On July 15 local time, Ok Tedi Mining Limited (OTML) and China Railway Construction Engineering Group Co., Ltd. officially signed a PGK 394 million road construction contract in Port Moresby, marking the commencement of a series of major infrastructure projects in Papua New Guinea’s Western Province. These developments are expected to bring historic changes to remote communities that have remained isolated for decades.
According to the agreement, the contract covers three major projects: the construction of the Kiunga–Nomad Road (PGK 294.7 million), the upgrading and sealing of Balimo town roads (PGK 44.9 million), and the construction of the Balimo–Kawiyapo/Wasua Road (PGK 55.2 million). All projects will be funded through OTML’s Tax Credit Scheme (TCS), a government-approved mechanism that allows resource companies to fund public infrastructure using tax obligations.
OTML Managing Director and CEO Kedi Ilimbit said at the signing ceremony, “This investment of nearly PGK 400 million is our commitment to the grassroots people of Western Province. The goal is to open up critical transport routes and finally bring government services to communities that have been cut off for decades.”
The Department of Works and Highways of PNG will provide technical support and oversee project quality and sustainability. Minister for Works and Highways, Hon. Solan Mirisim, who attended the ceremony, stated: “This is more than just road construction — it is a key step in boosting the social and economic development of Western Province. I urge all elected leaders to work closely with OTML and the contractor to ensure successful and high-quality delivery.”
Construction is scheduled to begin in August this year, with China Railway Construction Engineering Group already mobilized on-site. All three projects are expected to commence simultaneously. The Kiunga–Nomad Road, approximately 150 kilometers in length, will connect the North Fly and Middle Fly districts, significantly improving transport access. Balimo town will see its municipal roads fully upgraded for the first time, while the new Balimo–Kawiyapo/Wasua Road will open development corridors across the Delta region, benefiting thousands of people.
Mr. Ilimbit also noted that due to the funding ceiling of the TCS, some project costs exceed OTML’s allowable contribution. He called on local governments and MPs to provide counterpart funding through their District Services Improvement Program (DSIP), Provincial Services Improvement Program (PSIP), or reinvest dividends received from OTML. “The Western Provincial Government holds a 33% equity stake in OTML, and these earnings should be more effectively used to support local development,” he emphasized.
The launch of these infrastructure projects has been widely welcomed by leaders across Western Province. Governor Taboi Awi Yoto stated, “For too long, our land has produced valuable resources, but our people have not shared in the benefits. The implementation of these projects signals that resource wealth is finally beginning to reach the grassroots.”
The projects are regarded as critical to revitalizing Western Province, with far-reaching impacts beyond improved transportation. They are expected to stimulate development in healthcare, education, agriculture, and commerce, opening a gateway to modern life for some of the most remote communities in Papua New Guinea.
