Construction & Real Estate
From The Report: Papua New Guinea 2016
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Building on the momentum generated by the successful launch of the Papua New Guinea Liquefied Natural Gas project, the government continues to take the lead in stimulating construction activity in PNG, with various opportunities across the board from ports and road projects to a range of residential and commercial developments open to both domestic and foreign companies for participation and investment. With only 3% of land available to the government to build on and develop, the real estate sector in Papua New Guinea operates in a unique environment. Despite the majority of land being under customary ownership, with ownership rights held by extended family groups, there are still a number of opportunities for foreign investors and development in the sector, with more on the horizon if government-backed legislation, currently pending, opens up more of PNG’s land for development.

This chapter contains interviews with Dominic Avenell, Managing Director, Avenell Engineering Systems; Gudmundur Fridriksson, CEO, Paga Hill Estate; and Frank Kramer, CEO, Kramer Ausenco.

Articles from this Chapter

Overview

Open for business: As the state slashes spending, private investment will be key to executing the construction pipeline
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Building on the momentum generated by the successful launch of the Papua New Guinea Liquefied Natural Gas project, the government continues to take the lead on stimulating construction activity in PNG, with various opportunities across the board – from ports and road projects to a range of residential and commercial developments – open to both domestic and foreign companies for participation and investment. Budgeting Too Build The construction and launch of the $19bn PNG LNG project…

Analysis

In the zone: A high-priority marine industrial zone project breaks ground
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More than a decade in the making, the construction phase of the Pacific Marine Industrial Zone (PMIZ) project in Madang Province now looks set to get under way in Papua New Guinea. The main impetus behind the zone is to transform PNG into the largest tuna processing and canning hub in the Asia-Pacific region, eventually overtaking the Philippines and Thailand. Current estimates indicate that the zone could increase PNG’s annual tuna catch from $1.35bn to $2.7bn, according to comments made…

Interview

Quality of life: OBG talks to Dominic Avenell, Managing Director, Avenell Engineering Systems
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Interview:Dominic Avenell What potential is there for industrial parks in Papua New Guinea, especially in Port Moresby? DOMINIC AVENELL: For a long time the concept of industrial parks meant an area of the city that was zoned for industrial use, whether for ports, refineries or other industrial projects, but the idea of combing residential segments is slowly gaining ground in PNG. One of the reasons is the prohibitive price of real estate in Port Moresby, but others are the convenience of…

Overview

Down the line: Investors see potential in affordable housing projects and prospective changes to the law
OBG
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With only 3% of land available to the government to build on and develop, the real estate sector in Papua New Guinea operates in a unique environment. Despite the majority of land being under customary ownership, with ownership rights held by extended family groups, there are still a number of opportunities for foreign investors and development in the sector, with more on the horizon if government-backed legislation, currently pending, opens up more of PNG’s land for development. Faltering…

Interview

Plans for the future: OBG talks to Gudmundur Fridriksson, CEO, Paga Hill Estate
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Interview:Gudmundur Fridriksson What explains the exceptional growth of the property market in Papua New Guinea? GUDMUNDUR FRIDRIKSSON: Since 2007 PNG has enjoyed considerable economic growth on the back of mining and commodities. This has since been followed by the construction of the PNG Liquefied Natural Gas project. There’s been a lot of developer activity to address the housing supply shortage and capitalise on lucrative returns. Even so, supply is constrained and affordability remains…

Analysis

A balancing act: Simplifying the land allocation process while protecting customary rights is proving a complex process
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The customary land ownership system in place since Papua New Guinea gained independence in 1975 could be about to undergo significant reform. Currently, most of PNG’s land belongs to its people, with the state owning the remaining 3%. Under customary tenure, ownership rights belong to an extended family group governed by traditional law. Very little customary land is registered or has a title recorded. All other land, known as alienated land and held by the state, is administered under…

Interview

Neighbourly conduct: OBG talks to Frank Kramer, CEO, Kramer Ausenco
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Interview:Frank Kramer As Papua New Guinea becomes more visible in the region, what opportunities are there for synergies with its neighbours? FRANK KRAMER: PNG has always been a natural bridge between the Pacific and Asia. The post-independence “look north” strategy, which advocated greater engagement with Asia, changed many things here. However, there is caution about rushing to Chinese markets, and I believe Indonesia is a safer alternative because it offers similar things as China…