Nuku'alofa reconstruction may start in March [1]
Thursday, January 10, 2008 - 20:26. Updated on Friday, June 13, 2014 - 17:28.
The reconstruction of the Nuku'alofa Central Business District has been rescheduled to start in March, according to Sione Taumoepeau, the Chief Executive Officer for the Ministry of Works.
Sione said yesterday that the delay in the reconstruction of Nuku'alofa, which was to be launched on September 28, last year was due to a drawn out loan negotiation between the Tonga Minister of Finance and the Chinese counterparts.
Since the $118 million pa'anga loan was agreed to and signed in October last year the Ministry of Works had been authorised by government to liaise with the main Chinese contractor who will carry out the reconstruction, and to supervise the reconstruction.
Sione said they had been liaising with Nuku'alofa business owners whose properties were destroyed, and the main contractor for the construction work in the Nuku'alofa CBD.
Chinese labour
With regards to a local concern that there may be very little local inputs to the reconstruction, Sione said that the issues had been discussed with the Chinese, but there were certain reservations.
"One of the reasons why they want to bring their own labourers is the unreliability of Tongan workers. They may turn up to work today but not tomorrow. They are also very concerned about using local subcontractors, for example, for concrete blocks because they may not be able to meet their demands of quality and on time. But there will be opportunities there for them to work with local sub-contractors.
"Quality control is one of our main responsibilities," said Sione.
The Chinese will decide where to source building materials, "the reality of course that all building materials come from overseas."
Sione said that the $118 million loan is a typical Chinese development loan to Tonga, where the construction work has to be awarded to a Chinese company, "it was the same with the construction of the Ha'apai High School, and Tonga High School."
He said that there is nothing unusual with such an arrangement, all aid donors do the same, "the difference may be that this is a loan and not a grant from China, but they are trying to help and with a 5% interest, we can't get that from anywhere else in the world."
Sione said that a number of businesses had shown their interest in participating in the scheme. The term of the loan is for 20 years at 5% interest.
The $118 million pa'anga loan remains in China but once a Tongan business borrower and the Chinese contractor agreed on the design of a particular building, the contractor is paid and the building is built to be completed on a set deadline.
Sione said there is a one-year grace period before the loan repayment starts for the next 19 years.
Reconstruction
The two specific areas where the loan money will go are for the reconstruction of businesses that were burned to the ground during the 16/11 riots, and there will also be money to be lent to government for the rebuilding of infrastructure, such as drainage, and the laying underground power and telephone cables.
"The Chinese are also interested in making funds available for the construction of cultural public buildings."
Sione said that they are now in the last stage of their preparation for the reconstruction to start, and they are trying to confirm land ownership and the number of local businesses that would like to be part of the scheme.