A concession loan agreement between the Government of Papua New Guinea and the Government of the People’s Republic of China was signed recently for the upgrading and construction of roads in NCD.
The loan is specifically to build a freeway from Baruni to Gerehu connecting the Hiritano Highway.
The loan is at a value of around K318 million from the Export and Import Bank of China.
The loan was signed by Treasury Minister Don Polye and Chinese Ambassador to PNG Liu Bohua at the Grand Papua Hotel last Thursday.
Before signing the loan agreement the 2 countries embraced the current relationship in economical and technical cooperation. Treasury Minister Don Polye said, the Baruni road is an alternate route to solve the traffic congestion faced by motorist every day in Port Moresby.
Treasury Minister Don Polye said, the context of the loan is within debt management and PNG Government is happy to sign the agreement.
Mr Polye thanked the Chinese Ambassador Liu Bohua for his efforts in fostering the loan for providing a needed infrastructure in the city limits. Ambassador Bohua added that PNG will be host to big events and the freeway will be handy to solve the traffic congestion and help the public travel in a more convenient way.
The loan carries a duration of 20 years, with an interest rate of 2% per annum.