The Minister for Public Enterprises, Sir Mekere Morauta, said today National Executive Council had
endorsed the awarding of a contract to China Harbor Engineering Company Limited for a major
expansion and redevelopment of Lae Port.
China Harbor Engineering was the lowest bidder for the contract, worth K734,343,882.
The project is being funded 70 percent by the Asian Development Bank and 30 percent by the National
“This is a very significant contract for the nation, and especially for the Momase-Highlands region,” Sir
“Lae Port cannot meet current demand, and is becoming an impediment to the economic development
of the region.
“Redevelopment and expansion of the port is urgently required so that many large regional projects,
including the LNG Project, can be built on time and at a competitive cost.
“It will also spur other economic development in the region, including agriculture, by helping to lower the
cost of taking goods to local and international markets as well as reducing the transport costs of inputs.”
Sir Mekere said the NEC decision also requires China Harbor Engineering Company to agree to have a
significant proportion of national labor in its workforce and to employ PNG sub-contractors.
The main element of the project is the construction of new port facilities including a tidal basin, a berth
and a terminal. Work is expected to start in the middle of this year and finish towards the end of 2015.
“Lae port accounts for more than 60 percent of Papua New Guinea trade, so the completion of this
project will have a very beneficial impact on our national competitiveness, and will help to limit
increases in the price of goods and services across the Momase-Highlands region,” Sir Mekere said.
“It is one of the most significant national projects to go ahead under the O’Neill-Namah Government.”
Mekere Morauta KCMG MP
Minister for Public Enterprises
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