K1 Billion for Ports

PNG Ports Corporation Limited (PNGPCL) celebrated the Signing of an MoU between the Australian and PNG Government worth $300 million, equivalent to K1 Billion.

 PNG Ports also launched their 30-year Ports infrastructure plan, providing the blueprint that underpins the Australian Government’s financial support to PNG Ports. 

The financial facility from the Australian Government of K1 billion comprises a combination of interest free grants and concessional financing to support the modernization of PNG Ports’ maritime infrastructure across the country which are located in the ports of Vanimo, Kimbe, Motukea, Lorengau, Oro Bay, Daru, Lae and other regional ports owned and operated by PNG Ports Corporation Limited.

Minister for State Enterprises, William Duma reassured the government and people of Australia that the PPCL would continue to work in close consultation with the Australian High Commission to ensure that due diligence is undertaken to the satisfaction of the governments of both PNG

 “The 30 year Ports infrastructure master Plan is the first of its kind undertaken by any State Owned Enterprise and also a first for the PNG Ports Corporation. This master plan will guide PNG ports over the next 30 years to rehabilitate all its maritime port infrastructure and by 2050, all the PNG Ports should have improved infrastructure compatible with modern industry and safety standards.”

Prime Minister James Marape expressed his gratitude towards the people and government of Australia for the funding, and acknowledged how important Papua New Guinea is as a gateway to Asia and the Pacific.

Australian High Commissioner, John Philip said that for the Australian Government it is important that this partnership must be celebrated because a proud, independent and prosperous PNG is the best friend that Australia can have. He said that Australia has been committed to a number of projects in PNG, one of them being ports and maritime systems and the MoU marks a very important step in the two countries’ bilateral relationship, signifying the growing partnership between Australia and PNG.

“For PNG, just as for Australia as island countries ports are essential for trade. It brings the world to us and brings us to the rest of the world. Investments to upgrade critical port infrastructure brings economic and social benefits to PNG and its people.”

Philip also added that the development would also bring economic and social benefits to Australia as well.

“Much of our trade shipping goes through PNG waters, so we have a very strong interest to improved maritime infrastructure in both our countries.”

PNG Ports  Board Chairman, Kepas Wali said that PNG Ports has survived the COVID pandemic without any job losses and they have been paying state dividends with 15 ports have been operating without closure and assured the Prime Minister that PNG Ports was committed to deliver on government objectives in growing the economy of Papua New Guinea.

Melissa Wokasup