Following a PPP policy in 2008, Papua New Guinea introduced its first PPP law 2014 which calls for institutions and processes to be established broadly in line with internationally accepted practice. The PPP center is expected to be a part of Ministry for Treasury and to report to a cross agency steering group. Once The PPP center is ready and running, it will be in charge of identifying projects and conducting rigorous VfM assessments over whole project lifecycles. The PPP law is still inadequate and does not represent a fully developed regulatory framework. It is also supposed to submit liabilities, including contingent liabilities and guarantees connected to PPPs, to the Ministry for Treasury.

There are limited domestic sources of finance for infrastructure development and local bonds have become more expensive since 2013. International development agencies play an important role in funding projects.

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