Contacts: In Washington: Elisabeth Mealey (202) 458-4475, emealey@worldbank.org In Sydney: Sue Spencer (61 2) 9235 6551 or (61) 409 740 725, sspencer@worldbank.org WASHINGTON, April 26, 2007– The World Bank Board of Executive Directors today approved an International Development Association (IDA) additional credit of US$37 million to finance ongoing maintenance of highways and national roads in Papua New Guinea (PNG). The Government of Papua New Guinea will match the additional financing credit with US$20 million from its own funds. The project will be implemented by the Government through the Department of Works and the Department of Trade and Industry. The IDA credit will supplement the World Bank’s ongoing US$40 million Road Maintenance and Rehabilitation Project (RMRP) Loan, for technical assistance, maintenance and rehabilitation of key national and provincial roads and bridges in six provinces in Papua New Guinea and which is due to close on 31 December 2007. The Government of Papua New Guinea requested the additional financing to ensure continued maintenance activities and to prevent deterioration in the country’s key national and provincial road networks until its National Transport Development Plan becomes operational shortly. Maintenance works on existing roads in two new provinces – Gulf Province and Western Province, is also included in the Additional Finance package. This increases the number of project provinces from six to eight. PNG has an estimated 27,000 kilometers of roads and land transport plays an import role in the country’s economy. Much of the country is mountainous, geologically unstable and subject to high, torrential rainfall. Rapid deterioration of roads is a constant risk and road construction and maintenance is costly. “Given Papua New Guinea’s high dependence on its road transport network for social and economic development, this investment in ongoing high priority road and bridge maintenance activities, will help support the growth and poverty reduction goals for the country,” said Nigel Roberts, World Bank Country Director for PNG, Timor-Leste and the Pacific. “The new road contracts will also incorporate an employer HIV/AIDS prevention policy and this will enhance the goal of HIV/AIDS containment.” A recent Socio-Economic Mid-Term impact study of this project shows positive results for several groups of residents and users. Many households living along project roads increased market gardening and farming activities in response to improved access to markets and suppliers. These works have also had a positive impact on the livelihoods of women, children and low income residents through access to health and education facilities, reduced transport cost, etc. Income levels have improved significantly in most of the sample villages and the study also revealed reduced erosion and flooding along upgraded and resealed roads. ### |
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