Research report

Infrastructure challenges for Papua New Guinea

6 Dec 2017
Description

Climate, topography, population, culture, economics, and finance all conspire to raise significant barriers to providing economic and social infrastructure critical to Papua New Guinea's future development. Compared to developed economies, the physical stock of infrastructure assets in Papua New Guinea is insufficient to deliver the economic and social services needed to drive faster economic growth and improve human development. It faces significant choices as a result that may also be influenced by the public infrastructure requirements of foreign direct investment in export oriented extractive resource sectors. A lack of effective national infrastructure planning and funding constrain PNG's economy and its ability to improve the lives of its citizens through provision of these infrastructure services.

This paper briefly reviews several key infrastructure sectors - telecommunications, transport, energy, and urban water - to provide snapshots of their status, identify challenges, and where possible make relevant international comparisons.

It also looks at ways to improve the delivery of relevant economic infrastructure: (i) effective planning and prioritisation; (ii) funding strategies for infrastructure investment; (iii) funding of ongoing infrastructure operations; and (iv) consideration of infrastructure life cycle issues. In addition, in the future effective economic regulation of PNG commercialised infrastructure services will help ensure that consumers benefit from these services. The Independent Consumer and Competition Commission will therefore have an increasingly important role to play.

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2017
12
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