Roads
-
Road Network Length
19,600 km
-
Road Infrastructure Quality
UA
-
Number of PPPs Reaching FC
----
-
Value of PPPs Reaching FC
----
-
Number of PPPs with Foreign Sponsors
----
-
Number of PPPs with Govt. Support
----
FC = financial closure, Govt. = government, km = kilometer, UA = unavailable.
Sources: Trading Economics. Papua New Guinea—Road Total Network. https://tradingeconomics.com/papua-new-guinea/roads-totalnetwork-km-wb-data.html; The Global Economy. Compare Countries. https://www.theglobaleconomy.com/compare-countries/.
Roads
Contracting Agencies
The Department of Works and Implementation, the National Roads Authority, and the Road Traffic Authority are the executing agencies for all road transport projects and programs.
Roads
Sector Laws and Regulations
Originally, the Land Transport Division of the Department of Transport and the National Road Safety Council were responsible for regulating road transport infrastructure and services in the country. Since the establishment of the Road Traffic Authority through the Road Traffic Act 2014, the functions of the Land Transport Division of the Department of Transport and the National Road Safety Council have been transferred to the Road Traffic Authority. The Road Traffic Authority is responsible for managing and administering land transport regulations, safety, and efficient use of land transport throughout Papua New Guinea. For road transport, the Parliament of Papua New Guinea has enacted the following laws and regulations:1
Road Traffic Act 2014
The purpose of this act is to provide for the
- safety of land transport;
- administration and regulation of land transport, and the use of public streets; and
- creation of the Road Traffic Authority to administer the regulation, safety, and use of land transport.
Road Traffic (Amendment) Act 2017
The purpose of this act is to
- amend and insert definitions,
- provide for an additional member of the Board to be nominated by the minister,
- provide for traffic enforcement officers to seize vehicles in certain circumstances, and
- amend the wording of some other provisions.
- 1Papua New Guinea Department of Transport. Land Transport. http://www.transport.gov.pg/land-transport; Papua New Guinea Road Transport Authority. Acts of Parliament. http://www.rta.gov.pg/legislation/acts-of-parliament/.
Agencies and Their Functions in the Road Transport Sector of Papua New Guinea
Agency Function Department of Transport and Infrastructure - Conducts sector planning and prepares sector budget
- Coordinates with the 12 transport sector agencies and develops an integrated transport sector plan
Department of Works and Implementation - Conducts programming and contract management for national road and bridge construction and maintenance
- Specifies technical standards for road and bridge engineering and training; and advises the government on engineering costs, technical design, and construction matters
- Maintains provincial works units in most provinces
- Maintains the Road Asset Management System and the Bridge Asset Management System, which inform maintenance plans and budget deliberations
National Roads Authority - Administers the regulation, safety, and use of land transport
- Conducts routine maintenance of the national road network
- Ensures continual and reliable supply of funds for maintaining the national road network
National Road Safety Council - Promotes road safety and collects road traffic accident data
National Land Transport Board - Regulates land transport services
Motor Vehicle Insurance Ltd. - Conducts vehicle, driver, and transport licensing; vehicle type approval and roadworthiness standards; and motor vehicle testing and dealer licensing
Source: Government of Australia, Department of Foreign Affairs and Trade. 2018. Road Management in Papua New Guinea: An Evaluation of a Decade of Australian Support 2007–2017. Canberra. http://www.oecd.org/derec/australia/australia-ode-evaluationroad-management-in-papua-new-guinea.pdf.
Foreign Investment Restrictions
COMPAREDOWNLOADParameter 2017 2018 2019 Maximum allowed foreign ownership of equity in greenfield projects 100% 100% 100% LEARN MORERoads
Sector Laws and Regulations
Foreign investments in Papua New Guinea are governed by the Investment Promotion Act, 1992. Although joint ventures with local partners are highly encouraged in Papua New Guinea, many businesses are foreign-owned, and a 100% foreign-owned enterprise within the roads sector is allowed. There are no sector-specific restrictions, limitations, or requirements applied to foreign investment.1
- 1United 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/
Standard Contracts
COMPAREDOWNLOADType of Contract Availability PPP/concession agreement Performance-based operation and maintenance contract Engineering, procurement, and construction contract - No
Roads
Sector Master Plan
While there is no specific road sector master plan, the Papua New Guinea Development Strategic Plan (PNGDSP) 2010–2030 and the National Transport Strategy consider maintenance of the national priority roads as the transport sector’s greatest priority.
Aligned with the PNGDSP 2010–2030 and the National Transport Strategy, some of the critical ongoing road sector programs and projects in Papua New Guinea are as follows:
- Highlands Highway Rehabilitation Program,
- Other National Highways Rehabilitation Program,
- Rural Economic Road and Bridge Program,
- Coastal District Road and Rehabilitation and Maintenance Program,
- Provincial Road Rehabilitation and Maintenance Program,
- Missing Link Road (Baiyer–Madang Highway),
- Missing Link Road (Gulf–Southern Highlands Province),
- Missing Link Road (Central–Milne Bay),
- Capacity Development of Transport Sector Agencies,
- National Bridge Program,
- Momase Highway,
- District town roads,
- Provincial town roads,
- Road maintenance and user-pay program,
- Lae–Nadzab Road,
- Manus Provincial Highway, and
- Morobe–Gulf Highway.1
There is no clarity on which of these programs and projects are proposed to be implemented through the PPP route.
- 1Government of Papua New Guinea, Department of Transport. Road Projects. http://www.transport.gov.pg/projects/road-projects; Asian Development Bank. 2016–2020. Sector Assessment (Summary): Transport. Manila. https://www.adb.org/sites/default/files/linked-documents/cps-png-2016-2020-ssa-01.pdf.
No Project Implementing Agency Estimated Project Cost Status ($ million) (K million) 1 UA UA UA UA UA - UA = Unavailable
Projects under Preparation and Procurement
Roads Public–Private Partnerships under Preparation and Procurement
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Roads
Features of Past PPP Projects
Procurement of PPP Projects
Roads Public-Private Partnerships procured through various modes
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
PPP Projects Reaching Financial Close
Roads Public-Private Partnerships reaching Financial Close
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
PPP Projects with Foreign Sponsor Participation
Roads Public-Private Partnerships with Foreign Sponsor Participation
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Government Support to PPP Projects
Government Support for Roads Public-Private Partnerships
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Roads Public-Private Partnerships
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Typical Risk Allocation for PPP Projects
COMPAREDOWNLOADRisk Type Private Public Shared Traffic risk Collection risk Competition risk Government payment risk Environmental and social risk Land acquisition risk Permits Geotechnical risk Brownfield risk: inventories studies, property boundaries, project scope Political risk Force majeure Foreign exchange risk Construction risk - Not Applicable
- *Details on typical Risk allocation are not available for this sector
LEARN MORERoads
Features of Past PPP Projects
Since there have been no implemented PPP projects in the road sector thus far, information on typical risk allocation for such projects is not available.
As per the generic risk allocation prescribed by the National PPP Policy and the PPP Act, the private sector is expected to assume the completion and delivery risks, while the public sector is expected to assume approval and regulatory risks. The detailed risk allocation is determined on a case-by-case basis through negotiation between the government and the private sector service providers.
Financing Details
Parameter 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation UA UA UA PPP projects that received export credit agency/international financing institution support UA UA UA Typical debt:equity ratio UA UA UA Time for financial close UA Typical concession period UA Typical financial internal rate of return UA UA = unavailable.
Roads
Tariffs
Since there have been no implemented PPP projects in the road sector thus far, information on tariffs applicable to such projects is not available. However, according to the Road Traffic Act 2014, it is the function of the Road Traffic Authority to set fees and charges for road transport services. Further, to partly finance the substantial capital investment required in the roads sector, the road user charges would be extended to include a charge on both petrol and diesel, an annual charge on registered vehicles, and a charge for heavy vehicle axle loads.1
- 1Papua New Guinea Road Traffic Authority. 2014. Road Traffic Act 2014. Port Moresby. http://rta.gov.pg/pdfs/RoadTrafficAct2014.pdf ; Government of Australia, Department of Foreign Affairs and Trade. 2018. Road Management in Papua New Guinea: An Evaluation of a Decade of Australian Support 2007–2017. Canberra. http://www.oecd.org/derec/australia/australia-ode-evaluation-road-management-in-papua-new-guinea.pdf.
Roads
Challenges
Some of the challenges faced in the roads sector of Papua New Guinea are as follows:
- Underfunding and capacity constraints have led to poor road management and maintenance.
- Despite the road sector’s positive economic return, sufficient funding to road maintenance has not been allocated by successive governments in Papua New Guinea due to political incentives.1
- Construction of new roads is prioritized over maintenance of existing roads and funding is allocated without consideration of economic or financial impact (footnote 1).
- The lack of political support and engagement and the opposition to the Road Fund among parts of the civil service have resulted to the limited impact of the Road Fund and the National Roads Authority (NRA) on road management and road conditions in Papua New Guinea (footnote 1).
- 1Wiley. The Political Economy of Road Management Reform: Papua New Guinea’s National Road Fund. https://onlinelibrary.wiley.com/doi/full/10.1002/app5.142
-
Railways
-
Railway Network Length
UA
-
Number of Passengers
UA
-
Freight Volume
UA
-
Railway Infrastructure Quality
UA
-
Number of PPPs Reaching FC
----
-
Value of PPPs Reaching FC
----
-
Number of PPPs with Foreign Sponsors
----
-
Number of PPPs with Govt. Support
----
FC = financial closure, Govt. = government, UA = unavailable.
Sources: The Economist Intelligence Unit. Papua New Guinea. https://infrascope.eiu.com/; The Global Economy. Railway Passengers—Country Rankings. https://www.theglobaleconomy.com/rankings/railway_passengers/; The Global Economy. Railway Transport of Goods—Country Rankings. https://www.theglobaleconomy.com/rankings/Railway_transport_of_goods/; The Global Economy. Railroad Infrastructure Quality—Country Rankings. https://www.theglobaleconomy.com/rankings/railroad_quality/.
Papua New Guinea has no major railways, but some mine sites have disused tracks. In September 2007, a mining company proposed to build a new railway to link the coast to a copper-molybdenum mine at Yandera in Madang province. Although the country may be regarded as without railways, there have been a surprising number of light tramways and railways over the past century.1
There are no further details available about this sector.
- 1Wiley. The Political Economy of Road Management Reform: Papua New Guinea’s National Road Fund. http://www.pngbuai.com/300socialsciences/transport/railway-history/EOL-rail-history/EOL-PDF/RAILWAYChronologyEd3.pdf; PNG BUAI. Transport – Railways – German New Guinea (1884 – 1914). http://www.pngbuai.com/300socialsciences/transport/railgerman1a.html.
Railways
Sector Laws and Regulations
Foreign Investment Restrictions
COMPAREDOWNLOADParameter 2017 2018 2019 Maximum allowed foreign ownership of equity in greenfield projects - NA = Not Applicable
Standard Contracts
COMPAREDOWNLOADType of Contract Availability PPP/concession agreement Performance-based operation and maintenance contract Engineering, procurement, and construction contract Railways
Sector Master Plan
Projects under Preparation and Procurement
Railways Public-Private Partnerships under Preparation and Procurement
COMPAREDOWNLOADRailways
Features of Past PPP Projects
Procurement of PPP Projects
Railways Public-Private Partnerships procured through various modes
COMPAREDOWNLOADPPP Projects Reaching Financial Close
Railways Public-Private Partnerships reaching Financial Close
COMPAREDOWNLOADPPP Projects with Foreign Sponsor Participation
Railways Public-Private Partnerships with Foreign Sponsor Participation
COMPAREDOWNLOADGovernment Support to PPP Projects
Government Support for Railways Public-Private Partnerships
COMPAREDOWNLOADPayment Mechanism for PPP Projects
Payment Mechanisms for Railways Public-Private Partnerships
COMPAREDOWNLOADTypical Risk Allocation for PPP Projects
COMPAREDOWNLOADRisk Type Private Public Shared Demand risk Revenue collection risk Tariff risk Government payment risk Environmental and social risk Land acquisition risk Interface Handover Political risk Foreign exchange risk Early termination risk - *Details on typical Risk allocation are not available for this sector
-
Ports
-
Number of Ports
19
-
Container Traffic
341,300 TEU
-
Port Infrastructure Quality
UA
-
Number of PPPs Reaching FC
1
-
Value of PPPs Reaching FC
UA
-
Number of PPPs with Foreign Sponsors
UA
-
Number of PPPs with Govt. Support
----
FC = financial closure, Govt. = government, TEU = twenty-foot equivalent unit, UA = unavailable.
Sources: World Port Source. Ports. http://www.worldportsource.com/countries.php; The Global Economy. Port Traffic—Country Rankings. https://www.theglobaleconomy.com/rankings/Port_traffic/; The Economist Intelligence Unit. Papua New Guinea. https://infrascope.eiu.com/
Ports
Contracting Agencies
While the Relevant Public Body is the state, the appropriate minister—following the approval of the National Executive Council (NEC)—has the power to execute an agreement for a PPP arrangement on behalf of the state.1
- 1Government of Papua New Guinea, Department of Transport. Maritime Sector Institutions. http://www.transport.gov.pg/maritime-transport/maritime-sector-institutions; 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.
Ports
Sector Laws and Regulations
The various sector-specific regulations governing the maritime sector (ports and shipping) in Papua New Guinea are as follows:
- Harbours Act, 2002.
- Merchant Shipping Act (Chapter 242), 1975.
- Merchant Shipping (Coasting Trade) Regulation, 1978.
- Merchant Shipping (Maritime Security) Regulation, 2013.
Maritime shipping in Papua New Guinea is regulated by the Department of Transport, in conjunction with the National Maritime Safety Authority under the National Maritime Safety Authority Act of 2003. Following a delegation from the Department of Transport, the state-owned Papua New Guinea Ports Corporation Limited (PNGPCL) regulates, manages, and controls 16 declared ports in Papua New Guinea under the Harbours Act. The declared ports are regulated under the Independent Consumer and Competition Commission (ICCC) Act of 2002, where ICCC has a regulatory contract with PNGPCL related to tariffs for essential port and stevedoring services. Charges are reviewed and approved annually.1
The Department of Transport regulates the private ports operated by companies for specific industries, such as mining.
- 1Government of Papua New Guinea, Department of Transport. Maritime Sector Institutions. http://www.transport.gov.pg/maritime-transport/maritime-sector-institutions.
Key Agencies Regulating the Ports Sector in Papua New Guinea
Agency Function National Maritime Safety Authority - Issue and enforce pollution control standards following international agreements
- Ensure that the vessels meet the safety standards required by Papua New Guinea’s (PNG) legislation, regulations, and commitments under the International Maritime Organization’s conventions
PNG Ports Corporation Limited - Control and regulate all waters and the use of all waters within a declared port
- Act as a pilotage authority for the purposes of Part VIII of the Merchant Shipping Act (Chapter 242) where appointed as such under that act
- Erect and place in position buoys, markers, beacons, and leads, and other things that are necessary or desirable to facilitate navigation in or into a declared port
- Dredge and maintain channels and berthing places
- Build retaining walls for the purpose of reclaiming, and claim and obtain title to land that is the bed of the declared port
Kumul Consolidated Holdings (KCH) - KCH is a holding company with ownership in state-owned enterprises, including PNG Power Limited. It provides management oversight of the companies. It may also take operational actions in companies that require support. KCH participates in monthly review meetings in the energy sector and supports the PNG Power Limited.
Independent Consumer and Competition Commissions - Any functions that a regulatory contract—issued under the Independent Consumer and Competition Commission Act, 2002, which relates to the essential port services industry—contemplates will be performed by the commission for the purposes of that regulatory contract.
- Perform licensing functions conferred by the Harbours Act:
- Economic monitoring, control, inspection, and regulation of the essential port services industry.
- Consulting, where appropriate, in commercial, industrial, and consumer organizations about any matter relating to the supply of essential port services.
Source: National Maritime Safety Authority. 2013. Separation of PNG Ports Corporation’s Regulated and Unregulated Businesses. Port Moresby. http://www.pngports.com.pg/docs/Public-notices/Issues-Paper_Seperation-of-Regulated-and-Unregulated-Buinesses.pdf.
Foreign Investment Restrictions
COMPAREDOWNLOADParameter 2017 2018 2019 Maximum allowed foreign ownership of equity in greenfield projects 100% 100% 100% LEARN MOREPorts
Sector Laws and Regulations
Although joint ventures with local partners are highly encouraged in Papua New Guinea, many businesses are foreign-owned and a 100% foreign-owned enterprise within the port sector is allowed. There are no sector-specific restrictions, limitations, or requirements applied to foreign investment.
Sources: United States Department of State. 2019 Investment Climate Statements. https://www.state.gov/reports/2019-investmentclimate-statements/papua-new-guinea/; 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.Standard Contracts
COMPAREDOWNLOADType of Contract Availability PPP/concession agreement Performance-based operation and maintenance contract Engineering, procurement, and construction contract - No
Source: World Bank. 2017. Benchmarking PPP Procurement 2017 in Papua New Guinea. Washington DC.
https://www.procurementinet.org/wp-content/uploads/2017/02/Papua-New-Guinea.pdf.Ports
Sector Master Plan
While there is no specific port sector master Plan, the Papua New Guinea Development Strategic Plan (PNGDSP) 2010–2030 and the National Transport Strategy consider developing an easily accessible sea transport system to stimulate economic activities in the rural maritime regions and improve the efficiency of international shipping in the next 5 years as an important priority. Aligned with the PNGDSP 2010–2030 and the National Transport Strategy, some of the critical port sector programs and projects in Papua New Guinea which the government would invest into are as follows:1
- national wharves development,
- national ports development,
- jetty development and maintenance programs, and the
- National Shipping Service.2
Based on the above, some of the maritime projects and programs in the pipeline in Papua New Guinea are as follows (footnote 2):
- Wewak Wharf Development – Construction of a new wharf facility to enable increased movement of cargo and passenger, thus creating trade and socioeconomic development.
- Manus Wharf Development – Construction of a new wharf facility to complement the new N’Drauke township development on the West Coast of Manus Island.
- Vanimo Wharf Development – Construction of a new wharf facility to enable increased movement of cargo and passenger, thus creating trade and socioeconomic development.
- Kikori Wharf Development – Construction of a new wharf facility to exploit the huge potential for economic development in the Gulf Province given the oil and gas explorations and fisheries development.
- Inland Jetty Program – Construction of jetties within inland waterways to provide easy access for transportation and tourism intervention.
- NGI Transport Connectivity Project – Provision of sustainable, efficient, and reliable transport connectivity network in the NGI region, and connectivity to the rest of the maritime spots of PNG to allow for service accessibility, eventually resulting into economic growth
- National Shipping Service – Replacement of the old and obsolete Navigational Bridge Stimulator with new, state-of-the-art stimulator and other related infrastructure developments.
Based on the above maritime projects and programs, significant opportunities for PPP projects are expected in the maritime sector. However, the details regarding a PPP project pipeline are not available presently.
- 1Government of Papua New Guinea, Department of Transport. Maritime Projects. http://www.transport.gov.pg/projects/maritime-projects; Asian Development Bank. 2016–2020. Sector Assessment (Summary): Transport. Manila. https://www.adb.org/sites/default/files/linked-documents/cps-png-2016-2020-ssa-01.pdf.
- 2Government of Papua New Guinea, Department of Transport. Maritime Projects. http://www.transport.gov.pg/projects/maritime-projects.
No Project Implementing Agency Estimated Project Cost Status ($ million) (K million) 1 UA UA UA UA UA - UA = Unavailable
Projects under Preparation and Procurement
Ports Public-Private Partnerships under Preparation and Procurement
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable.
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.
Ports
Features of Past PPP Projects
Procurement of PPP Projects
Ports Public-Private Partnerships procured through various modes
COMPAREDOWNLOADNote: Only active and concluded projects are considered in the above graph. “-” includes: no projects, data not available, or not applicable according to the database.
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.
PPP Projects Reaching Financial Close
Ports Public-Private Partnerships reaching Financial Close
COMPAREDOWNLOADNote: Only active and concluded projects are considered in the above graph. “-” includes: no projects, data not available, or not applicable according to the database.
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.
PPP Projects with Foreign Sponsor Participation
Ports Public-Private Partnerships with Foreign Sponsor Participation
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Government Support to PPP Projects
Government Support for Ports Public-Private Partnerships
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Ports Public-Private Partnerships
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Typical Risk Allocation for PPP Projects
COMPAREDOWNLOADRisk Type Private Public Shared Demand risk Competition risk (exclusivity) Tariff risk Environmental and social risk Permits Geotechnical risk - *Details on typical Risk allocation are not available for this sector
LEARN MOREPorts
Features of Past PPP Projects
The information on typical risk allocation for PPP projects in the port sector is not available.
As per the generic risk allocation prescribed by the National PPP Policy and the PPP Act, the private sector is expected to assume the completion and delivery risks, while the public sector is expected to assume approval and regulatory risks. The detailed risk allocation is determined on a case-by-case basis through negotiation between the government and the private sector service providers.1
- 1Government of Papua New Guinea, Department of Treasury Papua New Guinea. 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.
Financing Details
Parameter 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation 1 1 1 PPP projects that received export credit agency/international financing institution support UA UA UA Typical debt:equity ratio UA UA UA Time for financial closure UA Typical concession period UA Typical financial internal rate of return UA UA = unavailable.
Ports
Tariffs
The private sector has the freedom to set tariffs and user charges under PPP in the port sector.
Terminal handling charges (THCs) are charges made by the terminal operators in respect of container movements and services performed at a terminal. For container terminals, THCs cover the movement of a container between the ship’s hold and the exit–entry gate via the container terminal yard. The ICCC has approved the 2020 maximum tariffs for the regulated services representing two groups of declared ports.1
For the ports of Moresby, Lae, Kimbe, Vanimo, and Samarai, the maximum THCs for "Overseas Cargo—Inward" are $232 (K803 as of June 2020) per twenty-foot equivalent unit (TEU) and $465 per forty-foot equivalent unit (FEU). For the ports of Madang, Rabaul, Alotau, Oro Bay, Kavieng, Daru, Buka, Aitape, Lorengau, and Wewak, the maximum THCs are $298 per TEU and $596 per FEU.
THCs are the maximum allowed charges and the PNGPCL may choose to apply a lower tariff if it is deemed appropriate by management and is consistent with the development goals of the port.
- 1Papua New Guinea Ports. 2020. 2020 Essential Port Services Tariff Schedule. Port Moresby. http://www.pngports.com.pg/docs/tariff/2020/2020-Essential-Port-Services-Tariff-Schedule.pdf.
Ports
Challenges
Some of the challenges faced in the ports sector of Papua New Guinea are as follows:
- The majority of Papua New Guinea’s population residing along the coastline and waterways do not have access to roads. There are innumerable small wharves, jetties, and beach landings providing the basic infrastructure for maritime services, but the majority of these are in poor condition and carry very little traffic. This also results into many deaths due to the sinking of overloaded ferries.
- The state-owned PNGPCL, which operates 16 ports, enjoys a monopoly from low cargo processing costs and a competitive national shipping market.
- Papua New Guinea’s international shipping is one of the most expensive in the Pacific region, wherein the competition that is meant to drive down costs is nonexistent. On the other hand, export distances are aligned with the regional average. The World Bank’s survey reveals that the average border compliance costs for exports amount to $675 in Papua New Guinea, compared to East Asia and the Pacific average of $402. On the other hand, documentary export compliance takes an average of 96 hours, compared to 73 hours in Asia and the Pacific region. Border compliance costs for imports are at $810 on average, compared to the regional average of $436. Whereas documentary compliance for imports takes 120 hours and costs $425 in Papua New Guinea, the regional average is 71 hours and $128.
- The ports sector lacks a sound PPP project pipeline.
- The Cabotage Policy, which plays as a market protection regulation against foreign entry to coastal shipping, is gradually getting lifted.
-
Airports
-
Number of Airports
22
-
Passenger Capacity
0.96 M
-
Airport Infrastructure Quality
UA
-
Number of PPPs Reaching FC
----
-
Value of PPPs Reaching FC
----
-
Number of PPPs with Foreign Sponsors
----
-
Number of PPPs with Govt. Support
----
FC = financial closure, Govt. = government, UA = unavailable.
Sources: City Population. Airports. https://www.citypopulation.de/en/world/bymap/airports.html; World Bank. Air Transport, Passengers Carried. https://data.worldbank.org/indicator/is.air.psgr?locations=bd-kh-ge-kz-mm-pk-pg-lk-uz-vn-cn-in-id-ph-th; The Global Economy. Compare Countries. https://www.theglobaleconomy.com/compare-countries/; Asian Development Bank. Cumulative Lending, Grant, and Technical Assistance Commitments. https://data.adb.org/dataset/cumulative-lending-grant-andtechnical-assistance-commitments.
Airports
Contracting Agencies
The National Airports Corporation (NAC), a state-owned enterprise (SOE), is mandated by the Government of Papua New Guinea to own, operate, manage, and maintain airports in the country. The NAC presently operates the 22 national airports in the country, and is responsible for operating and managing other airports established by the Ministry of Transport and Infrastructure on its own or as a joint venture.1
The NAC is mandated by the Government of Papua New Guinea to enter into a lease, management, or any other type of PPP agreement with a private developer for developing, operating, managing, and maintaining any airport in the country, on the terms and conditions approved by the Ministry of Transport and Infrastructure (footnote 1).
- 1National Airports Corporation. Airports. https://www.nac.com.pg/airports/pmia-ppp/; National Airports Corporation. About us. https://www.nac.com.pg/about-us/services/; Asian Development Bank. News. https://www.adb.org/news/adb-helps-png-expand-port-moresby-international-airport-using-ppp; Papua New Guinea Department of Transport. Civil Aviation Institutions. http://www.transport.gov.pg/air-transport/civil-aviation-institutions.
Airports
Sector Laws and Regulations
The two institutions responsible for administering, regulating, and managing the civil aviation sector in Papua New Guinea are the Department of Transport and Infrastructure and the Civil Aviation Safety Authority.
The Department of Transport and Infrastructure, through its Air Transport Division, ensures that all government policies and relevant legislation on economic regulation of civil aviation are enforced and complied with for sustainable, cost-effective, efficient, safe, and secure air transportation service delivery. 1
The Civil Aviation Safety Authority promotes aviation safety and security through effective safety regulation of the civil aviation industry, focusing on preventing aviation accidents and incidents within the civil aviation system in Papua New Guinea.2
The civil aviation subsector in Papua New Guinea is governed by the following legislations:
- Civil Aviation Act, 2000.
- Civil Aviation Regulation, 1975.
- PNG Civil Aviation Rules.
- Civil Aviation Policy.
- International Civil Aviation Organization Annex 14.3
- 1Government of Papua New Guinea, Department of Transport. Air Transport. http://www.transport.gov.pg/air-transport.
- 2Government of Papua New Guinea, Civil Aviation Safety Authority. About Us. https://casapng.gov.pg/about-us/.
- 3Government of Papua New Guinea, Department of Transport. Civil Aviation Legislation. http://www.transport.gov.pg/air-transport/civil-aviation-legislation.
Key Agencies Regulating Papua New Guinea’s Airports
Agency Function Department of Transport The Department of Transport (DOT) provides ministerial advisory services and policy and planning input to the air transport sector. The Air Transport Division of DOT is responsible for (i) international and domestic air transport operations encompassing safety, security, market, policy, legislation, and regulation; (ii) negotiation and administration of international air service licensing agreements for overseas carriers to provide services into and through Papua New Guinea; and (iii) issuing air services licenses to carriers. Civil Aviation Safety Authority The Civil Aviation Safety Authority (CASA) is the principal regulatory agency in the sector and is responsible for safety certification of air operators, aircraft, aircrew, air traffic controllers, and airports. It ensures that Papua New Guinea complies with international air safety conventions under the International Civil Aviation Organization. The Aviation Facilities division of CASA manages and facilitates the regulatory oversight of air traffic services and air navigation services and airports/aerodromes operations, and monitors and assesses the performance of aviation security outcomes by the industry and associated agencies, which aim to deter, detect, and prevent attempted acts of unlawful interference in Papua New Guinea. PNG Air Services Ltd. The Papua New Guinea Air Services Ltd. (PNGASL) is a state-owned enterprise (SOE) responsible for providing, maintaining, and developing air navigation and airways services infrastructure, comprising ground and satellite-based navigation systems and management of the upper, middle and lower airspace, including overflying. The PNGASL also coordinates aviation search and rescue. National Airports Corporation The National Airports Corporation is an SOE responsible for the provision, maintenance, and development of the 22 government-owned airports, including aviation security, airport fire crash and rescue services, and control of ground movements of aircraft and other airport vehicles and equipment. Accident Investigation Commission The Accident Investigation Commission is responsible for the investigation of the circumstances of air accidents on a “no-fault” basis with a view of future prevention. Sources: Government of Papua New Guinea, Department of Transport. Civil Aviation Legislation. http://www.transport.gov.pg/air-transport/civil-aviation-legislation; Government of Papua New Guinea, Department of Transport. Civil Aviation Institutions. http:// www.transport.gov.pg/air-transport/civil-aviation-institutions; Civil Aviation Safety Authority of PNG. About Us. https://casapng.gov.pg/about-us/; Government of Papua New Guinea, Department of Transport. Air Transport. http://www.transport.gov.pg/air-transport; National Airports Corporation. Airports. https://www.nac.com.pg/airports/pmia-ppp/.
Foreign Investment Restrictions
COMPAREDOWNLOADParameter 2017 2018 2019 Maximum allowed foreign ownership of equity in greenfield projects 100% 100% 100% LEARN MOREAirports
Sector Laws and Regulations
Although joint ventures with local partners are highly encouraged in Papua New Guinea, many businesses are foreign-owned and a 100% foreign-owned enterprise within the airport sector is allowed. There are no sector-specific restrictions, limitations, or requirements applied to foreign investment.1
- 1United 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/.
Standard Contracts
COMPAREDOWNLOADType of Contract Availability PPP/concession agreement Performance-based operation and maintenance contract Engineering, procurement, and construction contract - No
Airports
Sector Master Plan
The government focuses on connecting remote isolated regions that are hard to access by road, and on providing a safe, secure, reliable, and cost-effective air transport system to promote economic growth.1
Aligned with these objectives, the key government programs to further streamline the civil aviation sector in Papua New Guinea are:
- national airport upgrading and development program,
- Nadzab airport re-development,
- air transport safety program,
- rural airstrip rehabilitation program, and
- airport development.
Civil Aviation Development Investment Program
The Civil Aviation Development Investment Program (CADIP) is closely aligned with GoPNG’s Development Strategic Plan 2011–2030 and the National Transport Strategy. The program recognizes the need for the country’s remote communities to have basic access to air transport and services as a national priority and to establish a sustainable civil aviation network to support Papua New Guinea’s economic growth.
The program focuses on the 21 national airports, aiming for a safer, more efficient, and more accessible all-weather air transport services. CADIP is being implemented in the following tranches (footnote 1):
- CADIP Tranche 1 – Upgrading of airports to strengthen aviation safety and services, including (i) improving pavements and fencing in five airports, (ii) installing new security fences to comply with the International Civil Aviation Organization’s safety and security standards, and (iii) improving institutional and sector reforms.
- CADIP Tranche 2 – Strengthening of the operations of air transport agencies—National Airports Corporation (NAC), Papua New Guinea Air Services Limited (PNGASL), and Civil Aviation Safety Authority (CASA)—that were established under Tranche 1, and improvement of air traffic management, navigation services, and airport infrastructure to comply with international and domestic regulations and standards.
- CADIP Tranche 3 – Continued improvement and strengthening of airport infrastructure, level of compliance with safety and security standards, air transport agency operations, and other activities under Tranches 1 and 2.
The executing agency for the Civil Aviation Development Investment Program is the NAC, which has been implementing the program since 2010 (footnote1).
Under CADIP, the NAC, with ADB support, is preparing the PPP project for the Port Moresby (Jacksons) International Airport (PMIA), which involves developing a new passenger terminal and expanding the runway and other airside facilities on a design–build–finance–operate–maintain basis. The project is presently at the preparation stage.
- 1Government of Papua New Guinea, Department of Transport. Air Projects. http://www.transport.gov.pg/113-investment/air-projects.
No Project Implementing Agency Estimated Project Cost Status ($ million) (K million) 1 UA UA UA UA UA - UA = Unavailable
Projects under Preparation and Procurement
Airports Public-Private Partnerships under Preparation and Procurement
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Airports
Features of Past PPP Projects
Procurement of PPP Projects
Airports Public-Private Partnerships procured through various modes
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
PPP Projects Reaching Financial Close
Airports Public-Private Partnerships reaching Financial Close
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
PPP Projects with Foreign Sponsor Participation
Airports Public-Private Partnerships with Foreign Sponsor Participation
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Government Support to PPP Projects
Government Support for Airports Public-Private Partnerships
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Airports Public-Private Partnerships
COMPAREDOWNLOADNote: Only active and concluded projects are considered in the above graph. “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Typical Risk Allocation for PPP Projects
COMPAREDOWNLOADRisk Type Private Public Shared Demand Revenue collection Tariff Government payment Environment and social Land acquisition Interface Handover Political Foreign exchange (FOREX) - *Details on typical Risk allocation are not available for this sector
LEARN MOREAirports
Features of Past PPP Projects
Since there have been no PPP projects implemented in the airport sector thus far, the information on typical risk allocation for such projects is not available.
As per the generic risk allocation prescribed by the National PPP Policy and the PPP Act, the private sector is expected to assume the completion and delivery risks, while the public sector is expected to assume approval and regulatory risks. The detailed risk allocation is determined on a case-by-case basis through negotiation between the government and the private sector service providers.
Financing Details
Parameter 1990-2017 1990-2018 1990-2019 PPP projects with foreign lending participation 0 0 0 PPP projects that received export credit agency/international financing institution support 0 0 0 Typical debt–equity ratio UA Time for financial closure UA Typical concession period UA Typical financial internal rate of return UA - UA = Unavailable
Airports
Tariffs
There is no information available on the tariffs applicable for PPPs in the airport sector in Papua New Guinea.
Airports
Challenges
- The airports operated by the NAC have been deteriorating, posing a threat to air safety. Air navigation systems are outdated and unreliable. Hence, the air transport system in Papua New Guinea requires substantial upgrades. Recent investments financed by ADB have helped lift the aviation service standards.1
- There are frequent flight cancellations, operations are restricted, and the cost of airline operations is high. International air traffic serving the Port Moresby’s Jackson’s International Airport, which is the country’s international gateway, is very expensive. The unit costs (per passenger, per nautical mile) on Papua New Guinea’s flight to Australia are the most expensive in the Pacific. Air Niugini’s unit cost on Asian routes is more than 2.5 times than that of inter-Asian flights (footnote 1).
- Papua New Guinea’s airport sector experiences an acute shortage of skilled manpower, pilots, and maintenance engineers (footnote 1).
- 1Development Asia. Case Study: A Flexible Financing Model for Large-Scale Infrastructure Investments. https://development.asia/case-study/flexible-financing-model-large-scale-infrastructure-investments.
-
Energy
-
Power Consumption
416 kWh per capita
-
Share of Clean Energy
52.5 %
-
Electricity Access
58.97 %
-
Energy Imports
UA
-
Number of PPPs Reaching FC
3
-
Value of PPPs Reaching FC
$ 362 M
-
Number of PPPs with Foreign Sponsors
3
-
Number of PPPs with Govt. Support
----
FC = financial closure, Govt. = government, kWh = kilowatt-hour, M = million, UA = unavailable.
Note: Share of clean energy and energy imports as percentage of total energy use. Energy access as percentage of total population.
Sources: The Economist Intelligence Unit. Papua New Guinea. https://infrascope.eiu.com/; The Global Economy. Share of Clean Energy—Country Rankings. https://www.theglobaleconomy.com/rankings/share_of_clean_energy/; World Bank. Access to Electricity. https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS?locations=PG; Doing Business. Getting Electricity. https://www.doingbusiness.org/en/data/doing-business-score?topic=getting-electricity; The Global Economy. Energy Imports. https://www.theglobaleconomy.com/rankings/energy_imports/; Asian Development Bank. Cumulative Lending, Grant, and Technical Assistance Commitments. https://data.adb.org/dataset/cumulative-lending-grant-and-technical-assistancecommitments.
Energy
Contracting Agencies
The PNG Power Limited (PPL) is a fully integrated power authority. The generation, transmission, distribution, and retailing of electricity throughout Papua New Guinea is done by the PPL. It also services individual electricity consumers and industrial, commercial, government, and domestic sector customers in almost all urban centers throughout the country. The services extend to rural communities adjacent to these urban centers wherever possible. It acts as a government contracting agency.1
PPL also undertakes a regulatory role on behalf of the Independent Consumer and Competition Commission (ICCC). Some of PPL’s responsibilities include approving licenses for electrical contractors, providing certification for models of electrical equipment and appliances to be sold in the country, and providing safety advisory services and checks for major installations.2
Section 2.1 (d) of the Third Party Access Code section requires that the power purchase agreement (PPA) first be reviewed and approved by the ICCC before it is signed; therefore the PPL does not sign any PPA without the approval of the ICCC.
- 1Asian Development Bank. Cumulative Lending, Grant, and Technical Assistance Commitments. https://data.adb.org/dataset/cumulative-lendinggrant-and-technical-assistance-commitments.
- 2Government of Papua New Guinea, Department of Public Enterprises and Department of Petroleum and Energy. 2015. National Energy Policy. Port Moresby. http://prdrse4all.spc.int/system/files/national_energy_policy_19.07.2015v5_final_png.pdf; Papua New Guinea Power Limited News. PNG Power Complies with Third Party Access Code. http://www.pngpower.com.pg/index.php/news/view/png-power-complies-with-third-party-accesscode.
Energy
Sector Laws and Regulations
The following are the key features of laws and regulations in the energy sector:
- The Electricity Industry Act 2002 regulates the generation, supply, and sale of electricity.1
- The Oil and Gas Act 1998 regulates the negotiation and conclusion by the government on petroleum agreements related to petroleum exploration, development, production, and transportation.2
- The Geothermal Energy Policy provides the framework for the use and regulation of geothermal resources related to electricity generation from heat and steam.
- The Mining Act 1992 regulates the exploration, development, production, and transportation of minerals. Petroleum is excluded from the act’s provisions.3
- The ICCC Act 2002 establishes the regime for consumer protection, including promotion and protection of competition and regulation of state-owned monopolies.4
The ICCC has published a draft Third Party Access Code. This code provides grid codes and open access rules for private entities to generate and supply electricity in Papua New Guinea. The PPL exclusively serves its consumers within a 10-kilometer radius of its grid and wheeling of power is denied currently. However, the private sector is free to develop projects and sell power directly to consumers with loads above 10 megawatts (MW).
Papua New Guinea has recently created the Ministry for Communication, Information Technology, and Energy. The Ministry of Petroleum and Energy and the Energy Division, in particular, manages sector policy formulation. The PPL performs the technical regulation of the sector through agreement with the Consumer and Competition Commission.
- 1Government of Papua New Guinea. 2002. Electricity Industry Act. Port Moresby. http://prdrse4all.spc.int/system/files/electricity_industry_act_chapter_78_consolidated_to_no_10_of_2002.pdf.
- 2Government of Papua New Guinea. 1998. Oil and Gas Act. Port Moresby. http://www.paclii.org/pg/legis/consol_act/oaga199894.pdf
- 3Government of Papua New Guinea. 1992. Mining Act. Port Moresby. https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/82401/90191/F973763837/PNG82401.pdf
- 4Government of Papua New Guinea. 2002. Independent Consumer and Competition Commission Act 2002. Port Moresby. http://www.paclii.org/pg/legis/consol_act/icacca2002483.pdf.
Key Agencies Responsible for Regulating the Energy Sector
Agency Function Department of Petroleum and Energy The Department of Petroleum and Energy is the overarching agency in Papua New Guinea’s energy sector. Its functions include energy sector policy and planning. The Electricity Management Committee is headed by this department. It also supervises the technical regulation of the electricity sector, which is presently performed by the Papua New Guinea Power Limited (PPL). Kumul Consolidated Holdings (KCH) The KCH is a holding company with ownership in the PPL and other state-owned enterprises. It maintains management oversight of the companies and may take operational actions in companies requiring support. KCH participates in monthly review meetings in the energy sector and supports the PPL. Independent Consumer and Competition Commission (ICCC) The ICCC is the regulator for electricity tariffs. It cannot carry out its mandate and take decisions independently as it lacks the capacity required. The ICCC employs a revenue cap regulation principle and sets license conditions for market participants, though the PPL is the only regulated entity at present. The ICCC also issues licenses to independent power producers and mining companies that own generation and distribution facilities. PNG Power Limited (PPL) The PPL is a state-owned, vertically integrated electricity utility. It is responsible for generation, transmission, distribution, and retail services in most grid-connected urban areas. Western Province Power Limited This is a wholly-owned subsidiary of PNG Sustainable Development Program Limited and provides generation, distribution, and retail electricity services in the Western Province, principally through small-scale power projects. Source: Asian Development Bank. 2014. Energy Sector Assessment. Manila. https://www.adb.org/sites/default/files/linked-documents/CAPE-PNG-6-Energy-Sector-Assessment.pdf.
Foreign Investment Restrictions
There are no sector-specific restrictions, limitations, or requirements applied to foreign investment.
COMPAREDOWNLOADBusiness Activity Maximum % of FDI Allowed Power generation 100% Power transmission 100% Power distribution 100% Oil and gas 100% FDI = foreign direct investment
Source: United 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/.
Standard Contracts
COMPAREDOWNLOADType of Contract Availability PPP/concession agreement Power purchase agreement Capacity take-or-pay contract Fuel supply agreement Transmission and use of system agreement Performance-based operation and maintenance contract Engineering, procurement, and construction contract - Yes
- No
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
Energy
Sector Master Plan
The government has identified the energy as a key sector in the Papua New Guinea Development Strategic Plan, 2010–2030. The National Energy Plan (NEP) has been approved along with the National Energy Policy. The NEP promotes the development of appropriate regulatory guidelines and standards to meet the needs of producers, suppliers, and users. The NEP includes the National Electrification Roll-Out Plan, which focuses on grid extension and off-grid stand-alone power supply system and promotes 100% electricity usage from renewable energy sources by 2050.1
- 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
List of PPP Energy Projects
No Project Implementing Agency Estimated Project Cost Status ($ million) (K million) 1 National Energy Policy Rollout Government of PNG 8.67 30.00 UA 2 Naoro Brown Energy Development DP 10.20 35.31 UA 3 Ramu Transmission Government of PNG/DP 19.09 66.06 UA 4 Rural Electrification Program Government of PNG/DP 68.53 237.13 UA 5 Mt. Hagen–Mendi–Tari Grid Government of PNG/DP 20.23 70.00 UA 6 PNG Towns Electrification Investment Program Government of PNG/DP 47.69 165.00 UA 7 Port Moresby Grid Development Government of PNG/DP 31.21 108.00 UA DP = development plan, PNG = Papua New Guinea, UA = unavailable.
Source: Asian Development Bank. 2013. Sector Assessment (Summary): Energy. Manila. https://www.adb.org/sites/default/files/linked-documents/43197-013-png-ssa.pdf.
Projects under Preparation and Procurement
Energy Public-Private Partnerships under Preparation and Procurement
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable.
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.
Energy
Features of Past PPP Projects
Procurement of PPP Projects
Energy Public-Private Partnerships procured through various modes
The actual design of the Port Moresby Power Station was tendered by and awarded to ExxonMobil because they had previously intended to fund and deliver the power station themselves. Plans changed however when the funding model became uncertain, thus the NiuPower stepped into the breach and offered to fund, own, and operate the power station. In 2018, two companies each put up half of the capital to proceed with the development of the power station—the Kumul Petroleum, which is widely viewed as the national oil company of Papua New Guinea, and the Oil Search Limited. The 58.7-megawatt facility was commissioned in November 20191 . Services of Shenzhen Energy Group were procured for RAMU-2 project through competitive bidding.1
- 1 a b Energy, Oil and Gas. Profiles. http://www.energy-oil-gas.com/2020/06/10/niupower/.
COMPAREDOWNLOADNote: Only active and concluded projects are considered in the above graph. “-” includes: no projects, data not available, or not applicable according to the database.
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.
PPP Projects Reaching Financial Close
Energy Public-Private Partnerships reaching Financial Close
Three projects have reached financial closure in the energy sector. The first project is the Port Moresby Diesel-Fired Plant which reached financial closure in January 1996. It was a greenfield private participation in infrastructure (PPI) project based on a build–operate–transfer mode. The period of the contract was 15 years. It received sponsoring from foreign investors like Hyundai, Hanjung Power, and Daewoo.1 The second project is the RAMU-2 hydroelectric power plant signed in 2015 with the People’s Republic of China’s Shenzhen Energy Group. The third project is the Port Moresby Power Station which was commissioned in November 2019, costing $100 million (K340 million as of June 2020).2
- 1World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
- 2Oil Search. 2019. NiuPower and PNG Power Limited Sign Historic Power Purchase Agreement. Port Moresby. https://www.oilsearch.com/__data/assets/pdf_file/0006/34557/190428-NiuPower-and-PNG-Power-Limited-sign-historic-Power-Purchase-Agreement.pdf
COMPAREDOWNLOADPPP = public–private partnership.
Note: Only active and concluded projects are considered in the above graph.
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; Energy, Oil and Gas. Profiles. http://www.energy-oil-gas.com/2020/06/10/niupower/.
PPP Projects with Foreign Sponsor Participation
Energy Public-Private Partnerships with Foreign Sponsor Participation
COMPAREDOWNLOADPPP = public–private partnership.
Note: Only active and concluded projects are considered in the above graph.
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 Support to PPP Projects
Government Support for Energy Public-Private Partnerships
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Energy Public-Private Partnerships
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Typical Risk Allocation for PPP Projects
COMPAREDOWNLOADRisk Category Private Public Shared Comment Demand risk Revenue collection risk Tariff risk Government payment risk Environmental and social risk Land acquisition risk Permits Handover risk Political risk Regulatory risk Interconnection risk Brownfield risk: asset condition NA Grid performance risk Hydrology risk Exploration and drilling risk - Yes
- NA = Not Applicable
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.
Financing Details
Parameter 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation UA UA UA PPP projects that received export credit agency/international financing institution support UA UA UA Typical debt:equity ratio UA Time for financial closure UA Typical concession period UA Typical financial internal rate of return UA UA = Unavailable.
Energy
Tariffs
According to the National Energy Policy (2016–2020), the private sector will be encouraged through feed-in tariff (FIT) to develop potential sites to generate electricity for their own consumption and for export of any surplus to the national grid and neighboring countries. Investors that guarantee purchase of electrical energy on just and reasonable terms will be provided with letters of comfort by the government. The specific details of FIT for renewable energy resources will be captured in the Renewable Energy Policy to be produced by the institution mandated to draw up this sector policy.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.
Energy
Challenges
- The lack of clarity on how to proceed with the implementation plan toward achieving the goals of the strategy documents (Medium-Term Development Plan 2011–2015 and the Papua New Guinea Development Strategic Plan) prepared by the government is one of the major challenges to developing the energy sector. Papua New Guinea also needs to formulate a robust strategy to develop its hydropower resources, which reportedly have the potential to generate about 10,000 megawatts (MW). Still, only about 215 MW of this capacity has been developed.
- Achieving the strategic goals has been difficult due to lack of funds. PNG Power Limited (PPL) has scarce funds for routine maintenance of the existing electricity infrastructure. This has led to de-rating of equipment and unplanned maintenance, resulting in power shortages and poor reliability and quality of electricity supply.
- Institutional capacity is also a constraint. The inadequacy of trained staff in the Department of Petroleum and Energy to undertake all its intended functions has led the department to plan substantial augmentation of its staff. The Independent Consumer and Competition Commission (ICCC) is intended to be both the technical and economic regulator, but since it has inadequate technical capacity, the function of technical regulation currently resides with the PPL, which itself is the regulated entity.
- The uniform retail tariff does not reflect the actual cost as it cross-subsidizes the cost of supply between the cheap hydropower-run main-grid-connected regions and the expensive diesel-generation-powered Highlands area, in the absence of explicit subsidy. It discourages the PPL investment in rural areas. Although the Electricity Industry Policy allows for flexible tariff setting, it has been politically difficult to move away from uniform tariffs.
- Private sector investments are critical for the country. However, attracting private investments will require enabling policies, such as the planned PPP policy, and risk mitigation instruments to overcome the perception of country and utility risk. The utility in Papua New Guinea remains vertically integrated and the PPL acts as a single buyer to supply the three main grids serving the urban areas, although there are draft policies on open access. This too poses a risk for private investments. Investments by the multilateral banks and other development partners are thus essential to the development of the electricity sector.
- While Papua New Guinea plans to significantly expand electricity access to urban and rural consumers, the focus is clearly on strengthening and augmenting the grid to supply the urban areas. Another primary challenge to developing the electricity sector is the attitude among Papua New Guinea’s public and private sector stakeholders toward prioritizing the improvement and reliability of electricity supply in urban areas and the expansion of electricity access to rural consumers.
- There have been delays in the implementation of several power projects—the 200 MW Hela hydroelectric power plant in the Highlands being one of them. A 2,500 MW plant on the Purari River, which costs $5 billion and is Papua New Guinea’s largest hydropower project to date, was put on hold. In March 2014, developer Origin Energy announced that it was shelving the plan. The plant’s output would have been enough to power Papua New Guinea several times over, and then sell the excess output to Queensland, Australia via undersea cable. The RAMU-2 project has also witnessed more than 5 years of delay, and the status of the project is unclear.
Source: Asian Development Bank. 2014. Energy Sector Assessment. Manila. https://www.adb.org/sites/default/files/linked-documents/CAPE-PNG-6-Energy-Sector-Assessment.pdf.
-
Water and Wastewater
-
Access to Water
39.7 %
-
Access to Sanitation
18.7 %
-
Number of PPPs Reaching FC
1
-
Value of PPPs Reaching FC
$ 71 M
-
Number of PPPs with Foreign Sponsors
1
-
Number of PPPs with Govt. Support
----
FC = financial closure, Govt. = government, M = million.
Note: Access to water and sanitation as percentage of total population with access to improved water resources and sanitation facilities.
Sources: Asian Development Bank. 2015. Papua New Guinea, 2016–2020—Country Partnership Strategy. Manila. https://www.adb.org/sites/default/files/institutional-document/157927/cps-png-2016-2020.pdf ; The Economist Intelligence Unit. Papua New Guinea. https://infrascope.eiu.com/; Asian Development Bank. Cumulative Lending, Grant, and Technical Assistance Commitments. https://data.adb.org/dataset/cumulative-lending-grant-and-technical-assistance-commitments.
Water and Wastewater
Contracting Agencies
According to the National Water Supply and Sanitation Act 2016, the Water Papua New Guinea Limited (Water PNG Ltd.) has the capacity and power to enter into contracts and agreements for the purchase of land or easements in or over land, and the acquisition of any materials or construction of any works.1
- 1Government of Papua New Guinea. National Water Supply and Sanitation Act 2016. http://extwprlegs1.fao.org/docs/pdf/png177402.pdf
Water and Wastewater
Sector Laws and Regulations
The National Water Supply and Sanitation Act 2016 is the legislative framework for water and sanitation in Papua New Guinea. Under this act, the Water PNG Ltd. is mandated to comply with the Public Health Act (Chapter 226), the consumer protection provisions of the Independent Consumer and Competition Commission (ICCC) Act 2002 and the Environment Act 2000, and abide by the water quality and sewerage discharge standards that are enforced from time to time.
Parameter 2017 2018 2019 Can the private sector be given water abstraction rights? UA UA UA Are there regulations in place on raw water extraction? UA UA UA Are there regulations in place on the release of treated effluents? UA UA UA - UA = Unavailable
Water PNG Ltd. is the key agency for regulating the water and wastewater in Papua New Guinea. It has the following functions:1
- design, construct, and maintain the water supply systems as may be required for collection, production, supply, and use of water for private and public consumption in and for cities, towns, and rural areas;
- design, construct, and maintain sanitation systems as may be required for the disposal of sewage and wastewater in and for cities, towns, and rural areas;
- secure and provide an adequate supply of water;
- manage, operate, and maintain water supply systems and sanitation systems owned by the company and other installations as may be erected or constructed by the company;
- work with provincial governments and through them, with authorities involved in district administration, and where appropriate, with other state-owned enterprises;
- comply with the Public Health Act (Chapter 226), the consumer protection provisions of the ICCC Act 2002 and the Environment Act 2000, and abide by water quality and sewerage discharge standards that are enforced from time to time; and
- generally carry out supplementary, incidental or consequential acts and things that are necessary or convenient for carrying out its functions.
- 1Government of Papua New Guinea. 2016. National Water Supply and Sanitation Act 2016. Port Moresby. http://extwprlegs1.fao.org/docs/pdf/png177402.pdf.
Foreign Investment Restrictions
COMPAREDOWNLOADParameter 2017 2018 2019 Maximum allowed foreign ownership of equity in greenfield projects Bulk water supply and treatment
Water distribution
Wastewater treatment
Wastewater collection
Standard Contracts
COMPAREDOWNLOADType of Contract Availability PPP/concession agreement Bulk water supply agreement Performance-based operation and maintenance contract Engineering, procurement, and construction contract - No
Water and Wastewater
Sector Master Plan
Papua New Guinea's Water, Sanitation, and Hygiene (WASH) Policy 2015–2030 recognizes the need to substantially improve access to water and sanitation services and hygiene behaviors.
The WASH policy has the following targets for 2030: (i) 70% of the rural population, 95% of the urban population, and 100% of educational institutions and medical centers have access to a safe, convenient, and sustainable water supply; (ii) 70% of the rural population, 85% of the urban population, and 100% of educational institutions and medical centers have access to safe, convenient, and sustainable sanitation facilities; (iii) 100% of educational institutions and medical centers have handwashing facilities with running water and soap; and (iv) 100% of households have access to improved water supply and total sanitation.
The government recognizes the need for private sector participation. PPPs will also be considered for private sector engagement. Possible PPP models include the build–own–operate and build–operate–transfer schemes, as well as concessions, leases, and management contracts for system operations.
Source: Government of Papua New Guinea. 2015. WASH Policy 2015-2030. Papua New Guinea. http://www.planning.gov.pg/images/dnpm/pdf/WaSH_POLICY04.03.2015.pdf.
Projects under Preparation and Procurement
Water and Wastewater Public-Private Partnerships under Preparation and Procurement
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Water and Wastewater
Features of Past PPP Projects
Procurement of PPP Projects
Water and Wastewater Public-Private Partnerships procured through various modes
COMPAREDOWNLOADNote: Only active and concluded projects are considered in the above graph. “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
PPP Projects Reaching Financial Close
Water and Wastewater Public-Private Partnerships reaching Financial Close
COMPAREDOWNLOADNote: Only active and concluded projects are considered in the above graph.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
PPP Projects with Foreign Sponsor Participation
Water and Wastewater Public-Private Partnerships with Foreign Sponsor Participation
In 1997, the Concessionaire (Contract) Agreement was signed between PNG Water Ltd. (Malaysian Consortium) and Eda Ranu for the treatment and distribution of water in Port Moresby. Eda Ranu is the sole provider of water and sewerage services in the National Capital District. It was founded through the National Capital District Water Supply and Sewerage Act 1996. The build–operate–transfer contract runs for a period of 22 years. The concession period ended in June 2019.1
- 1Government of Papua New Guinea, Department of Treasury. 2019. Infrastructure Financing and Public–Private Partnership Network of Asia and the Pacific. Presentation for the United Nations Economic and Social Commission for Asia and the Pacific. Ningbo, People’s Republic of China. 2–3 September. https://www.unescap.org/sites/default/files/Session%202%20-%20Panelist%20-%202Mr.%20Martin%20Teine_PNG.pdf.
COMPAREDOWNLOADNote: Only active and concluded projects are considered in the above graph.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Government Support to PPP Projects
Government Support for Water and Wastewater Public-Private Partnerships
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Water and Wastewater Public-Private Partnerships
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Typical Risk Allocation for PPP Projects
COMPAREDOWNLOADRisk Type Private Public Shared Demand Revenue collection Tariff Government payment Environment and social Land acquisition Interface Handover Political Foreign exchange (FOREX) - *Details on typical Risk allocation are not available for this sector
LEARN MOREWater and Wastewater
Features of Past PPP Projects
Generally, the private sector assumes the completion and delivery risks, while the public sector will assume approval and regulatory risks. The detailed risk allocation will be determined on a case-by-case basis through negotiation between the government and the private sector service providers.
Financing Details
Parameter 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation UA UA UA PPP projects that received export credit agency/international financing institution support UA UA UA Typical debt:equity ratio UA Time for financial close UA Typical concession period UA Typical financial internal rate of return UA UA = Unavailable.
Water and Wastewater
Tariffs
Water PNG Ltd. is authorized to impose tariffs, rates, fees, and charges for the water and sanitation services it supplies, and, from time to time, to vary the quantum of those tariffs, rates, fees, and charges. The nature or quantum of them is published by notice in the National Gazette and takes effect on the date of publication, wherein the tariff, rates, fees, and charges are imposed or varied.
The tariffs, rates, fees, and charges levied or charged by the Water Board prior to the commencement date are those which the company may levy or charge under the National Water Supply and Sanitation Act 2016 until such time when the company sets new tariffs, rates, fees, and charges.
In 2015, the ICCC set a new tariff regime, which has effectively increased the minimum water consumption from 12 to 20 cubic meters (m3) and decreased the price for this minimum level of water consumption from K1.3 per m3 to K0.3 per m3.
Source: World Bank. 2017. Water Supply and Sanitation Development Project. Washington DC. http://documents.worldbank.org/curated/en/591931485443649141/pdf/PAD1746-PNG-Water-Supply-PAD-01232017.pdf.
-
ICT
-
Telephone Subscribers
1.87
-
Cellular Phone Subscribers
47.62
-
Cellular Network Coverage
UA
-
Internet Subscribers
11.21
-
Internet Bandwidth per User
UA
-
Number of PPPs Reaching FC
1
-
Value of PPPs Reaching FC
UA
-
Number of PPPs with Foreign Sponsors
1
-
Number of PPPs with Govt. Support
----
FC = financial closure, Govt. = Government, UA = unavailable.
Note: Telephone, cellular phone, and internet subscribers per 100 inhabitants. Cellular network coverage as percentage of population covered.
Sources: Trading Economics. Papua New Guinea—Mobile and Fixed Line Telephone Subscribers. https://tradingeconomics.com/papua-new-guinea/mobile-and-fixed-line-telephone-subscribers-wb-data.html; World Bank. Cell Phone Subscribers. https://data.worldbank.org/indicator/IT.CEL.SETS.P2?locations=PG-MM; World Bank. Internet Subscribers. https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=PG-MM.
ICT
Contracting Agencies
Papua New Guinea’s information and communication technology (ICT) sector is governed by an independent regulator, the National Information and Communications Technology Authority (NICTA), formed in 2010, with additional oversight by the Independent Consumer and Competition Commission (ICCC) to ensure fair competition in the telecommunication sector. NICTA is responsible for issuing telecommunication licenses in Papua New Guinea. The main responsibilities of the authority are to regulate television and radio broadcasting and the internet; manage licensing, both for spectrum and operators; and encourage and promote development. NICTA has the ability to enter into legally binding contracts.
ICT
Sector Laws and Regulations
The National Information and Communications Technology Act 2009 is the regulatory framework for the ICT sector.1 This act is formed to (i) regulate the ICT industry and radio communications and spectrum, (ii) provide for the establishment of NICTA, and (iii) repeal the Telecommunications Act 1996 and the Radio Spectrum Act 1996.
- 1Government of Papua New Guinea. National Information and Communications Technology Act 2009. https://www.nicta.gov.pg/legislative/acts/.
Key Agencies Regulating the ICT Sector in Papua New Guinea
Agency Function Ministry of Communication and Information Technology - Act as the principal government institution in the ICT sector
National Information and Communications Technology Authority - Enforce the National ICT Act and its regulatory principles
- Provide advice to the minister in formulating government policy in respect of any aspect of the National ICT Act or that otherwise promotes the objective of this Act
- Exercise all licensing and regulatory functions in relation to the ICT industry as are contemplated by the National ICT Act
- Oversee the performance of ICT licensees and their compliance with the National ICT Act and any mandatory instrument
- Assist the ICCC in investigating complaints regarding market conduct for the purposes of the ICCC enforcing compliance with laws relating to market conduct in the ICT industry in Papua New Guinea
- Develop and monitor a system for reviewing and responding to complaints by retail customers in relation to ICT services
- Consult, where appropriate, commercial, industrial, and consumer organizations about any matter relating to the ICT industry or the National ICT Act
- Act as the duly appointed representative of the state at all international bodies or authorities which have the purpose of regulating or administering ICT services and radio communications
- Develop and monitor procedures for ensuring the safety and quality of ICT services and radio communications
- Make available to persons engaged in the ICT industry and other interested persons general information for their guidance with respect to the carrying out of the functions, or the exercise of the powers of NICTA under the National ICT Act
- Conduct research in relation to matters affecting the interests of consumers of ICT services
- Make available to the public general information in relation to matters affecting the interests of retail customers of ICT services
- Perform such other functions as are assigned to or conferred on NICTA under the National ICT Act or any other law.
ICCC = Independent Consumer and Competition Commission, ICT = information and communication technology, NICTA = National Information and Communications Technology Authority.
National Information and Communications Technology Authority. Legislative Acts. https://www.nicta.gov.pg/legislative/acts/.
Foreign Investment Restrictions
COMPAREDOWNLOADParameter 2017 2018 2019 Maximum allowed foreign ownership of equity in greenfield projects 100% 100% 100% Standard Contracts
COMPAREDOWNLOADType of Contract Availability PPP/concession agreement Performance-based operation and maintenance contract Engineering, procurement, and construction contract - No
ICT
Sector Master Plan
The government has been targeting continued growth in the ICT sector.
The state has also launched the Papua New Guinea (PNG) Development Strategic Plan 2010–2030, which aims to increase mobile, internet, and television and radio penetration to 80%, 70%, and 100%, respectively. According to the plan, the government will focus on building PPPs with both national and international companies to build the rural satellite network and ensure international best practices are adopted in the sector.
In March 2018, a taskforce, including the PNG Digital Commerce Association, was working with the government on a national ICT roadmap to solidify policies for the rollout of more advanced technologies, providing businesses with a clear path forward. Launched in May 2018, the plan aims to develop six key areas: infrastructure, governance, services, skills, business environment, and safety.
Both short- and long-term measures are being taken to improve affordability of ICT services, a lack of which stems partly from low international internet bandwidth and limited high-speed domestic infrastructure, as well as the challenges associated with having a widely dispersed population.
No Project Implementing Agency Estimated Project Cost Status ($ million) (K million) 1 UA UA UA UA UA - UA = Unavailable
Projects under Preparation and Procurement
ICT Public-Private Partnerships under Preparation and Procurement
COMPAREDOWNLOADICT = information and communication technology.
Note: “-” includes: no projects, data not available, or not applicable.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
ICT
Features of Past PPP Projects
Procurement of PPP Projects
ICT Public-Private Partnerships procured through various modes
COMPAREDOWNLOADICT = information and communication technology.
Note: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
PPP Projects Reaching Financial Close
ICT Public-Private Partnerships reaching Financial Close
Bemobile builds, operates, and ultimately owns the telecommunication network under a build–own–operate (BOO) contract. The Independent Consumer and Competition Commission (ICCC) granted Bemobile a value-added services license for a period of 15 years. The project was also supported and partly financed by ADB. Other sponsors include GEMS, a private equity fund based in Hong Kong, China; and Telikom PNG, a state-owned enterprise.1
- 1Universal Postal Union. 2018. Guide to PPP for eServices in Postal Sector, Papua New Guinea
COMPAREDOWNLOADICT = information and communication technology.
Note: Only active and concluded projects are considered in the above graph. “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
PPP Projects with Foreign Sponsor Participation
ICT Public-Private Partnerships with Foreign Sponsor Participation
COMPAREDOWNLOADICT = information and communication technology.
Note: Only active and concluded projects are considered in the above graph.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Government Support to PPP Projects
Government Support for ICT Public-Private Partnerships
COMPAREDOWNLOADICT = information and communication technology.
Note: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for ICT Public-Private Partnerships
COMPAREDOWNLOADICT = information and communication technology.
Note: Only active and concluded projects are considered in the above graph. “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Typical Risk Allocation for PPP Projects
COMPAREDOWNLOADRisk Type Private Public Shared Demand Revenue Collection Tariff Government Payment Environment and Social Land Acquisition Interface Handover Political Foreign Exchange (FOREX) Financing Details
Parameter 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation UA UA UA PPP projects that received export credit agency/international financing institution support UA UA UA Typical debt:equity ratio UA Time for financial close UA Typical concession period UA Typical financial internal rate of return UA - UA = Unavailable
ICT
Tariffs
NICTA may recommend to the minister that a retail service supplied by an operator licensee should be subject to a retail service determination. An operator licensee that is subject to a retail service determination is required to comply with the terms of that retail service determination in relation to the supply of the retail service to retail customers. A retail service determination may regulate prices for the supply of the retail service, over its given term.1
- 1National Information and Communications Technology Authority. Acts. https://www.nicta.gov.pg/legislative/acts/.
ICT
Challenges
No details are available.
-
Social Infrastructure
Contracting Agencies
The following institutions are responsible for implementing projects in the social infrastructure sector:
- Education sector
- Ministry of Education
- National Department of Education
- Health-care sector
- Ministry of Health
- National Department of Health
- Housing sector
- National Housing Corporation
- Education sector
Social Infrastructure
Sector Laws and Regulations
Education Sector Regulations
The Education Act 1983 is the regulatory framework for the education sector in Papua New Guinea.
Key Agencies Regulating the Education Sector in Papua New Guinea
Agency Function Ministry for Education The minister for education acts as the political head responsible for the overall management of education National Department of Education - Determines national policies and standards and supports their implementation by the provinces, with services such as planning, research, training, and staff development.
- Responsible for teacher education, inspection, and registration; national curriculum; curriculum materials; and examinations. It is also responsible for national institutions: teachers’ colleges, technical colleges, national high schools, special education resource centers, flexible open and distance education centers, and schools in the National Capital District.
Office of Libraries and Archives - Coordinates the planning and development of libraries and archives throughout the country.
- Preserves all documents on Papua New Guinea’s life and society in the national collection for all Papua New Guineans to enjoy and learn from.
Teaching Service Commission - Acts as the agent of the state for the employment of teachers.
- Oversees teachers’ terms and conditions of service, salaries, allowances, and welfare. It also supports the rights of teachers.
The National Education Board - Oversees the development and functioning of the education system and the implementation of the National Education Plan
- Advises the minister, in consultation with provincial governments, the Teaching Service Commission, and education boards and agencies.
Departmental head - The head of the Department of Education is the secretary for education. The secretary also chairs the National Education Board.
Provincial governments - Responsible for establishing, building, and maintaining schools; deploying teachers; and employing provincial and district education officers.
Education boards - The Provincial Education Board is the highest education decision-making body in a province.
Local-level governments - Responsible for funding and maintenance of elementary and primary schools and helping districts develop district education plans consistent with provincial education plans.
Education agencies - Education agencies are key partners in the delivery of education services in Papua New Guinea.
Governing boards of member schools - Governing boards are Boards of Management in elementary and primary schools, and Boards of Governors in secondary and other post-primary schools. They are the schools’ highest decision-making bodies and have financial and management powers.
Source: United Nations Educational, Scientific and Cultural Organization. 2016. Papua New Guinea National Education Plan 2015–2019. Papua New Guinea. https://planipolis.iiep.unesco.org/sites/planipolis/files/ressources/papua_new_guinea_nep_2015-2019_doe.pdf.
Health-Care Sector Regulations
The Ministry of Health has the portfolio responsibility for health as determined by the Prime Minister. The ministry executes government health policy and is assisted by the National Department of Health (NDOH) to discharge that responsibility.1
The NDOH has statutory responsibility to oversee the establishment, maintenance, and development of the health-care system in Papua New Guinea. It also sets the policy and standards for improving the health of the population. It provides technical advice and support for operating health facilities and delivering health services, and maintains the national health information system. The NDOH also oversees the management of public hospitals in accordance with the Public Hospitals Act of 1994 and the rollout of the recent legislative changes in the Provincial Health Authorities Act, 2007.2
The main legislations governing the regulation and governance of third parties, providers, human resource, pharmaceuticals, and equipment are as follows (footnote 2):
- Medical Registration Act, 1980;
- Medical Registration By-laws and Nursing Registration By-laws, 1984;
- Public Services (Management) Act, 1995;
- National Health Administration Act of 1997; and the
- Provincial Health Authorities Act, 2007.
- 1J. Grundy et al. 2019. Independent State of Papua New Guinea Health System Review. 9 (1). New Delhi: World Health Organization, Regional Office for South-East Asia. https://apps.who.int/iris/bitstream/handle/10665/280088/9789290226741-eng.pdf?sequence=5&isAllowed=y
- 2Asia Pacific Observatory on Health System and Policies. 2019. Independent State of Papua New Guinea Health System Review. Papua New Guinea. https://apps.who.int/iris/bitstream/handle/10665/280088/9789290226741-eng.pdf?sequence=5&isAllowed=y.
Key Agencies Regulating the Health-Care Sector in Papua New Guinea
Agency Function National Government - Oversee the health-care system
- Coordinate and provide technical advice and support to lower levels of the government
- Oversee management of public hospitals
National Health Board - Endorse the National Health Plan and recommend its adoption to the National Executive Council
- Approve standards and monitor progress against the National Health Plan
- May be requested or directed to carry out inquiries
National Department of Health - Provide assistance and support to the National Health Board in discharging its functions
- Develop standards and monitor and ensure compliance to standards, and provide technical assistance to the provinces in implementing the National Health Plan and in meeting relevant standards
- Maintain the National Health Service Standards
Source: J. Grundy et al. 2019. Independent State of Papua New Guinea Health System Review. 9 (1). New Delhi: World Health Organization, Regional Office for South-East Asia. https://apps.who.int/iris/bitstream/handle/10665/280088/9789290226741-eng.pdf?sequence=5&isAllowed=y
Social Housing Sector Regulations
The National Housing Corporation Act 1990 is the regulatory framework for the housing sector in Papua New Guinea. The National Housing Corporation (NHC) is established under this act as the commercial statutory authority, with the following functions:1
- Act as an agent or an instrumentality of the state in matters relating to residential development for its employees on such terms and conditions as to payment of commission, or otherwise, as are agreed on.
- Perform and do such other acts, matters, or things in relation to such housing on behalf of a body referred to in paragraph (a) of National Housing Corporation Act 1990, on such terms and conditions as are agreed on.
- 1International Labour Organization. Papua New Guinea. https://www.ilo.org/dyn/natlex/natlex4.detail?p_lang=en&p_isn=88036.
Foreign Investment Restrictions
COMPAREDOWNLOADParameter 2017 2018 2019 Maximum allowed foreign ownership of equity in greenfield projects Standard Contracts
COMPAREDOWNLOADParameter 2017 2018 2019 What standardized contracts are available and used in the market? PPP/concession agreement
Performance-based operation and maintenance contract
Engineering procurement and construction contract
Social Infrastructure
Sector Master Plan
Education Sector
The Department of Education has prepared the National Education Plan (NEP) 2015–2019.1
The NEP 2015–2019 builds on the NEP 2005–2014 and the Education Sector Strategic Plan 2010–2030,2 while complementing the Universal Basic Education Plan 2010–2019.3 The Education Sector Strategic Plan 2010–2030 covers the following:
- Access to education. All children complete 9 years of basic education and have the opportunity for education or training beyond the primary and secondary education.
- Teachers and teacher education. All teachers are well-trained and resourced and are accepted by the community as professionals.
- Curriculum. All curricula are sensitive to local needs and students’ aspirations.
- System management and planning. All institutions are managed effectively and transparently, and are accountable to their local communities.
- Technical and vocational education and training. A national system of public and private institutions offers short- and full-time skills development courses, leading to diploma and technical qualifications.
The NEP 2015–2019 has six focus areas: access and equity, teachers and teaching, learning, alternate pathways, local management, and system strengthening, which together will contribute toward achieving the ultimate goal of quality learning for all.
- 1Government of Papua New Guinea, Department of Education. 2016. National Education Plan 2015–2019. Port Moresby. https://planipolis.iiep.unesco.org/sites/planipolis/files/ressources/papua_new_guinea_nep_2015-2019_doe.pdf.
- 2Government of Papua New Guinea, Department of Education. 2012. Education Sector Strategic Plan 2011–2030. Port Moresby. http://wbgfiles.worldbank.org/documents/hdn/ed/saber/supporting_doc/EAP/Papua%20New%20Guinea/SAA/DoE_2012_Education_Sector_Strategic_Plan_2011_-_2030.pdf.
- 3Government of Papua New Guinea, National Executive Council and Department of Education. 2009. Universal Basic Education Plan 2010–2019. Port Moresby. https://planipolis.iiep.unesco.org/sites/planipolis/files/ressources/papua_new_guinea_ube_2010-2019.pdf.
Health-Care Sector
The National Health Plan 2011–2020 places an emphasis on the Papua New Guinea (PNG) health-care system, focusing on providing basic care for the country’s poor and rural population. The plan aligns with the PNG Development Strategic Plan 2010–2030, as well as the nation’s Vision 2050 goals.
Complementing the National Health Plan, the National Health Service Standards 2011 outlines a seven-level model of health service delivery. Recognizing that improvements in health care service delivery are required at all levels, the plan targets better integration between hospitals and rural health services such as community health posts. It also calls for the construction of new hospitals, including at the district level, as well as the need for regional specialists and national referral mechanisms.1
The National Health Plan’s primary objective is to provide universal health coverage and equal access for the country’s rural population and the urban poor.
The National Health Plan also emphasizes the importance of PPPs. It aims to implement the National Public–Private Partnerships Policy and introduce innovative and cost-effective options for delivering health services. The plan’s strategies involve establishing PPPs with relevant major mining and agriculture ventures and setting up of health sector monitoring and coordination mechanisms for PPPs.
- 1Government of Papua New Guinea. 2011. National Health Service Standards for Papua New Guinea 2011–2020. Port Moresby. https://hwfsmspng.net/publications/NHSS_PNG_2011-2020_Vol1&2/national_health_service_standards_for_png_2011-2020_Vol1.pdf.
Social Housing Sector
The NHC has implemented a flagship build–sell–share, which aims to profitably develop low-cost housing. Under the scheme, private developers will build homes on NHC-registered land, which will then be sold at reduced and affordable prices. The NHC plans to subsidize the bulk of the cost of developing land and civil works, making homes affordable for the average citizen and offering a more promising forecast for mid-tier and affordable housing growth.1
- 1The National Research Institute. 2018. Potential Public–Private Partnership Strategy for Promoting Effective Housing Delivery in Papua New Guinea. Discussion Paper No.165. Port Moresby. November. https://pngnri.org/images/Publications/DP165.pdf.
No Project Implementing Agency Estimated Project Cost Status $ million (K million) 1 UA UA UA UA UA - UA = Unavailable
Projects under Preparation and Procurement in the Social Infrastructure Sector
Social Infrastructure Public-Private Partnerships under Preparation and Procurement
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Social Infrastructure
Features of Past PPP Projects
Procurement of PPP Projects
Social Infrastructure Public-Private Partnerships procured through various modes
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
PPP Projects Reaching Financial Close
Social Infrastructure Public-Private Partnerships reaching Financial Close
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
PPP Projects with Foreign Sponsor Participation
Social Infrastructure Public-Private Partnerships with Foreign Sponsor Participation
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Government Support to PPP Projects
Government Support for Social Infrastructure Public-Private Partnerships
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Payment mechanism for PPP Projects
Payment Mechanisms for Social Infrastructure Public-Private Partnerships
COMPAREDOWNLOADNote: “-” includes: no projects, data not available, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Papua New Guinea. https://ppi.worldbank.org/en/snapshots/country/papua-new-guinea (accessed 30 June 2020).
Typical Risk Allocation for PPP Projects
COMPAREDOWNLOADRisk Type Private Public Shared Demand Revenue Collection Tariff Government Payment Environment and Social Land Acquisition Interface Handover Political Foreign Exchange (FOREX) Financing Details
Parameter 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation UA UA UA PPP projects that received export credit agency/international financing institution support UA UA UA Typical debt:equity ratio UA Time for financial close UA Typical concession period UA Typical financial internal rate of return UA - UA = Unavailable
Social Infrastructure
Tariffs
No information on the tariffs for social infrastructure projects is available.
Social Infrastructure
Challenges
No details are available.
Social Infrastructure
Govt. Expenditure on Education (% of GDP)
Education Spending (% of govt. spending)
Total Health Expenditure
Health Spending per Capita
Hospital Beds (per 10,000 population)
Govt. Health Expenditure (% of total govt. expenditure)
Number of PPPs Reaching FC
Value of PPPs Reaching FC
Number of PPPs with Foreign Sponsors
Number of PPPs with Govt. Support
FC = financial closure, GDP = gross domestic product, Govt. = government, UA = unavailable.
Sources: World Bank. Papua New Guinea Government Expenditure on Education. https://data.worldbank.org/indicator/SE.XPD.TOTL.GD.ZS?locations=PG; The Global Economy. Education Spending, Percent of Government Spending—Country Rankings. https://www.theglobaleconomy.com/rankings/Education_spending_percent_of_government_spending/; Asian Development Bank. 2015. Papua New Guinea, 2016–2020 — Country Partnership Strategy. Manila. https://www.adb.org/sites/default/files/institutionaldocument/157927/cps-png-2016-2020.pdf; The Economist Intelligence Unit. Papua New Guinea. https://infrascope.eiu.com/; The Global Economy. Health Spending per Capita—Country Rankings. https://www.theglobaleconomy.com/rankings/Health_spending_per_capita/; Asian Development Bank. Cumulative Lending, Grant, and Technical Assistance Commitments. https://data.adb.org/dataset/cumulative-lending-grant-and-technical-assistance-commitments.