ODA Loan to Papua New Guinea to Support its Economic Structural Reform

August 4, 2000

The Government of Japan has decided to extend to the Government of Papua New Guinea an ODA loan of up to 5,350 million yen to support its structural adjustment program. Notes on this loan were exchanged on August 4 (Fri) in Port Moresby between Mr. Tatsuo Tanaka, Japanese Ambassador to Papua New Guinea, and Sir Mekere Morauta, Prime Minister and Minister for Treasury and Finance of Papua New Guinea.
This ODA loan, co-financed with the International Bank for Reconstruction and Development (IBRD), will support the structural adjustment program implemented by the Government of Papua New Guinea and will support its international balance of payments. The loan will be used as funding for the payment of general imported goods.
The counterpart fund reserved through the provision of this loan will be used mainly for health, education, rural infrastructure, and primary industries, which are the priority fields related to the reconstruction and development of Papua New Guinea.
Terms and conditions of this loan are:
interest rate: 2.2% per annum repayment period: 30 years (including a 10-year grace period)
procurement method: general untied
With the present ODA loan, the accumulative total of ODA loans extended to Papua New Guinea will amount to 62.185 billion yen.

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