China Eximbank provides RMB 710 million government concessional loan for Port Moresby City Roads Project

On March 21, 2014, the Export-Import Bank of China and the Government of Papua New Guinea signed an RMB 710 million ($110 million) government concessional loan (GCL) agreement for the Port Moresby City Roads Project (Lot 1 and Lot 2). The GCL reportedly carried the following borrowing terms: a 24.75-year maturity, a 10.25-year grace period, and a 2% interest rate. The proceeds of the GCL were to be used by the borrower to finance a commercial contract that the Government of Papua New Guinea signed with China Harbour Engineering Co., Ltd. on June 14, 2013. The purpose of the project was to (a) reconstruct an 13 km road (Baruni Road) from Konedobu to Baruni and Gerehu (Lot 1) and (b) reconstruct an 8.7 km road from Gerehu to the 9-Mile Arterial Road (Lot 2). CHEC was the contractor responsible for implementation. A project commencement ceremony took place on May 7, 2014, and Papua New Guinea's Minister of Transport conducted an on-site project inspection on November 30, 2015. The project was originally scheduled for completion in July 2016. However, it was ultimately completed on June 22, 2017. 205 Chinese workers and 460 PNG workers were involved in the implementation of this project.

Additional details

1. This project is also known as Lots 1 and 2 of the Port Moresby City Roads Project, Sections 1 and 2 of the Port Moresby City Roads Project, the National Capital City Roads Project, the NCDC Road Improvement Project, the POM City Roads Project, the National Capital District's Road Rehabilitation Project or Construction and Upgrading of National Roads Project. The Chinese project title is NCDC道路改造项目. 2. In the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020, it identifies the loan commitment (signature) year as 2018. AidData has coded the loan commitment year as 2014 based on the precise loan signature date (March 21, 2014). The World Bank's Debtor Reporting System (DRS) appears to identify the loan commitment year as 2015. 3. The loan's estimated borrowing terms are drawn from the World Bank's Debtor Reporting System. See https://www.dropbox.com/s/2sw4f7gluxa52fk/DRS%20Official%20Commitments%20from%20China%20Through%202021.xlsx?dl=0 and https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0 and https://www.dropbox.com/s/949n5rctiue6d7c/IDS_Average_grace_period_and_maturity_on_new_external_debt_commitments.xlsx?dl=0

Number of official sources

16

Number of total sources

29