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The Papua New Guinea National Research Institute (PNG NRI) has released its Spotlight Paper, Volume 10, Issue 8. The paper titled; Private developers have the potential to provide trunk infrastructure in Papua New Guinea: Evidence from Edai Town development, emphasises on the importance of private developers providing trunk infrastructure and plans for its sustenance.
This paper highlights that the State has the responsibility to provide trunk infrastructure in the country, however, the barriers and delays associated with public sector provision of trunk infrastructure in the housing sector has triggered the private sector to provide the trunk infrastructure.
The paper focuses on the lessons learnt from the Edai Town Development Limited as one of the private developers in PNG that provides and manages trunk infrastructure in its housing estate. This paper recommends that it is necessary to provide private developers tax credit for an agreed period. This will enable the developers to capture some costs that they incur for
providing trunk infrastructure.
The paper concludes that the private sector has the potential to provide trunk infrastructure and should be promoted in PNG if the benefits outweigh the costs, however, it is also important for the State to monitor the quality of trunk infrastructure provided by the private developers.
This paper aims to contribute to policy discussions on how best trunk infrastructure should be provided in PNG.
The Spotlight paper was written by Associate Professor Eugene Ezebilo, PNG NRI Program Leader of the Property Development Program.