Hold up for 300m loan is with PNG
BY FRANKLIN KOLMA
NATIONAL Planning Minister Richard Maru says the Indian EXIM Bank has revealed that the Department of Treasury and other relevant national entities are holding-up a K300 million loan to finance the construction of two critically important economic roads.
Mr Maru said from India yesterday, that the Indian EXIM Bank had already extended a contract under a line of credit (LOC) of K300 million that was vital for the Baiyer-Madang road and the Hoskins-Kimbe road among other economically enhancing infrastructure and that as such, PNG had to speed up formalities to acquire it.
Discussions confirmed that the delay was on PNG’s side, said the minister through his PNG Office.
Mr Maru said the Indian EXIM Bank clarified that they are at a standstill until the PNG government processes the necessary formalities to complete the loan agreement.
“Through the ministry and Department of Treasury, all prerequisite processes need to be completed.
“This includes the prequalification process that needs to be expedited to carry out the detailed project report which is a key determinant of approval to further use the LOC,” said Mr Maru.
He said the EXIM Bank indicated that these requirements were communicated to the Treasury department in January and again through formal communication in February 2019 and are still awaiting the PNG government’s response for the next steps to be taken.
Mr Maru also expressed satisfaction that up to 30 per cent of the loan required local content from PNG, adding that this was an attractive feature of the loan that PNG can take advantage of.
He said further delays in operationalising the loan was not acceptable and that technical departments like Works were urgently required to work with Treasury to provide the relevant EXIM loan requirements accordingly.
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