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China Eximbank provides RMB 771.7 million government concessional loan for Phase 2 of Lae Tidal Basin Industrial Development Project
| Funder | Export-Import Bank of China (China Eximbank) |
|---|---|
| Recipient Organization | Papua New Guinea State Treasury |
| Country | Papua New Guinea |
| Start Date | Mar 01, 2017 |
| End Date | Jun 22, 2033 |
| Duration | 5,957 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 64161 |
Grant Description
China Eximbank provides RMB 771.7 million government concessional loan for Phase 2 of Lae Tidal Basin Industrial Development Project On July 7, 2016, the Chinese Government and the Government of Papua New Guinea signed a preferential loan framework agreement for Phase 2 of Lae Tidal Basin Industrial Development Project.
Then, in March 2017, the China Eximbank and the Ministry of Treasury of the Government of Papua New Guinea signed an RMB 771,750,000 government concessional loan (GCL) agreement for Phase 2 of the Lae Tidal Basin Industrial Development Project.
It was scheduled for biannual repayments between March 2022 to March 2037. PNG’s Ministry of Treasury on-lent the proceeds of the GCL to Papua New Guinea Ports Ltd. (a state-owned enterprise).
The purpose of the project was to construct a second berth — at least 240 meters in length — at the Port of Lae’s international container wharf and provide additional facilities for cargo storage behind the wharf. The Port of Lae is the largest and busiest port in PNG. China Harbour Engineering Co., Ltd. (CHEC) was the contractor responsible for implementation.
This project was expected to reach completion in late 2019.
However, in October 2020, PNG’s Minister for State Enterprises reported that Phase 2 was suspended due to technical concerns and questions about the quality of the work. As a result, the third phase of the project was brought forward.
The Papua New Guinean government committed to “continue its role in developing the basin into an infrastructure hub”; the government continued to identify the Chinese loan was the funding stream for this project as of April 2025. In September 2022 it was reported that SMEC (Australia) had taken the lead on Phase 2.
Staff Comments
This project is also known as Phase II of the Lae Tidal Basin West Side Industrial Development Project and the West Side of the Lae Tidal Basin and Huon Industrial Park Project. Phase 1 of the Lae Tidal Basin Industrial Development Project was financed by the Asian Development Bank and implemented by CHEC between June 18, 2012 and December 17, 2014.The China Eximbank loan that supported Phase 2 of the Lae Tidal Basin Industrial Development Project is identified as an active loan in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. AidData has status-coded the loan as suspended.
Sources & References
- 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
- PNG Breaking News · July 26
- Addressing Barriers to Growth
- PAPUA NEW GUINEA REPORT ON GOVERNMENT FINANCE STATISTICS MISSION
- Final Budget Outcome 2017
- CLOSE COLLABORATION UNDERPINS PNG PORT REFORMS
- Lae port expansion to be completed late 2019, says PNG Ports MD
- Lae Port Job Suspended
- PNG Ports accelerates Lae Industrial Park build, as Stage 2 of port commences
- Kumul Consolidated Holdings responds to claims published in The National newspaper
- The Project for the Study on Lae-Nadzab Urban Development Plan in Papua New Guinea
- The Completion and Operation Ceremony of Lae Port Tidal Wharf DevelopmentProject Phase I in Papua New Guinea was Held
- China's Overseas Development Finance
- Joint Press Release Between the People's Republic of China and The Independent State of Papua New Guinea, 2018 Government of Papua New Guinea Bond Prospectus.pdf
- SMEC to lead major infrastructure development at Port Lae Tidal Basin (Phase 2), 2021 PNG Ports Audited Financial Statement
- Public investment program 2023-2028
- Volume 3B PUBLIC INVESTMENT PROGRAM FOR STATUTORY AUTHORITIES AND PROVINCIAL GOVERNMENTS 2022 – 2026 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.
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Papua New Guinea State Treasury
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