Chinese Bank wants new bid for PNG's PMIZ project

THE China Exxim Bank is insisting on a new concessional loan on top of the original US$95 million (K300 million) secured under phase one for the Pacific Marine Industrial Zone (PMIZ) project in Madang, Papua New Guinea.

Government PMIZ officers in Port Moresby said this is because the initial projections have been revised based on the initial study concept to US$156 million (K506.4 million).

They said the increased costs were based on the approved engineering design necessitating the extra US$61 million.

According to Petroleum Minister and Madang Open MP Nixon Duban, this will result in further delays to the commencement of construction of the project at Vidar.

Of the initial loan facility, the government’s component is US$20 million and the bank’s US$75 million.

The PMIZ office earlier advised that the loan repayment schedule which began in July 2016 would not be affected by the revised costing.

"The PMIZ is slow to get off the ground as the China Exxim Bank has insisted on a new concessional loan proposal. This is now the delay.

"The string of court cases has really affected the work process as well as the change of design," Mr Duban told the Post-Courier this week.

The Secretary for the Department of Treasury Dairi Vele had yet to formally respond to questions put to him on the project delay.

Meanwhile, in relation to the transfer of the project from the Department of Commerce and Industry, Vice Minister for Public Investment and State Enterprise and Member for Usino-Bundi Anton Yagama has advised this is yet to be completed. Post Courier