The National Government has awarded one of the largest road contracts, worth more than K1.5 billion, to COVEC PNG Ltd, a subsidiary of China Overseas Engineering Group Company.
The contract covers the construction of a 242km section of the Magi Highway, from Moreguina Junction to Gadaisu, spanning Central and Milne Bay provinces. The scope of works includes engineering, procurement and financing.
Valued at K1.586 billion (inclusive of GST), the project will be fully funded by the National Government and delivered over an eight-year period.
Governor-General Sir Bob Bofenu Dadae signed the contract, on behalf of the State, on Monday along with a K382.5 million contract for the construction of the Wewak–Angoram Road along the Sepik Coastal Highway in East Sepik Province.
This contract was awarded to China Railway Construction Engineering Group (PNG) and involves the design and construction of an 87km section from Passam Junction to Angoram Station. The project will also be fully funded by the National Government and is scheduled for completion over 48 months.
The two contracts mark a major boost to infrastructure development in Central, Milne Bay and East Sepik provinces. The projects form part of the Government’s broader commitment to improve national connectivity, economic access and service delivery through strategic road infrastructure investment.
COVEC PNG Ltd representatives Wang Siguang and Yang Bo signed their contract while China Railway Construction Engineering representatives Sam Jia and Klaus Jiang signed their contract before the Governor-General. Both contract signings were witnessed by Works and Highways Secretary Gibson Holemba.
The signing ceremony was held at Government House and was also attended by the Minister for Forests and Angoram MP, Salio Waipo.