MoU Signed For CADIP PHASE 2

The National Airports Corporation, Asian Development Bank, Department of National Planning, Department of Transport and Civil Aviation Agencies signed the MoU in Port Moresby yesterday.

The signing of the MoU is a significant step taken by the development partners prior to and in the lead up to the implementation of high impact aviation projects under phase 2 of the program.

The MoU is a result of a series of discussions between the Asian Development Bank and the Government agencies including, Department of Treasury, Department of National Planning and Monitoring, Department of Transport and aviation entities, National Airports Corporation, NiuSky Pacific Limited, Civil Aviation Safety Authority and PNG Accident Investigation Commission.

The MOU contains information and agreements reached on the project scope of works including;

1. Cost estimates and financings plans;
2. Implementation arrangements;
3. Project due diligence
4. Proposed loan assurances and conditions
5. Draft project administration manual; and
6. Loan processing schedule.

The proposed CADIP Phase 2, is expected to be financed at an estimated cost of USD$ 171.5 million (PGK 605.32 million) (ADB loan of USD$ 162.9 (PGK 574.96 million) and the Government’s counterpart funding of USD$8.6 million (PGK 30.35 million)).

This means the ADB’s ordinary capital resources loan will be 95% of the total cost whilst the Government’s component will be 5% of the overall cost.

The implementation period of the second phase will be five (5) years with the loan envisaged to take effect in December 2022.

All projects are expected to be completed by the 30^th of June 2028 with the loan closing on the 31^st of December 2028.

The executing agencies of CADIP Phase 2 will be NAC and NiuSky Pacific Limited and Civil Aviation Safety Authority PNG.

In addition, CADIP Phase 2 aims to improve Rural Regional Airports in the country of which six airstrips including Tapini and Finschhafen part of the first pilot project.