In December 2008, the Government of Papua New Guinea (PNG) through the National Executive Council (NEC) endorsed the PPP Policy framework. The aim of the policy is to:
• achieve the Government's current and future development plans and strategies, and to expand access to infrastructure and services to the people of Papua New Guinea;
• improve the efficiency and quality in the delivery of infrastructure and services by encouraging private sector competition that in turn fosters innovation (including technical and management expertise and technology);
• mobilize private sector investments in infrastructure projects and services and to gain from the private sector's higher capacity for project completion, on-time delivery and maintenance throughout the life of the project;
• achieve value for money for the Government on a whole-of-life cost basis through optimal risk transfer and risk management, subject to such costs being within the Government's fiscal and debt management strategies; and
• create value added opportunities through synergies between the public and private sector; and
• benefit from capacity development and skills transfer in the delivery of the project for the line Agencies, as well as the PPP Centre in conducting more complex transactions.
The PNG Government also set up an inter-agency PPP Task Force (TF), co-chaired by the PNG Department of National Planning and Monitoring and the PNG Department of Public Enterprises with membership from the PNG Department of Treasury and other agencies to implement this NEC endorsement.
The NEC also asked the Task Force to work on a new PPP law, design a PPP centre, and detailed guidelines and procedures to evaluate prospective PPP deals in PNG. All public infrastructure of over K50 million will be given to the PPP Center for its consideration. Projects that are submitted to the PPP Center have to be approved by NEC through either:
i. Inclusion in the National PPP Infrastructure Pipeline;
ii. An allocation in the National Budget;
iii. An NEC Decision.
The Asian Development Bank (ADB) has been continuously supporting the Task Force through a Technical Assistance programme.