PNG US$3.3bn road infrastructure loan approved ‘in-principle’

EXIM Bank of China has approved in-principle an initial US$3.30billion loan (PGK 7bn) for infrastructure development in Papua New Guinea. Of the amount, PGK 1bn will be for a new four-lane highway connecting Lae to Nadzab, PGK 2bn for the highway from Gulf to Southern Highlands and PGK 4bn for rebuilding the Highlands Highway. The loan has a low interest rate of 2% for soft loan and 3.5% fir commercial loan.
June 25, 2012 Read time: 1 min
6018 EXIM Bank of China has approved in-principle an initial US$3.30billion loan (PGK 7bn) for infrastructure development in Papua New Guinea.

Of the amount, PGK 1bn will be for a new four-lane highway connecting Lae to Nadzab, PGK 2bn for the highway from Gulf to Southern Highlands and PGK 4bn for rebuilding the Highlands Highway. The loan has a low interest rate of 2% for soft loan and 3.5% for commercial loan.

For more information on companies in this article

Related Content

  • PNG seek US $ 305.13mn for major road improvement projects
    October 26, 2012
    Powes Parkop, the Governor of National Capital District (NDC) Province in Papua New Guinea (PNG), says US $ 305.13 million (PGK 629mn) is being sought by the provincial government for road improvements. Of the targeted total, PGK 600mn is earmarked for the 2013 upgrade of several major routes including the Kookabara Street-Sir John Guise Drive flyover, the Erima roundabout, and the Paga Hill ring road. Some of the sum will also be allocated to build a four-lane road to link Bautama with Gerehu in preparati
    Read More
  • Papua New Guinea is set for extensive road bridge work upgrades
    January 21, 2015
    Papua New Guinea is set to start road and bridge upgrades that could cost upwards of US$576 million. Work on bridges will be paid partly through agreements with the Australian Department of Foreign Affairs, amounting to around US$53 million, and the Asian Development Bank which is putting in nearly $32 million. The Australian Department of Foreign Affairs has also earmarked $101 million to upgrade of arterial roads to standard concrete in the port city of Lae, the capital of Morobe Province. Lae, the
    Read More
  • Road rebuilding for key PNG route
    October 4, 2013
    In Papua New Guinea (PNG) work is now commencing on two key road projects wortha total of US$263 million. Chinese contractors have been awarded the deals to build a four-lane road between Nadzab and Lae and a a 20km road between Kagual Bridge and Kisenopoi Junction. China Railway International (CRI) and China Machinery Engineering Corp (CMEC) will carry out the two projects respectively. Both projects are sections of the Highland Highway with work scheduled to commence in late-2013 to early-2014.
    Read More
  • Papua New Guinea mends its bridges
    February 28, 2022
    Under the latest tranche of the Sustainable Highlands Highway Investment Programme, 45 of the estimated 71 bridges will be completely replaced.
    Read More

Highlighted Content