PNG Ports Corporation Limited (PNGPCL) has successfully acquired a K300 million loan from Bank of South Pacific (BSP) for the new Motukea Port facility.
Chief Executive Officer of PNGPCL, Mr. Stanley Alphonse said the funds will be specifically used as part of the Port Moresby Port relocation project to reclaim about 60 hectares of underwater lease and on top of that build about 500 metres of quay line (wharf extension) and mounted tracks at the storage facilities.
“We will eventually get an international terminal operator in with the necessary gear to increase productivity and efficiency of the supply chain and of course the necessary causeway that will lead from the new port facility onto the main roads that go into the city,” Mr. Alphonse said.
He said “in a sense we will be building a modern port facility that will ensure that we have the necessary shore side infrastructure under very strong concessions with the particular aim of getting the efficiency that this country will desire more mainly getting through the supply chain and having reduced costs at the grocery shops.”
“As soon as the draw down comes in we are looking at the first 18 months to the get the project done,” he said.
PNGPCL Chairman Mr. Nathaniel Poya acknowledged BSP for providing the loan for the Motukea Port development.
“PNGPCL is not getting any guarantees from the PNG Government so we are happy to work with and partner with BSP and look forward to a long term working relationship. This loan will be part of PNGPCL’s balance sheet,” Mr. Poya said.
Robin Fleming BSP CEO “BSP as a proud Papua New Guinea bank and PNG Ports as one PNG’s leading State companies have led this landmark transaction for PNG and we will continue to provide solutions to the strategic infrastructure sectors. BSP and PNG Ports continue their commitment to businesses and communities across PNG”.
This transaction highlights BSP as the local market leader when it comes to being able to deliver complex financial solutions for the development of major resource and infrastructure projects. BSP’s commitment and capabilities stretch well beyond pure debt financing delivering “whole of bank” solutions where all stakeholders’ requirements are met.
Colm Lynch the Head of Specialised Lending from BSP Corporate Banking explained “It’s about matching a solution based approach that meets the complex needs of all stakeholders, we make sure that our proposals have a benefit to the wider community as well as the company undertaking the project”.
BSP Group General Manager Corporate Banking, Peter Beswick, also noted that the bank has capabilities and financial solutions for Local and International companies operating in PNG.
Our team has extensive local knowledge that enables them to partner with customers to get things done. The team is supported by a market leading range of corporate finance specialists covering foreign exchange, internet banking, e-channels, working capital, and asset finance.” he said.