Completed Development AidData Chinese Aid

China Eximbank provides $77 million loan for Keltiga Junction to Kagamuga Airport Section of the Highland Highway Reconstruction and Upgrade Project (Linked to Record ID#63173 and #65114)

$77M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Papua New Guinea
Country	Papua New Guinea
Start Date	Jan 01, 2017
End Date	Apr 10, 2033
Duration	5,943 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`63174`

Grant Description

China Eximbank provides $77 million loan for Keltiga Junction to Kagamuga Airport Section of the Highland Highway Reconstruction and Upgrade Project Between July 5-10, 2016, during PNG Prime Minister Peter O'Neill's state visit to China, China Eximbank and the Government of Papua New Guinea signed a preferential loan framework agreement for the Keltiga Junction to Kagamuga Airport Section of the Highland Highway Reconstruction and Upgrade Project.

Then, in 2017, China Eximbank and the Government of Papua New Guinea signed a $77 million loan agreement for the Keltiga Junction to Kagamuga Airport Section of the Highland Highway Reconstruction and Upgrade Project.

📋 Loan / Grant Terms

💰 Loan Amountare unknown

However, it is known that the borrower was to use the proceeds of the loan to finance a commercial contract worth K265 million ($77 million) with China Harbour Engineering Co., Ltd. (CHEC) which was signed in August 2016.

The purpose of the project was reconstruct and upgrade a 13.76 km Keltiga Junction to Kagamuga Airport Section of the Highlands Highway in Western Highlands Province. CHEC was the contractor responsible for implementation.

Construction began in September 2017 and the project was issued a Final Acceptance Certificate (TOC) on or around March 24, 2021.

📋 Staff Comments

The Chinese project title is 巴布亚新几内亚西高地省高速公路改造项目. This project is linked to Project ID#63173 and #65114, two additional China Eximbank loans for the Highlands Highway Project.
This record has been marked as having evidence of financial distress because it was part of the debt restructuring agreement captured in record #95853.

📚 Sources & References

Jey Nanthan Ponnusamy Profile
Kagamuga Four Lane Road Work Commences
Joint Press Release Between the People's Republic of China and The Independent State of Papua New Guinea
Full Text: Joint Press Release Between the People's Republic of China and The Independent State of Papua New Guinea
Joint Press Release Between the People's Republic of China and The Independent State of Papua New Guinea
VOLUME 2c 2018 BUDGET ESTIMATES OF REVENUE AND EXPENDITURE FOR NATIONAL GOVERNMENT DEPARTMENTS
Work starts on road from Mt Hagen to Keltiga
VOLUME 2c 2019 BUDGET ESTIMATES OF REVENUE AND EXPENDITURE FOR NATIONAL GOVERNMENT DEPARTMENTS
巴新总理出席中资企业承建的机场改造项目竣工仪式
The National Government Critical Activity Matrix Report
Roads to Inequality: Infrastructure and Historically Grown Regional Differences in the Markham Valley
Papua New Guinea
巴新奥尼尔总理会见到访的中国进出口银行李若谷行长
PNG and China Exim Bank Look to Break Ground on New Projects – Water Treatment and Broadband Internet
Slow Construction of 4-land road
Irks PM
Budget Submission for High Impact Unit and the IDA Office for 2016 Summary Table
FINAL BUDGET OUTCOME 2019
VOLUME 2C 2020 BUDGET ESTIMATES OF REVENUE AND EXPENDITURE FOR NATIONAL GOVERNMENT DEPARTMENTS
K265m road work starts
In brief: Papua New Guinea Government may review petrol supply regime, and other business stories
巴布亚新几内亚西高地省高速公路项目顺利完工
Contractor to handover 4-lane road
Strict prevention measures carried in CHEC Papua New Guinea Office
The reconstruction and upgrade work completed
China's Overseas Development Finance, 2018 Government of Papua New Guinea Bond Prospectus.pdf Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.