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Population Growth Puts Pressure on NCDC 

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As Port Moresby city booms with infrastructure developments and a growing population due to rural to urban migration, the city has a huge task of creating harmonious communities amidst different ethnic groups from all over Papua New Guinea.

A lot has changed over the years with two lane roads to four and more business investments from both foreign owned companies and locals.

Funding to ensure all these developments, services and investment thrive, the city depends heavily on the Goods and Services Tax.

With a Population of over 500 000 (2021 census), the need for a bigger budget was necessary to address not only infrastructure issues but security.

The culmination of the K800 million budget announced earlier this month proves the demand placed on the National Capital District Commission.

NCD Governor Powes Parkop overseeing all of this says the National Capital District Commission still needs a budget of K1 billion to manage and lift Port Moresby city.  

Parkop said NCDC budget is about K800 million plus – which was not enough to manage a city with 30 per cent of the country’s populations.  

“We need a budget of over K1.0 Billion to run and manage the size of Port Moresby, we are the biggest concentration of population in any parts of the country where influx of people migrating from other centers, we deserve a budget going into almost K1 billion,” he said.

Governor Parkop added that the budget was guided by goals and is aligned with few national policies such as the Medium Term Development Plan (MTDP) IV, Papua New Guinea Development Strategic Plan 2010-20230 and Vision 2050.  

Summarizing the budget, Governor Parkop highlighted the budget’s goals main allocations are as follows;  

• K304 million is allocated for infrastructure Rehabilitation and building of roads, markets and classrooms  

• K67 Million allocated for health – K17 Million is allocated by NCDC while K50 Million is allocated by the Government

• From the K17 Million allocation -Upgrade Gerehu Hospital to level 4          -Upgrade of 9 Mile Clinic         -Build a District Hospital at Moresby South         -Build a new Tuberculosis Facility

• K50 million allocated by the Government to upgrade Tete Hospital to level 5  

• K57 Million is allocated for clean-up, landscaping and beautification  

• K5.0 million for Safety and Security costs include closed Circuit Television (CCTV) Cameras • K17.0 million City Warden Program

• K3.0 million for Police Security Operations (Support Vehicle)

• K1.0 million Reserve/Community Policing  

• K25 Million is allocated to Motu Koita Assembly  

• K18 Million is allocated for NCDC Waste Collection                                                              

• K7.0 million for Settlement to Suburb upgrading program in the city  

• K6.0 million allocation for the preparation of the country’s 50th Anniversary Celebrations.  

Governor Parkop said NCDC is building more roads within the city that links up with main roads to avoid traffic congestion during peak hours.  

He said that NCDC does not have powers over land matters, so it only builds new roads to free up land while increasing its monetary value.    

Secretary Leo, who received the NCDC 2025 Budget on behalf of the Minister for Provincial and Local-level Government Affairs thanked the Governor for presenting their budget which frames at improving social services and infrastructure developments and assured that officers would run through the budget document.

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RAPID POPULATION GROWTH A CONCERN

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Population growth has increased considerably since the last census was conducted, and has placed even greater pressure on the government to deliver essential services.

Labour and Employment Minister Kessy Sawang made this statement last week, when announcing the release of the population estimates for 2021.

She commended the National Statistical Office, UNFPA and the Australian Government for supporting this initiative, saying with the population estimates for 2021 now available, it is time to conduct the population and household census.

“I am pleased that the Minister for Finance and Implementation, Rainbo Paita has confirmed that this will be done next year,” Sawang said.

Labour and Employment Minister Kessy Sawang on Population Growth
Labour and Employment Minister Kessy Sawang

Population data is of vital importance, as it helps the government make budget plans on how and where to spend government funding, to achieve minimum standards of services such as health and education, and infrastructure services.

“This data allows informed consideration of the redrawing of electoral boundaries, assessment of the conduct of the last general elections and even fiscal equalisation grants from national to subnational government,” Sawang added.
However, the Minister was alarmed at the implied average annual rate of population change of 4.9% between 2011, when the last Census was conducted and 2021.

“An average annual population growth of 4.9% places Papua New Guinea amongst the fastest growing population in the world.”
The minister further added that her Ministry has commenced using the population estimates to better understand the labour market and employment.

“Our country has a significant challenge to deal with a rapidly growing young population and that this is now an even greater priority. The implications of the new population growth rate for economic growth are stark it reveals that average income per person, after adjusting for inflation, has been falling since 2016,” Minister Sawang said.

Average income per person outside of the mineral and petroleum sectors has been falling for even longer, since 2012.

Using the 2023 National Budget forward estimates, which are conservative, the outlook is for this to continue over the period up to 2027.

The Labour Minister said if this trend is not reversed we will not meet the targets and aspirations in our development plans and strategic goals leaving people with a poorer quality of life.

“This underscores the need to implement the MTDP IV carefully and in a coherent and robust manner to achieve its goals of moving our economy onto a higher, inclusive and sustainable growth path,” Sawang added.

The minister said this must be a call to action.

“We must urgently reinvigorate and concentrate our efforts to create income and jobs, especially for our young adults and for women. We need to grow our economy outside of the mineral and petroleum sectors as only they can provide the opportunities to absorb the large number of our youths.”

The minster also highlighted the need to support private sector growth, to provide more job opportunities.

“We can do this by lowering the cost of doing business and providing coherent, sensible and stable policies,” Sawang said.

“I will seek stronger coordination with my fellow Ministers to advance appropriate education, training and skills development programs that will prepare our people to enter the formal workforce and that will build national productivity to lift economic growth.”

Recent: https://insidepng.com/appeal-on-lae-kabwum-road-project/

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