PM calls to amend Act
PRIME Minister James Marape has directed the chairman of the National Procurement Commission (NPC) to amend the National Procurement Act to enable local contractors to apply for contracts valued at K50 million.
Marape gave this direction at the ground breaking ceremony of the 9-Mile to Laloki Road in Port Moresby yesterday.
“In 100 per cent government-funded projects, we must ensure that local contractors get first preference,” he said.
“As the government, our first responsibility is to the growth of SMEs (small to medium enterprises) in the country.
“Chairman of NPC, make amendments to the National Procurement Act to ensure that contracts that are fully funded by Government are for local contractors.
“Lift the ceiling for the contracts from K10 million to K50 million.
“Local companies and companies that are based in the country, employ Papua New Guineans who in turn contribute to the economy.
“As mentioned, there is about K1 billion (set) aside in this year’s budget, to ensure national roads, provincial or regional roads and district roads are given funding.
“This is a first instalments in a series of budget support for the next five years and a second five years that should run into the rest of the 2020s.”
Marape said if local businesses were awarded the contracts and each employed a workers this would contribute directly to the economy by creating jobs.
“When the global economy contracts, the national government must make interventions to keep the economy going,” he said.
Marape said the Government had to ensure it did not go broke by putting in place economic interventions to help people.
He said these people employed will use the money earned within the country which gives a boost to the country’s economy.
“Government must create facilities for borrowing that will translate into activities that can put money into the pockets of our people,” he said.
“One (best way) that can benefit our people and the country in future is in the construction space.
“Therefore, we have deliberately proposed to create intervention in the construction space to ensure Papua New Guineans are employed.”
9 comments
Words of Wisdom!. It is not rocket science to put money into people’s pockets.!
That is the way to go, very simple but very important to grow local economy.
I salute you PMJM! PNG is fortunate to have you. I would like to share an experience of a local contractor where a foreign company which I didn’t want to mention now was contracted as a main contractor towards the maintenance of highlands highway. However the subcontractor who is a local contractor under that major contractor is a local tribesman from Chimbu. He had been greatly fooled, where after the provision of work/job rendered since the beginning of last year, he was not paid his dues until to-date and this is frustrating. ‘Ol foreina laik kam paulim PNG na papagraun ya, rausim ol’. Cheers and thumps up for your commitment in this. God bless. As local people we will help our tribesman as there would be lot of jobs created for unfortunates, marginalized, those who doesn’t have the voice, those without experience can have turns to learn and improve on their experiences, thank you.
That is the way to think and do PM. Local contractors have tried with no one in government listening and looking at the struggles we go through in getting contracts worth more than K10m. This is an insight wisdom beyond the likes of PO. PM, you are going it right.
What a brilliant thinking Sir….that’s the best way our country can grow money….need new laws to fit into modern PNG development strategies…thank you very much PM James Marape….
The Government must go one step further and reduce tender fees and bid security fees to affordable levels. Right now some local contractors cannot even bid for tenders because they cannot secure or afford these fees which are very high.
What was the reason to increase these fees? NCP please explain.
It certainly does not promote the Government’s SME development agenda.
I think PMJM is going on the right track.
Ralph, thanks for your comment and appreciate brilliant thinking pNGans to add constructive thoughts moving forward. This PMJM needs guidance and wisdomful words to direct him further into the future .
Visionary leader, can you also look into the income tax for the simple public servants. A simple public servant can not manage the family a forthnigh simply because the income tax is so much.
Biggest set back in road construction work all over the country is lack of proper engineering design. Too many roads are being built with no design. Contour maps are not good enough. We need understanding on Geology settings to enable good designs that can empower construction. Without that, too much money is needed for maintenance.
Otherwise PMJM’S vision is good & needs action.
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