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HomeNewsDoWH releases more than K261 million payment to twenty contractors

DoWH releases more than K261 million payment to twenty contractors

THE Marape-Rosso Government is committed to delivering on its development priorities including the Connect PNG Programme.

As such, the government through the Department of Works and Highways (DoWH) has announced release of more than K261 million of the K350 million payment for the major Connect PNG Programme nationwide.

Minister for Works and Highways Solan Mirisim made the announcement yesterday saying “the government allocated a payment of K261, 301,945.77 to twenty contractors”.

Meanwhile, the Minister dispels the ongoing misinformation on social media claiming “Connect PNG Programme a scam”.

He says there are few political opponents who want to politicize the K350 million that was released to DoWH early this month.

Mirisim said Connect PNG Program is not a scam nor a white elephant as speculated earlier, however, it is one of the life changing program ever under taken by any government in PNG’s history.

He adds that the contractors are both international and local ranging in the size from large to SMEs and there was no single contractor or few contractors being paid with these funds as speculated.

“From the K350 million, DoWH has now released K261 million on Monday (yesterday) 29th of January 2024.

“The highest payment being K32 million to Covec PNG Ltd for the construction of the 4-Lane Highway from Kokopo Town to Tokua Airport.
“The lowest payment being payment of K8, 937.61 to Mettalergical Corporation of China (MCC) as an outstanding payment for the Nazab to Henganofi Contract under the ADB-funded Sustainable Highlands Highway Rehabilitation Investment Programme (SHHIP).

“The payment consists of K76 million to Highlands Region, K75 million to New Guinea Highlands Region, K67 million to Momase Region and K40 million to Southern Region,” Minister Mirisim explains.

He said these payments are made after having the invoices for payments gone through a vigorous vetting process that starts in the field with thee Project supervision and Management Consultants who provide independent project management service on behalf of the government.

“That means that the contractor has done well and deserve to be paid.”

Mirisim further acknowledge the patience of the contractors whilst DoWH does its work of verifying and approving the invoice of the payments.

“Out of 20 contractors, there are about six (6) international contractors whilst the majority fourteen (14) are local Contractors.

“The local contractors range from large to small and that really shows that the Connect PNG programme is building the capacity of the local Contractor.

“I would strongly encourage our international and large local contractors to ensure sub-contracting arrangements to continue to build our SMEs in the construction sector.

“That is already achieving the SME Policy objectives as well as adhering to the provision of the National Procurement (Amendment) Act, 2021, which provides for local participation.

“I want to remind the contractors to bear in mind that you will always be paid, whether within or outside of the requirement payment period. Therefore I encourage you to continue to work on delivering on the respective contracts and ensure that the final outcomes reflect value for money and reflect the accepted standards for sustainability.”

Minister Mirisim further elaborates that the Connect PNG Programme is a 20 years Programme and therefore, the contractors’ participation in the program will very much depend on the performance of their current engagement.

“It simply means, do your best and deliver the best and you have better chance of future jobs in the programme.”

Minister Mirisim also highlighted two key important things in respect to the implementation of Connect PNG Programme.

“Firstly, the Connect PNG Program is no longer implemented in a “Business As Usual’ approach, however the Marape-Rosso Government demands the best from all the stakeholders involved in delivering this flagship Development Programme.

“The government does not want changes in the scope, changes in cost and changes in project.

“When you sign contracts, you must be sure of the scope of work, the cost to deliver that scope, and time required to deliver that scope of work.

“Secondly, the DoWH must step up to ensure the contractors are delivering according to agreed schedules and cost whilst the Management and Supervision Consultants are doing their job without compromise.

“It is a must that every one contracted in a project must earn an honest pay and that task rests with the DoWH.

“You must take responsibility and deliver a Programme that will contribute to Nation Building into the future.”

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