Asian Development Bank hails PNG Government for passing PPP bill
The commendation was conveyed by the Vice President Lakshmi Venkatachalam in her keynote address to the Papua New Guinea Advantage 2014 Investment and Infrastructure Summit in Port Moresby yesterday.
Ms Venkatachalam said ADB had been partnering with the government to develop an appropriate PPP framework in PNG.
She said in 2008, the bank had helped the government prepare the national PPP policy and this had been followed up with active support for the drafting of this legislation, which she added to be a part of the wider reforms to increase private investment in the delivery of infrastructure services.
“Today we are pleased to see the fruition of our joint efforts in the passing of the PPP bill last week in parliament. A significant milestone for which I congratulate the Government,” she said.
Ms Venkatachalam said it is ADB’s view that the PPP Act would create a transparent and robust process for PPP project development.
She stated also that structuring of deals under this arrangement would be critical.
“The PPP space is a complex one. Apart from robust policy and regulatory frameworks, proper structuring of projects is critical.
“There are plenty of examples throughout the world where poor structuring as well as uneven risks sharing have led to stalled projects or projects whose economics have become unviable, necessitating restructuring.
“This underscores the importance of seeking expert advise in developing PPPs.”
Ms Venkatachalam said ADB to have 50 years of experience in structuring projects, both with sovereign and non-sovereign financing and that based on this, it has positioned itself as a strong partner for promoting PPP.
Ms Venkatachalam asumed office in 2010. She leads ADB’s initiatives in private sector and cofinancing activities.
Under its long-term strategy 2020 framework, ADB’s activities in private sector development and private sector operations are targeted to reach 50% by 2020.
PNG Today / Post courier
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