Thursday, April 07, 2011
K110 million for roads okayed by cabinet
PROVINCIAL and rural roads in 10 provinces will be given US$43 million (K110 million) over the next five years for phase two of the roads maintenance and rehabilitation project (RMRP II), The National reports.
Cabinet approved the World Bank’s proposed credit financing yesterday and agreed to pump in US$10 million (K26 million) as counterpart funding.
Acting Prime Minister Sam Abal said this would be appropriated in the national budget over a five-year period beginning next year.
He said NEC recently endorsed an equivalent of special drawing rights (SDR) US$27.4 million from the World Bank’s international development association (IDA) to pay for the road project.
Provinces included under the RMRP were East and West New Britian, Manus, Northern, Morobe, Gulf, Central, Madang, Milne Bay and Western.
“The RMRP will focus on national and district roads and is set to start in the latter part of 2011 and will continue until 2016.
“The World Bank’s involvement in the roads sector is to continue its support of the national transport strategy,” Abal said.
He said this strategy would concentrate on limited resources and investment in the areas of greatest economic potential, thereby maximising the opportunities for development and growth, both nationally and regionally.
Abal, who is also works minister, said the government had recognised the importance of adequate transport infrastructure and had reflected this in its development blueprints – Vision 2050, PNG development strategic plan 2010-30 and the medium-term development plan 2011-15.