Photo credit: PNG Ports Corp
Over the next three to five years, local contractors will be involved in K1.5 billion in maritime port infrastructure development projects.
The Australian Infrastructure Financing Facility for the Pacific recently awarded PNG Ports Corporation Ltd (PNG Ports), the owner and operator of 15 declared marine ports in the country, a combined financial package worth AU$580 million (K1.5 billion) (AIFFP).
The funding will be used to rehabilitate six of the 15 ports in Daru, Kavieng, Kimbe, Lae, Lorengau, Oro Bay and highlands Inland Freight Hub.
As part of our ambition to invest in the local business community, PNG Ports Chief Executive Officer Fego Kiniafa stated local PNG companies would be awarded contracts worth at least 30% of the financing.
“Under the AIFFP contract, local PNG content is a critical aspect and we are looking at engaging local contractors to ensure that up to 30% of the money stays in PNG,” Mr. Kiniafa said.
“At least 40 prequalified international contractors, not only from Australia but eight other countries have shown interest, and we will take on board our local PNG companies as well to ensure local involvement and participation is achieved,” he said.
“Our port infrastructure has deteriorated over the decades, immediate rehabilitation works will be done with an aim to build quality, sustainable infrastructure to serve PNG and its people for many years to come.”
The Oro Bay Port renovation project has already begun. Others will follow in the footsteps of PNG Ports' 30-Year Infrastructure Master Plan during the next 18 months.
Mr. Kiniafa delivered the news with a small delegation from PNG Ports and representatives from stakeholder Kumul Consolidated Holdings upon his return from Australia.
The delegation was in Australia to meet with the AIFFP team to discuss collaboration options and to thank the Australian people and government for their great contribution and continuous support to the government and people of Papua New Guinea.
PNGPCL operates/manages 15 of Papua New Guinea's 23 declared ports; one (1) is under agency control, and seven (7) are closed. Aitape, Alotau, Buka, Daru, Kavieng, Kieta, Kimbe, Lae, Lorengau, Madang, Oro Bay, Port Moresby, Rabaul, Vanimo, and Wewak are among the 15 functioning ports. Samarai Port is the only one (1) under agency management. These ports handle more than 5.8 million tonnes of cargo per year, accounting for 100% of Papua New Guinea's total seaborne trade and serving as the principal gateway to more than 300 scattered islands.
Reference: Loop (17 June 2022). “Local contractors engaged in K1.5b maritime projects”.
