PNG cabinet slammed for 'grand shopping list' of ideas including luxury island, spy agency and F1 track

Exclusive by PNG correspondent Marian Faa and Theckla Gunga in Port Moresby, ABC

In short

• Seventy development projects outlined in a confidential PNG cabinet document has been leaked to the ABC.
• The ideas include developing a space agency and acquiring a luxury island in partnership with a Congolese rapper.

What's next?

• PNG Prime Minister James Marape told the ABC the ideas outlined in the cabinet document were thoughts for mid-term to long-term projects.

Papua New Guinea's national cabinet is facing a fierce backlash after resolving to expedite what has been called a "grand shopping list" of projects, including the development of a space agency.

Seventy projects are outlined in a confidential cabinet decision that has been seen and verified by the ABC.

The list includes acquiring a luxury island in partnership with a Congolese rapper, exploring the potential for a world-class Formula 1 track, creating a "Silicon Valley style hub" for entrepreneurs, developing post-quantum cryptography solutions and setting up a spy agency with training from Israel.

PNG ministers resolved to expedite the projects as part of a development agenda linked to the country's 50th anniversary of independence this year.

However, critics point out that PNG struggles to provide basic health care, education, policing and security for its people, and its national budget has been successively propped up by Australian loans now worth more than $3 billion.

Critics say items on list are 'science fiction'

Paul Barker, director of PNG-based think tank the Institute of National Affairs, said many of the cabinet-endorsed projects appeared unrealistic and would detract from the government's core functions.

"I would say it was pretty irresponsible … It's a pretty grand shopping list," Mr Barker said.

"[The] government is not short of real issues to address … without having to go exploring all kinds of dramatic and extravagant things like satellites."

Mihai Sora, director of the Lowy Institute's Pacific Islands Program, said the list looked "wildly ambitious for any government, let alone one with PNG's budget problems".

"The country has received six budget support loans in as many years from Australia to plug gaps and meet minimal service-delivery standards," he said.

"While some of these initiatives are sensible, like improving access to food, water, energy and the digital sector, other items read more like science fiction.

Mr Sora said PNG was under immense pressure from international investors, the IMF and other bilateral and multilateral creditors to balance its budget.

"It's just baffling that they would even consider and sign their name to some of these ambitious projects," he said.

"My concern is what little money PNG has to devote to these projects will be swallowed up by feasibility studies and contractors' fees."

'The unrealistic ideas are all driven by investors'

PNG Prime Minister James Marape told the ABC the ideas outlined in the cabinet document were thoughts for mid-term to long-term projects.

"Few of them will get direct government funding. Most are for private sector engagements with government incentives to be given," he said.

PNG's Minister Assisting the Prime Minister, Rainbo Paita, acknowledged some of the ideas were unrealistic, but pointed the finger at private companies.

"The unrealistic ideas are all driven by investors showing and talking to government," he said.

"Government will not put up any funding. The funding allocated is just for feasibility studies and engagement of firms like the big four [major international accounting and audit firms]."

But some of the projects, such as the Kumul Satellite Project, are intended to be government-owned and run.

Mr Paita said the space agency was needed to manage the satellite.

"The Kumul satellite has been independently assessed by KPMG and now will go to NEC [the National Executive Committee] for their views," he said.

Mr Paita also said the intelligence agency was a government-to-government program with Israel, a country that shared close ties with PNG.

'It's irresponsible'

Michael Kabuni, a political scientist from PNG, said the government had a poor track record of investing in grand projects that were not delivered.

He pointed to an abandoned casino linked to a multi-million-dollar embezzlement investigation.

The PNG government provided the land and tax concessions for the project, which never eventuated amid allegations of missing funds.

"Private enterprise doesn't necessarily deliver. Some do, some don't," Mr Kabuni said.

He said such projects often cost the government in the form of tax concessions and require legislative amendments to get approved.

"It's irresponsible … to spend limited resources that PNG has on these projects and studies, especially when a good number of the population don't have access to good schools, health system, water supply and all kinds of things," he said.

The news has also been poorly received on the streets of Port Moresby.

Local resident Lynette Simon told ABC she did not agree with the government concentrating on ambitious projects while everyday people were struggling.

"It's a waste of money," she said while waiting to see a doctor at one of the city's rundown health centres.

"The government must come down to the level of grassroots people too when making its plans…improve school, hospitals and even roads."