PNG to borrow big from China
Papua New Guinea Prime Minister Peter O'Neill says a $A2.8 billion loan from China will greatly improve infrastructure in the country, dismissing criticism that the loan is too big to be repaid. The O'Neill government and China's Exim bank are currently working out the details of the massive loan, first announced two months ago. Mr O'Neill says the money will be used to upgrade the Highlands Highway, a decrepit road running through the heart of the nation, as well as improvements to the nation's airports. "Our infrastructure in the country is declining to a state where some infrastructures are not able to cope with the demands of our people and our economy," Mr O'Neill told Radio Australia. "So when you look at this, what solutions do you have? We need to program a massive overhauling and redevelopment of many of these infrastructures, particularly the transport systems in the country, and we are doing that by borrowing large sums of money."