Australian taxpayer funds Chinese construction companies in PNG

If ever any ADB project needed to be subjected to the ADB's own rigorous validation then this one is it!

Surprise! Surprise! The contracts for all 20 airport projects went to PRC companies. Australian and PNG companies did not even get a look in. Local suppliers got a small amount of work – but in several cases I know of, have not been paid, even though the ADB has fully paid its PRC contractors.

In the case of three major regional airports I have been briefed on the quality of the work which was "less than satisfactory". That is a description the ADB will be familiar with!

Australia's response to the aggressive strategy the PRC has employed in PNG and the South Pacific when it comes to infrastructure projects has been the establishment of the Australian Infrastructure Financing Facility – set up in 2018.

Last week the AIFF proudly trumpeted a loan, and part grant, of around K190 million for road projects in Papua New Guinea.

I am advised that around the same time the PNG Cabinet approved road projects to be undertaken by PRC companies worth around K500 million!!!

That surely puts it all in perspective.

The AIFF is a good idea, long overdue. But it is simply not bold enough, and resourced enough, to go even close to countering China's influence!

Before Canberra better funds and resources the AIFF it needs to ensure the ADB loans and funding processes for PNG and the South Pacific are make fully transparent, and open to competitive tender.

It also needs to bring together leaders of the PNG and Australian construction industries and undertake to ensure both get a fair go when it comes to ADB tenders, and PNG Government tenders.

Australia has "clout" when it comes to the Asian Development Bank. The ADB is a worthy entity - but its approval processes, and its apparent favouring of PRC contractors simply must be rigorously reviewed….and urgently.

Sadly both Papua New Guinean and Australian companies have just about given up tendering for ADB related projects in Papua New Guinea.