The Lae Port Tidal Besin Project has received an additional funding of 85 million US Dollars fromthe Asian Development Bank.
The funding is part of a supplementary loan agreement fromthe Asian Development Bank to enablethe project to be completed in time.
Treasury Minister Don Polye completedthe formalities withthe head ofthe Asian Development Bank Marcelo Minc andthe Igimu Momo of IPBe in Port Moresby.
The initial funding of 154 million US Dollars allocated for the project has run out promptingthe government to borrow an additional 85 million US Dollars.
Forty Million Kina ofthe initial funding was used to compensate landowners and relocate settlers atthe project site.
“We have run out of money underthe first loan arrangement,” says Minister Polye. “The first loans under loan number 2398 and 2399 were signed bythe state for a 154 million US Dollars to dothe expansion and to do work onthe Tidal Besin in Lae Port.”
Mr. Polye expressed concern that proper and clear feasibility studies must be conducted inthe future to ensurethe right amount of funds are allocated for projects.
Country Director for the Asian Development Bank Marcelo Minc said ADBestands ready to supportthe government meet its development needs.
“As we know Lae in an industrial city and we havethe expectation that this Port will be part of a network that will open up imports and exports throughthe Lae Port withthe expanded capacity,” said Marcelo Minc.
The money will be parked withtheIndependent Public Business Corporation or IPBe to ensure it generates maximum returns for the government to pay offthe loan.
The loan will be repaid over a period of 30 years at a rate 2.5%.
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