11 Jun 2012

PNG negotiating multi billion dollar deal with China for road development

6:57 pm on 11 June 2012

The caretaker prime minister of Papua New Guinea says his government is negotiating a multi-billion dollar deal with Chinese banks to build new roads.

Peter O'Neill told a crowd at a rally in Madang last week the agreement would allow the country to invest 3.3 billion dollars in roading infrastructure over the next ten years.

The National newspaper reports that at the same rally Mr O'Neill also spoke against corruption, which he says has prevented the government delivering key services including health, education, law and order and infrastructure.

He says anyone found guilty of misappropriating government funds will face the full force of the law.