Abel expects high-level investment projects to lift economy

The country’s economy should be driven by high-level investment projects including Papua LNG and Wafi-Golpu, Deputy Prime Minister and Treasurer Charles Abel says.
Abel, in his presentation at the leaders’ summit in Port Moresby yesterday, said the public service needed to focus on making sure the projects were delivered.
“We are emphasising the Total-led Papua LNG project and the Wafi-Golpu project, which is a joint venture between Newcrest and Harmony and the Government,” he said.
“These are two high-level major investment projects that we must make sure to seize the opportunity to get them over the line as early as possible this year.
“We must begin that foreign direct investment process that will underpin the economy for the next five years.”
Abel said the projects were about US$19 billion (K64 billion), including US$6 billion (K20 billion) investment on the Wafi-Golpu project.
“If we can link it to the Ramu 2 hydro 180-megawatt project, that’s another close to a US$1 billion (K3 billion) investment,” he said.
Abel said, however, that resources projects were not the basis to build the economy, but agriculture, tourism and other activities.
“We need some of these things to ensure that stimulus is happening through the revenue flows onto government,” he said.
“We need money today.
“We don’t need to structure projects where flows don’t start till five or 10 years later.
“We need to make investments today.
“We need a stable revenue profile from this project to continue to invest in education, health and infrastructure.
“We have the ability to structure these projects better.
“That’s the forefront of the thinking of the negotiations of these projects.
“There is a managed urgency to this process because the country needs investment today.
“We’ve got Frieda River and renegotiations opportunities on existing mines like Porgera and Ramu Nickel.”