There will be confidence in the PNG economy in 2021.
According to Bank South Pacific Group Chief Executive Officer Robin Fleming, this was attributed to the resource sector with several major projects in the pipeline - such as the Fiscal Stability Agreement signed between the Government and Total and Joint Venture Partners of the Papua LNG Project. This also included the Environmental Permit awarded to Wafi-Golpu Joint Venture for the mine negotiations to gin on the Wafi-Golpu Mine.
“Certainly we feel that by the end of this year there is going to be far more confidence within the economy. The Wafi-Golpu Mine, and there is a much higher level of confidence within Lae as well, that the business community is looking at further expectations of growth,” he said.
Other drivers to this growth also included the ongoing investments in infrastructure and the improvement of State-Owned Entities.
“The Government has indicated in its Budget that it’s looking to continue with some of the development of the road construction, for the business community as they know they (PNG Power) got the capability to put their capital to investments which are revenue-generating and not just investments which are protecting their own infrastructure,” he said.
The World Bank Groups Papua New Guinea Economic Update of January 2021 said that the Papua LNG Project and the fast resolutions related to key mining projects can contribute to higher inflows of taxation revenue and foreign currency.
