The PNG National Research Institute (PNG NRI) releases Discussion Paper No. 165 “Potential Public Private Partnership Strategy for Promoting Effective Housing Delivery in Papua New Guinea”, and Spotlight Article Vol. 12, Issue 1 “Potential public-private partnership arrangements for boosting affordable Housing delivery in Papua New Guinea”. The Spotlight article focuses on one of the findings from the Discussion Paper.
The Discussion Paper is co-authored by Associate Professor Patrice Savadogo, the Systems Scientist at the World Agroforestry Centre, Bamako, Mali and Associate Professor Eugene Ezebilo, the Deputy Director for Research at the Papua New Guinea National Research Institute, who also authored the Spotlight article.
The objective of the research reported in the Discussion Paper is to identify Public Private Partnership (PPP) arrangements that are most suitable for housing delivery in Papua New Guinea (PNG). It was also to identify factors that should be considered for a PPP housing project to succeed in the country.
The main finding from the research is that two PPP arrangements are most suitable for housing delivery in PNG:
- The direct relationship ownership housing that focuses on home ownership. In this arrangement, the National Housing Corporation (NHC) is responsible for facilitating the release of land to large-scale private developers selected through tender process, construction of basic trunk infrastructure and monitoring quality of houses constructed by private developers. The private developer is responsible for designing, constructing of houses and the maintenance of completed houses.
- The direct relationship rental housing that focuses on providing houses for rent. In addition to responsibility of the NHC in the first PPP arrangement, it is also responsible for determining house rent in collaboration with private developer. The developer is responsible for constructing houses for rent, maintenance of the houses and collection of house rent from tenants.
For a PPP housing project to succeed in PNG, there is a need for:
- Strong political support for the project
- Transparency in all stages of the project
- Sharing risks associated with the projects between parties involved in the PPP arrangement.
- Strong support of the communities where a PPP project is being implemented.
- Several private firms to establish a consortium.
The Discussion Paper No.165 and Spotlight Vol. 12, Issue 1 can be accessed on the PNG NRI website: https://pngnri.org/; and follow the discussion on these issues on our social media pages:
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