Department of Works & Highways Launches Electronic Funds Transfer (EFT) System

The Department of Works & Highways (DOWH) is proud to announce the upcoming launch of its new Electronic Funds Transfer (EFT) system, marking a significant milestone in the department’s journey toward modernizing financial management. This initiative, led by the Department of Finance, is part of a broader government reform aimed at replacing manual cheque payments with secure, efficient electronic transactions.

The EFT system is integrated with the Government’s Integrated Financial Management System (IFMS) and banking networks, ensuring faster processing, greater transparency, and improved accountability in public sector payments. This transition is expected to deliver numerous benefits, including quicker payment processing, enhanced visibility and tracking of transactions, and reduced risks of fraud and manual errors. It will also lower administrative costs and improve service delivery to our valued suppliers and contractors.

Over the past months, the Department has successfully completed all preparatory activities necessary for the EFT rollout. These included staff awareness training, data validation for suppliers and creditors, configuration and testing of the EFT system within IFMS, user acceptance testing, and close coordination with the Department of Finance, Bank of Papua New Guinea, and other stakeholders.

The initial rollout covers 12 provinces, with the total estimated cost of K231,000. Funding has already been secured for these activities, and additional support will be provided to complete implementation across all 20 provinces by 2027. This phased approach ensures a smooth transition and allows the department to adapt efficiently to the new payment system.

The Secretary of the Department of Works & Highways welcomed this development, describing it as a vital step toward improving efficiency, accountability, and transparency in public financial management. During the launch event, he emphasized that the move to EFT will significantly reduce delays in payments, which have historically impacted project timelines and service delivery.

"The move to EFT will help reduce delays in the payment process and provide a more efficient system for both government agencies and contractors," the Secretary stated. He also highlighted that this initiative will strengthen accountability through better expenditure reporting, payment tracking, and financial reconciliation.

The EFT rollout is the first phase of a broader digital reform program that aims to integrate online procurement and other technology-driven government services. The Department of Finance’s dedicated efforts in advancing digital solutions across government, combined with emerging digital platforms and improved internet connectivity, are transforming how government services are delivered.

The Department remains committed to supporting these vital reforms and working closely with all stakeholders to ensure a successful transition to electronic payments. With the EFT system in place, the Department of Works & Highways is confident in delivering more efficient, transparent, and accountable financial services to the public and its partners.