LOCAL CONTRACTORS TO RECEIVE PERFORMANCE SECURITY SUPPORT UNDER NEW DOWH PROGRAM

BY LETHISA KOLOKOL

THE Department of Works and Highways has launched the road contractor’s capacity development program, a program designed to support local contractors in capacity, capability and performance security.

Minister for Works and Highways, Peter Tsiamalili Jnr launched the program yesterday at the Inaugural Construction and Contractors Conference 2026 at the Apec Haus.

The new program has three pillars, contractor classification and graduation framework, skills development and planning and performance security support facility.

Minister Tsiamalili Jnr said while the first and second pillar will help to develop the capacity and capability of local contractors to deliver quality infrastructure projects, the third will ultimately address the biggest constraint faced by many local contractors in the country.

The third pillar of the road contractor’s capacity development program allows access to financial instruments required to secure construction contracts.
“Many local contractors struggle to secure performance bonds and financial guarantees from commercia banks, without this instrument they are often unable to bid for larger infrastructure projects, even when they possess the capability to do deliver the projects” Minster Tsiamalili said.

To address this constraint, the government will establish a K50 million revolving performance security support facility, under the third pillar of the road contractor’s capacity development program.

Minster Tsiamalili Jnr said this facility will assist eligible PNG owned contractors who successful win category c contracts to meet security requirements.

The Minister for Works and Highways emphasized that this facility is not a grant or a subsidy but a revolving fund, once a contractor has met all the requirement and has delivered the expected project, the fund will be made available to the next successful bidder.