Major infrastructure to connect remote communities in Western Province as OTML signs K394 million road deal with China Railway
Ok Tedi Mining Limited [OTML] has signed a K394 million contract with China Railway Construction Engineering Group to deliver major road infrastructure projects in Western Province.
The agreement, formalised in Port Moresby today, covers three projects: the construction of the Kiunga - Nomad Road at a cost of K294.7 million, upgrading and sealing of Balimo Town roads [K44.9m], and the construction of the Balimo - Kawiyapo/Wasua Road [K55.2m].
Funding for the projects will be provided through OTML’s Tax Credit Scheme [TCS], a government-approved mechanism that allows resource companies to fund essential public infrastructure using tax obligations.
OTML Managing Director and Chief Executive Officer Kedi Ilimbit said the investment was a major commitment to improving access to government services for remote communities.
“All three contracts amount to nearly K400 million, which we are investing in roads to connect our people to government facilities and services they have been missing for over 40 years,” Ilimbit said.
The Department of Works and Highways will provide technical support and oversee construction to ensure project quality and sustainability.
Works and Highways Minister Solan Mirisim welcomed the initiative and urged Western Province leaders to work closely with OTML and the contractor to ensure the successful delivery of the projects.
“These are important developments for the province. I call on all elected leaders to support this work and ensure our people benefit,” the minister said.
Work is expected to begin in August, following a short mobilisation period. Ilimbit said that with China Railway already on site in the province, all three projects are expected to begin concurrently.
The 150-kilometre Kiunga - Nomad Road will connect the North and Middle Fly districts, opening up long isolated areas to economic activity and basic services. In Middle Fly, Balimo Town will receive long-awaited road upgrades, while communities in Delta Fly will benefit from the new Balimo - Kawiyapo/Wasua Road.
Ilimbit also urged local leaders to contribute additional funding to support the projects as TCS has a ceiling limit.
“Many of these roadworks exceed our credit limits. We’ve asked political leaders to counter-fund using their DSIP, PSIP, or reinvest OTML dividends,” he said.
He reminded that the Western Provincial Government holds a 33% stake in OTML, which could be reinvested into more impact projects within the province.
Provincial leaders from across Western were present at the signing and welcomed the announcement. Western Governor Taboi Awi Yoto said the province has long been overlooked in terms of development, despite hosting one of the country’s major mines.
“For too long, our people have not seen the benefits of the resources extracted from their land. It’s time they do,” Governor Yoto said.
The road projects are expected to be a game changer for the province, unlocking access to health, education, and economic and agriculture opportunities for thousands of people in some of PNG’s most remote communities.