The Papua New Guinea Chamber of Resources and Energy (PNG Core) Manger for Policy and Analysis, Gretel Orake, addressed the urgent need for regulatory reform and enhanced capacity within PNG's regulatory bodies during the 2024 Business Regulators Summit held at Stanley's Hotel.
Orake highlighted critical areas requiring attention to foster a more conducive business environment and drive the nation's economic growth as it approaches its 50th anniversary.
Presenting on “Challenges in Regulatory Compliance and Coordination” on the second day of the Summit, Orake stressed the role of regulators in ensuring the ease of doing business in PNG.
“This is a call to attention, recognizing the critical role of regulators in ensuring the ease of doing business. The industry is about our country and our people," she emphasized.
Orake noted that the scrutiny faced by the extractive industry is intense, and meeting international standards is imperative for the country's development.
Reflecting on the decline in exploration licenses over the past decade, Orake pointed out: "Just over ten years ago, we had a lot... An example of that is the mining exploration tenement map in 2011. Ten years later, in 2023, the interest has declined."
Despite PNG’s natural resource potential remaining unchanged, the waning interest signals a need for regulatory revitalization, she said.
Orake emphasized the necessity of adhering to global norms through stringent regulations such as the Mining Act, Oil and Gas Act, and Environment Act.
"For Papua Energy, for instance, to get its oil and gas license, it needs to comply with the Environment Act. It must spend up to 19 million Australian dollars to comply with our Act," she detailed.
However, Orake identified a critical imbalance: the extensive requirements placed on the industry versus the limited capacity of regulatory bodies.
"When the industry is coming with a 19 million dollar document for you to review, and you are an organization that has what, 6 people? This increases the risk of error in decision making," she remarked, highlighting the delays and inefficiencies caused by under-resourced regulatory agencies.
She stressed the importance of adequate funding and resources for regulatory bodies to function effectively, and called for enhanced coordination among regulators to streamline processes and reduce bureaucratic hurdles.
"I should be able to, as a regulator, have the funding. When I have only 5 or 6 people, I should still have the ability to put out a tender and ask for expert advice," she asserted.
Orake also addressed the issue of outdated legislation, particularly the need to update the Mining Safety Act. Urging the government to commit resources to modernize regulatory frameworks, Orake emphasized that a well-resourced regulator is key to a successful economy.
"Teamwork makes the dream work. An enhanced coordination of regulators will definitely result in the ease of doing business," she said, reiterating the importance of a robust regulatory framework for the future of PNG's economy.
