JICA and GoPNG working to improve Resource Related Revenue Management Project

By: PNG Business News October 14, 2024

The Head of the Japan International Cooperation Agency (JICA) in Papua New Guinea (PNG), Matsuoka Hideaki, has urged the PNG government and its implementing agencies to maintain strong leadership, foster continued cooperation, and ensure that arrangements with donor agencies like JICA are upheld. This is essential to maximise the benefits derived from the various projects currently underway. Mr Hideaki made these remarks during the inaugural Joint Coordinating Committee (JCC) meeting for Phase 2 of the Improving Resource-Related Revenue Management Project, held in Port Moresby on 30 September 2024.

As JICA celebrates 50 years of development assistance to PNG, Mr Hideaki emphasised the importance of sustaining and strengthening the project’s implementation structure to ensure long-term impact. “To maximise and sustain the outcomes and impact of the project, it is vital to continue improving and reinforcing the implementation framework,” he noted, highlighting the project's significance in resource revenue management.

The JCC meeting, chaired by John Uware, Deputy Secretary of Economic Policy at the Department of Treasury, brought together key stakeholders, including consultants, to discuss the project’s progress at the Auditor General’s Office and the Department of Petroleum, while also outlining recommendations for future initiatives. Attendees included representatives from the Department of Treasury, the Auditor General’s Office, the Department of Petroleum, the Department of National Planning and Monitoring, the Internal Revenue Commission, and PNG Customs.

The Project for Improving Resource-Related Revenue Management was launched in 2018 following a request from the PNG government, through the Department of Treasury, to address recommendations from the first PNG Extractive Industries Transparency Initiative (PNGEITI) report. The report identified areas for improvement, such as the need to enhance the license registry at the Department of Petroleum and build the capacity of government agencies in data collection and reporting in line with EITI priorities.

Phase 1 of the JICA project, which concluded in 2022, successfully achieved its objectives and outputs. Phase 2 builds on this foundation, with a focus on two key areas:

  1. Capacity Strengthening at the Auditor General’s Office (AGO): Supporting the establishment of an assurance mechanism to test resource-related government revenues, enhancing the reliability of financial data for EITI reporting and ensuring compliance with EITI best practice standards.

  2. Data Management at the Department of Petroleum (DPE): Continuing to improve the management of license information, as well as production, export, and revenue data, to establish a timely and systematic disclosure mechanism at the DPE that meets EITI requirements.

This collaborative project aims to bolster the transparency and effectiveness of resource-related revenue management in PNG, laying the groundwork for improved governance and long-term economic development.


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