James Marape defends Papua LNG project and local development

Papua New Guinea Prime Minister James Marape has addressed concerns regarding the US$14.5 billion Papua LNG project, rejecting Treasury Department projections that suggest a K28 billion revenue shortfall by 2035. Marape argued that the project should be viewed through the lens of long-term intergenerational benefits and aggregate economic gains rather than short-term changes in petroleum tax receipts. He noted that the construction phase, expected to begin in 2027, will generate revenue through corporate, personal, and goods and services taxes.

To resolve the discrepancy, the Prime Minister has instructed the Department of Treasury to reconcile its figures with the State Negotiating Team. He emphasized that while accelerated depreciation might temporarily affect tax receipts, these impacts will be recovered once production begins.

In a separate development, Prime Minister Marape commended the delivery of several infrastructure projects in the Menyamya District. These include a new District Administration Office, a police station, a market facility, a water project, and a rehabilitated rural lock-up. He highlighted these projects as examples of how national funding and effective local leadership can provide tangible services to rural communities.