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The construction sector in PNG has been booming over the past half-decade, driven by major initiatives such the PNG LNG project. The wealth of contracts available has fostered healthy competition between Australian firms, traditionally dominant in the local market, and newly arrived Western companies. Hoever, the influx of money and workers has created a bubble in office and residential prices and will almost certainly lead to oversupply when the major projects wrap up. At the same time, the anticipated increase in wealth will fund construction projects around the country, including urban developments outside of the big cities that will hopefully staunch urban migration. This section features an interview with Keith Fletcher, Managing Director, Fletcher Morobe Construction.

Infrastructure deficits are one of PNG’s most pressing economic concerns, affecting the competitiveness of industry and agriculture while hindering development in the country’s interior. Thanks to increasing revenues, however, the government is now in a position to address its inadequate land and sea transport systems. The first of four development plans will spend $11.7bn on transport over five years, with the goal of eventually tripling the size of the road network, expanding over-capacity ports, and modernising airports. The challenge will be to marshal the necessary investments while overcoming the bureaucratic and parochial tendencies of PNG’s political system. This chapter features interviews with Wasantha Kumarasiri, CEO, Air Niugini; Stanley Alphonse, CEO, PNG Ports Corporation; and Joseph Kintau, Managing Director, National Airports Corporation.

Most of PNG’s industrial strength derives from its abundant minerals, hydrocarbons and agricultural products. Export markets are, however, naturally constrained by the country’s remoteness and its weak infrastructure, suggesting that PNG will be importing many of its finished goods for the indefinite future. The most successful industries, like food and beverages, cater to domestic consumption. There is room for expansion in downstream industries; for example, PNG accounts for up to 17% of the world’s tuna fish harvest but only processes 20% of the catchment locally. Investments in processing facilities for agricultural commodities like tuna and timber could bring in export dollars while boosting employment in the formal sector. This chapter includes interviews with Charles Abel, Minister of Trade, Commerce and Industry; Murray Woo, Chairman, Manufacturers Council of Papua New Guinea; and Michael Kingston, General Manager, K. K. Kingston.

PNG’s telecoms market is emerging from the stagnation of a government monopoly and has seen steady growth since liberalisation in 2007. With fixed-line penetration limited by geography, the country is targeting a rapid expansion of mobile networks in a bid to connect all of its citizens. Digicel, the top mobile provider, has been the primary benefactor in this shift, increasing its subscriber base to 1.6m and its market share to 84%. At the same time, the focus on mobile has done little to help boost internet connectivity, which suffers from slow speeds and strict bandwidth caps. This section has interviews with Jim Miringtoro, Minister for Communication and Information Technology; Charles Punaha, CEO, National Information and Communications Technology Authority (NICTA); and John Mangos, CEO, Digicel (PNG).

Mining has long been the mainstay of the PNG economy, representing more than two-thirds of the government’s revenues in 2011. Moreover, with its top commodities of gold and copper selling at near-record prices on global markets, the country is drawing increased attention from resource firms. Indeed, more than half of the country’s land area is covered by mining permits in the application process. These include China’s biggest investment in the South Pacific, the $1.5bn Ramu nickel and cobalt mine, as well as several forays into deep-sea mining. It remains to be seen, however, whether PNG’s renewed mining push will safeguard against the social and environmental hazards that have plagued it in the past. This chapter includes interviews with Byron Chan, Minister of Mining; Greg Anderson, Executive Director, Papua New Guinea Chamber of Mines and Petroleum; and Peter Aitsi, Country Manager, Newcrest Mining.

The energy sector in PNG, which has seen declining production for decades, is set to become a major driver of the economy as new investments come online. Gas is now the focus, with the $15.7bn ExxonMobil-led PNG LNG project due to start production in 2014. The megaproject has driven construction growth and set off a real estate boom in the nation’s capital thanks to an influx of foreign contractors and consultants. Oil investment is also picking up: given falling production at PNG’s mature fields, companies are exploring hard-to-reach oil fields, and license approvals by the regulator are at a peak. Meanwhile, the state-run PNG Power is battling geographic and funding obstacles to expand access to electricity. This section features interviews with Peter M Graham, Managing Director, Esso Highlands; Phil E Mulacek, Chairman and CEO, InterOil; and Tony Koiri, CEO, PNG Power.