Announcement of Papua New Guinea to Improve Land Management on May 8, 1989

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 89/58 Contact: Leandro V. Coronel (202) 477-3641 PAPUA NEW GUINEA TO IMPROVE LAND MANAGEMENT WASHINGTON, May 8, 1989 -- Papua New Guinea is launching a project to improve land management in the country. The World Bank is providing a loan of $19.6 million to support the project, which is a part of the government's efforts to strengthen sectors, such as agriculture, forestry, transport, mining and urban services. The five-year project aims at improving land-use planning, policy, legislation, and administration. The benefits of improved land management will lead to lower transaction costs, greater revenue collection and incentives for land-based investments. The project will enable land owners to increasingly participate in development of their own land, and create clear policy and legislation to promote land investment. The project will also develop systems to decentralize land administration in the provinces and to expedite identification and allocation of "alienated" land, which is owned by the state. The Papua New Guinea government will provide $16.8 million to finance the project and Australia, $6.4 million. The World Bank loan is for 20 years, including five years' grace, with a variable interest rate, currently 7.65 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balance. NOTE: Money figures are in U.S. dollar equivalents.