CONNECT PNG PROGRAM LIKELY TO BE DELIVERED BY 2040

By: PNG Business News January 19, 2023

 

The National Government continues to embark on prioritising its "Connect PNG Economic Road Transport Infrastructure Development Programme 2020-2040" with its delivery target set for 2040.

This means by 2040, PNG will have access to 100 per cent road connectivity, connecting more than six million people to massive services and economic opportunities. The program provides a strategic pathway for implementing the National corridor development plan which covers 20 years.

Within these 20 years, the Government will improve critical road networks comprised of the strategic national, sub-national and new missing link roads. This ensures and elevates physical access and connectivity for economic growth, productive investments, job creation, and poverty reduction in all regions and provinces.

Minister for Works and Highways Solan Mirisim is adamant to drive the program with strong funding support from the Government, its donor agencies and development partners.

To fully implement and guide the program the Government passed Connect PNG (Funding and Implementation Arrangements) Act 2021, which commenced on February 1, 2022, and is now operational and in progress.

The key provision of the Act empowers the Government to commit a guaranteed long-term total funding of K20 billion commitment towards the program, with an annual national budget allocation forecast of 6.5 per cent (1.4 billion).

The funding will involve combined GoPNG-CSO Partnership Policy financing commitments and pledges from loans, grants, and private financing at the lowest reasonable cost.

The overall implementation program will develop, expand, rebuild, and sustain a road network of 16,200 km of strategic roads on a rolling 20-year program in 3-year phases. Phase one commenced already in 2022 and will be completed in 2027 targeting four high-priority spending areas, which will cover almost 8,000 km with an expected budget funding of K7.44 billion.

The four high-priority spending areas include; Strategic Economic Highways, Construction of Missing Links, Building of Provincial and District Economic Roads, and the National Bridge Development and upgrade Program.

Phase two of the program is expected to commence in 2028 and ends in 2034 with a projected funding commitment of K6.7 billion covering upgrading and expanding works, while phase three commences in 2035 and ends in 2040 with a projected funding commitment of K5.3 billion.

It is understood that the program's future benefits and impacts are not guaranteed due to several critical challenges identified such as underfunding, procurement delays, social issues, inflationary risks, political risks, and natural events, which can potentially affect and have an impact on the implementation of phase one of the program.

However, the Government has undertaken necessary actions to address this going forward so that the Connect PNG Program remains focused to deliver its targets and goals.

Meantime, beginning of this year 2023, the Department of Works and Highways (DOWH) will be consistent with the Connect PNG Act 2022, regarding the carry-over of ongoing contractual commitments that total up to K6 billion.


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