ADB-Supported PPP Framework to Improve Infrastructure Service Delivery in PNG
PORT MORESBY, PAPUA NEW GUINEA (23 January 2024) — The Asian Development Bank (ADB) welcomes a new framework for public–private partnerships (PPPs) in Papua New Guinea (PNG) aimed at unlocking private investment and know-how, and allowing PNG to expand and improve infrastructure service delivery.
The new framework was developed with the support of ADB’s Pacific Private Sector Development Initiative (PSDI) and creates a transparent and robust process for identifying, developing, procuring, and implementing infrastructure PPPs in PNG. It establishes a governance structure to oversee this process. It also establishes a center of expertise—the PPP Centre—which will work alongside sponsoring agencies to develop PPP projects.
Through the framework, new infrastructure investments are required to be assessed for their potential to be procured as PPPs, and transactions must be developed transparently and predictably. Project risk assessments and competitive tendering processes are now also legal requirements for all PPPs.
“PPPs create opportunities for private sector involvement in service provision, which can lead to better service delivery, reduced costs for businesses, and improvements to government balance sheets,” said ADB Country Director for PNG Said Zaidansyah. “That’s why ADB actively supports PPP implementation in the Pacific and why we are so pleased to see the final pieces of this framework operational.”
The framework was activated by the recent publication of the Public Private Partnership Regulation 2023 and the Public Private Partnership (Amendment) Act in the National Gazette. PNG’s broader state-owned enterprise reform program is supported in part by an ADB policy-based loan, and implemented with the support of PSDI, an ADB technical assistance program delivered in partnership with the governments of Australia and New Zealand.
“I congratulate the PNG government for achieving another important milestone in its ambitious reform agenda,” Australian Acting High Commissioner to PNG Joanne Loundes said. “PNG has the potential to benefit from further private sector investment in infrastructure development. Through our support for PSDI, Australia is proud to assist improvements to the delivery of essential services for the people of Papua New Guinea.”
Established in 2006, PSDI works with ADB's 14 Pacific developing member countries to improve the enabling environment for business and support inclusive, private sector-led economic growth.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.