Revitalizing the Building Industry

The Minister for Works and Highways, Hon Michael B. Nali, MP has announced a review of the Building (construction) Industry in the Country. This will

involve the evaluation of the Building Act 1971 and the Building Regulation 1994, and a Diagnostic Assessment of the National Capital District Commission (NCDC) Building Board.

“The Department of Works and Highways (DoWH) is undergoing significant reforms in the way it approaches infrastructure development across Papua New Guinea. These changes are driven by the need for connectivity and accessibility, which are fundamental to stimulating economic growth and development. The transportation and road infrastructure sector has been the main focus of these reforms. But increasingly, DoWH intends to give equal attention to the building infrastructure industry in terms of establishing standards and regulations, which form a significant part of the entire construction industry in the country. DoWH realizes that the building infrastructure industry is in disarray and needs to be properly guided by a cohesive policy framework that seeks to develop, promote and sustain the industry. Part of this realization is also the need to review the governing legislation for the building industry” Minister Nali said.

The Policy Framework will set new benchmarks for building standards and codes, material standards including prefabricated materials, health and safety standards, climate change and environment requirements, pricing, import verification requirements, etc. Mr. Nali said, ‘the framework will bring effective government oversight and regulation of the industry and eliminate those builders who think they can put up buildings according to their own standards’.

Minister Nali explained that “The Building Act 1971 whose purpose is to regulate and control the construction of buildings is a carry forward of pre-independence legislation whilst the Regulation, which was adopted from the Australian Building Standards and enacted in 1994, is very detailed in the permit approval process, standards and specifications of building codes. The purpose of the review is to update and modernize both the Act and the Regulation based on recurring challenges affecting both the public and private sectors in the building industry”.

Minister Nali added that “a diagnostic assessment of the NCDC Building Board will be conducted as part of the review exercise. Port Moresby as the country’s largest and fastest growing city requires and deserves a special attention and high-level intervention amidst growing concerns of the performance of the Board. Accordingly, this important diagnostic assessment is required to establish current challenges or constraints and recommend appropriate policy actions to address these challenges or constraints so that the Board is adequately capacitated and on par with the expectations imposed by the city’s ambitious developmental objectives”.

Minister Nali announced that “the review will be driven by the DoWH who will be assisted by a team comprising building industry professionals and public policy experts. Key building and construction industry stakeholders both from the private sector and government agencies will be consulted during the review”.

Minister Nali encouraged all stakeholders to participate in the review so that the legislative, policy and process reforms create the foundation for a more focused, efficient and responsive building regulatory framework.

The review has commenced late in January and will be completed within 6 months.