PRIME MINISTER O'NEILL APPLAUDS PNG PORTS, IPBC ON PORT PROJECT

Prime Minister Hon. Peter O’Neill today commended PNG Ports and the Independent Public Business Corporation (IPBC) for initiating the Oro Bay Port Rehabilitation project in Oro Province.

It is the first major maintenance or reconstruction work that is going to be done at Oro Bay Port since 1970 when the Western wharf trestle was built whilst he Eastern wharf trestle was built 18 years later in 1987.

The Prime Minister said this important infrastructure project is aligned with the National Government’s priorities, supporting PNG Port’s plans to rehabilitate its network of ports and to provide efficiencies at the wharves for the benefit of its stakeholders.

The Independent Public Business Corporation (IPBC) Board has facilitated for the approval of the Minister for Finance under the IPBC Act to progress this Rehabilitation Project.

“PNG Ports will spend almost K10 million on the Rehabilitation Project and has engaged the services of Curtain Brothers Limited - a reputable engineering and contracting company and has completed many important projects in PNG within time and budget previously, and I am sure they will do the same with this Rehabilitation Project,” Prime Minister Hon. Peter O’Neill said.

He said it will include the complete reconstruction of the Western trestle and extension to the existing bend at the Eastern trestle to accommodate 40 foot container traffic.

“PNG Ports continues to play an important role in the transport sector by absorbing the cost of running the ports and developing the infrastructure to promote economic growth and better living standards among our people in the provinces.

“It is fully mindful of the national government’s infrastructure development plans as outlined in the Medium Term Development Strategy and the Vision 2050 to build and maintain significant transport infrastructure to facilitate for the delivery of vital services to the people and will work with key stakeholders in the country to meet these development goals,” Prime Minister Hon. Peter O’Neill said.

He said well maintained transport infrastructure is essential for the efficient flow of produce to markets and for the flow of consumer goods and services to village communities.

“It is widely accepted that the decline in the quality of PNG’s transport infrastructure has had a major adverse impact on service delivery and the capacity of Papua New Guineans to earn cash incomes.

Increased transport costs arising from deteriorating infrastructure are reflected in reduced smallholder returns for cash crops and increased prices for basic consumer goods such as rice and tinned fish,” the Prime Minister said.

He further acknowledged PNG Ports for infrastructure development projects under its annual capital expenditure (CAPEX) budget and plans. “I am also aware of PNG Ports’ community service obligation (CSO) program for the PNG people’s benefit,” Prime Minister Hon. Peter O’Neill said. 

He reiterated that PNG Ports is committed under its CSO program, which is very much reflective of the Government’s policy desire to deliver vital services to maritime provinces so that the people can be able to access markets and government services.

“The PNG Ports Board’s decision to invest in its CSO program is commendable and I would like to encourage the Board to partner provincial Governments in delivery of your CSO services. The Oro Bay Port Project Rehabilitation is another good example of PNG Ports obligation to this program,” he said.

Prime Minister Hon. Peter O’Neill also outlined that the Oro Bay Port Rehabilitation Project is consistent with the relevant policies of the GoPNG relating to infrastructure development, which includes port and maritime infrastructure detailed in the Government’s Mid-Term Development Strategy 2005-2010 (MTDS) and the National Transport Development Plan (NTDP).

“PNG Ports must be congratulated for adopting the Government initiatives under the MTDS, the overarching economic development policy to improve the economy by enhancing rural development through projects like this designed to reduce poverty, and promote the growth of agriculture, forestry, fisheries and tourism on a sustainable basis,” he said