By Miriam Malawa
NATIONAL Capital District Governor Powes Parkop has urged the government to amending the laws under the Company’s Act to make it mandatory for foreign companies to engage in joint ventures with national companies before commencing operation in PNG.
He made these remarks during the opening of the 9mile to PAU road opening on Monday.
Parkop said this approach should extend beyond small businesses and encompass various sectors such as mining oil and gas, forestry, fisheries, road construction, services industry and others.
“I’d like to take this opportunity to suggest, Prime Minister, that we should consider amending the Company’s Act and under investment laws to ensure that all foreign investors investing in our country be big mega projects, whether oil or gas or gold, going down to the smaller business,” he said.
“The law should make it mandatory they go into a joint venture partnership with our local company, maybe starting off with a minimum or equity like 20% to 25% ownership and then the sky becomes the limit for national companies.”
Parkop believes this approach would not only allow Papua New Guineans to benefit from the earnings, profit and income generated from investment, but it will also facilitate technological advancement, skills transfer, management expertise, which local companies lack.
He said encouraging joint ventures it maximises the benefits of foreign investment and fosters the growth of local businessmen and businesses.
When commending the local construction company, Mobile Works for delivering a world-class outcome for the 9-Mile to 14-Mile Road, he also urged other local companies to step up and to deliver top-class or world-class infrastructures.