Papua New Guinea Construction

The government in Papua New Guinea (PNG) has pledged to upgrade its infrastructure after years of underinvestment, a move which will also help plug the construction gap as the country’s mega project, the $19bn Liquefied Natural Gas (LNG) plant, is now completed and the related real-estate boom starts to cool.

The construction sector in Papua New Guinea (PNG) has enjoyed rapid growth in recent years. The industry, worth just PGK265.6m ($126.38m) in 1994, is now one of the economy’s largest contributors to GDP, valued at PGK4.81bn ($2.29bn) in 2011. But while annual growth has averaged 17.9% since 2007, there are troubling indicators of an overstretched economy.

Plans for a major highway upgrade deal with China and progress in transport development schemes underline Papua New Guinea’s (PNG) determination to tackle infrastructure deficits that have thus far inhibited the island’s economic growth.