The Opposition viewed the concept as a fishy deal made by the O'Neil/Dion Government under the pretext of national interests that will only bring total foreign debt to the country.
In a press conference yesterday, Opposition leader Belden Namah says the loan represents a major risk to the stability of the budget and the country.
Mr Namah says the country is paying K460 million per annum in loan interests along and the attainment of that loan will definitely increase the figure much higher.
He challenged the Prime Minister to explain to the country why he's rushing to secure this loan without considering its impact on the economy, the budget and the implications it will have on the lives of the people.
Namah also questioned why the Department of Treasury which was the authorized agency under the Public Finance Management Act to negotiate and manage public loans on behalf of the state was not involved in the deal.
He further questioned why the Prime Minister intends to convert the Department of Works in to a state owned enterprise where the loan will be parked and managed outside of the Department of Treasury.
The Opposition Leader also wants details of an infrastructure development plan to be exposed if the government is serious about developing infrastructure in the country.