Western Pacific University Project
Source: INA Staff
Western Pacific University Project
On January 10, 2013, PNG and Chinese representatives signed an Economic and Technical Cooperation Agreement (ETCA) which included stipulations for K23 million (RMB 70 million) of Chinese funding for projects in PNG, including Western Pacific University (WPU), to be located in Ialibu in the Ialibu-Pangia District of the Southern Highlands Province. The WPU project was approved by the GoPNG on April 24, 2013. It was subsequently drafted, and sponsored by then Prime Minister Peter O’Neill on October 7, 2013, before receiving authorisation from the National Executive Council on October 23, 2013 to be tabled as a Bill in Parliament. The Western Pacific University Act 2014 was passed by the PNG Parliament on August 28, and certified into law on November 8, 2014.
Chinese involvement in the project is governed by four agreements signed between the Chinese and PNG governments. The plan was to develop the project in three phases over a seven-year period, at a full cost of US $179.8 million (K604 million). Phase One was initially scheduled for 2017–18 with the first intake of students planned for 2018, but the first class was later deferred until 2021 due to delays in formalizing land acquisition for construction and Covid-19 restrictions on the movement of workers from China to PNG.
As of the end of 2021, Phase One was still on-going. While PNG-funded parts of Phase One were completed by the end of 2020, an INA site-inspection in August 2021 found that only 10 percent of the Chinese-funded portion of the project had been completed. Between 2014 and 2021, GoPNG spent US $33.7 million (K113.2) on Phase One, while the PRC spent US $2.98 million (K10 million). The details and funding breakdown of Phases Two and Three is still unclear.
Management Structure
On behalf of the GoPNG, the Department of Higher Education, Research, Science, and Technology (DHERST) is the government agency taking the lead in overseeing, planning, and implementing the WPU Project. Seladi-85 is the PNG private architectural firm which has been engaged to provide design, prepare technical tender documentation, advise on the selection, and supervise the winning contractor together with the external managing contractor (IPPR).
On the Chinese side, the Agency for International Economic Cooperation under the Ministry of Commerce chose IPPR International Engineering Co. Ltd and IPPA International Engineering Co. Ltd as the joint project managers of the “Aid Project on Western Pacific University of Papua New Guinea” through its own open tender process. In January 2020, the PRC gave DHERST a list of six Chinese companies and requested to begin the bidding process for the contract. In February 2021, Seladi-85 invited the six Chinese companies to bid, and in July 2020, IPPR and the Project Steering Committee evaluated the bids. Then, in August, Seladi-85 released its Tender Evaluation Report, and IPPR announced the selection of China Jiangsu International Economic and Technical Cooperation Group Ltd (CJI) as the private contractor for project infrastructure development. In response to DHERST’s request, the Solicitor’s Office granted legal clearance to CJI as the contractor in September 2020.
Funding Breakdown
The total cost of the WPU project is unclear. Professor Jan Czuba of DHERST announced a cost of US $118.7 million (K396.5 million) for project infrastructure on January 5, 2018, but he also highlighted the need for a further US $179.6 million (K600 million) for the completion of the WPU project. Some officials have indicated costs as high as US $179.3 million, while others have publicly declared the number to be US $118.7 million. To date, US $42 million (K140.4 million) has been spent on the project.
Conflicts of Interest in the Decision-Making Process
While PNG does need further university capacity, and Ialibu may well be a suitable location for new university facilities, the Prime Minister had conflicts of interest. First, the Prime Minister rushed to initiate the construction of WPU in his own electorate, with clear benefits for his voter ratings. Second, the site was chosen without a public feasibility study conducted by DHERST on cost effectiveness, alternatives for enhancing university capacity, and land evaluation. Third, Wild Cat Developments, one of former Prime Minister O’Neill’s own companies at the time, was one of the first firms reportedly awarded a contract related to the construction of WPU, linking the decision to personal economic benefits for the former Prime Minister. Fourth, the Chinese contractor for project infrastructure development, CJI, has received extensive public building projects during O’Neill’s term in office, some of which are associated with O’Neill’s own businesses.
Project Delays
Project delays occurred for two main reasons. First, PNG’s Covid-19 restrictions prevented Chinese project staff from entering the country for some time, which had knock-on impacts on subsequent stages of the project. Second, in 2021 there were delays in the release of project funds and brief shutdowns of operations due to disputes between the contractor’s Chinese and PNG staff.
Procurement Process
Since the 2018 PNG procurement law introduced a provision for foreign funders to use their own procurement systems, the funding, contractor selection, and drawdown of GoPNG funding did satisfy relevant PNG laws. Previously, all projects were legally required to follow guidelines of the Central Supply and Tenders Board, regardless of their funder.
The Chinese grant, at current estimations, only covers 82.1 percent of the construction it is earmarked for, with the remainder paid by GoPNG. This indicates that through its procurement process, the Chinese government was able to select the management contractor and strongly influence the choice of a construction contractor which would receive GoPNG funding. While DHERST and the Solicitor’s Office had to give final approval for IPPR’s selection of contractor, they had no role in the selection itself.
The successful bidder for construction, CJI, was the only company of the six bidders which had been debarred by the World Bank. CJI was sanctioned by the World Bank in February 2014 for misprocurement, with the possibility for a lift in sanctions after three years if CJI took appropriate remedial measures. However, as of November 2021, the company is still debarred by the World Bank.
Under the Chinese procurement system, the Governor of Southern Highlands Province, the Honorable William Powi, was not consulted. He expressed his dissatisfaction that DHERST had surrendered local oversight to the WPU project steering committee, which was supervised by IPPR on behalf of the Chinese Government.
To capture different practices, quality and level of transparency, researchers are asked to answer six related questions for each data point. 1 point is assigned for each question to which the answer is “yes.” Each data point therefore has a total score between 0 and 6, where “0” means no information was publicly available at the time of research (not transparent) and “6” means full transparency.
| Project & Contract Phase | Project Information | Score | Response | Link to Information |
|---|---|---|---|---|
| Project Identification 5.0 | Project owner | Department of Higher Education, Research, Science and Technology (DHERST) | https://web.dherst.gov.pg/ | |
| Sector, subsector | Education (Higher Education) | http://www.education.gov.pg/ | ||
| Project name | Western Pacific University Phase 1. | https://www.wpu.ac.pg/ | ||
| Project Location | Ialibu, Southern Highlands Province, Papua New Guinea (this is an inland semi-rural location in the Highlands of PNG) | https://www.wpu.ac.pg/index.php/developments/infrastructure-development | ||
| Purpose |
To contribute to addressing the severe shortage of tertiary education opportunities in PNG, notably at university level and for science and technology subjects, especially; notice that only about 1/3 of all secondary school students graduating from grade 12 each year (approx 30,000 in 2020), able to secure any tertiary education places, with only some 5,000 places available each year in universities in PNG. The objective is therefore to establish and operate a second universityof technology, based in the Highlands, to produce quality professional and technical manpower to satisfy current and futuretechnological demands. “”Our mission statements will implement Western Pacific University’s vision. Hence, our mission seeks to contribute towards the advancement of humanity through: Embracing ICT technology into research, learning and teaching; |
https://www.wpu.ac.pg/images/downloads/Assessment_of_PNG_Labour_Market.pdf | ||
| Project description | Construction of WPU commenced in 2014, using PNG Government funding. The grant funding contribution from PRC (which slipped back for various reasons, inlcuding Covid-19 delays) is to provide for: One lecture complex building, a digitalised library, three student dormitories and six staff houses. | https://www.wpu.ac.pg/index.php/about/history | ||
| Project Preparation 4.3 | Project Scope (main output) | Key outputs (under Stage 1 of the WPU plan) are to be: – 1 x 2 storey lecture complex – 6 x 3 bedroom high standard staff houses – 3 x 2 storey 72 person dormitories – 1 x library complex; total building area 9,240 m2. (the 2022 National Budget documents clearly indicate further donor funding beyond this contribution, presumably under a further phase of PRC support) |
https://www.wpu.ac.pg/index.php/developments/master-plan | |
| Environmental impact | Although an environmental impact statement is hard to access, or not available, the university site covers 19 hectares of formely community Customary land, acquired by the State, adjoining the District government station and township of Ialibu at the foot of Mt Ialibu, a largely forest covered extinct volcano. The site was hitherto village land used for village agriculture, comprising food and maybe some cash crops and livestock. It had tree cover, but it was not forest land.Under the project funding agreement with PRC the responsibility for the feasibility study and the environmental impact assessment lay with teh Govt of PNG. | https://wpu.ac.pg/index.php/developments/infrastructure-development | ||
| Land and settlement impact | the university site covers 19 hectares of formely community Customary land, acquired by the State (it refers to 76 ha in a Chinese Government correspndence, but that presumably covers assocaited land acquired for an airstrip and other public purposes). It is surrounded by customary land except one side, which adjoins the District government station and small township of Ialibu. It was hitherto village land used for village agriculture, comprising food and maybe some cash crops and livestock. | https://wpu.ac.pg/index.php/developments/master-plan | ||
| Contact details | Western Pacific University P.O. Box 1791 Mt Hagen, 281 Papua New Guinea Email: [email protected] |
https://wpu.ac.pg/ | ||
| Funding sources | Peoples Republic of China as a grant through their Department of Commerce (see. Page 285, 2022 PNG Budget from the Treasury, project 22138 Western Pacific University: PGK 49 million total 2020-2022, K 4 million -actual – 2020, K 20 mill allocated 2021, K25 million indicative for 2022,of which K20 million is funded by PRC and K5 million by GoPNG). Under the Project Agreement PRC will pay up to RMB 85.1 million for construction and RMB 6.3 for supervision, and if costs exceed this, the PNG Govt will pay the excess. | http://www.treasury.gov.pg/html/national_budget/files/2022/Volume%202b.pdf | ||
| Project Budget | The university plans for 2 phases are for PGK 600 million (rising to USD 200 mill). Under phase 1 work commenced in 2014 and was funded by GoPNG. The component grant funded by PRC commenced following the awarding of contracts in Sept 2020, with K49 million allocated in the PNG Budget for 2020-2022, K44 million of which is funded by the Chinese Govt and the balance by GoPNG. The project agreement (Implementation Minutes), specifies a ceiling of RMB 85.1 million of funding by PRC for construction and RMB 6.3 million for supervision. Over the period 2020-2026 a total of PGK 125 million is indicated in the PNG 2022 Budget, with a K20 million grant contribution envisaged each year from 2023-2026, and counterpart contribution of K5 million. It is unclear whether this is a formal arrangement agreed at this stage with PRC, or just being proposed by GoPNG. (See Volume 3A of the 2022 PNG Budget Proposal, Public Investment Plan, PIP No 04221, Western Pacific University, Executing Agency DHERST, pages 363-365) | http://www.treasury.gov.pg/html/national_budget/files/2022/Volume%203A.pdf | ||
| Project budget approval date | 20 November 2019, upon the signing of “the Aid Project of the Western Pacific University of Papua New Guinea (self-built mode) Implementation Minutes” between the Agency for International Economic Cooperation of the Ministry of Commerce of PRC and the Secretary for National Planning and Monitoring and the Secretary for Higher Education, Research, Science and Technology of PNG | Copy of budgets and project agreements provided by DHERST | ||
| Project Completion 0.8 | Project status (current) | Limited progress occurred during 2020 under the PRC contract, in light of Covid-19 travel restrictions and freight delays, but work progressed actively in 2021, with the PNG site architect, supervisor and PRC funded Supervisors in place as well as the construction team on site. Progress is slightly, but not substantially behind schedule, with this contracted component scheduled to be completed by the end of 2022. | documents provided by DHERST and the university administration | |
| Completion cost (projected) | PGKina 49 million (USD 11.8 million) for this component of the WPU development, of which PGK 44 (USD 10.6 milll) is funded by PRC (with a ceiling of RMB 85.1 milllion funded by PRC under the agreement) | http://www.treasury.gov.pg/html/national_budget/files/2022/Volume%202b.pdf | ||
| Completion date (projected) | the construction period is stupulated in the agreement (Minutes between GopNG and PRC) as 20 months (which would be June 2022), although delays in full commencement, owing largely to Covid-19 restrictions, is likely to see some slippage by a few months. In the tender document it stateIn the Invitation of Tender “The Contract/s will be awarded for an initial period of two years with an option to extend for another four years based on acceptable performance. ” But in the Article 8.2.2(3) of Agreement of Implementation “ After the project is completed and testified to be quailed jointly by China and Papua New Guinea, China reserve 10% of total contract price as the balance of quality assurance. After two-year quality assurance expires, China will pay the construction enterprise for the balance with Papua New Guinea’s approval if no significant quality problem happens.” The acceptable performance should be specified as two years. | documents provided by DHERST and the university administration, including a Review of Tender Documents from the Chinese supervising contractor, IPPR | ||
| Scope at completion | At this stage progress is in accordnace with the scope of works, although somewhat behind schedule, but unless there’s some major unforeseen force majeure, there seems no reason to see any variation or uncompleted work | documents provided by DHERST and the university administration | ||
| Reasons for project changes | delays owing to Covid-19 travel restrictions and delays in shipment of materials etc; but considering progress observed it is envisaged that the task will be fullY completed in 2023, if possibly with a small lag | observation from site visit and dialogue with project architects and university administration | ||
| Reference to audit and evaluation reports | Not (yet) available | |||
| Procurement 0.4 | Procuring entity | Agency for International Economic Cooperation of the Ministry of Commerce of PRC contracting the project Supervising contracting companies through a bidding process conducted in China (action officer Chen Junying [email protected]) The Government of PNG (thrhough DHERST) to contract the construction contractor, selected through a bidding process organised by DHERST, from a list of Chinese firms selected by the Chinese Governmentand meeting the requirement of the Chinese Government and the supervising contractor and with payments to be made directly to the Chinese winning contractor by the Chinese Government, based upon the contract conditions agreed between the contractor and GoPNG. The contracting on behalf of the Government of PNG was delegated to DHERST, while the invitation to bid was prepared by the project architect for the Western Pacific University: Jordan Tegabwasa Seladi of Deladi85 Project Manager For Western Pacific University/Project PO Box 2039 Madang, 511 Papua New Guinea Fax: +675 422 2853 Email: [email protected] |
documents (inlcuding “Aid Project of WPU of PNG (self-built mode) Implementation Minutes” of 20 Nov 2019, Invitation by WPU to Tender of 26 March 2020 and review opinion of the bidding process by Chinese appointed supervising contractor ) provided by DHERST and the university administration | |
| Procuring entity contact details | Agency for International Economic Cooperation of the Ministry of Commerce of PRC, as represented in PNG by the Chinese Embassy, notably: Liu Linlin, Commercial and Economic Counsellor. Supervision contractors, selected by the Chinese Government: IPPR INTERNATIONAL ENGINEERING CO., LTD AND THE IPPR ENGINEERING INTERNATIONAL CO. LTD. Contracting by Dept of Higher Education, Research, Science and Technology (but on the ground through the Western Pacific University) for the Government of PNG, as agreed by the Department of National Planning and Monitoring and DHERST, and approved by the State Solicitor in his letter of 22 September 2020 The Secretary, Dept of Higher Education, Research , Science and Technology, P O Box 5117 |
documents provided by DHERST and the university administration, including the Minutes of the Meetings between the Chinese Embassy and DHERST and DNPM, correspondence between DHERST and the State Solicitor, and the invitation to bid (from the project manager for WPU) and the bidding approval and selection documents, with the Chinese Supervisor and DHERST https://web.dherst.gov.pg/development-projects/infrastructure-development |
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| Procurement process | Donor Procurement Rules, but entailing significant engagement by PNG authorities, and entailing a limited Chinese company bidding process: The Chinese Govt, through the Ministry of Commerce, invited bids and selected the 2 associated Supervising contractors. Under the agreements between the Chinese Government and the PNG Government (notably DHERST and National Planning and Monitoring) and as authrorised by NEC, and the State Solicitor, DHERST was responsible for undertaking a bidding process, inviting eligible Chinese construction firms, from a list of six companies provided by the Chinese Managing Supervisor. PNG’s procurement process through the National Procurement Authority was allowed to be waived, in accordinace with Section 7 of the National Procurement Act 2018, allowing foreign financed projects to follow procurement arrangements determined by the grantor, or lender. In this case the financing arrangements, design, standards, bidding process and selection, were as determined under Articles 4 and 5 of the Implementation Minutes which explicitly state that the procurement will be undertaken in accordance with the processes set out by the Chinese Goverment, as implemented though its 2 management companies, and as agreed between the Chinese Ministry and DHERST, and confirmed as legally in order by the PNG State Solicitor. In the end the Chinese Government directed the removal of one company which they considered to be compromised from the list. The project slection committee, notably from DHERST and DWU, opened the remaining 5 eligible bids , in the presence of the Chinese Embassy officials, the Chinese managing contractor, and the selection committee and the Chinese contractor scrutinised and prioritised the bids. The project architect drew up a tender evulation report, and, together with the minutes, were submitted to the steering committee and Supervising contractor, and was then endorsed by the Supervising contractor, for DHERST to proceed to issue a contract to the winner bidder, following approval of the State Solicitor, which was duly granted in his letter of 22 September 2020. | documents (including “”Aid Project of WPU of PNG (self-built mode) Implementation Minutes”” of 20 Nov 2019, Invitation by WPU to Tender of 26 March 2020 and review opinion of the bidding process by Chinese appointed supervising contractor ) provided to the INA by DHERST and the university administration. Document. 1 – NEC Decision for Implementation Decision No 12/2019 Document. 2 – Aid Project on Pacific Western University of Papua New Guinea (Self-Built Mode) Implementation Minutes. Document. 3 – Note No. 16/2020 from the Embassy of the People’s Republic of China Document. 4 – Letter on Pre Bidding Work of WPU from China IPPR Document. 5 – WPU Tender Evaluation Report from Seladi-85 Document. 6 – Review Opinion about the Bidding Evaluation Report from China IPPR & letters to bidding companies Document. 7 – Letter about Bidding Work from China IPPR Document. 8 – Review Opinion on Tender Documents |
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| Contract type | 2 contracts: 1. the direct Supervising management contract between the Chinese Ministry of Commerce and the Supervising Mangement companies. The project management companies appointed by the Chinese representatives are IPPR International Engineering Co. Ltd and the IPPR Engineering International Co. Ltd. This is the joint venture forming a Chinese Project Management Company to manage the Western Pacific University Project. 2. the Construction contract between DHERST (for the PNG Goverment) and the selected Chinese construction company, namely: China Jiangsu International, which was selected from a shortlist of 6 Chinese construction companies, which submitted bids. The design was provided by DHERST, notably by the WPU’s project architect, who also jointly supervises the contractor, together with the Chinese supervising manager. | documents (inlcuding “Aid Project of WPU of PNG (self-built mode) Implementation Minutes” of 20 Nov 2019, Invitation by WPU to Tender of 26 March 2020 and review opinion of the bidding process by Chinese appointed supervising contractor ) provided by DHERST and the university administration. We have not sighted the construction contract itself. | ||
| Contract status (current) | Active (and oserved by the INA Review team at work on the project site) | documents (inlcuding “Aid Project of WPU of PNG (self-built mode) Implementation Minutes” of 20 Nov 2019, Invitation by WPU to Tender of 26 March 2020, and the correspondnece over awarding the contract between DHERST and the State Solicitor, as provided by DHERST and the university administration. We have not sighted the construction contract itself. | ||
| Number of firms tendering | 6 firms initially submitted bids: as per the correspondence between DHERST and the State Solicitor: “”7. On January 23, 2020, we received from the Embassy of the People’s Republic of China a list of the following Chinese companies: “” a. China State Construction Engineering Corporation Ltd(PNG) Limited b. China Railway Construction Engineering Ltd c. China Jiangsu International d. Guangdong Foreign Construction (PNG) Limited e. China Railway International Group f. China Shenyang International PNG 8. On June 15, 2020, the IPPR instructed the DHERST to remove from the list of possible companies the China Railway Construction Engineering Ltd due to serious allegations. Their message reads as follows: “Sir, last week I sent you an email and told you that the Chinese Side cared about the corruption case which China Railway Construction involved. And now we have a conclusion. Chinese Side think this case bring a bad effect, so we decide to cancel the bidding qualification of China Railway Construction. Chinese Embassy will also tell you this. The following is the link to this claim case”. |
documents (inlcuding “Aid Project of WPU of PNG (self-built mode) Implementation Minutes” of 20 Nov 2019, Invitation by WPU to Tender of 26 March 2020, and the correspondnece over awarding the contract between DHERST and the State Solicitor, as provided by DHERST and the university administration. | ||
| Cost estimate | The project contract is a total price contract. The bid shall not exceed RMB 85.3 million. Settlement in Yuan Renminbi (RMB) Chinese currency, “”… the Ministry of Commerce of China will transfer money to the general Contractor’s Chinese account directly.”” No funds will be transferred to PNG or the DHERST |
documents (inlcuding “Aid Project of WPU of PNG (self-built mode) Implementation Minutes” of 20 Nov 2019, Invitation by WPU to Tender of 26 March 2020, and the correspondnece over awarding the contract between DHERST and the State Solicitor, and correcpondence between DHERST and the Chinese Supervising manager, on the requirements to be stipulated to the 6 biddingcompanies, as provided by DHERST and the university administration. | ||
| Contract administration entity | DHERST and the WPU jointly supervise the project contractor with the Chinese appointed Managing Supervisor, the project manager for DHERST/WPU is the project architect, Jordan Tegabwasa of the firm Seladi85, as specified above. The project management companies appointed by the Chinese representatives are IPPR International Engineering Co. Ltd and the IPPR Engineering International Co. Ltd. This is the joint venture forming a Chinese Project Management Company to manage the Western Pacific University Project | documents (inlcuding “Aid Project of WPU of PNG (self-built mode) Implementation Minutes” of 20 Nov 2019, correspondnece over awarding the contract between DHERST and the State Solicitor, as provided by DHERST and the university administration. | ||
| Contract title | Western Pacific University Stage One WPU REF: IT 0: Aided Project of the Western Pacific University in Papua New Guinea |
As specified in the invitation to bid, and sighted in correspondence between the Chinese Ministry of Commerce and DHERST and between the Chinese Managing Supervisor IPPR and DHERST, and as specified on the notice on-site | ||
| Contract firm(s) | China Jiangsu International Economic and Technical Cooperation Group Ltd | as specified in the invitation to bid, and sighted in correspondence between the Chinese Ministry of Commerce and DHERST and between the Chinese Managing Supervisor IPPR and DHERST, and as specified on the As specified in the correspondence with the Chinese Supervising Contractor, IPPR and between DHERST and the State Solicitor , a provided by DHERST and the WPU management | ||
| Contract price | PGKina 36,954,376.78, as specified in the authorisation to issue the contract by the State Soliticor between the State of PNG (through DHERST) and China Jiangsu International. But as the payment is to be in RMB paid directly by the Chinese Govenrment to the company on the basis of implementation KPIs, these details are unavailable to the INA. Contract itself not sighted by INA, but extensive associated documents between the Chinese Ministry, DHERST and the State Solicitors Office provided. | as specified in the letter of approval from the State Solicitor to DHERST to authorise the contract, between the State of PNG and the contract, copy provided by DHERST and WPU management | ||
| Contract scope of work | WPU No. Description of Item with Specifications Quantity 1. 2 Storey Lecture Complex: SPA-2014-38 One (1) Building 2. 3 Bedroom Highest Houses: SPA-2014/H Six (6) Houses 3. 2 Storey x72 Person Students Dormitories: SPA-2014-14/F Three (3) Dormitories 4. 1 Library Complex: 19.06.01 One (1) Library Scope of work. The work includes the following: To supply labour (if and where possible to employ local people), building materials, equipment and construct the above mentioned building according to the drawings provided. |
Invitation of bids under Limited Tender Enquiry (Three Bid System) for the supply of labour, equipment, materials and construction of the Western Pacific University stage one. Documents provide to INA by DHERST and WPU | ||
| Contract start date and duration | The Contract was to commence in April 2020, but with the impact of Covid, was not approved until 22 September 2020 and signed with the contractor on 24 Sept. It was awarded for an initial period of two years with an option to extend for another four years (for additionalphases of work) based on acceptable performance. Owing to restrictions on travel during the pandemic, including inability of the Supervising manager to visit PNG and the project site until 29 June 2021, delays have inevitably set in, although some groundwork establishing foundations did commence from October 2020. (the ocntract itself not been sighted, but various associated documents provided to INA) | briefing letter of 21 August 2021 on the progress with the Chinese funded project to the Chair of the Governing Council, Sir Peter Barter, from the Executive Chair of the WPU project, Prof Jan Czuba, as provided by WPU Mangement | ||
| Implementation 0.0 | Variation to contract price | not varied at this stage; the briefing letter from the project Executive Chair to the WPU Chair of August 2021 specified PGK 41,928,560 (which presumably also includes the cost of the contract for the Chinese project supervisor) | briefing letter of 21 August 2021 on the progress with the Chinese funded project to the Chair of the Governing Council, Sir Peter Barter, from the Executive Chair of the WPU project, Prof Jan Czuba, as provided by WPU Mangement | |
| Escalation of contract price | No escalation in contract price as yet, although deferral to the project schedule has been caused by Covid-19 restriction, and inability to proceed with structural work until the project supervisors were able to visit (at the end of June 2021). As it’s ultimately paid in Rembini, it will be the RMB purchasing power in China, but also in PNG, that will largely determine any escalation in costs, while the contract conditions and ceilingapplied by PRC that will determines who foots the bill over any escalation in costs. | |||
| Variation to contract duration | At this stage there doesn’t seem to be any arrangements for overrun, but with the delay in structural work, resulting from the Pandemic imposed restrictions on travel (notably the supervising managers -IPPR), but also some disputes between the PNG and Chinese workforce, the PNG supervising architects indicate some extension in duration must be expected, with a current expectation of completion by the end of 2023 , but that in the meantime Jiangsu are focussing compnay effort on timely progress | dialogue with the project architect, Jordan Tegabwasa Seladi of Seladi85 | ||
| Variation to contract scope | not at this stage | from ongoing dialogue with DWU and the project architect | ||
| Reasons for price changes | not applicable – the price currently remains unaltered (although not yet confirmed) | from ongoing dialogue with DWU and the project architect | ||
| Reasons for scope & duration changes | not applicable – the price currently remains unaltered (although this cannot yet be confirmed) | from ongoing dialogue with DWU and the project architect |