Authority inks MoU with Bougainville government on transfer of powers

PNG Investment Promotion Authority. Photo: Papua New Guinea Today

The Papua New Guinea Investment Promotion Authority (IPA) and the Autonomous Bougainville Government (ABG) have signed a memorandum of understanding (MoU) to transfer the powers on investment promotion and business registration to the ABG.

IPA managing director Clarence Hoot said it was a work plan for the IPA and ABG to share skills and to build capacity in the ABG Commerce Trade and Industry and Economic Development Department.

“(It is to also) develop appropriate policies and legislations to establish an entity fitting for Bougainville once relevant powers have been drawn,” he said.

“The MoU also allows the IPA to provide support to the ABG towards establishing a Bougainville entity
registration facility and to transition entity registration powers from the IPA to ABG.

“The MoU includes work on intellectual property rights which will also be transferred to the ABG.

“A key consideration in the process is the need to explore a corporate structure for ABG to adopt for the region in terms of business entity-types and how it can work best for the private sector on the ground.”

The National reports that Hoot told the ABG government officials and the private sector to discuss whether it was necessary to create a new agency to perform the IPA and business registry functions, or to capacitate the existing Bougainville Inward Investment Bureau and give them the powers to provide IPA and business registry services.

ABG chief secretary Kearnneth Nanei said the MoU would assist revenue generation for the ABG.

“We would like to develop a system and entity that is friendly and addresses the ease of doing business agenda in Bougainville,” he said.

The MoU signing became possible as a result of the Sharp Agreement 2019 which allows the ABG to
progress the process of transfer of functions and powers irrespective of whether a specific request was made by ABG or not.

The Sharp Agreement demonstrates the Government’s understanding of the need to remove other forms of economic and financial controls which hinder the ability of the ABG to effectively perform its functions as well as manage its own revenue collection.