At the inaugural Construction and Contractors Conference in Port Moresby, the Minister for Works and Highways, Hon. Peter Tsiamalili Jnr, officially launched the Road Contractor Capacity Development Program.
The Program is a strategic initiative designed to transform Papua New Guinea’s domestic construction industry.
To bridge the gap between local firms and multinational giants, the Minister unveiled a structured pathway for domestic companies to graduate into large-scale projects.
The new program is built on three core pillars:
- Classification- The Focus Area of this pillar is the Graduation Framework and it features the category of Contractors from Level A (entry) to Level D (elite/K50M+), creating a transparent path for growth based on performance.
- Skills Training- The Focus Area of this pillar is the Technical Excellence and features mandatory training through the Works Training Institute covering engineering, project management, and financial compliance.
- Financial Security- The Focus Area of this pillar is the K50 Million Revolving Fund and features a Performance Security Support Facility to help local contractors secure performance bonds and bank guarantees for large tenders.
The Minister emphasized that the K50 million fund is not a grant or a subsidy.
“It is a revolving fund, you do well, you repay it, and the next contractor gets their turn, it’s about teamwork for the nation,” Minister Tsiamalili Jr said.
He highlighted that the government has committed 5.6% of the national budget annually, giving approximately K1.7 billion this year to road infrastructure.
With a goal of building and maintaining 50,000 kilometers of roads, the Minister explained that quality construction has a “casting effect” on the whole economy.
“A bad road increases fuel consumption and breaks trucks, hurting the bottom line of our farmers and businesses.”
“High-quality roads are the only way to lower the cost of living and allow our mothers and daughters to reach health facilities safely,” he said.
In a significant policy announcement, the Minister reaffirmed the government’s commitment to legislating a 40% local participation requirement in all contracts.
Ending on Thursday April 9 this year, the Construction and Contractors Conference is now confirmed as an annual event, serving as a permanent platform for collaboration between the state and the private sector.