Foreign direct investment to help PNG recover from Covid effects

FOREIGN direct investment (FDI) will play a significant role in Papua New Guinea’s recovery from the Covid-19, Bank South Pacific Group Ltd chief executive officer Robin Fleming says.
“Bank of PNG data indicates that in 2020 FDI flows into the country reduced by 66 per cent to K387 million from K1.1 billion in 2019,” Fleming said.
“This statistic, however, does not reflect that the level of international investor interest increased in 2020, and that one of the key challenges is converting that interest into definite projects.
“It is promising to see a number of opportunities for businesses going forward.
“For example, PNG businesses can participate in Government infrastructure initiatives such as the Pacific step-up partnership between the PNG and Australian governments where K582 million has been committed.”
Fleming said other example included the K1.1 billion national port rehabilitation programme; the PNG electrification partnership with Australia, Japan, the US and New Zealand that aimed to connect 70 per cent of PNG’s population to electricity by 2030; and the ongoing Japan International Cooperation Agency (Jica) and National Airports Corporation (NAC) Nadzab Airport Redevelopment worth K692 million.
He said the mining, oil, and gas sectors attracted most of the foreign direct investment.
Fleming said some key factors when reviewing an FDI proposal included: the assessment of the net economic benefit and alignment with national interests such as the potential for positive development of human and natural resources; creation of jobs and other income-earning opportunities; the transfer of technologies and skills; and, the contribution to training Papua New Guineans.
“This screening process highlights the governments continued focus on developing a supportive environment for businesses to grow and attracting FDI.”
Fleming said the PNG Investment conference coming up in September was a leading conferences that raised the profile of PNG on the world stage.
“The platform is a great way of promoting PNG’s business and investment opportunities.”
“Over the three-day event, a line-up of distinguished panellists will cover a number of key topics.”
, ranging from PNG’s place in a post Covid-19 world and the prevailing investment climate to important industry trends and major project updates.”