ADB Welcomes PPP Legislation for Improving Service Delivery in PNG
PORT MORESBY, PAPUA NEW GUINEA (4 March 2022)—The Asian Development Bank (ADB) has welcomed the passing of changes to legislation in Papua New Guinea (PNG) that will increase private sector investment and participation in essential infrastructure and improve service delivery.
The Public–Private Partnership (PPP) (Amendment) Act was passed by PNG parliament on 19 January 2022 and came into operation on 4 March 2022 by notice in the National Gazette. It will facilitate the implementation of infrastructure PPPs in PNG, including a transparent and rigorous process for project preparation, evaluation, and tendering, ensuring more efficient use of public money.
“PPPs improve essential service delivery and reduce public costs by introducing commercial private sector principles and discipline to projects,” ADB Pacific Liaison and Coordination Office Regional Director Lotte Schou-Zibell said. “That’s why ADB works with the private and public sector to support PPP implementation in the Pacific and why we’re so pleased to see the passage of this act.”
By partnering with the private sector to deliver essential infrastructure services through PPPs, the Government of PNG will be able to expand the reach of such services—including power and communication utilities, water, and sanitation—and reduce their cost.
“The PPP (Amendment) Act is important in furthering the Government of PNG’s efforts to develop, expand, and improve critical infrastructure at a lower cost to the public, and improve citizens’ quality of life,” Department of National Planning and Monitoring Secretary Koney Samuel said.
The amended act was developed with support from ADB’s Pacific Private Sector Development Initiative (PSDI)—a technical assistance program in partnership with the Governments of Australia and New Zealand.
“The passage of the PPP (Amendment) Act demonstrates the Government of PNG’s commitment to enhancing essential infrastructure delivery for its people,” Australia’s High Commissioner to PNG Jon Philp said. “I congratulate the government for achieving another important milestone in its ambitious reform agenda. Australia looks forward to continuing to work with PSDI and the Government of PNG to implement the act and PNG’s broader state-owned enterprise reform agenda.”
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.