ADB Welcomes New Public Private Partnership Act in Papua New Guinea
PORT MORESBY, PAPUA NEW GUINEA—The Asian Development Bank (ADB) has welcomed a new law making it easier to develop and implement public–private partnerships (PPPs) in Papua New Guinea (PNG). The Public–Private Partnership Act was passed by National Parliament of PNG early this month by a unanimous vote of 67-0.
The new Act establishes a Public–Private Partnership Centre to assist the government in developing, tendering and implementing PPPs. ADB provided policy guidance and support in drafting the legislation, which is part of wider reforms to increase private investment in the delivery of infrastructure services.
“Private sector partnerships allow governments to do more with less, expanding service delivery and technical know-how without immediate drawdowns on limited fiscal resources,” said Andrea Iffland, Regional Director of ADB’s Pacific Liaison and Coordination Office. “This new Act creates a transparent and robust process for PPP project development in Papua New Guinea which ultimately will encourage more private investment."
Implementation of the Act will begin immediately, with support from ADB. This will include the establishment of the PPP Centre and development of a PPP project pipeline. ADB’s ongoing assistance is funded partly through its Pacific Private Sector Development Initiative (PSDI), a regional technical assistance facility cofinanced by ADB, the Government of Australia and the New Zealand Government.
The Act has been more than five years in the making, and reflects principles outlined in PNG’s National PPP Policy, endorsed in 2008 by the National Economic Council.
The PPP policy lays out a transparent and predictable process for the PPP project cycle in order to reduce the risks associated with project development–an approach strongly supported by the PNG business community.
“A clear and predictable decision-making process on PPPs will increase private sector confidence and allow more businesses to participate,” said Mr. Dave Conn, CEO of the Port Moresby Chamber of Commerce.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members—48 from the region. In 2013, ADB assistance totaled $21.0 billion, including cofinancing of $6.6 billion.
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National Parliament of PNG. PIC CREDIT: Rocky Roe