AWARDING OF OBURA WONENARA ROAD CONTRACT UNDER CONNECT PNG RAISES TRANSPARENCY CONCERNS

By Concerned Citizen

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Port Moresby

28th March, 2025

The Connect PNG Program, Papua New Guinea’s flagship infrastructure initiative, has come under scrutiny following revelations that a K247.24 million road upgrade in Obura Wonenara District, Eastern Highlands Province, was awarded to Too Good Construction Limited, a company reportedly linked to a current state minister. The project, situated in the electorate of Hon. John Boito, highlights potential conflicts of interest and questions about procurement transparency under the multibillion-kina program.

Project Overview and Cost Analysis

The Obura Wonenara project involves upgrading 54 km of road from Aiyura to Habina Junction, including pavement recycling, stabilization, and sealing. At K4.58 million per kilometer, it is among the most expensive contracts awarded under Connect PNG, surpassing costs for similar projects:

• - Sepik Highway (East Sepik): K83 million for 100 km (K0.83 million/km), awarded to China Shenyang International Corporation.

  
  

• - Kutubu Road (Southern Highlands): K371.51 million for 100.2 km (K3.71 million/km), partly funded by energy firms via tax credits.

  
  

• - Tari Lake Kopiago Road (Hela): K30.25 million for 65 km (K0.47 million/km), awarded to a local firm.

  
  

• While the Obura project’s higher cost could reflect complex terrain and advanced techniques like pavement recycling, the involvement of a company tied to a sitting minister raises concerns about competitive bidding and value for money. By comparison, the Sepik Highway—a 100 km "highway" upgrade—costs 82% less per kilometer, though its scope likely involves gravel improvements rather than full sealing.

  
  

Governance and Transparency Risks

The Connect PNG Program, enacted under the Connect PNG (Implementation and Funding) Act 2021, mandates that 5.6% of the annual budget (≈K1.2 billion/year) be allocated to road infrastructure. However, allegations of mismanagement and funding shortfalls persist. Prime Minister James Marape recently acknowledged K4.5 billion spent on Connect PNG since 2020, with K4.5 billion more in delayed projects.

The awarding of the Obura contract to a politically linked firm contrasts with Connect PNG’s stated goal of empowering local SMEs. For instance, Garom Limited, a national contractor, highlighted the program’s role in enabling PNG-owned companies to compete against foreign firms. Critics argue that ministerial connections in contracting entities risk diverting funds from underserved regions like *Goilala District*, where projects remain unimplemented despite being listed under Connect PNG.

Broader Implications for Connect PNG

The Obura Wonenara case underscores systemic challenges:

1. Conflict of Interest: Companies linked to state officials winning contracts could undermine public trust, especially amid allegations of fund misuse.

   
   

2. Cost Disparities: The K4.58 million/km price tag exceeds benchmarks for similar terrain. For context, the Kutubu Road (K3.71 million/km) serves oilfields, justifying higher costs.

   
   

3. Equity Gaps: Delays in districts like Goilala highlight uneven implementation, despite Connect PNG’s aim to connect 1.7 million “landlocked” citizens by 2027.

   
   

Conclusion

While Connect PNG has transformed infrastructure in regions like Kaintiba (Morobe) and the Trans-Island Corridor, the Obura Wonenara contract exemplifies risks in politically influenced procurement. To maintain credibility, the government must enforce stricter transparency measures, such as:

• Public disclosure of contractor ownership ties.

  
  

• Independent audits of high-cost projects.

  
  

• Prioritizing competitive bidding to align with the program’s SME empowerment goals.

As PNG strives toward its 2040 vision of nationwide connectivity, balancing ambition with accountability remains critical to ensuring that roads—and resources—reach those who need them most.