APEC related agreements and investments worth K9 billion for PNG, report reveals

Post APEC 2018, the question on everyone’s mind still remains on how much we really did benefits from an event that had a hefty price tag of around K800.

PricewaterhouseCoopers (PwC) PNG released a much welcomed infographic report, last week, of how much all APEC related agreements and investments are worth, striking up a figure of almost K9 billion (US$3 billion) to come out of the meet.
Major APEC member investors in this infographic document include China, United States, Australia, Japan, New Zealand, and the Philippines.

Investments made by those countries were in areas of infrastructure, defence, education, health, agriculture, and disaster resilience.
The report provided five major point areas as to what all the investments made during the summit would means for the country.

Firstly that they would accelerate inclusive growth and create further benefits for PNG. In the short term, investing in hard infrastructure assets such as roads and electrification are essential enablers for economic growth and employment, and should see immediate benefits for PNG business.
“Over the longer term, investments in education and health will also be key in creating a more inclusive society, and accelerate participation in the formal economy.”
Secondly would be a spike in projects over the next decade, as most of the commitments are aimed at infrastructure projects.

“We can expect to see the benefits extend over the next decade. With proper management and funding, these projects could help drive PNG’s economic growth and reduce the boom and bust cycle we have traditionally seen in PNG.”
Thirdly, it emphasised the need for strong financial discipline and project economics as being crucial.

“While these projects will be largely funded by multilateral agencies, strong financial discipline and project economics will be required to ensure that these projects are successfully delivered.”

The fourth point, called for a balanced approach to public-private partnerships (PPPs), in reference to infrastructure projects in the country, that often have a government aspect.
“We can expect to see PPPs as a modality for delivering these projects. However, striking a balance between PPPs and private investments is crucial in ensuring that private business are not crowded out and discouraged from making investments in PNG.”
Last point to what it means for the country is a conducive environment for investment is necessary.

“While these commitments can transform PNG, the benefits are unlikely to be realised without an environment that is conducive to local and foreign investment alike.
“Priorities should include improving digital infrastructure, building the skills of our future workforce, and creating investment-friendly regulations that support entrepreneurial spirit and competition,” the report concluded.

Source: Post Courier newspaper.