Overview
Number of PPPs and Investment in PPPs
-
PPP Investment
$ 136 M -
Number of PPPs Reaching FC
6 -
Value of PPPs Reaching FC
$ 433 M
Revenue Model and Government Support to PPPs
-
Number of PPPs with Govt. Support
---- -
Number of User Charge PPPs
2 -
Number of Govt. Pay PPPs
----
PPPs under Preparation and Procurement
-
Number of PPPs under Preparation
4 -
Number of PPPs under Procurement
----
FC = financial closure, Govt. = government, M = million.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea.
The National Public–Private Partnership Policy (the PPP Policy) was endorsed by the Government of Papua New Guinea in 2008. This national PPP policy forms the basis for the Public–Private Partnership Act 2014 (the PPP Act). The act was passed by the Parliament in September 2014. However, the PPP Act was gazetted only in January 2018. The government has not implemented the PPP Act yet, as there are amendments to further strengthen it, and these amendments are yet to be circulated for comments and inputs from the public.
The PPP Act establishes the PPP Centre, which would implement the PPP Act and monitor its enforcement. It also establishes the PPP Steering Group, which includes the heads of the Department of Treasury and the Department of National Planning and Monitoring, and the PPP Forum.
Gas, mining, and petroleum projects, and all associated development agreements or projects undertaken as part of the government’s tax credit scheme, are excluded from the PPP Act. Infrastructure procurement projects involving a Relevant Public Body, wherein the value exceeds K50 million, would automatically qualify for a PPP arrangement under the PPP Act.
PPP agreements must also be comply with the Independent Consumer and Competition Commission (ICCC) regulations, the terms of the individual concession agreements related to the project, and with any umbrella regulations set by the ICCC related to the industry.
According to the 2018 budget, the government intends to develop a roadmap to help identify and implement a pipeline of PPP projects aligned with the country’s Medium-Term Development Plan 3 for 2018–2022.
-
National Framework for Enabling PPPs
PPP Legal and Regulatory Framework
Does the country have - National PPP law and PPP regulations? Public financial management laws and regulations? Sector-specific laws and regulations? Procurement laws and regulations? Environmental laws and regulations? Laws and regulations for social compliance? Laws and regulations governing land acquisition and ownership? Taxation laws and regulations? Employment laws and regulations? Licensing requirements? What are the other components of the PPP legal and regulatory framework? Other key supporting components (elaborated below)include:- PPP Policy
- Yes
- Unavailable
LEARN MORENational Framework for Enabling PPPs
PPP Legal and Regulatory Framework
Evolution of the PPP Legal and Regulatory Framework in Papua New Guinea
Until 2008, PPPs in Papua New Guinea were implemented in an unorganized manner, without a formal PPP-enabling framework governing PPP project identification, preparation, procurement, implementation, and management. In 2008, the Government of Papua New Guinea endorsed the National Public–Private Partnership Policy (the PPP Policy) to provide the policy framework and basis for PPPs. Based on this national PPP policy, a PPP Act was drafted in 2010 to provide the legal basis for PPPs in Papua New Guinea. Following a few amendments to streamline the PPP Act, the modified PPP Act was passed by the Parliament in September 2014. The PPP Act was then gazetted in January 2018.
Amendments on the PPP Act
Aspects Previous Regulation (PPP Act 2010) Current Regulation (PPP Act 2014) Public–Private Partnership (PPP) Arrangement Does not cover the exclusions of the PPP arrangement Covers the exclusions of the PPP arrangement in Schedule 3a Government line agencies sponsoring PPPs State authorities including:
- The Independent State of Papua New Guinea
- A government department
- A provincial government
- A local-level government
- An agency, branch, division, administrative unit, instrumentality, commission, board, authority, corporation (whether formed by statute or otherwise) of the national, provincial, or local-level government; a state enterprise, public enterprise, public body, company, or other body corporate including a corporation sole, or an unincorporated body, owned or controlled either directly or indirectly by the state; or a partnership under the management or control of the state or an entity that is carrying out functions and activities for and on behalf of the state, regardless of legal form or method of establishment, but which is not a private sector majority owned or controlled entity where control means the power to direct or cause the direction of the general management and policies of an entity.
Relevant Public Bodies including:
- The independent state of Papua New Guinea
- Provincial or local-level governments
- State-owned entities
Body responsible for registering project with PPP Centre State authority Relevant Public Body Code of Practice Must be consistent with public service management enactments Must be consistent with Public Service (Management) Act 1995 and the General Orders made under the act. Functional Assessment No clause about functional assessment PPP Centre must engage a firm to carry out a functional assessment every 5 years a The PPP Act excludes mining, gas, and petroleum projects, and all associated development agreements or projects undertaken as part of the government’s tax credit scheme. Infrastructure procurement projects involving a Relevant Public Body, wherein the value of which exceeds the referral threshold, would not automatically qualify as a public–private partnership arrangement under the PPP Act. The referral threshold would be set in the PPP Act regulations. However, there is a general indication that the referral threshold value of a project will be K50 million.
Source: Government of Papua New Guinea, Department of Treasury. 2014. Public–Private Partnership Act 2014. Port Moresby. https://www.treasury.gov.pg/html/legislation/files/acts/2014/Public.Private.Partnership.(PPP).Act.2014.pdf; ixueshu. PPP Act 2010. http://wk.ixueshu.com/file/27bbf54642ea6319.html.
The PPP Act provides for the procurement and delivery of infrastructure facilities and services through PPP arrangements, and gives power to certain public bodies to enter into such arrangements.
Though the PPP Act details the procedures for assessment and development of PPP projects, the PPP Act does not contain any significant provisions on the procurement options available nor details on the specific procurement process of a PPP.
Provisions of the PPP Act indicate that the PPP Centre would be established to issue guidelines and regulations on PPP processes. While PPPs are not prohibited, currently there is no formal structure for the regulation of PPPs in Papua New Guinea. Procurement for government projects occurs on an ad hoc basis through normal government processes, and largely depends on the policies and priorities of the government of the day.
The PPP Act applies to the Independent State of Papua New Guinea, provincial or local-level governments, and state-owned entities. Though the PPP Act applies for the grant of a lease, concession, or license as part of a PPP arrangement, it does not apply to the grant of a right, license, or lease, or that is subject to any other legislation. A PPP agreement may include terms and conditions in relation to the performance by the private partner and provision for charging user fees or collecting payment by a Relevant Public Body, or a combination of such payments.
The PPP Act defines “infrastructure” as any asset, facility, or service for the benefit of members of the public, including those specified in Schedule 2 of the PPP Act.1
Schedule 3 of the PPP Act specifies the arrangements that are classified as PPP for the purposes of the PPP Act. A PPP arrangement means an arrangement with a person other than a Relevant Public Body for the performance of functions related to:
- design and construction of infrastructure and the operation of services and provision of finance related to it,
- construction of infrastructure and the provision of finance related to it,
- design and construction of infrastructure and the provision of finance related to it, or
- provision of services relating to infrastructure for at least 5 years and the provision of finance related to the services.
Schedule 3 of the PPP Act explicitly excludes the following arrangements:
- those that are less than a referral threshold to be specified by a regulation in the future,
- mining projects under the Mining Act 1992 (and associated development agreements),
- gas projects and petroleum projects under the Oil and Gas Act 1998 (and associated development agreements), and
- where the infrastructure project is predominantly comprised of expenditure deemed as “income tax” under the Income Tax Act 1959 (footnote1).
However, the responsible minister, following the recommendation of the PPP Steering Group, may amend Schedule 3 by adding or excluding any arrangement or class of arrangements, by notice in the National Gazette. Any arrangement or agreement entered into prior to the effective date of the PPP Act will remain in force as if the agreement or arrangement were made under the PPP Act. Where there are any inconsistencies between that arrangement or agreement and the PPP Act, the terms of the arrangement or agreement prevail (footnote 1).
- 1Asian Development Bank. 2019. Public–Private Partnership Monitor, Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Source: Government of Papua New Guinea, Department of Treasury. 2014. Public–Private Partnership Act 2014. Port Moresby. https://www.treasury.gov.pg/html/legislation/files/acts/2014/Public.Private.Partnership.(PPP).Act.2014.pdf.
National Framework for Enabling PPPs
Types of PPPs
Service Contracts
Management Contracts
Affermage or Lease Contracts
Design-Bid-Build (DBB)
Design-Build (DB)
Build-Operate-Transfer (BOT)
Design-Build-Finance-Operate-Transfer (DBFOT)
Build-Own-Operate (BOO)
Concessions
Joint Venture
Hybrid Contracts
Others
1. Rehabilitate -Operate-Transfer (ROT)
LEARN MORENational Framework for Enabling PPPs
Types of PPPs
The PPP Act does not provide for specific types of PPP contracts. However, based on the revenue model, the PPP Act allows for PPPs based on user charges, offtake payments by a Relevant Public Body, or a combination of user charges and offtake payments.
Based on the experience from PPP projects implemented in the past, the PPP types used include:
- Build–operate–transfer (BOT), where the private party builds and operates the project assets with some encouragement/support from the Relevant Public Body. The project assets are transferred back to the Relevant Public Body at the end of the PPP contract period (e.g., Port Moresby Diesel-Fired Plant, 1996);1
- Rehabilitate–operate–transfer (ROT), in which the private party is permitted to refurbish, operate, and maintain the existing facility. These activities will be performed for a specific period of time after which the project assets are transferred back to the Relevant Public Body (e.g., PNG Water Limited potable water treatment plant, 1997);2 and
- Design–build–finance–operate–transfer (DBFOT), where the private party is responsible for designing, financing, constructing, operating, and maintaining the project assets. At the end of the concession period, the project assets are transferred back to the Relevant Public Body (e.g., Port Moresby [Jacksons] International Airport PPP project).3
- 1World Bank PPI Database.
- 2The Constructor. PPP Construction Projects—Types and Benefits. https://theconstructor.org/construction/public-private-partnership-ppp-construction-projects-types-benefits/1319/#12_Rehabilitate_Operate_and_Transfer_ROT.
- 3National Airports Corporation. Airports. https://www.nac.com.pg/airports/pmia-ppp/.
National Framework for Enabling PPPs
Eligible Sectors for PPPs
Road Infrastructure
Roads, highways, and road Facilities, Bridges, Tunnels
Rail and Mass Transit Infrastructure
Rail
Waterways Infrastructure
Seaport Infrastructure
Ports and harbor facilities on water or land
Airport Infrastructure
Airport runways, air traffic control, terminals, and other airside and landside facilities
Logistics Infrastructure
Water Resources and Irrigation Infrastructure
Dams and Irrigation
Water Supply Infrastructure
Portable water supply, distribution, and delivery
Wastewater Infrastructure
Desalination, Wastewater treatment and disposal and Drainage and sewerage
Solid Waste Management Infrastructure
Solid waste management including waste collection and disposal
Telecommunication Infrastructure
Fixed or Mobile local telephony and Domestic long distance telephony
IT and Informatics Infrastructure
Internet and broadband and facilities related to satellites and Broadcasting facilities
Power Generation
Power generation facilities, Ancillary facilities including dam for hydro power
Power Transmission and Sub-Transmission
Power transmission, and sub-transmission facilities
Power Distribution
Power supply and distribution facilities
Energy Conservation Infrastructure
Street lighting
Education Infrastructure
Schools and colleges, Residential facilities, Training, and Research and development
Health Infrastructure
Hospitals
Public Housing
Affordable Housing
Government Buildings
Government and public buildings including office accommodation, courts
Zone Infrastructure
Industrial zone
Tourism Infrastructure
Tourism development projects, Trade Fair Complexes, and Convention, exhibition, and cultural centers
Gas
Gas transmission, Public gas distribution and Gas and gas works
Urban Facilities Infrastructure
Land reclamation, Environmental management, Remediation and clean-up and Urban development
Sports, arts, and culture facility infrastructure
Sports recreation facilities
Penitentiary infrastructure
Prisons and Remand centers
Traditional market
LEARN MORENational Framework for Enabling PPPs
Eligible Sectors for PPPs
As per Schedule 2–Infrastructure of the PPP Act, there are 19 economic and social infrastructure sectors across which projects can be procured through the PPP route. A PPP project may also be proposed for a combination of two or more infrastructure sectors.
Sectors Subsectors Asset/Facility Type Transportation infrastructure Road infrastructure Roads, highways, and road facilities, bridges, tunnels Rail and mass transit infrastructure Rail Waterways infrastructure UA Seaport infrastructure Ports and harbor facilities on water or land Airport infrastructure Airport runways, air traffic control, terminals, and other airside and land-side facilities Logistics infrastructure UA Water, wastewater, and solid waste management infrastructure Water resources and irrigation infrastructure Dams and Irrigation Water supply infrastructure Portable water supply, distribution, and delivery Wastewater infrastructure Desalination, wastewater treatment and disposal, and drainage and sewerage Solid waste management infrastructure Solid waste management, including waste collection and disposal ICT infrastructure Solid waste management including waste collection and disposal Telecommunication infrastructure Fixed or mobile local telephony and domestic long distance telephony IT and informatics infrastructure Internet and broadband and facilities related to satellites and broadcasting facilities Energy and electricity infrastructure Power generation Power generation facilities, ancillary facilities including dam for hydropower Power transmission and sub-transmission Power transmission and sub-transmission facilities Power distribution Power supply and distribution facilities Energy conservation infrastructure Street lighting Social infrastructure Education infrastructure Schools and colleges, residential facilities, training, and research and development Health infrastructure Hospitals Public housing Affordable housing Government buildings Government and public buildings including office accommodation, courts Other infrastructure Zone infrastructure Industrial zone Tourism infrastructure Tourism development projects; trade fair complexes; and convention, exhibition, and cultural centers Gas Gas transmission, public gas distribution, and gas works Urban facilities infrastructure Land reclamation, environmental management, remediation and clean-up, and urban development Sports, arts, and culture facility infrastructure Sports recreation facilities Penitentiary infrastructure Prisons and remand centers Traditional market UA ICT = information and communication technology, UA = unavailable.
Source: Government of Papua New Guinea, Department of Treasury. 2014. Public–Private Partnership Act 2014. Port Moresby. https://www.treasury.gov.pg/html/legislation/files/acts/2014/Public.Private.Partnership.(PPP).Act.2014.pdf
The PPP Act specifically excludes (i) arrangements of a size or value lower than any referral threshold which may be set in a regulation made under the PPP Act, (ii) gas and petroleum projects under the Oil and Gas Act 1998 (and associated development agreements), (iii) mining projects under the Mining Act 1992 (and associated development agreements), and (iv) any infrastructure project in which the expenditure is predominantly comprised of expenditure deemed to be income tax under section 219C of the Income Tax Act 1959.1
The responsible minister may also include or exclude an arrangement or class of arrangements from being a PPP arrangement under the PPP Act by National Gazette notice (footnote 1).
- 1Asian Development Bank. 2019. Public–Private Partnership Monitor Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
ICT = information communication technology.
National Framework for Enabling PPPs
PPP Institutional Framework
Does the country have a national PPP unit? What are the functions of the national PPP unit? Supporting the design and operationalization of the national PPP-enabling framework?
Helping develop a national PPP pipeline?
Supporting the arrangement of funding for project preparation (budgetary allocations, technical assistance funding from multilateral development agencies, operating a dedicated project preparation/project development fund)?
Guidance for project preparation to and coordination with the government agencies responsible for sponsoring the projects?
Making recommendations to the PPP Committee and/or other approving authorities to provide approvals associated with various stages of PPP process?
- No
- Not Applicable
LEARN MORENational Framework for Enabling PPPs
PPP Institutional Framework
The PPP Act provides for the establishment of the PPP Centre, a statutory agency to be established to implement the PPP Act and monitor its enforcement. The PPP Act also provides for the establishment of the PPP Steering Group, which would include the heads of the Department of Treasury and the Department of National Planning and Monitoring, and the PPP Forum.
Key Agencies and Their Roles in Promoting PPPs
Agencies Function/Role in Promoting PPPs PPP Centre - Part III of the PPP Act establishes the PPP Centre. It is an unincorporated statutory body with a range of powers and functions to assist the state and other Relevant Public Bodies on all aspects of PPP arrangements. Its functions include
- encouraging Relevant Public Bodies to consider PPP arrangements in procuring infrastructure;
- advising and assisting Relevant Public Bodies on all aspects of PPP arrangements;
- acting as secretariat to the PPP Steering Group and PPP Forum;
- reviewing and evaluating proposals for projects and advising the PPP Steering Group;
- coordinating the implementation of PPP policy, program, and projects by the national, provincial, and local-level governments; and
- performing any other function concerning PPP arrangements.
- The PPP Centre has broad powers that can be exercised on behalf of the state in connection with the performance of its functions, including accessing premises (subject to providing notice), giving directions (subject to approval of the responsible minister), engaging consultants and advisers, charging fees, and managing and administering funds.
- The operation of the PPP Centre must be in accordance with a code of practice prepared by the chief executive officer and approved by the responsible minister.
- With prior consultation with the responsible minister, the PPP Steering Group, appropriate Relevant Public Bodies, and other appropriate persons recommended by the PPP Forum, the PPP Centre may issue or revoke procedures, guidelines, and instructions as it deems necessary (PPP Centre Rules). Any issue or revocation of PPP Centre Rules must be published in the National Gazette.
- The PPP Centre is subject to control and supervision of the responsible minister who is accountable to the National Parliament for the PPP Centre. The PPP Centre must report to the PPP Steering Group on policy, program, and projects, and carry out the decisions of the PPP Steering Group and the National Executive Council (NEC) on these matters.
PPP Steering Group - Part V of the PPP Act establishes the PPP Steering Group to procure and develop infrastructures through PPPs. Its functions include
- coordinating and monitoring the PPP Policy and program of the NEC,
- ensuring that the PPP Policy and program are implemented appropriately,
- recommending to and advising the NEC on measures that may be taken to advance PPP policy and program generally,
- making recommendations to the NEC on an individual PPP project or a group of projects,
- ensuring public communications and interaction with the private sector on PPP is successful in building understanding and confidence among the general public, and
- ensuring highest standards of probity are maintained in the procurement of PPP arrangements.
PPP Forum - Part VI of the PPP Act provides that the chief executive officer must convene and hold a forum called the PPP Forum to discuss specific issues, such as PPP legislation, policy, and procedures for any proposals for change, but not any specific PPP arrangement.
- The purpose of the PPP Forum is to allow all stakeholders of society who have an interest in PPP arrangements and implementation of PPP projects to discuss and exchange views on specific issues.
- The chief executive officer must invite the significant private sector interest groups in Papua New Guinea that represent consumers and users of infrastructure facilities and services, as well as members of the PPP Steering Group and senior representatives of state authorities involved in infrastructure development and PPP policy.
- The chief executive officer must convene the PPP Forum at least once per calendar year.
National Executive Council - Approving the execution of an agreement for a PPP arrangement
Responsible Minister - Amending the schedule in accordance with the recommendation of the Steering Committee
- Giving directions concerning the management of the company established for the purpose of PPP arrangement and other general directions and guidelines to the PPP Centre
- Serving as the chairperson of the PPP Centre appointments committee
- Tabling each biannual report and the annual report of the PPP Centre at the national Parliament
Relevant Public Body or Government Contracting Agency - Entering into a PPP arrangement
- Arranging for or making payment to a partner
- Entering into agreements with operators, service providers, and contractors, among others, for the purpose of a PPP arrangement
- Forming and registering a company for the purpose of a PPP arrangement
- Seeking the PPP Centre’s approval or confirmation of a PPP arrangement in compliance with the PPP Act
- Conducting initial assessment for procurement of a project
- Submitting the initial assessment to the PPP Centre within 30 days of conducting the assessment
Sources: Government of Papua New Guinea, Department of Treasury. 2014. Public–Private Partnership Act 2014. Port Moresby. https://www.treasury.gov.pg/html/legislation/files/acts/2014/Public.Private.Partnership.(PPP).Act.2014.pdf; Asian Development Bank. 2019. Public–Private Partnership Monitor, Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
National Framework for Enabling PPPs
The PPP Process
Does the PPP legal and regulatory framework provide for a PPP implementation process covering the entire PPP life cycle? Does the Feasibility Assessment Stage cover Technical feasibility?
Socioeconomic feasibility?
Environmental sustainability?
Financial feasibility?
Fiscal affordability assessment?
Legal assessment?
Risk assessment and PPP project structuring?
Value for Money assessment?
Market sounding with stakeholders?
Is the PPP procurement plan required? Is there a need to set up a separate PPP procurement committee? Is competitive bidding the only method for selection of PPP private developer? Is the prequalification stage necessary? Or does the PPP legal and regulatory framework allow flexibility to skip the prequalification stage? Does the PPP legal and regulatory process provide the option to the preferred bidder for contract negotiations? Does the PPP legal and regulatory framework allow unsuccessful bidders to challenge the award/submit complaints? What is the maximum time allowed for submitting a complaint/challenging the award by unsuccessful bidders from the announcement of the preferred bidder? Does the PPP legal and regulatory framework provide for transparency? Which of the following are required to be published? Findings from the feasibility assessment?
Procurement notice?
Outcome of stakeholder consultations from market sounding?
Clarifications to prequalification queries?
Prequalification results?
Clarifications to pre-bid queries?
Results for the bid stage and selection of preferred bidder?
Final concession agreement to be entered between the government agency and the preferred bidder? And other PPP project agreements executed between government agency and preferred bidder?
Confidentiality
- Yes
- No
- Unavailable
LEARN MORENational Framework for Enabling PPPs
The PPP Process
As per the National PPP Policy and the PPP Act, the PPP project process consists of four stages:
- development stage,
- procurement stage,
- implementation (construction and operation) stage, and
- termination stage.
EOI = expression of interest, MTDS = medium-term development strategy, MTdS = medium-term debt strategy, MTFS = medium- term fiscal strategy, NEC = National Executive Council, PCN = project concept note, PSC = Public Service Commission, SOE = state-owned enterprise.
Source: Government of Papua New Guinea, Department of Treasury. 2014. National PPP Policy 2014. Port Moresby. https://www.treasury.gov.pg/html/misc/Special%20Projects/PPP/PNG%20National%20PPP%20Policy%202014.pdf.
National Framework for Enabling PPPs
Standard Operating Procedures, Tool Kits, Templates, and Model Bid Documents for PPPs
Does the country have PPP Guidelines/PPP Guidance Manual? Does the PPP Guidelines/PPP Guidance Manual adequately cover the process, entities involved, roles and responsibilities of various entities, approvals required at various stages, and the timelines for the various stages of the PPP project life cycle? What are the templates and checklists available in the PPP Guidelines/PPP Guidance Manual? Project Needs Assessment and Options Analysis checklist?
Project Due Diligence checklist?
Technical Assessment checklist?
Environmental Assessment checklist?
PPP Procurement Plan template?
Does the country have standardizedmodel bidding documents for PPPs? Model Request for Qualification (RFQ) document?
Model Request for Proposal (RFP) document?
Model PPP/Concession Agreement?
State Support Agreement?
VGF Agreement?
Guarantee Agreement?
Power Purchase Agreement?
Capacity Take-or-Pay Contract?
Fuel Supply Agreement?
Transmission and Use of System Agreement?
Performance-Based Operations and Maintenance Contract?
Engineering, Procurement and Construction Contract?
Does the country have standardized PPP agreement terms? Does the country have standardized/ model tool kits to facilitate identification, preparation, procurement, and management of PPP projects? PPP Family Indicator?
PPP Mode Validity Indicator?
PPP Suitability Filter?
PPP Screening Tool?
Financial Viability Indicator Model?
Economic Viability Indicator Model?
VFM Indicator Tool?
Readiness Filter?
Is there a framework for monitoring fiscal risks from PPPs including the following? Process for assessing fiscal commitments?
Process for approving fiscal commitments?
Process for monitoring fiscal commitments?
Process for reporting fiscal commitments?
Process for budgeting fiscal commitments?
Are there fiscal prudence norms/thresholds to limit fiscal exposure to PPPs? Is there a process for assessing and budgeting contingent liabilities from PPPs? - No
- Unavailable
VFM = value for money, VGF = viability gap funding.
Source: Government of Papua New Guinea, Department of Treasury. 2014. Public Private Partnership Act 2014. Port Moresby. https://www.treasury.gov.pg/html/legislation/files/acts/2014/Public.Private.Partnership.(PPP).Act.2014.pdf; Asian Development Bank. 2019. Public–Private Partnership Monitor, Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitorsecond-edition.pdf.
Key Clauses Related to PPP Agreement
Does the law specifically enable lenders the following rights: Security over the project assets?
Security over the land on which they are built (land use right)?
Security over the shares of a PPP project company?
Can there be a direct agreement between the government and lenders?
Do lenders get priority in the case of insolvency?
Can lenders be given step-in rights?
Does the law specifically enable compensation payment to the private partner in case of early termination due to: Public sector default or termination for reasons of public interest?
Private sector default?
Force majeure?
Does the law enable the concept of economic/financial equilibrium? Does the law enable compensation payment to the private partner due to: Material adverse government action?
Force majeure?
Change in law?
- No
LEARN MORENational Framework for Enabling PPPs
Standard Operating Procedures, Tool Kits, Templates, and Model Bid Documents for PPPs
The PPP Act does not specify the lender’s security rights (other than to permit a Relevant Public Body to enter into a direct agreement with a person who has arranged or provided funding for the partner to carry out the PPP arrangement); likewise the PPP Act does not specify termination or compensation rights. However, these limitations could be addressed in the Regulations, or in the PPP Centre Rules or by the PPP Tenders Board, in the future.1
- 1Asian Development Bank. 2019. Public–Private Partnership Monitor, Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor, Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
National Framework for Enabling PPPs
Unsolicited PPP Proposals
Does the PPP legal and regulatory framework allow submission and acceptance of unsolicited proposals? What are the advantages provided to the project proponent for an unsolicited bid? Competitive advantage at bid evaluation?
Swiss Challenge?
Compensation of the project development costs?
Government support for land acquisition and resettlement cost?
Government support in the form of viabiity gap funding and guarantees?
- Yes
- No
LEARN MORENational Framework for Enabling PPPs
Unsolicited PPP Proposals
In Papua New Guinea, the two PPPs that reached financial closure in the 1990s were unsolicited proposals. These projects were closed in 1996 and 1997, prior to the introduction of the PPP Act and the PPP Policy. The PPP Act does not specify the preferential treatment that may be afforded to unsolicited bidders for having spent their own resources to develop a feasibility study or business case for such projects.1
The PPP Policy envisages that it will consider unsolicited proposals from the private sector for infrastructure projects that are not in the project list of any line agencies and/or state-owned enterprises (SOEs) (i.e., the unsolicited project has attributes that justify its inclusion in this category, and has not already been considered by the government, line agencies, and/or the SOEs).
The process for consideration of an unsolicited bid is expected to be defined in due course. However, in principle, the proponents of an unsolicited project will be given an opportunity to develop a business case at their own costs on an understanding that the technical sections of their business case will be used for a competitive bidding process should the project be deemed a priority. The PPP Law, to be developed in due course, will specify in detail the preferential treatment that may be afforded to unsolicited bidders for having spent their own resources to develop a feasibility study or business case for such projects.2
- 1Asian Development Bank. 2019. Public–Private Partnership Monitor Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
- 2Government of Papua New Guinea, Department of Treasury. 2014. National PPP Policy 2014. Port Moresby. https://www.treasury.gov.pg/html/misc/Special%20Projects/PPP/PNG%20National%20PPP%20Policy%202014.pdf (PNG National PPP Policy 2014); Asian Development Bank. 2019. Public– Private Partnership Monitor, Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf
VGF = viability gap funding.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor, Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf; Government of Papua New Guinea, Department of Treasury. 2014. Public–Private Partnership Act 2014. Port Moresby. https://www.treasury.gov.pg/html/legislation/files/acts/2014/Public.Private.Partnership.(PPP).Act.2014.pdf.
National Framework for Enabling PPPs
Foreign Investor Participation Restrictions
Is there any restriction for foreign investors on: Land use/ownership rights as opposed to similar rights of local investors?
Currency conversion?
PPP projects with foreign sponsor participation (number) 5 - Yes
- No
LEARN MORENational Framework for Enabling PPPs
Foreign Investor Participation Restrictions
The Investment Promotion Act facilitates, regulates, and monitors foreign investments in Papua New Guinea.1
- Section 37 of this act guarantees that the property of a foreign investor would not be nationalized or expropriated except in accordance with law, for a public purpose defined by law and in payment of compensation as defined by law.2
- There are no sector-specific restrictions, limitations, or requirements applied to foreign goods.
- Foreigners are not allowed to own land in Papua New Guinea. Most foreign businesses use long-term leases for land instead of direct purchases. Any dealing involving land being granted or transferred to a foreign person or a corporate entity requires ministerial approval (footnote 2).
- Papua New Guinea recently changed its citizenship laws to allow dual citizenship, which had previously been a limiting factor for Papua New Guineans returning from overseas having naturalized elsewhere. Another change allows long-term residents to naturalize as Papua New Guinea citizens with full legal rights and responsibilities (footnote 2).
- Foreign exchange controls have been largely deregulated in Papua New Guinea. Foreign exchange transactions no longer require prior approval provided they are reported to the Bank of Papua New Guinea (BPNG). Controls remain in place in relation to foreign currency bank accounts held by residents. The BPNG also maintains the ability to impose reporting and other administrative obligations, supervises tax clearance processes, regulates foreign currency accounts, and generally gives directions in relation to foreign exchange. The BPNG may give specific directions about exchange control matters, or reinstate exchange controls partially or wholly (footnote 2).
- An employer must obtain an entry permit (visa) under the Migration Act (Chapter 16) and a work permit under the Employment of Non-Citizens Act 2007 for any non-citizens employed in Papua New Guinea. These visas and work permits are particular to the employee, his/her roles, and the employer. Employers must also maintain a register of all work permits (footnote 2).
- The PPP Act does not specify any restrictions on foreign ownership in PPP arrangements, although this could be addressed in the Regulations, or in the PPP Centre Rules or by the PPP Tenders Board, in the future (footnote 2).
- 1Government of Papua New Guinea. 1992. Investment Promotion Act 1992. Port Moresby. https://www.italaw.com/sites/default/files/laws/italaw6297.pdf.
- 2United States Department of State. 2019. 2019 Investment Climate Statements: Papua New Guinea. Washington DC. https://www.state.gov/reports/2019-investment-climate-statements/papua-new-guinea/.
National Framework for Enabling PPPs
Dispute Resolution
Does the country have a Dispute Resolution Tribunal? Does the country have an Institutional Arbitration Mechanism? Can a foreign law be chosen to govern PPP contracts? What dispute resolution mechanisms are available for PPP agreements? Court litigation
Local arbitration
International arbitration
Has the country signed the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards? - Yes
- Unavailable
LEARN MORENational Framework for Enabling PPPs
Dispute Resolution
PPP regulations (both old and new) prescribe PPP contracts to determine the dispute resolution mechanism. However, there are no standard dispute-resolution procedures for PPPs as there are no model concession documents available. Most contractual disputes for "less-than-termination" events are resolved through negotiation. If unresolved, domestic or international arbitration is called for, commonly with the Singapore International Arbitration Centre.
A foreign choice of law is generally upheld and recognized as valid in Papua New Guinea. The National Court of Papua New Guinea is a court of unlimited jurisdiction and frequently determines commercial disputes. Domestic arbitration can be conducted under Arbitration Act 1951, although it is not frequently used for commercial disputes. The Arbitration Act makes no distinction between domestic and international arbitration. It does not outline the arbitration process, and does not refer to disputes between states or between investor and the state. Papua New Guinea is not a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. A Papua New Guinea court order is needed to enforce any foreign arbitral award in Papua New Guinea. Investor–state dispute settlement mechanisms may also be available if a free trade agreement or investment treaty, which contains an investor–state dispute settlement mechanism, exists among the relevant jurisdictions.
The PPP Act does not specify any particular dispute resolution processes for PPP arrangements, although this could be addressed in the Regulations, or in the PPP Centre Rules or by the PPP Tenders Board, in the future.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Sources: Pacific Islands Treaty Series PACLII. Arbitration Act 1951. http://www.paclii.org/pg/legis/consol_act/aa1951137/; Allens. Insights & News. PNG Proposes a New Regime for Arbitration. https://www.allens.com.au/insights-news/insights/2020/02/png-proposes-a-new-regime-for-arbitration/; Allens. Insights & News. PNG Accedes to the New York Convention: What will Change. https://www.allens.com.au/insights-news/insights/2019/08/png-accedes-to-the-new-york-convention-what-will-change/
National Framework for Enabling PPPs
Environmental and Social Issues
Is there a local regulation establishing a process for environmental impact assessment? Is there a legal mechanism for the private partner to limit environmental liability for what is outside of its control or caused by third parties? Is there a local regulation establishing a process for social impact assessment? Is there involuntary land clearance for PPP projects? - Yes
LEARN MORENational Framework for Enabling PPPs
Environmental and Social Issues
The Environment Act 2000 provides the regulatory framework for environmental impact assessment through an environmental approval and permit system.1 As per the Environment Act 2000, the following activities require permit:
- construction of works, land clearance, demolition, excavation, or other works in relation to land or water;
- installation, operation, or maintenance of plant or equipment;
- activities for the purpose of extracting or harvesting natural resources; and
- release of contaminants to air, land, or water, in connection with any of these activities.
The Environment Act was amended in May 2010, restricting landowners’ rights in respect of projects ruled to be of national interest.
- 1Pacific Islands Treaty Series PACLII. Environment Act 2000. http://www.paclii.org/pg/legis/consol_act/ea2000159/.
National Framework for Enabling PPPs
Land Rights
Which of the following is permitted to the private partner: Transfer land lease/use/ownership rights to third party
Use leased/owned land as collateral
Mortgage leased/owned land
Is there a legal mechanism for granting wayleave rights, for example, laying water pipes or fiber cables over land occupied by persons other than the government or the private partner? Is there a land registry/cadastre with public information on land plots? Which of the following information on land plots is available to the private partner? Appraisal of land value
Landowners
Land boundaries
Utility connections
Immovable property on land
Plots classification
- Yes
- No
- Unavailable
LEARN MORENational Framework for Enabling PPPs
Land Rights
Approximately 97% of Papua New Guinea’s land is held under customary ownership for which there is generally no recorded title, which may only be acquired by the state from traditional owners. If a foreign person requires access to customary land, it would need to be acquired from the traditional owners by the state and leased from the state. 1
All other land in Papua New Guinea is alienated land held by the state (i.e., land that at some time in the past has been acquired by the state). Alienated land is subject to the Land Act 1996.2 Alienated land can be held as freehold or leasehold from the state. Non-citizens are not permitted to own freehold land in Papua New Guinea.
Most dealings in land are by way of leasehold from the state via state leases. State leases may be registered under the Land Registration Act (Chapter 191).3 Encumbrances such as mortgages may be registered on the title and take priority over unregistered dealings. Any dealing involving land being granted or transferred to a foreign person or a corporate entity requires ministerial approval (footnote 1).
A lease–leaseback scheme is designed in Papua New Guinea for the owners of customary land to develop their land for special agricultural or other business projects. Under the Land Act, customary landowners (either in their own name or through a special purpose corporation or incorporated land group, which acts as an agent for the customary landowners) may dispose of their land to the state, which then grants a special agricultural or business lease back to one or more incorporated land groups in their capacity as agent for the customary landowners (footnote 1).
Under the PPP Act, a Relevant Public Body may grant, transfer, convey, or assign an interest in real or personal property, or a leasehold interest owned or held by that Relevant Public Body to a company to enable it to carry out its financing functions under the PPP arrangement, subject to certain ministerial approvals. It may also take such steps as may otherwise be available to it to assist a partner to obtain rights related to land (footnote 1).
For compliance with the Constitution and the Land Act, the PPP Act deems the purpose and reason for which the PPP Act permits any compulsory acquisition of land (or rights in land) under PPP arrangements as reasonably justified in a democratic society that has a proper regard for the rights and dignity of humankind (footnote 1).
- 1Asian Development Bank. 2019. Public–Private Partnership Monitor Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
- 2Government of Papua New Guinea. 1996. Land Act 1996. Port Moresby. http://extwprlegs1.fao.org/docs/pdf/png20843.pdf (The Land Act provides that all land in Papua New Guinea, which is not customary land, are the property of the state subject to any estates, rights, titles, or interests in force under any law).
- 3Government of Papua New Guinea. 1981. Land Registration Act 1981. Port Moresby. http://extwprlegs1.fao.org/docs/pdf/png24837.pdf.
Sources: Asian Development Bank. 2019. Public–Private Partnership Monitor, Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf; Jones Lang Lasalle. 2014. PNG Property Investment Guide. Port Moresby. http://www.joneslanglasallesites.com/investmentguide/uploads/attachments/ 2014AP_PropertyInvestmentGuidePapuaNewGuinea_88np1ap4.pdf.
Government Support for PPP Projects
Project Funding Support Is there a dedicated government financial support mechanism for PPP projects? What are the instruments of government financial support available under this government financial support mechanism? Capital grant1
Operations grant
Annuity/availability payments
Guarantees to cover
Currency inconvertibility and transfer risk
Foreign exchange risk
War and civil disturbance risk
Breach of contract risk
Regulatory risk
Expropriation risk
Government payment obligation risk2
Credit risk
Minimum demand/revenue risk
Risk of making annuity/availability payments in a timely manner3
What are the caps/ceilings for the government financial support under each of the abovementioned government financial support instruments? Is there a minimum PPP project size (investment) for a PPP project to be eligible for receiving government financial support? Are there minimum equity investment requirements which the private developer should meet for availing any of the above government support mechanism? Are there minimum financial commitment requirements for the private developer equity before the government support could be drawn? Is the government financial support required, usually the bid parameter for PPP projects? Are unsolicited PPP proposals eligible to receive government financial support? Are there standard operating procedures for providing government financial support to PPP projects? Appraisal and approval process
Budgeting process
Disbursement process
Monitoring process
Accounting, auditing, and reporting process
Who are the signatories to the government financial support agreement? Who is responsible for monitoring the performance of PPP projects availing government financial support? Independent engineer?
Government agency?
Ministry of Finance?
What are the other forms of government support available for PPP projects? Land acquisition funding support?
Funding support for resettlement and rehabilitation of affected parties?
Tax holidays/exemptions?
Real estate development rights?
Advertising and marketing rights?
Interest rate/cost of debt subventions?
Other subsidies and subventions?
Can the other forms of government support be availed over and above the government financial support through various instruments listed above? - 1There is no dedicated financial support mechanism. Financial support is decided and set up on a per project basis.
- 2Independent engineer, implementing agency, and PPP Center.
- 3Where land is required, the project is usually on government land or on land acquired by the government.
- No
- Unavailable
LEARN MOREGovernment Support for PPP Projects
There is no specific law enabling government support for PPP projects in Papua New Guinea. However, it is possible to provide some guarantees within an individual contract. Also, depending on the revenue model, PPPs in some sectors, such as the energy sector, may be based on annuity/availability payments. The PPP Policy stipulates that the Treasury would manage any fiscal commitment from the government.1
The PPP Act does not specify government support arrangements—other than that the state does not and will not provide a guarantee or indemnity unless it has been approved by the National Executive Council—although this could be addressed in the regulations, or in the PPP Centre Rules or by the PPP Tenders Board, in the future (footnote 1).
The PPP Act also provides that a Relevant Public Body may enter into a direct agreement with a person who has arranged or provided funding for the partner to carry out the PPP arrangement (footnote 1).
There is no information available on the project development funding available for PPP projects in Papua New Guinea.
- 1Asian Development Bank. 2019. Public–Private Partnership Monitor Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
a Regulations are silent on this, but some energy independent power producer (IPP) projects received payment guarantees, therefore it is understood that this type of guarantee can be provided on a case-by-case basis.
b Regulations are silent on this; however, all energy generation projects have been implemented on availability payment basis under a power purchase agreement.
Source: Government of Papua New Guinea, Department of Treasury. 2014. Public–Private Partnership Act 2014. Port Moresby. https://www.treasury.gov.pg/html/legislation/files/acts/2014/Public.Private.Partnership.(PPP).Act.2014.pdf; Government of Papua New Guinea, Department of Treasury. 2014. National PPP Policy 2014. Port Moresby. https://www.treasury.gov.pg/html/misc/Special%20Projects/PPP/PNG%20National%20PPP%20Policy%202014.pdf; Asian Development Bank. 2019. Public–Private Partnership Monitor, Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Project Development Funding
Project Development Funding What are the various sources of funds for PPP project preparation? Budgetary allocations
Dedicated project preparation/project development fund
Technical assistance from multilateral/bilateral/and donor agencies
Recovery of project preparation funding from the preferred bidder
At what stage of the PPP project, can the project preparation/development funding be availed by the government agency? Pre-feasibility stage
Detailed feasibility stage
Transaction stage
Is there a list of project preparation/project development activities towards which the project development funding can be utilized? Can the project development funding be utilized to appoint transaction advisors for PPP projects? Is there a specific process to be followed by government agencies to appoint transaction advisors? What are the payment mechanisms for making payments to transaction advisors? Timesheet-based
Milestone-based
Are there standard agreements and documents to avail project development funding? Who are the signatories to the project development funding agreements? - Unavailable
Maturity of the PPP Market
PPP Project Pipeline
Does the country publish a national PPP project pipeline? At what frequency is the national PPP project pipeline published? Is the national PPP project pipeline based on the national infrastructure plan for the country? - No
- Not Applicable
LEARN MOREMaturity of the PPP Market
It is envisaged that the Department of National Planning and Monitoring will develop a “National PPP Infrastructure Pipeline” in consultation with key line agencies including the Departments of Works, Transport, Health, and Education; the National Roads Authority; and the Independent Public Business Corporation (IPBC), in tandem with the development of PPP laws and institutional arrangements.
The first two PPP projects had reached financial closure long before the introduction of any of Papua New Guinea’s PPP Policy and the recent commencement of the PPP Act. These include the Port Moresby Diesel-Fired Plant in 1996 and the PNG Water Limited potable water treatment plant in 1997. These projects involved a total investment of $136 million. In 2011, the Independent Consumer and Competition Commission (ICCC) of Papua New Guinea awarded a build–own–operate contract and a value-added services license for 15 years to Bemobile Limited, to strengthen Papua New Guinea’s backbone infrastructure for telecommunications and to reduce the country’s reliance on the legacy infrastructure of Telikom PNG (the state-owned telecom service provider). The objective was to upgrade and expand its existing network in Papua New Guinea to increase national geographic and population coverage. The project was supported and partly financed by the Asian Development Bank (ADB). Other sponsors included GEMS, a private equity fund based in Hong Kong, China; and Telikom PNG. In late 2017, the PPP contract for Port Moresby and Lae was executed with the Philippines-based International Container Terminal Services, Inc. (ICTSI). ADB and the Papua New Guinea National Airports Corporation (NAC) have signed a transaction advisory services agreement to develop a new international passenger terminal at Port Moresby (Jacksons) International Airport on 2 February 2017 on a design–build–finance–operate–maintain basis.1 In addition to this, the PPP agreement for the $2 billion RAMU-2 hydroelectric power plant was signed in 2015 with the People's Republic of China’s Shenzhen Energy Group. The construction of the RAMU-2 project by Kumul Consolidated Holdings (KCH) was expected to commence by the end of 2019.2
Australia and Papua New Guinea’s Prime Ministers have agreed to jointly fund energy network and generation projects worth A$250 million ($175 million as of June 2020) in Papua New Guinea.3 Also, PPPs would be considered for the electrification of Papua New Guinea, for which Australia, New Zealand, Japan, and the United States have pledged to support. The countries confirmed they would help build an electricity network as well as new internet connections across the country to meet its goal of connecting 70% of the population to electricity by 2030.4
According to the 2018 budget, the government intends to develop a roadmap to help identify and implement a pipeline of PPP projects aligned with the country’s Medium-Term Development Plan 3 for 2018–2022.
- 1Asian Development Bank News. 2017. ADB Helps PNG Expand Port Moresby International Airport Using PPP. 2 February. https://www.adb.org/news/adb-helps-png-expand-port-moresby-international-airport-using-ppp
- 2Post-Courier. 2019. US2B Ramu 2 Hydro Power Project Stalled. 1 August. https://postcourier.com.pg/us2b-ramu-2-hydro-power-project-stalled/; https://www.thenational.com.pg/k3-31bil-hydro-project-to-start/
- 3Inframation News. Australia and Papua New Guinea Plan—A$250 Million Energy Project Spending. https://www.inframationnews.com/news/3748526/australia-and-papua-plan-aud-250m-energy-project-spending.thtml.
- 4Inframation News. Governments to Consider PPP for Papua New Guinea Electrification. https://www.inframationnews.com/news/3213251/governments-to-consider-ppp-for-papua-new-guinea-electrification.thtml.
PPP Book
Sources of PPP Financing Who are the typical entities financing PPP projects in the country? Private developers
Construction contractors
Institutional/financial/private equity investors
Pension funds
Insurance companies
Banks
Nonbanking financial corporations/Financial institutions
Donor agencies
Government agencies and state-owned enterprises
What is the distribution of financing among these entities financing PPP projects? Does the country have the history/track record of issuing bonds by infrastructure projects? How many infrastructure projects private developers for infrastructure projects have raised funding through bond issuances? What is the value of funding raised through capital markets by PPPs? Does the country have a matured derivatives market to hedge certain risks associated with PPPs? Does the country have a national development bank? Does the country have credit rating agencies to rate infrastructure projects? Typically, what are the credit ratings achieved/received by infrastructure projects? Is there a threshold credit rating for infrastructure PPPs below which institutional investors, pension funds, and insurance companies would not invest in infrastructure PPPs? What is the typical funding model for infrastructure PPPs -- corporate finance or project finance? Are there regulatory limits/restrictions for the maximum exposure that can be taken by banks to infrastructure projects? - Yes
- Unavailable
LEARN MOREMaturity of the PPP Market
The National Development Bank of Papua New Guinea is a development finance institution wholly owned by Kumul Consolidated Holdings (KCH). The National Development Bank provides long-term loans to all the sectors including infrastructure-sector PPPs.1
- 1Kumul. What we do. https://www.kch.com.pg/what-we-do/our-portfolio/national-development-bank/
Parameter2 Non-Limited Recourse Loan Non-Limited Recourse Local Currency Loan Project Financing, Local Public Sector Banks Interest Rate Swaps Currency Swaps Project Financing through Project Bond Issuance Maximum tenor, in years UA 5–10 years UA NA NA NA Upfront arrangement fee, (bps) UA 100–150 bps UA NA NA NA Floor rate UA KFR UA NA NA NA Margin rate (bps) UA 400–600 bps UA NA NA NA Percentage of foreign debt out of total debt for project financing UA UA UA Percentage of project bonds out of total debt for project financing UA NA UA Typical debt–equity ratio UA 60:40 60:40 Timeline to financial close (month) 6–12 months Minimum DSCR covenant levels (x) 1.2x – 1.5x Nominal interest rates UA Real interest rates UA Security package UA - 2Asian Development Bank. 2019. Public–Private Partnership Monitor Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf
- NA = Not Applicable,
- UA = Unavailable
bps = basis points, D = debt, DSCR = debt–service coverage ratio, E = equity, KFR = Kina Facility Rate published by the Bank of Papua New Guinea.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor, Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
There are limited sources of finance domestically. International development agencies contribute significantly to the funding of infrastructure projects.
Sources of Loans in Papua New Guinea
Source Institution Loan Amount ($ billion) Export credit agencies - Export–Import Bank of the United States
- Export–Import Bank of China
- SACE
- Export Finance and Insurance Corporation
- Japan Bank for International Cooperation
- Nippon Export and Investment Insurance
8.30 Commercial banks - Sumitomo Mitsui Banking Corporation
- Mizuho Corporate Bank Limited
- Mitsubishi UFJ Financial Group
1.95 Corporate entity - ExxonMobil
3.75 Total 14.00 SACE = Servizi Assicurativi del Commercio Estero, UFJ = United Financial of Japan.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor, Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.