First contract signed for Highlands Highway rehabilitation

Caption:  (second from left) David Wereh Work Secretary, Minister Awesa, Governor General Micheal Ogio, Rui Bai, and Secretary for Transport Roy Mumu.

By MATTHEW VARI

Wednesday, October 2, 2013 (Midweek Chronicle, PNG)

WORK is set to begin on the first section of the highlands highway rehabilitation program, after the signing of the multi-million kina contract, awarded to the China Railway International (CRI) company, at Government House, in Port Moresby last week.

The bidding process had taken two years and was done internationally, starting in September 2011, when the Prime Minister Peter O’Niell announced that infrastructure would be a priority of the state.

The first section of the project will begin at the Bugandi Roundabout to the Wau Bulolo turn off in Morobe Province, inline with the government’s 2013 year of implementation declaration.

At 10.9km in length the road will consist of four lanes at the cost of K287 million- the road is to be of world standard, with the thickest asphalt (bitumen) layer of 30cm, the first of its kind in the country.

This thick layer has been designed to withstand Morobe’s high annual rainfall of 5 meters, according to John Kaio, Interim Director of Infrastructure Development Authority, who said that the road would take three years to complete.

“It is the desire of the government to do roads properly, to meet current demand, to sustain economic growth.”

“We have engaged independent cost estimators from Australia to do cost estimates, and the cost has been very good.”

“We know that the cost of construction in the country is very expensive, but one could still argue that have not been getting the true value for our money,” Mr Kaio pointed out.

Minister for Works Francis Awesa, at the media conference held after the signing ceremony, reiterated the importance and historical significance of the Highlands Highway to the country and the guarantees CRI had given to the state.

“The Highlands highway is one of our most important asset in the country- serving it over the last 20- 25 years, through exports of coffee, tea, Kutubu, Pogera gold mine, and now we are just about to see the benefits of the LNG Project coming online, with the first revenue to be generated  in 2014.”

He added that as agreed CRI was to provide 30 per cent local content, through the engagement of local contractors on a sub-contracting basis, which CRI stated would be derived from the local procurement of raw materials, construction materials, and the employment of local workers.

Minister Awesa announced the contractor’s guarantee of all infrastructure developments of the pavement to last for 20 year, major infrastructure like bridges to last for 40 years.

Vice President Rui Bai said through an interpreter that they would start mobilizing and dispatch engineers to Lae City for the commencement of the project.

“Today we are sitting here honored that the state has passed the project to us, and the successful signing of the contract signifies the realization of the first stage of the project.”

“We believe that through our effort and the common effort of the people of Morobe, we will be able to achieve the project,” she said.

The contract also guarantees that there is no variation- that it is fixed, which means that the contractor will not claim for more money other then the costing they have given the state.