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The National Airports Corporation (NAC) is the executing Agency (EA) of the Civil Aviation Development Investment Program (CADIP) in Papua New Guinea. The EA has set up a Project Implementation Unit (PIU) headed by a Program Director to implement CADIP. The PIU is comprised of a team of designated designed engineers and other support staff for the initial scoping of works to design and planning (including tendering processes) to the execution of the civil works and reporting to the stake holders. CADIP ensures compliance to ADB and GoPNG requirements at all times.

The Highlands region of Papua New Guinea (PNG) is a major contributor to the fragile nation state’s economy through its agricultural and mineral exports. It is also home to approximately 40% of the country’s population, who rely almost exclusively on the road network for movement of people and goods, and thus livelihood opportunities as well as access to health, education, and social facilities. The road network is vulnerable because of the mountainous terrain, the fragile geological conditions, and the climate.

The Project will expand the cargo handling capacity of Lae port, improve the livelihood of those directly or indirectly affected, and reduce the incidence of HIV/AIDS in Lae.

The economy of Papua New Guinea (PNG) is dependent on trade, exports in particular, which rose from $985 million to $2.5 trillion during 1980–2004. Exports increased from 35% of gross domestic product (GDP) in 1986 to 48% in 2002, even increasing by more than 50% for some years. Imports exhibited moderate growth at about 30% of GDP.