Ministerial Address To Contractors On Their Performance And Local Content On Major Connect PNG Program Contracts

Date: 29/01/24

Ministerial Address To Contractors On Their Performance And Local Content On Major Connect PNG Program Contracts

The Marape – Rosso Government is committed to delivering on its development priorities including the Connect PNG Programme.

I’m pleased to announce that the Government is making a total payment of K261,301,947.77 million (20) contractors. The contractors are both international and local ranging in size from large to SMEs.

This payment consists of K76 million to highlands region, K75 million to New Guinea Islands Region and K67million to Momase Region and K40 million to Southern Region.

This payment is being made after having the invoices for payments gone through a vigorous vetting process that starts in the field with the Project Supervision and Management Consultants who provide Independent project management services on behalf of the Government.

That means that the contractors have done well and deserve to be paid. I acknowledge the patience of the contractors whilst the majority (fourteen) are local contractors. The local contractors range from large to small that really shows that the Connect PNG Program is building the capacity of the local industry.

I would strongly encourage our international and large local contractors to ensure sub-contracting arrangements to continue to build our SMEs in the construction sector. That is already achieving the SME policy objectives as well as adhering to the provisions of the National Procurement (Amendment) Act, 2021 that provides for local participation.

I remind the contractor to bear in mind that you will always be paid, whether within or outside of the requirement payment period. Therefore, I encourage you to continue to work and deliver on the respective contracts and ensure that the final outcomes reflect value for money and reflect the accepted standards for sustainability.

The Connect PNG program is a 20 years program and, therefore your continuous participation in the program will very much depend on your performance on the current engagements. It simply means, do your best and deliver the best and you have a better chance of future jobs in the program.

In conclusion let me highlight two key important things. Firstly, the Connect PNG program is no longer being implemented in a “Business as Usual” approach. However, the Marape – Rosso Government demands the best from all stakeholders involved in delivering this “flagship” Development Program. The Government does not want changes in scope, changes on cost and changes in project timeframes.

When you sign contracts, you must be sure of the scope of work, the cost to deliver that scope, and the time frame required to deliver that scope of work. Secondly, the Department of Works & Highways must step up to ensure the contractors are delivering according to agreed schedules and cost whilst the management and supervision consultants are doing their jobs without compromise. It is a must that everyone contracted in a project must earn an honest pay. That task rests with DoWH. You must take responsibility and deliver a program that will contribute to nation building into the future. 

Authorized by:

HON. SOLAN MIRISIM, MP

Minister for Works & Highways