• PNG Business News

ADB Grants Government K1.75 billion

In transforming all state-owned companies, the Asian Development Bank (ADB) has granted the government K1.75 billion.

Minister for Treasury Ian Ling-Stuckey said that this is beneficial in transforming the enterprises into high performance and quality organisations.

“This program encompasses all SOEs. It will bolster their financial and technical capacities and, together with greater transparency and accountability, will underpin PNG’s long-term economic growth prospects and potential,” Mr Ling-Stuckey said.

He added that the US$500 million loan approved by the ADB- with the initial US$100 million provided in 2021 - supports the SOE reform program.

“The opposition will jump up and down and just say more debt. But as a businessman I am willing to borrow if my returns are much greater,” he said. “This loan from the ADB will be at an interest rate of less than one per cent – so just over one-tenth of the cost of the disastrous and expensive Sovereign Bond issued by the O’Neill government and other expensive commercial borrowings. The rate of return from this project will be high and easily cover the cost of the borrowings.”

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