Minister for Works, Michael Nali has clarified that the Sepik Highway section between the Kreer Junction in Wewak) to Maprik FM Tower in Maprik) was maintained under the Australian AID Program (AusAID).
Referred to as the Transport Sector Support Program (TSSP) from 2018 to June 2020 for a Contract Period of 18 months at an estimated cost of K20 million for the 98km road section.
Nali made this response when responding to East Sepik Governor Allan Bird during Parliament session on Tuesday.
Governor Bird asked series of questions regarding the failing state of the Sepik Highway.
Nali said the referred section of Sepik Highway (98km) was maintained under a Fixed Term Maintenance Contracts (FTMCs') in two separate sections;
Section 1 — Kreer Junction to Yangoru Station Junction (77 km) worth K10 million and Section 2 — Yangoru Station junction to Maprik FM Tower (40km) worth K10 million.
The tendering and awarding of the two contracts followed all the stringent public procurement processes in compliance to National Procurement Commission Act 2018 regulations and the Public Finance Management Act (revised 2018) with the oversight from the Australian High Commission (AHC) in compliance to Australian AID funding requirements.
Nali explained that the awarding of contracts to HBS (PNG) Ltd was undertaken by the National
Procurement Commission Board in its own wisdom without any undue influence from the Department or its staff.
The two tenders were awarded after a Letter of No Objection was received from the Australian High Commission.
Hence, the procurement of the said project was fully in compliance to public procurement processes.
The Sepik Highway Road Maintenance works between Kreer Junction (Wewak) and Maprik FM Tower (Maprik) was completed in June 2020 to the satisfaction of the required scope and standard and the ccontractor HBS (PNG) Ltd demobilized out of the province after project completion.
“I wish to inform the Governor for East Sepik that whilst the proper maintenance needs are huge, funding resources are always limited. This is the reality facing all our highways around the country.
“We need a minimum annual funding of K1.5billion every year for the next five years to clear the huge maintenance backlog we have built due to continues under funding trends.”
He added that in line with the available limited funds the Sepik Highway Road Maintenance works between Kreer Junction and Maprik FM Tower was a maintenance contract and not a rehabilitation or upgrading contract works to meet hence, it may not meet up to our expectation for a high quality road.
“Only a Routine Maintenance works involving mainly minor routine works including vegetation control, pothole patching, drainage repair works, and road furniture repairs, etc.
“It is better for the people living between this maintained sections of the Sepik Highway to appreciate the maintenance works undertaken under the Australian AID TSSP Program as it was maintained by the Grant Aid funding.”
The remainder of the Sepik Highway section from Maprik to Lumi (WSP) are currently covered under the Minor Works program funded under AusAID TSSP Program addressing specific issues to ensure that the road is trafficable.
“Let me assure the Governor and people of East and West Sepik that the entire Sepik Highway from Kreer Junction (Wewak) to Lumi (Karaitem) in West Sepik Province will be covered again under the Australian AID Long Term Performance Based Contract (LTPBC) for 5-years.
“The project has received the endorsement from Australian High Commission this year giving us (DOW) clearance to tender and procure the project through a stringent procurement process this year (2021).