Construction phase vital for revenue, Barker says

THE Government should recognise the importance of the construction phase of major resource projects which is a major revenue generation component, executive director for the Institute of National Affairs Paul Barker says.
Barker made the remark at the 2020 budget preview in Port Moresby yesterday.
He said the construction phase of resources projects was important because it was the period when revenue was generated through domestic taxes.
“Construction phase is an important component of major resources projects and not only negotiations and agreeing in terms of the production phase,” he said.
“Getting to the construction phase and the contractor and business activity and employment is an important component on projects.”
Referring to the PNG LNG (liquefied natural gas) resource project, Barker said: “What a lot of people got it wrong in PNG LNG was that the benefit would flow when production came. Actually it was really the construction phase which is a major potion in the benefit flow.
“Yes there is a long-term benefit flow from the production phase but it doesn’t just begin. The more one can utilise and benefit from the construction phase the better, particularly because it generates many jobs.”