Papua New Guinea's (PNG) national cabinet has recently faced strong opposition for its plan to accelerate a series of projects dubbed a "grandiose shopping list," including the establishment of a space agency. This plan has sparked questions about the government's priorities, especially given the numerous basic service challenges the country faces. This raises concerns about the allocation of resources in the face of pressing needs.
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03-31, 2025The Australian Broadcasting Corporation (ABC) has reviewed and confirmed a confidential cabinet resolution listing seventy projects. These projects are wide-ranging, including collaborating with a Congolese rapper to acquire a luxury island, exploring the potential for building a world-class Formula One racetrack, creating a "Silicon Valley-style" entrepreneurial hub, developing post-quantum cryptography solutions, and establishing a spy agency with training from Israel. The diversity of these projects has drawn increased scrutiny.
PNG ministers decided to expedite these projects as part of a development agenda linked to the country's 50th anniversary of independence this year. However, critics point out that PNG faces difficulties in providing basic healthcare, education, law and order, and security for its people, and that its national budget has been reliant on loans from Australia, currently totaling over $3 billion. The reliance on external funding further complicates the situation.
Paul Barker, director of the PNG-based Institute of National Affairs think tank, said that many of the projects approved by the cabinet appear impractical and would distract the government from its core functions. "I think it's highly irresponsible... it's quite a grandiose shopping list," Mr. Barker said. "The government doesn't lack practical problems that need addressing... without exploring all sorts of dramatic and extravagant things, like satellites." This sentiment reflects a broader concern about misplaced priorities.
Mihai Sora, director of the Lowy Institute's Pacific Islands Program, stated that the list appears "overly ambitious for any government, let alone one with PNG's budgetary issues." He noted that PNG has received six budget support loans from Australia in the past six years to fill gaps and meet minimum service delivery standards. Mr. Sora also stated that PNG faces significant pressure from international investors, the International Monetary Fund (IMF), and other bilateral and multilateral creditors to balance its budget. "It's perplexing that they would even consider and sign off on some of these ambitious projects," he said. "My concern is that what little money PNG has for these projects will be eaten up by feasibility studies and contractor fees." The potential for financial mismanagement is a significant worry.
PNG Prime Minister James Marape told the Australian Broadcasting Corporation that the ideas outlined in the cabinet document are ideas for medium- to long-term projects. "Very few of these will be directly funded by the government. Most of these are for private sector to partner with government and government giving incentives," he said. PNG Assistant Minister Lombo Paita acknowledged that some of the ideas are impractical but pointed the finger at private companies. "The impractical ideas are all driven by investors showing and talking to the government," he said. "The government won't provide any funds. The funds allocated are only for feasibility studies and engaging companies like the Big Four (major international accounting and auditing firms)." The role of private sector involvement remains a point of contention.
However, some projects, such as the Kumul Satellite Project, are planned to be owned and operated by the government. Mr. Paita said that a space agency is needed to manage the satellite. "The Kumul satellite has been independently assessed by KPMG and will now go to NEC (National Executive Council) for its opinion," he said. Mr. Paita also stated that the intelligence agency is a government-to-government project with Israel, a country with close ties to PNG. This direct government involvement raises further questions about financial responsibility.
PNG political scientist Michael Kabuni said that the government has a poor track record of investing in grandiose projects that are never delivered. He cited an abandoned casino linked to a multi-million dollar embezzlement investigation. The PNG government provided land and tax concessions for the project, but it never materialized amid allegations of missing funds. "Private enterprise doesn't necessarily deliver. Some will, some won't," Mr. Kabuni said. He said that such projects often come at a cost to the government in the form of tax concessions and require legislative changes to be approved. "It's irresponsible to use PNG's limited resources on these projects and studies... especially when a large percentage of the population doesn't have access to good schools, health systems, water supply and various other things," he said. The history of failed projects adds to the skepticism surrounding the new initiatives.
Local resident Lynette Simon told the Australian Broadcasting Corporation that she disagrees with the government focusing on ambitious projects while ordinary people are struggling. "It's a waste of money," she said while waiting to see a doctor at a dilapidated medical center in the city. "The government must also come down to the level of the grassroots people when they are making plans... improve the schools, the hospitals, even the roads." This perspective underscores the disconnect between the government's priorities and the needs of the population.
