Ok Tedi Mining Limited (OTML) has signed a K50 million project agreement to commence the upgrading and sealing of the Kiunga-Tabubil Highway.
The agreement was signed today in Port Moresby between OTML and contractor, China Railway Construction Engineering Group Co. Limited for Phase One of the project.
Funded under the Government’s Infrastructure Tax Credit Scheme (ITCS) program, the project will be undertaken in three phases, with Phase One to start in February, this will include the upgrade and sealing of the highway starting at Kilometre-3 near Kiunga town.
Phases 2 and 3 will follow suit once further funding is available through the ITCS.
OTML Deputy CEO and General Manager Community and Operations Support, Kedi Ilimbit, said the 135-kilometre highway provides a vital link for the people of North Fly and having it upgraded and sealed will significantly help the people, local farmers and small-to-medium enterprises.
Since 1997, OTML has spent over K300 million on ITCS projects in Western Province and Telefomin District in West Sepik Province.
These include high impact priority projects in health, education, law and justice and transport infrastructure and utilities.
OTML recently thanked the Government for increasing the Tax Credit Scheme ceiling from 0.75 percent to 2 percent as announced in the 2022 National Budget.
The increased tax credit ceiling along with improved performance by OTML in the near term, mine performance is expected to see a significant increase in annual tax credits from approximately K25m per annum to more than K100m per annum over the life of the mine.
Other major projects considered includes, the upgrading and sealing of the Daru town roads and airport extension, construction of a new District Court House in Kiunga, refurbishment of the Aiambak Secondary High School, road link to Vanimo and Hela Province, constructions to Atemkit/Kavorabip road and Alice Pit to the border.