Port Moresby | 18 July 2025 — A major step toward improving rural infrastructure and boosting coffee production in Papua New Guinea has been taken with the signing of a K4.8 million road rehabilitation contract between the Independent State of Papua New Guinea and local firm Kaia Works Ltd.
The contract, formally awarded by the National Procurement Commission (NPC), covers the rehabilitation of a 5.3-kilometre feeder road from Gera to Mouwa in the Sinesine-Yongomugl District of Chimbu Province. The project is funded through the PNG Government’s PNG Agriculture Commercialisation and Diversification (PACD) Project with support of the World Bank and implemented by the Coffee Industry Corporation Limited (CICL).
At the signing ceremony, NPC Chairman and Secretary for Finance Mr Samuel Penias said the project may seem small in scale but holds significant national value.
“This is a small road but a very impactful one,” Mr Penias said. “It leads into coffee production areas. Good roads are key to helping our farmers move their coffee and access services. This is about improving the lives of our people while earning valuable foreign exchange for our country.”
He emphasised the importance of performance and delivery, particularly from national contractors.
“We want to support local companies like Kaia Works, but we also want to see results. Too often, we see foreign companies winning contracts because they deliver. Our local companies must step up and match that commitment.”
PACD National Coordinator Mr Jethro Apinas echoed the Chairman’s sentiments, saying time was of the essence given the contract’s scheduled completion by December 2025.
“This road gives our farmers access to markets. We hope there will be flexibility to extend the timeframe if needed, but the goal is clear: finish the road on time so our people can benefit quickly,” he said.
Mr John Kanekunga, General Manager of Kaia Works, thanked the Government and CICL-PACD for their trust, reaffirming his company’s readiness to deliver.
“We have the experience and capacity,” said Mr Kanekunga. “We’re already mobilising our fleet in the Highlands and will keep to the schedule. This is our country—we must deliver, and we will deliver.”
Mr Eric Aba, Senior Project Engineer for CICL-PACD, highlighted the project’s wider goal of increasing national coffee exports to 3 million bags annually by 2030.
“Access is everything. There’s a lot of coffee locked away in places like Karamui, Marawaka, and Menyamya. Roads like this open the way for rural development and national economic growth.”
The six-month contract includes strict timelines, performance and insurance guarantees, and advance payment clauses. The total value of the contract is PGK4, 817,210.75, inclusive of GST, fully funded under the CICL-PACD project.
The legal clearance was issued by the Office of the State Solicitor on 23 June 2025 after a thorough review of procurement procedures, due diligence on Kaia Works, and World Bank approval.
As Papua New Guinea marks 50 years of nationhood, this initiative represents more than just infrastructure—it symbolises a renewed commitment to empowering rural communities and driving economic self-reliance through agriculture.