Header Ads

Australia Commits K170 million to PNG's Connect Transport Infrastructure Initiative

The Australian Government has agreed to support the national government’s signature PNG Connect transport initiative.

It will co-fund, with the Papua New Guinea Government, Tranche 1 of PNG Connect, which aims to stimulate social and economic development by improving and expanding transport links across the nation.

Australia will provide  K170-million on concessional terms, including a grant component.

 PNG will co-fund just under one-tenth of the work at K16-million 

Tranche 1 of PNG Connect focuses on the TransNational Highway.

The funding, from the Australian Infrastructure Financing Facility for the Pacific, covers the 9-Mile Junction to Bulolo section of the highway in Morobe Province, and the Passam to Lumi section in East Sepik and Sandaun Provinces.

Treasurer Ian Ling-Stuckey this week welcomed Australia’s funding decision, saying it was an important contribution to PNG Connect and the aspirations of the Marape Government to transform the domestic economy.

He says the returns from building this type of road, connecting markets, far exceed the loan costs, further describing it as a good and sensible development.

Mr. Ling-Stuckey says PNG Connect is a fundamental part of the government’s push to promote development from a grassroots level rather than relying on a handful of major projects.

He echoed that the Marape Government regards agriculture, forestry and fishing, and the small and medium entrepreneurial businesses serving those sectors, as the main drivers of sustainable national development.

He says the PNG Connect transport spending is the key to unlocking the economic power of the grassroots and thanked the Australian Government for supporting it.

Mr. Ling-Stuckey says the Tranche 1 project could be the start of further road financing, of up to 370-million dollars, from the AIFFP, focusing on the TransNational Highway. The TransNational Highway is the major element of PNG Connect, a 20-year program to link all four regions.

NBC News / PNG Today

Next :  New Zealand Supports Electrification Project in PNG's Enga Province

No comments

Thank you for visiting this web page. We would like to hear from you, feel free to comment below.

Powered by Blogger.