Wednesday 15 June 2011

PNG Govt secures K74m

Business
Wednesday 15th June, 2011


By MOHAMMAD BASHIR
AFTER sleepless nights and frequent travels between PNG and China, the Government has finally secured a K74 plus million concessional loan from the Export-Import Bank of China for the developments of the multi million Kina Madang Pacific Marine Industrial Zone (PMIZ).
The agreement was signed last Tuesday in China by Commerce and Industry Minister Gabriel Kapris and Zhu Honjie, Vice President of the Export-Import Bank of China.
On November 4, 2009, the People’s Republic of China and the government of PNG entered into the Framework Agreement on provision of government interest-subsidised concessional loan.
The government requested 506,000,000 million Yuan (about K74million) for the financing needs of PMIZ under a commercial contract.
On September 29, 2010, China Shenyang International Economic and Technical Corporation which is the Chinese supplier entered into a contract for the design, construction and supply of equipment and materials for the PMIZ with the PNG government for US$95 million.
With the PNG tuna industry getting duty free access to the European Union, the project is expected to be the leader in the renewable resource sector in the country.
While Minister Kapris is still in China, Commerce and Industry Secretary Stephen Mera yesterday hailed the agreement as a springboard to PNG’s economic boom.
“With the PNG LNG project already leading and putting PNG on the world map, the PMIZ project will further boost and stamp PNG on the world map as a serious investment destination,” he said.
The loan will be used to build the necessary infrastructure for the industrial zone which will in turn be used by foreign investors to build their own plants.
Mr Mera said there were exciting times ahead and he commended Mr Kapris for providing the leadership with his tireless effort.
“I commend the foresight of Minister Kapris and all the other officers of my department, Treasury and finance for their efforts in securing this huge loan,” Mr Mera said.

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