DOW UPDATES 'CONNECTING THE UNCONNECTED AND REACHING THE UNREACHED'

'CONNECTING THE UNCONNECTED AND REACHING THE UNREACHED'

Connect PNG Programme - Financing and Progress Update

HON. SOLAN MIRISIM, MP Minister for Works and Highways

THE Marape-Rosso Government's vision to achieve 100% Road connectivity in PNG by 2040 has just received a funding boost of K300 million. This additional funding will maintain good progress on ongoing works under the Connect PNG Economic Land Transport Infrastructure Development Programme, popularly referred to as the "Connect PNG Programme". The additional funding will also kick start upgrading works on 6 more new critical sections of the national road network on the Manus, East-West Highway, the New Britain Highway (East & West New Britain), the Magi Highway {Central & Milne Bay), the Ramu Highway (Madang & Morobe) and the Coastal Highway (East & West Sepik sections). The Minister for Works and Highways - Hon. Solan Mirisim, MP reinforced the government's strong funding commitment for the Connect PNG Programme, during these difficult economic times. The Marape-Rosso Administration has appropriated K600 million for capital works in the 2022 budget. This includes K300 million for provincial and district roads under a Subnational Roads Development Programme, separate from the Connect PNG Programme. To date, all of the 2022 funding have been released in full aa intended according in the 2022 Annual Work Plan. Minister Mirisim expressed his satisfaction on the overall performance of the Connect PNG Programme, attributing the programmes exceptional progress, to the government's strong leadership and commitment, and the huge support from Donors and Development Partners, with ongoing guaranteed funding support. Minister Mirisim also commented that the government recognizes the important role transport infrastructure plays in providing connectivity for our urban and rural communities, businesses and industries. "Good roads bring a conducive environment that encourages investment in socio-economic development. Roads, in particular, play a crucial role in encouraging socio-economic development and progress of the country, as land transport accounts for over 80% of national freight and passenger traffic volume." "Despite the important role roads play in the development our country, our existing road network has deteriorated because of neglect over the last 20 years and it has steadily fallen into a state of disrepair due to lack of maintenance. The poor road network condition has become a brake on our economic development. Access to markets and service delivery have become much more difficult, travel time and vehicle operating costs for road users, are

much higher than normal." To address the challenge of recovering the condition of the road network and improve road connectivity for our citizens and businesses, the Marape-Rosso Government approved in 2020, the 20-years Connect. PNG Economic Road Infrastructure Development Programme 2020-2040. The total cost for the Connect PNG Programme is K20 billion. The Connect PNG Programmes long-term goal is to obtain '100% Road Connectivity for PNG by 2040'. In the mediumterm, the goal is to achieve a road link between the National Capital District with Morobe, Madang and the seven Highlands Provinces, before the country's 50th Independence anniversary. Minister Mirisim pointed out that "The achievement of this road linkage by the September 2025 target date, will symbolize our national development, cohesion and unity over the past 50 years of independence, as well as achieve a significant development milestone, by connecting our two biggest cities for the first time. This target will also enable our people on the mainland to travel affordably, to celebrate PNG's Golden Jubilee in Port Moresby or their home province, as they wish. In 2021, the National Parliament passed the Connect PNG (Implementation and Funding Arrangements) Act 2021. The purpose of this Act is to legislate a guaranteed minimum funding for the Connect PNG Programme, equivalentto 6.5% of the annual budget, each year. Based on Treasury's medium-term budget forecast for 2023-2027, the minimum funding translates to around Kl.4 billion annually, for the Programmes Phase 1 period up to 2027, inclusive. "The Connect PNG Programme is Prime Minister Marape's 'flagship' development programme. I am therefore very thankful for the support and the importance the Prime Minister has accorded to the Programme since his Cabinet approved it in 2020." The Programme aims to rehabilitate and reconstruct 16,500 kilometers of economic roads and 1,000 meters of bridges and other drainage structures that have deteriorated over time due to lack of regular maintenance. The Programme is also constructing Missing Link Roads (new economic road links) totaling around 4,200 kilometers. Currently the Missing Link section of the Trans National Highway between Aseki in Morobe Province and Epo in the Gulf Province is under construction. The completion of this road section will establish the strategic connection between Port Moresby and Lae City. The Connect PNG Programme is being implemented in three Phases. Phase 1 is from 2020-2027 at K7.98 billion. When the Marape Government came into power in 2019, there were DoWH was implementing over 230 contracts around the country. The estimated total value of these ingoing works inherited from the previous administration was K3.4 billion. All of these works were absorbed into the Connect PNG Phase 12020_2027 Programme Target. Since the inception of the Connect PNG program in 2020, the Marape Government has completed road works of approximately K3 billion between 2019 and 2022. This expenditure comprised Kl.93 billion for the upgrading and rehabilitation of 2,000 kilometres of roads and another K500 million comprised arrears for unpaid contract claims inherited from the previous Government between 2012-2018. In addition, there was an additional 3,200 kilometres of both National Roads and Sub-National Roads procured and implemented under the Marape-Rosso Government in the same period. Some of these completed major road works include: (i) Upgrading to 4-Lanes Lae-Nadzab Section of the Highlands

Highway at K300 million. This Contract is currently on Phase 2 from 9 Mile to Yalu Bridge. (ii) Rehabilitation and Upgrading of 430 kilometers of the

Highlands Highway from Nadzab to Mt. Hagen at close Kl.0 billion. (iii) Upgraded to 4-Lanes Kagamuga-Keltiga Section of the

Highlands Highway for K286 million. (iv) Construction of Gulf-Southern Highlands Highway (12 kilometers) Missing Link Section for Kl00 million. (v) On-going Construction of 141 kilometers of Missing Link

Section {Aseki in Morobe to Epo in Gulf) of the Trans-National

Highway with the PTO Equipment of the Department of Works and Highways, under 'Force Account' arrangement. (vi) Construction work on-going for more than 47 kilometers of

Missing Link Road between Central Province and Milne Bay

Province for K14 million. (vii) Construction of 100 kilometers of Missing Link Road (Finschaffen Highway) from Lae to Finschhaven for K287 million. (viii) Rehabilitation of Boluminisky Highway from Kavieng to

Namatanai. (ix) Upgrading to seal of the New Britain Highway from Kokopo to Kerevat in East new Britain to be continued with the

construction of the Missing Link between East and West

New Britain to Kimbe. (x) Rehabilitation and maintenance of 126 kilometers of the

Hiritano Highway for K77 million. (xi) Construction of 12 bridges on the West New Britain side of the New Britain Highway. (xii) Supply and construction of 1,000 meters of rural standard bridges across the 22 provinces and districts. (xiii) Other Missing Link Roads under the Connect PNG

Programme include Madang-Gulf Highway, Trans-fly

Border Highway from Kiunga to Aiambak section, Tabubil -Telefomin, and the Trans Fly Border Highway from Oriomo (Daru Coast) to Wipim Station section.

For the 2022 to 2025 period, DOWH will commence KS.6 billion worth of road works programmes representing the biggest capital works programme ever undertaken in PNG. This includes Kl.3 billion Bridges Rehabilitation and Replacement Programme on the Highlands Highway to complement the ongoing road works between Nadzab in Morobe and Kagamuga in the Western Highlands Province. "I'm very thankful to the government for the K150 million funding to improve vulnerable sections of the strategic and critical economic Highways, such as the Manus Highway, Sepik Highway, Magi Highway, Hiritano Highway and Trans-National Highway. Furthermore, the government has approved an additional K140 million in outstanding counterpart funding for the ongoing Highlands Highway SHHIP program to improve the most critical sections of the Highlands Highway in Simbu Province, Daulo Pass and Kassam Pass in the Eastern Highlands Province and subsequently improve overall value and quality of the highway." The benefits of improved road conditions and increased road connectivity increases mobility for the majority of our people, mainly the rural majority. It also increases freight both in terms of volume and frequency. With increased mobility and freight come greater opportunities for socio-economic development and participation in the formal economy by the majority of our people. Good road conditions and connectivity further result in positive multiplier effects such as better accessibility to markets, employment, schools, health services and additional investments. In summary, poor road conditions and the lack of road connectivity have a negative or adverse impact on the economy in general and on the lives of the people. Improvement of our roads will decrease the overall cost of transport, which in turn will help decrease business costs and increase opportunities for new investments and business growth in all sectors of the economy. At the same time, the cost of delivering public goods and services decreases. I, therefore, acknowledge and thank the Marape-Rosso Government for its bold decision in investing in this 'flagship' Connect PNG Programme, to ensure that our existing road networks are improved whilst our unconnected places and people are connected by roads. The Connect PNG Programme is a 'game changer in the development of our country. Papua New Guinea must be connected by safe and reliable roads by 2040 and must have all roads in good conditions so that we can improve our socio-economic development indicators and improve our position on the Human Development Index and elevate ourselves to a middle-income country. l