ADB says PNG making progress on resource benefits

10:57 am on 31 March 2015

The Asian Development Bank says Papua New Guinea is gradually making progress on transferring benefits from the resources sector.

The ADB has forecast strong economic growth for PNG and most Pacific Island countries in 2015.

PNG, which has recently begun exports from its major Liquified Natural Gas project, is expected to experience economic growth of 15 per cent.

LNG Project facility, Central Province, Papua New Guinea.

LNG Project facility, Central Province, Papua New Guinea. Photo: RNZI / Johnny Blades

The ADB's Pacific economist Christopher Edmonds says PNG's government still faces a difficult task of getting benefits from the growth to the country's remote areas.

He says there is slow progress towards developing infrastructure and service delivery.

"But definitely I think maybe the pace at which the government has tried to take this enterprise on has been maybe a bit quick and has led to certain public financial management issues in terms of the orderliness of the budgeting process and the ability of the government to really efficiently execute and use the resources that it has available both from the LNG project and from development partners' assistance."