Transforming energy sector key to growth

 THE expansion of areas such as transport and infrastructure, along with the transformation of the energy sector, are key to achieving Papua New Guinea’s economic development, an international research company says. 

Plans to achieve growth in these areas are high on the government’s list of priorities. 

New plans are being rolled out, with hydrocarbon revenues helping to fund a major infrastructure boost, according to the new investment guide by international publishing, research and consultancy firm, Oxford Business Group.

However, while the long-term outlook for the country remained positive, challenges, led by a record budget deficit, drought fall-out, civil unrest and unresolved issues in PNG’s mining sector could weigh on Government’s more immediate plans, with non-essential spending set to be put on the backburner in the forthcoming budget. 

The latest edition of The Report: Papua New Guinea 2015 is to be launched on 40th anniversary of PNG’s independence. 

The publication charts, in particular, the progress of the Government’s infrastructure investment programme designed to underpin construction of roads, ports and airports, alongside PNG’s efforts to develop non-resources sector which was expected to grow by 4 per cent this year and next year. 

OBG’s chief executive officer Andrew Jeffreys highlighted relevance of PNG as an investment destination, despite depressed oil and gas prices on the international market, as well as minerals. 

 “Although many international investors remain sceptical about the market, mainly because of the lack of information available to them, there is a growing minority who actually see opportunities in overcoming local challenges, which is probably the correct way to look at Papua New Guinea,” he added. 

The Report: Papua New Guinea 2015 took into consideration growth in others sectors, such as agriculture, which was set to improve competitiveness, and construction that was expected to pick up again in 2015. Real estate prices, meanwhile, look likely to maintain their upward trajectory.