The Government In line with Its long term commitment to Improving the country's road network to 70% good condition and connecting the 4 major regions by opening up strategic missing link roads, has committed more than K4.S billion combining the ongoing contract commitments and tenders to deliver an equivalent targeted road lengths of 3000 km In the next S years.
In order to remain focused with the program targets, the Department of Works must track at minimum program funding of Kl billion to K l.5 billion per year over the program period. The success of the Connect PNG Program depends on the availability of guaranteed funding to avoid stop and start implementation practice that has denied achievement of long term plan targets.
This Marape/Basil Government has made history by making three very key decisions that establishes a solid foundation for success of the Connect PNG Plan:
With serious commitment by this Government, the road sector Is headed on a path to transform PNG Into a middle income country. The people can enjoy Improved lives as they enjoy the benefits generated by the road connectivity achieved under the Connect PNG Plan.
PNG's over-reliance on the non-renewable resource sector has proven to be an unsustainable policy choice and successive governments and leadership have recognized the fallacy of this overreliance. The incorporation of the Economic Corridor Development Zone concept in the PNG Strategic 2020- 2030 Plan is a step towards the need to move towards a more broad -based economic growth strategy. However, by themselves, the Economic Corridors Development Zones will again be susceptible to an enclave development mindset. We need a more dynamic, all inclusive and integrated implementation plan to break the cycle of this over-dependence on the non-renewable resource sector. The Connect PNG Development Plan serves this purpose.
Connect PNG elevates the economic corridor development concept as a major policy drive towards restructuring the PNG economy into a broad-based sustainable economy. It enables the integration of the economic sectors, brings the enclave nature of the non-renewable resource sector and the transition of what is largely rural-based semi-subsistence farming into mainstream economic growth strategy. It leverages the nation's infrastructure development plan to channel and amass the agriculture and livestock, forestry, fisheries, non-agricultural informs sector, small and medium enterprises, manufacturing and tourism to create a fully integrated broad-based economic structure for PNG going forward into 2050 and beyond
The Government's approval of the Connect PNG Economic Road Transport Infrastructure Development Program 2020 - 2040 forms part of the compressive infrastructure development strategy to support sustainable socioeconomic development and national cohesion and unity. By connecting the four main regions of Momase, Highlands, Southern and New Guinea Islands through improved key economic road transport network connectivity within all four regions, over the next 20 years. Our people are resilient and industrious, they will maximize the opportunity created under the Connect PNG Plan to pursue their dream to be prosperous and happy. Our duty as a Government and leadership at all levels of governments, be it national, provincial and district, is to commit to provide the access and the opportunity for our people; and Connect PNG provides the scope to engage everyone across our nation to participate meaningfully.
God Bless Papua New Guinea. HON. JAMES MARAPE, MP PRIME MINISTER OF PAPUA NEW GUINEA
Simply put, roads make a very crucial contribution to PNG's socio-economic development and generate vital societal benefits. Roads are the arteries of PNG and serve as the backbone of PNG's transport system catering for the movement of 85% of passengers and freight in PNG. PNG needs roads for economic growth and prosperity as envisioned in Vision 2050.
Much of the 30,000km of the existing road network were built in the pre-independence era to connect relatively low number of people and places. However, we need increased and improved road connectivity and accessibility to progress in socio-economic development. Hon. Marape's Government initiated the Connect PNG Programme 2020-2040 for K20 billion, which is the single most important and biggest programme ever to be undertaken by any past governments. It is about 'Connecting the Unconnected, Reaching the Unreached and Serving the Unserved'. It connects investors to natural resources, employers to labour sources, farmers to markets, schools to children, health centers to the sick, businesses to customers, service centers to users, and sellers to buyers, and basic government services to the rural majority. This will surely put PNG on the trajectory to progress into Upper middle-income country status from its current Lower Middle-Income country status.
The recent reform in the road sector has resulted in several key policy and legislative decisions. These decisions in turn have set a solid foundation for the Department of Works and Highways as the lead agency to effectively deliver the Programme whilst managing and accounting for the performance of the road network in the long-term.
The Prime Minister reiterated his priorities in August, 2022 and emphasized the need to build a resilient economy by building economic infrastructures, addressing natural resources, addressing business and investment confidence, addressing law and order, working on education and health, and strengthening the institutions of State. Hence, the implementation c1nd success of the Connect PNG Programme is very important to build a resilient economy.
The current performance status of the Programme demonstrates clear signs for success. This level of success is only made possible because there is a strong political leadership and commitment. Hon. Marape fully supports the Programme and that is exactly what this 'flagship' programme requires to be successful. Funding commitment of 5.6% of total annual budgets through the Connect PNG (Implementation and Funding Arrangements) Act 2021 is essential to fully implement the Programme.
The Marape-Rosso Government fulfilled its legislative obligation and appropriated K l.568 billion from the K24.567 billion total expenditure budget for 2023. This historical budget allocation is at the back of a successful year in 2022 for many of the on-going projects. We have 274 on-going contracts for both the National and Sub-National Road Networks for a total value of K 6,598 million. There are remarkable achievements for the reporting year. We expect to have completed the Missing Link Section of the Trans~National Highway between Morobe and Gulf Provinces as well as the Missing Link Section between Central and Milne Bay Provinces before the country's 50th Independence Anniversary. We expect to have also completed the Gulf-Southern Highlands Missing Unk Road project. These projects should already give access to Port Moresby to our people from the Highlands, Momase and Milne Bay for the Independence Celebrations.
On this note, I acknowledge the political and funding commitment to the road sector under the leadership of Prime Minister, Hon. Marape, MP., and with this level of commitment, we are truly on target to deliver the Connect PNG Programme and connect the entire country with roads. PNG shall never be the same again with 100% Road Connectivity and Accessibility. In conclusion, "It is not the economy that will build our roads. But, in fact, itJs roads that will enable our economy to grow" (John F. Kennedy). This quote has a lot to do with prioritization of our development efforts as a nation, hence roads must be at the top of any government's development priorities.
Papua New Guinea will never be the same again with full road connectivity. Hon. Solan Mirisim, MP Minister for Works and Highways
A properly developed and sustained road network in Papua New Guinea will contribute significantly towards providing that enabling environment to grow the economy of the country. The current network is estimated to carry fr 89% of all nationwide passenger and freight traffic and ensures connectivity between transport modes. Our most important roads consist of the 7,840 km national road network (NRN), which connect our major cities and economic growth centers to markets, seaports and airports. The national road network is crucial to PNG's social and economic development and to the delivery of services to population centers. As our economy and population grows, demand for road transportation also grows, and we must keep pace with this demand, by ensuring that our roads are adequately maintained and fit for purpose.
However, funding has not kept pace with the growing cost of maintenance and decades af minimal maintenance has seen the condition of the national road network decline steadily. The maintenance backlog has grown to a stage where we must start investing properly in roads, because the business as usual will see the steady loss of our road infrastructure and the inevitable collapse of the national road network. The first step is to cut wastage by getting out of the build, neglect and rebuild cycle that has been the practice over the past decades and introduce preventative maintenance programmes to extend the life of our roads, to the full 20 to 25 years of useful service. Preventative maintenance provides a much better return on investment than rehabilitation of neglected infrastructure. The government had invested in roads and bridges totalling K 3.2 billion. This significant investment has contributed to the current 3,396 km of roads, including urban roads, in good condition across the nation. However, the investment will go to waste, if we do not maintain these assets.
We will always be faced with constrained funding for the maintenance of our roads, however with the right funding of the right treatments, in the right locations, at the right timing, we can maximize the benefits of the money spent. The Department of Works (DoW) have developed the National Road Network Strategy (NRNS) that sets out a pathway towards a more safe, reliable and sustainable National Road Network (NRN). The strategy promotes life-cycle maintenance with long-term performance-based contracting as its main procurement model. It adopts a network and evidence based approach, with a "Maintenance First'' policy, as the guiding principle, whilst advocating for improved road standards to keep up with increasing traffic volumes and the effects of climate change. The Strategy will depend on reliable and adequate multi-year funding to be successful in bringing our national road network back to 50% 'Good' and 50% 'Fair' condition level, within the 20' years period beginning in 2020.
Good roads will reduce the cost of road transportation, reduce the cost of travel, works, goods and services around the country and promote business, employment, development and reduce poverty. The alternative offers higher cost of business and economic production, which reduces our competitiveness and investment, which eventually translate to greater poverty. The NRNS is a holistic, rational, and pragmatic approach to the maintenance of our roads' However' the network can only be fit for purpose if funding is at appropriate levels and delivered with this network approach.
I strongly recommend this strategy for our National Road Network and look forward to working together with all stakeholders to achieve our shared goals.
David Wereh Secretary, Department of Works & Highways
Economic corridors are proposed to alleviate poverty. Corridors of poverty will be transformed into economic corridors. Without the corridor development system people in poverty will not be integrated into the mainstream economy. The Marape/Steven government’s drive is to ensure that these economic corridors are fully integrated not only to alleviate poverty in disadvantaged regions, but importantly provide extensive opportunities and choices for market access across all regions of PNG.
The Papua New Guinea Development Strategic Plan 2010 – 2030 establishes development targets that must be achieved before 2030 to enable the realization of PNG Vision 2050. Whilst the articulation of the strategic goals are clear and supporting public policies are progressively being achieved, the need for effective implementation by way of sectoral interventions remains a challenge. Amassing sectoral synergies into one dynamic economic force requires a major shift to create a collaborative participation across governments, businesses, communities, non-government organization, donor partners and financing agencies.
The concept of economic corridors development zones captures the essence of this synergy, however, by themselves, the Economic Corridors Development Zones will again be susceptible to an enclave development mindset. A more dynamic, all inclusive and integrated implementation plan is required. The Connect PNG Development Plan serves this purpose by strengthening the implementation of the PNG Strategic Development Plan 2010 – 2030. The policy impetus behind Connect PNG is the need for a more broad-based economy and a departure from an over-reliance on the non-renewable resource sector. It entails more than just the concept of Economic Corridor Development Zones; it is now a drive to restructure the PNG economy by enabling the transition of what is largely rural-based semi-subsistence farming sector into an integrated – broad based economy. It elevates the economic corridor concept to an economic growth strategy that leverages the nation’s infrastructure development plan to channel and amass the agriculture and livestock, forestry, fisheries, non-agricultural informs sector, small and medium enterprises, manufacturing and tourism to create a fully integrated broad-based economic structure for PNG going forward into 2050 and beyond.
A fully engaged population in the economic growth activities is the principal driving force behind the Connect PNG to amass and maximize the productivity capacity of the economy. The roll out of the Connect PNG Plan activates and engages respective governments to bring ‘on line’ their development aspirations to leverage on this National Priority. The commercialization of the agriculture sector will be the catalyst for this shift, the growth of Small to Medium Enterprises (SMEs) will also be a key phenomenon as the transition takes place over the next decade. Employment growth is expected to be another phenomenon as rural employment increases with the commercialization of agriculture and growth of SMEs at local and village level
The Marape/Steven Government policy direction is to enhance local contractor capacity to undertake and successfully deliver construction projects ranging from small, minor, medium level and large contracts of works. Connect PNG provides this opportunity for national contractors to participate effectively in the developing and maintaining roads infrastructure services. The government’s vision about ‘Taking Back PNG” goes into the heart of empowering and enhancing local capacity to be in a position to meet expected standards, quality and capacity criteria and sound experience in delivering value for money in a sustained manner. Theses support intervention includes, bringing the unregulated road works into the formal DOW approved works classification category, delivering of training and facilitation support programs to enhance road construction industry contractor capacity and instituting a financial support facility for small to medium level contractors to access
The development of Connect PNG Economic Road Infrastructure will be the biggest capital investment program at any time in the history of PNG and will require an annual funding of over K986 million a year totalling to 19.73 billion during the planned 20 years program.
The budget revenue has been insufficient to maintain existing roads and evidently does not have the capacity to guarantee certainty and continuity of multiyear rolling capital works programs under the planned program. Relying on the budget creates a huge gap of K600 million per year which will only build up a backlog of unachieved programs and targets. Innovative infrastructure financing is critical for success and therefore the government has approved the mobilization of multi-year financing facility loans, grants and private sector financing under the multi donor partnership arrangements.
The Asian Development Bank (ADB), high powered feasibility team conducted an initial study for the Connect PNG transport infrastructure development program and highly recommended detailed design and realistic cost estimate should be prepared in advance to expedite the government initiative and made available USD 31 million for the project preparation financial support.
Our Partners, the World Bank, the EIB, the India EXIM Bank, Chinese EXIM Bank,; our Donor Partners, Australia-ADF, the JICA & Skyline Profits Group; have expressed confidence on the need to build a reliable and resilient infrastructure that promote inclusive and sustainable growth in PNG and have pledged additional USD 6.9 billion equivalent to K20 Billion on a long-term commitment to achieve 90% of the Connect road transport infrastructure development program in the next 10 years. Funding will also be made available through the Tax Credit Scheme arrangements with Exxon Mobil, Oil Search, PJV and OK Tedi, Lihir.
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