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PIP Number: 05160

Project Name: National Shipping Service

Objectives:

To replace the old and obsolete Navigational Bridge Stimulator with new, state-of-art Navigational Bridge Stimulator and other related infrastructure development costs. The installation of the Navigational Bridge Simulator is part of the overall renovation, upgrading and rebuilding program of the college infrastructure and facilities to gain the university status in this medium term.

Status:

The Department of Transport (DoT) prepared an NEC Submission and related documentation to seek NEC endorsement for establishing the project management unit (PMU) to start implementing this project together with the "NGI Connectivity Project". Nil warrant was released from the K10 million appropriation in 2019 and eventually reappropriated in the Supplementary Budget. As a result, project activities will be implemented in 2020.

Components:

  1. Route Selection
  2. Tendering and Procurement
  3. Bid Evaluation
  4. Selection of Shipping Contractors
  5. Award of contract

Location:

The project involves the implementation of a shipping franchise operation through a subsidised project for 11 shipping routes to create development demand and service delivery to the rural maritime communities in Western, Gulf, Central, Milne Bay, Oro, Morobe, Madang, Manus, New Ireland, East New Britain and West New Britain.

Justification: 

The program would create transport access for accessing basic Government services, growing the economy and creating employment for improving the lives of people in rural communities.

Capacity:

The Department of Transport has the capacity and experience to implement the project, as it is already doing so. They have undertaken this project under the Community Water Transport Project.

Beneficiaries: 

This project will benefit the National Government, Maritime Provinces, road and sea transport users and the travelling public in the maritime region, international/tourists visitors and the local community at most.

Sustainability:

The private sector operator will own the vessels and operate while the Government will continue to subsidise the trips to selected routes under a contract until such a time the Government finds another option to assist these communities.

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