From our member Pacific Legal Network:
APNGBC member Pacific Legal Network (PLN) has recently published a series of Papua New Guinea-focused updates examining legal and regulatory developments with direct implications for business and investment. We highlight two issues of particular interest to members: Papua New Guinea’s evolving public-private partnership framework; and the country’s potential to develop as a regional arbitration hub. These developments touch on some of the most important areas for companies operating in Papua New Guinea, including infrastructure investment, commercial dispute resolution, property development and access to finance.
Strengthening the framework for private infrastructure investment
APNGBC member Pacific Legal Network says Papua New Guinea’s evolving public-private partnership framework is creating a clearer pathway for private capital to participate in the country’s considerable infrastructure requirements.
Angela Ipara. Pic: PLN website.
In a recent analysis, PLN’s Angela Ipara examined how amendments to Papua New Guinea’s Public Private Partnership Act have transformed a framework that was once largely theoretical into a more structured system for identifying, assessing, approving and delivering projects.
PNG continues to face major infrastructure requirements across sectors including energy, transport and urban services, while fiscal pressures limit the Government’s ability to fund all projects directly. This makes PPPs an increasingly important mechanism for bringing private capital, expertise and operational capability into infrastructure development.
Under the framework, PPPs can involve national government departments, provincial and local-level governments and state-owned enterprises. Private participants can include companies, institutional investors and consortia, including joint venture structures.
Projects must pass through defined stages covering initial assessment, registration and approval, procurement, implementation and ongoing reporting. The PPP Centre plays a central role, assessing proposals, coordinating procurement and maintaining oversight, while the PPP Steering Group provides policy coordination and makes recommendations to the National Executive Council.
For potential Australian and international investors, the reforms provide greater clarity around institutional responsibilities and approval processes. They also impose more rigorous scrutiny of project viability and value for money.
PLN says the strengthened framework broadly reflects international approaches promoted by organisations such as the World Bank and Asian Development Bank.
The challenge now will be implementation. A strong legislative framework needs capable institutions, consistent decision-making and a pipeline of projects capable of attracting commercially sustainable private investment.
For APNGBC members involved in construction, engineering, finance, energy, transport and advisory services, the evolution of Papua New Guinea’s PPP framework is particularly relevant as the country looks for new models to finance and deliver essential infrastructure.
The full analysis, Papua New Guinea’s PPP Framework: An Introductory Guide, is available from the Pacific Legal Network website, linked here.
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Eunice Noki. Pic: PLN website.
That is the question examined by APNGBC member Pacific Legal Network in an analysis by Eunice Noki and Olive Tiri following Papua New Guinea’s major overhaul of its arbitration legislation.
The Arbitration (Domestic) Act 2024 and Arbitration (International) Act 2024, which came into force on 9 July 2024, replaced the former Arbitration Act and created separate regimes for domestic and international disputes.
PLN says the changes bring Papua New Guinea more closely into line with contemporary international arbitration practice. In particular, the international regime provides greater autonomy for parties, reduces court intervention and strengthens the framework for recognition and enforcement of arbitral awards.
This matters increasingly as Papua New Guinea attracts complex investment and commercial activity in sectors such as resources, infrastructure, energy and financial services.
Cross-border investors generally place considerable importance on knowing how contractual disputes will be resolved and whether decisions can be enforced. A credible domestic arbitration system can therefore form part of the wider investment environment.
PLN cautions, however, that modern legislation alone will not turn Port Moresby into a regional arbitration centre.
PNG still needs to build institutional capacity, expand the pool of experienced arbitration practitioners and arbitrators, establish consistent judicial support for the new regime and encourage businesses to make greater use of arbitration clauses in commercial contracts.
The firm sees particular potential for Papua New Guinea in disputes arising from infrastructure, resource development and cross-border investment in Melanesia and the wider Pacific.
At present, many complex Pacific disputes continue to be referred to established arbitration centres outside the region.
But Papua New Guinea now has much of the legislative architecture required to begin changing that picture. The next stage, PLN says, will be developing the institutions, expertise and commercial confidence needed to turn the legislation into a functioning arbitration ecosystem.
For businesses investing in Papua New Guinea, that evolution could provide another important layer of certainty in managing commercial risk.
