International highway to prosperity

IT will be a mega investment costing perhaps billions of Kina.
The planned international highway linking the northern half of PNG to Indonesia could be the key to unlocking new economic frontiers in both countries.
Michael Nali, as Works Minister in the previous government said in 2018 that this road link, which will become the country’s only international highway, should be given the recognition it deserves.
Speaking in Aitape, West Sepik, during a nationwide tour to inspect road infrastructure with Works secretary David Wereh, Nali said the Coastal Sepik Highway had been overlooked for many years.
The Coast Sepik Highway is one of the few missing links in the country which need to be opened up for it to realise its full economic potential.
Others include the Southern-Highlands to Gulf highway, a section of which was opened only last week, the Morobe to Gulf link, and the East New Britain Highway which is nearly completed except for major bridges yet to be built.
Nali’s colleague, then Planning and Implementation Minister Richard Maru also announced in Lae around about the same time that it was a government priority to open a road link from Lae to Madang, the Sepiks and Jayapura in Indonesia.
As trade minister in the last government, Maru had been a strong advocate of greater cross-border trade, especially in increased volumes of PNG products such as vanilla and cocoa going across to Indonesian or Asian markets.
Although there has been some trade across the border, it has largely been Asian or Indonesian merchandise brought across and Maru argued more PNG products should and can be brought across to boost the local economy.
The economic possibilities that would be created by an international highway to Indonesia are certainly immense.
Road freighting cargo into Indonesia or for transhipment to other Asian ports would in principle be cheaper and faster than shipping.
The proposed international highway would also open up trade opportunities between and among provinces.
Currently, there is no reliable road link between East and West Sepik and to get out of Wewak.
To get out of Vanimo or Wewak, one gets on a plane or a passenger boat.
Inter-connectivity between the Sepiks and Madang, Morobe and the Highlands will open up greater socio-economic activities.
People in the isolated areas between the major centres of Vanimo, Aitape, Wewak, Angoram and Bogia will be connected and so the cost of providing government services to them would be reduced greatly.
There would be possibilities for small and large scale investments in agriculture, fisheries and even tourism.
In fact, as East Sepik Governor Allan Bird told Nali when he arrived in Wewak on that tour of the highways, that East and West Sepik have great potential for oil palm, vanilla and cocoa and a reliable network connecting either Indonesia or Madang would greatly benefit the Sepik provinces.
Such investments would of course require a whole of government approach and careful assessment to get money’s worth in the end.
As pointed out by Nali, the economic returns on investments should be assessed by all relevant agencies of government.
For instance, the Department of Agriculture should be engaged to evaluate the agricultural investment potentials any new road would create.
The Department of Trade, Commerce and Industry could step in to assist locals venture into small-to-medium enterprises.
The proposed international highway, which will cross two of the country’s major rivers, is going to cost a lot for the government and it will most certainly look for international donor assistance.
An investment of such magnitude will take a while in planning and mobilising the necessary resources but the fact that the Government has recognised its importance is a good start.