Papua New Guinea | 1 October 2021

Papua New Guinea’s National Executive Council endorses legislation to promote private sector involvement in infrastructure service delivery

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Papua New Guinea’s (PNG’s) National Executive Council (NEC) on 9 September 2021 endorsed the PSDI-supported Public-Private Partnership (PPP) Amendment Bill and Regulations. The amendment and regulations are intended to facilitate implementation of infrastructure PPPs in PNG, detailing a transparent and rigorous process for project preparation, evaluation, and tendering.  By partnering with the private sector to deliver essential infrastructure services, the government will be able to expand the reach and reduce the costs of service delivery to individuals and businesses throughout PNG. 

The PPP Amendment Bill and regulations detail the institutional arrangements and process for PPP project identification, development, tendering and implementation, ensuring that fiscal risks are fully integrated so that PPP projects represent value for money for the PNG government. 

PSDI has been working with the Departments of National Planning and Monitoring, Treasury and State Solicitor’s Office, through a PPP Task Force, under an agreed approach for the implementation of these important reforms. This work, along with the Kumul Consolidated Holdings (Amendment) Bill 2021, which was passed by Parliament in August 2021, is a key element of the Government of PNG’s broad SOE reform program, supported in part by an Asian Development Bank policy-based loan. 

It is anticipated that the Amendment bill will be put to PNG Parliament in its next session, scheduled for October 2021.