Policy & Governance / Enabling Infrastructure & ITCS Program

Funding the Final Mile of Infrastructure

This programme seeks NEC approval to direct forty per cent of Bougainville's 0.5% Infrastructure Tax Credit Scheme entitlement toward Soraken's remaining enabling infrastructure.

10.1 Purpose

A Dedicated Fund, A Dedicated Team

This submission seeks NEC approval of enlisting Soraken as an inaugural Bougainville SEZ, and directs the Ministry and Department of Works and Highways to oversee all technical compliance, standards and development associated with national enabling infrastructure at Soraken, covering the allocation of forty per cent of Bougainville's 0.5% Infrastructure Tax Credit Scheme (ITCS) entitlement, and the establishment of a dedicated multidisciplinary project team to prepare a complete engineering package for roads, bridges, water supply, sewerage and wastewater systems, power distribution, telecommunications and fibre-optic networks.

10.3 Scope of Enabling Works

Upgrading the Soraken–Kesa–Arawa road corridor
Strengthening and expanding the Soraken wharf
Installing telecommunications towers and digital backbone infrastructure
Upgrading power distribution systems, including integration with the 10MW Solar Park
Improving airport access roads and logistics routes

10.5 Economic, Employment & Sustainability Implications

What Full Activation Delivers

Once enabling infrastructure is completed and the zone is fully operational, Soraken is projected to mobilise substantial private investment by 2035 through downstream cocoa processing, fisheries, logistics, tourism and the emerging digital economy.

~K3B

Private investment mobilised by 2035

~8,000

Direct jobs created

~20,000

Indirect jobs created

~K800M

Annual export value generated

10.4 Delivery and Governance Model

A Whole-of-Government Partnership

Implementation is led by the Ministry of Works and Highways, supported by ABG technical teams and contracted engineering firms, with a dedicated Infrastructure Account and an independently managed Project Management Unit.

Fiscal & Planning Oversight

Department of Treasury, Department of National Planning and Monitoring, and Department of Commerce.

Regulatory & Investment

Special Economic Zones Authority and Investment Promotion Authority guide compliance and investor mobilisation.

Sector Expertise

PNG Power, Water PNG, National Maritime Safety Authority, National Airports Corporation and the Digital Transformation Agency.

10.6 Risk Assessment and Options

Three Options for the National Executive Council

Highest Risk

Option 1 — Maintain the Status Quo

Soraken would continue preparatory work without dedicated enabling-infrastructure investment, resulting in prolonged delays, continued investor uncertainty and an inability to meet national SEZ licensing requirements. Not recommended.

Moderate–High Risk

Option 2 — Defer to Future Budget Cycles

This would reduce immediate fiscal pressure but significantly delay Bougainville's SEZ rollout and undermine the momentum already established through ABG approvals, planning instruments and investor engagement.

Lowest Risk · Recommended

Option 3 — Approve Targeted Enabling Infrastructure

Directing forty per cent of Bougainville's legally established ITCS entitlement toward Soraken's enabling infrastructure provides a clear funding pathway, accelerates readiness for SEZ licensing, and strengthens investor confidence.

All enabling works will comply with environmental safeguards, sitting within gazetted planning zones, with renewable energy and modern utilities expected to have a net positive environmental impact.