World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search


PNG's Lae Port Receives $108.25m For Expansion

Papua New Guinea's Lae Port Receives $108.25m For Expansion

Manila, Philippines - The Asian Development Bank (ADB) and its development partners are providing a financial assistance package totaling $108.25 million to expand Lae Port, the largest and most important port in Papua New Guinea.

ADB is extending a $100 million loan for the Lae Port Development Project, which involves the construction of port facilities including a tidal basin, a multipurpose berth and terminal works including buildings, storage areas, roads, drainage, water, electricity and sewerage services.

The OPEC Fund for International Development, the multilateral financing facility of the Organization of Petroleum Exporting Countries (OPEC) that channels aid to developing nations, is providing a $6 million loan to fund the civil works for the port facilities.

A $1.5 million grant from the Japan Fund for Poverty Reduction will finance the livelihood enhancement activities and social services involved in the resettlement of those who will be affected by the project.

There will also be a $750,000 grant from ADB's Cooperation Fund for Fighting HIV/AIDS in Asia and the Pacific to minimize the potential risk of new HIV/AIDS infections. The fund was set up in 2005 and focuses on operational support, to ensure that HIV/AIDS concerns are adequately addressed in ADB core business activities; and on increasing capacity at country and regional levels to address HIV/AIDS.

To complete funding for the project, the government of Papua New Guinea is providing $45.75 million.

Papua New Guinea's economy relies heavily on trade. The port sector is particularly critical since of the 20 provinces comprising the Pacific island nation, 15 are on the coast and more than 60% of the nation's six million people are widely dispersed. There is no national rail or road network.

"The port sector is important not only for the adequate and efficient handling of exports and imports, but also for the efficient movement of goods and people between the remote and sparsely populated areas on the mainland and islands and the centers of economic activity," said Li Cai, Infrastructure Specialist of ADB's Pacific Department.

Lae Port serves as a gateway linking the world market with a large hinterland, which comprises half of Papua New Guinea and where about half the population lives. Since 1995, the port has experienced an average annual increase in cargo of 131,000 tons, with containerized cargo growing more than 5% and general cargo by 2.5% annually. In 2005, the volume of cargo through Lae Port reached 2.4 million revenue tons, stretching it to the limit of its capacity. Frequent congestion at the port results in high costs for users and hampers international and domestic trade. The situation is expected to worsen as the country's economic prospects remain strong. Some shipping companies have expanded their fleets and are demanding efficient and modern port infrastructure and management.

"The PNG macroeconomic outlook has improved considerably as a result of strength in commodity prices. The Highlands region, with the Highlands Highway and Lae Port, forms the backbone of the economy, and is experiencing a boom in development activities. Unless Lae port is expanded, and capacity increased, Lae port will become a binding constraint to the continued economic prosperity of this island nation." said Philip Erquiaga, Director-General of ADB's Pacific Department.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 67 members - 48 from the region. In 2006, it approved loans and grants for projects totaling $8.5 billion, and technical assistance amounting to almost $242 million.


Latest World News | Top World News | World Digest | Archives | RSS

© Scoop Media

World Headlines


Gordon Campbell: Is This Guy The World’s Most Dangerous Thirtysomething?

Saudi Arabia has long been regarded as a pillar of stability in the Middle East, and is the essential caterer to the West’s fossil fuel needs. It is also the country that gave us Osama Bin Laden, al Qaeda, and 15 of the 19 terrorists who carried out the 9/11 attacks... More>>


Non-Binding Postal Vote: Australia Says Yes To Same Sex Marriage

Binoy Kampmark: Out of 150 federal seats, 133 registered affirmative totals in returning their response to the question “Should the law be changed to allow same-sex couples to marry?”. More>>


Bonn Climate Change Conference: Protecting Health In Small Island States

The vision is that, by 2030, all Small Island Developing States will have health systems that are resilient to climate change and countries around the world will be reducing their carbon emissions both to protect the most vulnerable from climate risks and deliver large health benefits in carbon-emitting countries. More>>


Camp Shut Down: Refugees Must Be Rescued From Manus

On 31st October 2017, the detention centre on Manus Island in which the Australian Government has been holding more than 700 refugees was closed, leaving those living there in a desperate situation. More>>



Rohingya Muslims Massacred: Restrictions On Aid Put 1000s At Risk

Amnesty: The Myanmar authorities’ restrictions on international aid in Rakhine state is putting tens of thousands of lives at risk in a region where mainly Rohingya people are already suffering horrific abuses from a disproportionate military campaign. More>>


  • Pacific.Scoop
  • Cafe Pacific
  • PMC