Announcement of Papua New Guinea to Improve Transport Systems and Construction Industry on July 24, 1987

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 87/7 Contact: Pushpa N. Schwartz (202) 477-3651 PAPUA NEW GUINEA TO IMPROVE TRANSPORT SYSTEMS, CONSTRUCTION INDUSTRY WASHINGTON, July 24 -- Papua New Guinea will improve its land and air transport systems, as well as the local construction industry, through a project that will be assisted with a loan of $45.5 million from the World Bank. The $64.7 million project is expected to reduce operating costs for vehicles and make airport operations safer. About 80 kilometers of the national road will be reconstructed and upgraded, and new gravel will be applied over some 500 kilometers of roads. Fifty defective bridges will be replaced or rehabilitated. Equipment and materials will be provided for better maintenance of roads. New equipment for navigation, weather, and communications will be installed at 14 airports. Runways, taxiways and aprons at 16 airports will undergo regravelling and resealing, while fire stations and drainage at four airports will be improved. The Departments of Works, of Transport, and of Civil Aviation and Tourism will receive technical assistance in implementing the project. This assistance includes consultant services and staff training to help implement transport policies, establish a gravel pit inventory, and carry out studies for future projects. Research in road maintenance will be supported. An action program for the construction industry will be devised to benefit medium- and small-scale local contractors and improve contracting procedures. Other financing for the project is expected to come from the government ($16.1 million) and the Australian Development Assistance Bureau ($3.1 million). The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 8.23 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.