Papua New Guinea | 23 April 2024

PSDI and ADB-supported arbitration laws passed in Papua New Guinea

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The Government of Papua New Guinea has passed two new arbitration laws—the International Arbitration Act 2024 and the Domestic Arbitration Act 2024—which will help attract foreign investment and trade, enhance investor confidence, and align PNG’s legal system with globally recognized arbitration standards.

PSDI supported the development of both acts, which bring PNG into alignment with the New York Convention—the cornerstone of international arbitration—and provide a framework for the recognition and enforcement of arbitral awards across borders. This means that investors in PNG from all countries will have access to clear and predictable dispute resolution mechanisms. 

The International Arbitration Act 2024 implements the New York Convention by enhancing access to international arbitration proceedings and ensuring that PNG recognizes arbitral awards decided in other member states. The Domestic Arbitration Act 2024 creates a system to refer contractual disputes to a binding arbitration process, which will relieve pressure on PNG’s court system and offer more rapid resolutions than are often achieved through the court process.

The passage of the acts is the culmination of a 6-year partnership between the Asian Development Bank, the Papua New Guinea Supreme & National Courts of Justice, and PSDI.