The Asian Development Bank is confident in the PNG Government’s management of its loans to implement infrastructure projects.
In a brief interview with Loop PNG, ADB PNG Country Manager, Marcelo Minc, says the recent signing of the K364.83m loan showed their faith in the Government to deliver.
He said ADB does not provide loans without guarantees.
“We will not give funds if the state of implementation is not satisfactory,” says Minc.
The recent loan signing is part of the multi-tranche financing facility road program worth US$400m (K1,196.17m) and was approved in 2008 for the Highlands Road Rehabilitation and Improvement Investment Program (HRRIIP)
The Tranche I program saw the completed upgrade and sealing of Mendi-Kandep (Enga) and Laiagam-Porgera (Enga) roads while the Tranche II program covers the ongoing Mendi-Tambul (SHP), Kotna-Lapramp (WHP) and Ialibu-Kagua (SHP) roads.
“The first two tranches have been fully improved, and we are currently under the improvement of the second tranche and the progress is quite good and this is why we can go into the third tranche.”
During the signing of the loan, Treasury Minister Patrick Pruaitch said the highlands region has been the food bowl of the country and hosts most of the country’s mineral resource deposit, including the PNG LNG project. Therefore it deserves the attention and support that the government is providing.
Millions of Kina have been heavily invested in rehabilitating the Highlands Highway, which has been severely affected by natural disasters almost every year.
National Research Institute Director, Dr. Charles Yala, called the Highlands Highway a marginalised and poorly-managed road over the years during his speech at the Delloitte budget breakfast last November.
He said with proper planning, this road should have expanded and upgraded to a better standard by now.