DONOR AGENCY FUNDED PROJECTS

1. World Bank Road Maintenance

  • Appropriation: K55.0 million (GoPNG K15.0 million)
  • Funds Received: K53.05 million (GoPNG K15.0 million, WB K24.1 million,PNGSDP K3.87 million)
  • Expended: K30.37 million

World Bank loan IBRD 7119 PNG came into effect on 7 February 2003 to implement the Road Maintenance & Rehabilitation Project (RMRP) for 8 provinces: Central, Oro,East New Britain, West New Britain Morobe, Manus, Western and Gulf. The original loan value of K240 million was reduced to K188 million due to different funding percentages by the Government and the Bank, and the appreciation of the Kina against the US$ as well as several other factors. Additional funding for K113 million under the International Development Assistance has been given to the project with it being extended to December 2009. Six contracts awarded in 2006 at a total cost estimate of K38.68 million covering 95 km have been completed. Major delays were weather and low contractor resource capacity.

2. Asian Development Bank (ADB) Road Maintenance Program

  • Appropriation: K110.0 million (GoPNG K30.0 million)
  • Funds Received: K89.85 million (GoPNG K30.0 million)
  • Expended: K68.45 million
The initial scope of the 5 Highlands Provinces under the ABD loan 1709 include:
  • Upgrading and sealing of 220 km of selected roads
  • Rehabilitation of 450km of selected roads
  • Training
  • Institutional strengthening

The total loan of K115 million became effective in February 2000 of which GoPNG is to provide K43 million. Due to poor counterpart funding from GoPNG, ADB increased its counterpart funding which effectively reduced the road lengths to be maintained. A supplementary loan has been successful to maintain up to the original scope of works. The project has been extended to 2010. 13 sub-projects have been approved under this program.

ADB Loan 1709,2242,2243



MFF Loan


3. Highlands Highway Maintenance

  • Appropriation: K18.8 million (GoPNG K1.0 million)
  • Funds Received: K24.19 (GoPNG K1.0 million)
  • Expended: K9.66 million

AusAID under Key Roads for Growth Project has committed K110 million for the maintenance of the section of the Highway between Lae and the border of Eastern Highlands/Simbu provinces. Progressive works are being carried out from 2006 for three and a half years. Various minor works contracts attending to emergencies were let in 2006 and all but two are complete. The two not attended to are due to landowner issues and were terminated.

4. Highlands Highway Rehabilitation Program

  • Appropriation: Nil
  • Funds Received: K141.86 million from 2005-2007
  • Expended: K137.8 million

NEC Decision 134/2005 has made it possible for a total of K225.0 million to be made available between 2005 and 2008.a total of K215.0 million has been made available so far of which K73.3 million was used to support the ADB program and emergency maintenance of the Highlands Highway. This leaves a balance of K141.86 million No separate funding has been made available for land acquisition of certain sections of the Highway thus part of the funds allocated are being used for this purpose.

5. Transport Sector Support Project (TSSP)

  • Appropriation: K52.26 million (GoPNG K1.0 million)
  • Funds Received: K91.13 million (GoPNG K1.0 million)
  • Expended: K72.49 million

This is yet another project that AusAID has initiated which embraces all modes of transport. This project which was set to commence in 2007 is still in its early stages. AusAID has made funds available to continue maintenance of roads and bridges. The funding of K91 million includes funds from previous programs of which projects have yet to be formally concluded.Tenders for 13 packages were put together and called for in 2006. A total of K78.2 million worth of contracts were let to cover 404km. By the end of 2007, six contracts covering 341km valued at K38.7 million were completed.

6. Highlands Highway Bridge Replacement Program

  • Appropriation: K1.0 million (GoPNG K1.0 million)
  • Funds Received: K1.0 million (GoPNG)

Japan International Cooperation Agency (JICA) is funding the replacement of 12 bridges along the Highlands Highway in the Eastern Highlands Province. Bridges under this program are:

  • Orompaka Dirty Wara
  • Nonompinka Siguya
  • Honeranka Yasifo
  • Ofiga Parirosay
  • Umbake Benbena
  • Kinkio Sunufamu

This program is being executed in two stages and physical work on this first stage was completed in 2006.Landowner issues are being undertaken by stakeholders prior to the commencement of the next phase. A project consultative committee was formed and under this arrangement 5 of the 7 MOUs (one per bridge site) are now in place. One site is till waiting for the MOU to be signed whilst the other is on state land thus an MOU is not necessary.

7. Markham Bridge

  • Appropriation: K8.37 million (GopNG K0.5 million)
  • Funds Received: K0.5 Million (GoPNG only)
  • Expended: K0. 42 million

This bridge is funded by JICA who have confirmed that the Markham Bridge will only be rehabilitated and not replaced. JICA Has indicated that certain pre-requisites (e.g land owner issues etc.) be done prior to actual commencement of work.This project is not being re-tendered in Japan as the previous Bid was considered too high.

8. Bridge Rehabilitation Program

This is an AusAID project but as yet there has been no funding.