacific (AIFFP).
The funding will be used to rehabilitate six of the 15 ports in Daru, Kavieng, Kimbe, Lae, Lorengau,
Oro Bay and highlands Inland Freight Hub.
PNG Ports Chief Executive Officer, Fego Kiniafa, said local PNG companies would be awarded contracts worth a minimum of 30% of the funding as part of our vision to invest in the local business community.
“Under the AIFFP contract, local PNG content is a critical aspect and we are looking at engaging local contractors to ensure that up to 30% of the money stays in PNG,” Mr Kiniafa said.
“At least 40 prequalified international contractors, not only from Australia but eight other countries have shown interest, and we will take on board our local PNG companies as well to ensure local involvement and participation is achieved,” he said.
“Our port infrastructure has deteriorated over the decades, immediate rehabilitation works will be done with an aim to build quality, sustainable infrastructure to serve PNG and its people for many years to come.”
So far, the Oro Bay Port rehabilitation project has been launched. Others will be launched over the next 18 months under the guidance of PNG Ports’ 30 Year Infrastructure Master Plan.
Mr Kiniafa shared this news upon his return from Australia with a small delegation from PNG Ports and representatives from shareholder, Kumul Consolidated Holdings.
The delegation was in Australia to meet with the team from the AIFFP to discuss partnership options and acknowledge the enormous contribution and continued support from the people and government of Australia to the government and people of Papua New Guinea.
PNGPCL operates/manages 15 of the 23 declared ports in Papua New Guinea; one (1) is under agency management & seven (7) are nonoperational. The 15 operational ports are: Aitape, Alotau, Buka, Daru, Kavieng, Kieta, Kimbe, Lae, Lorengau, Madang, Oro Bay, Port Moresby, Rabaul, Vanimo and Wewak. The only one (1) under agency management is Samarai Port. These ports handle in excess of 5.8 million tonnes of cargo annually – 100 per cent of Papua New Guinea’s entire seaborne trade and the main gateway to more than 300 scattered islands.