Government going ahead with Chinese loan to improve infrastructure

The $37 million Chinese loan is going to be taken up by Government with the new Cabinet said to have approved the need for the loan on the premise that the upgrade of water supply and our roads is urgent.
When contacted this morning, Minister Smiley Heather confirmed that Cabinet has agreed to endorse the loan which will be signed by the Minister of Finance, Hon Wilke Rasmussen on behalf of government.
The new Minister of Infrastructure and Planning, Hon Smiley Heather is keen to get on with the work as soon as possible for the replacement of the entire ring mains system which should have been replaced over 40 years ago and are well overdue for replacement. He confirmed that $27 million would be used for upgrading water supplies to homes and businesses. This would be to replace the ring mains using new plastic tubing to replace the old asbestos piping which are said to be 40 years overdue the original use-by date. The roadwork will cost $10million.
How much of the Chinese loan is earmarked for local content in terms of manpower, machinery and materials and machinery?
The Minister said that his understanding was that the roadwork would have a great deal of local content. For instance, many local businesses have already approached the Minister and his Ministry re the supply of local aggregate (road chips) for the project. One local businessman even has a machine that is able to grind down existing roading that can be recycled for use in the new roading. Another local businessman is said to be bringing in machinery for the road project as well. Other upcoming roadwork include the outer islands of Mangaia, Atiu and Aitutaki all of which will come out of the government’s own capital expenditure budget.
The Minister is obviously keen to meet the challenges ahead for MOIP and has already met with the Secretary of Works this morning to discuss the need to set up policies within MOIP. In addition, the Minister wants their cooperation in a restructure of the Ministry aimed at streamlining their operations and management style to meet the needs and expectations of the public in delivering their services. They intend to consult with and seek the assistance of the Public Service Commission in order to provide an independent input into the process.
Details on the terms and conditions of the loan are due to be announced by the Finance Minister next week.