Announcement of Papa New Guinea Special Interventions Project on February 1, 1991

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. 91/41 Contact: Richard Kollodge Tel: (202) 473-1792 PAPUA NEW GUINEA SPECIAL INTERVENTIONS PROJECT Following are details of a project approved by the World Bank's Board: DATE: February 1, 1991 WORLD BANK GROUP SUPPORT: World Bank loan: $30 million. The loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $40.3 million OTHER FINANCING: Government of Papua New Guinea, $1 million; Participating banks, $4 million; Homeowners, $5.3 million IMPLEMENTING AGENCIES: National Housing Corporation (NHC); Small Business Development Corporation (SBDC); Department of Trade and Industry; Department of Finance and Planning; Department of Public Works; National Capital District Interim Commission (NCDIC) ESTIMATED COMPLETION DATE: 1993 PROJECT DESCRIPTION: The objectives of the Small Interventions Project are to: (a) enhance employment opportunities among low-income and unemployed urban workers through labor-intensive work programs, such as drainage and house construction; (b) provide finance for mortgages for low- an,d middle- income houseowners; (c) assist small contractors and entrepreneurs; and (d) strengthen project planning, monitoring, and management capabilities in the Department of Finance and Planning. The project includes: (a) provision of housing and plot mortgages through the Housing Refinancing Facility (a line of credit established by the Central Bank of Papua New Guinea for refinancing housing mortgages made by eligible commercial banks); (b) technical assistance for the National Housing Corporation (NHC); (c) improvement of about 12,000 meters of side drainage along selected national roads, provision of earth and concrete drainage, including culverts at road sections where pavement failure due to saturated soil is a threat; (d) a drainage masterplan and urban services study; (e) technical assistance to small industry for the development of small contractors and entrepreneurs; and (f) technical assistance for project management, monitoring, and studies.