Project Title

Developing A Policy for Ports Industry of Papua New Guinea 

Project Year

2014   

Project Number

EC 10 2014A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Completed Project   
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Project No.

EC 10 2014A 

Project Title

Developing A Policy for Ports Industry of Papua New Guinea 

Project Status

Completed Project 

Publication (if any)

http://publications.apec.org/publication-detail.php?pub_id=1833 

Fund Account

APEC Support Fund 

Sub-fund

ASF: APEC's New Strategy on Structural Reform (ANSSR) 

Project Year

2014 

Project Session

Session 2 

APEC Funding

141,710 

Co-funding Amount

11,729 

Total Project Value

153,439 

Sponsoring Forum

Economic Committee (EC) 

Topics

Structural Reform 

Committee

Economic Committee (EC) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Papua New Guinea 

Co-Sponsoring Economies

Australia; Philippines 

Expected Start Date

01/02/2015 

Expected Completion Date

31/12/2015 

Project Proponent Name 1

Ricky Dobo (new PO wef 12 April 2016) 

Job Title 1

Acting Principal Analyst - Regulated Industries Division 

Organization 1

Independent Consumer and Competition Commission (ICCC) 

Postal Address 1

P O Box 6394 Boroko, National Capital District, Papua New Guinea 

Telephone 1

675-3252144 

Fax 1

Not Applicable 

Email 1

rdobo@iccc.gov.pg 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Ricky Dobo 

Project Summary

There is currently little or no competition for provision of some port services that are not subject to regulatory oversight by the Independent Consumer & Competition Commission (ICCC). This project will promote well-functioning and competitive markets for port services by holding a workshop to learn from other APEC economies, diagnosing the problems with current arrangements and developing recommendations for a comprehensive and coherent policy for port regulation. Policy recommendations will seek to promote market discipline, eliminate anti-competitive market conduct and contribute to economic efficiency. Consultation and workshops will be held throughout the project to accurately diagnose problems and to involve industry players and key government agencies in formulating solutions. The ICCC and Department of Treasury will work closely with a consultant in developing a draft policy, which will be subject to consultation as part of the policy implementation process subsequent to the completion of the project.

Relevance

Relevance - APEC:
Port services are provided as part of a supply chain, with some services subject to regulation. The essential port services (berthage, wharfage and berth reservation) are provided by PNG Ports and are currently regulated under a regulatory contract by the Independent Consumer & Competition Commission (ICCC) while the ‘other’ services are contestable (stevedoring, pilotage and storages services) and are left open to the market. The ICCC is in the process of its review into the regulatory contract between PNG Ports and ICCC. The Department of Treasury is also reviewing the ICCC Act.   

The problem with these arrangements is that in some of the contestable services, there is not currently any competition. For instance, PNG Ports is the main provider of pilotage services. Since there is no effective oversight of pilotage services, there is a possibility that PNG Ports could engage in anti-competitive market conduct. As the sole provider of essential port services, PNG Ports can control access to port infrastructure by potential competitors. The ICCC Act restricts the mandate of the ICCC to regulate essential services only. 

This project aims to address potential anticompetitive market conduct in the ports industry. Further competition or more appropriate regulatory oversight has the potential to drive down costs in the port supply chain, with direct benefits for port users and consumers. The port Industry plays a crucial role in development and economic growth in PNG and can also contribute to trade domestically and internationally. 

Relevance - Rank:
The proposed project is in line with ANSSR priority area 1, which focuses on having a more open and well-functioning, transparent and competitive markets. In 2013, ANSSR is also a rank 1 priority in APEC.

Objectives

a) To increase knowledge in port regulation by learning of international best practices from other APEC Economies at the commencement of the project.

b) To conduct consultation and workshops throughout the project to accurately diagnose problems and to involve industry players in formulating solutions.

c) To develop a draft policy that promotes well-functioning and competitive markets for port services.

Alignment

This project contributes to ANSSR – a rank 1 APEC priority – by promoting more open, well-functioning, transparent and competitive markets for port services. The project is aligned with the priority to ‘strengthen the economic and technical regulators i.e. Independent Consumer and Competition Commission’ in Papua New Guinea’s ANSSR Plan.

TILF/ASF Justification

This project will be focused on learning purely from other APEC economies that have undertaken similar projects, diagnosing the problems with current arrangements and developing recommendations for a comprehensive and coherent policy for port regulation. Policy recommendations will seek to promote market discipline, eliminate anti-competitive market conduct and contribute to economic efficiency. Consultation and workshops will be held throughout the project to accurately diagnose problems and to involve industry players and key government agencies in formulating solutions. The ICCC and Department of Treasury will work closely with a consultant in developing a draft policy, which will be subject to consultation as part of the policy implementation process subsequent to the completion of the project.

This project will also support the capacity building needs of APEC developing economics in the following way: 

(i) lessons learned from this project can/will be used by the economics to promote an open and well-functioning competition market in the ports sector or 

(ii) lessons learned from this project can also be twig to be used in other sectors as well, apart from ports sector 

(iii) sharing of experiences between each other including PNG economy to better understand and develop a policy which can be used as a template all across other sectors as well. 

They will be engaged through: 

(i) participation & sharing experiences of their economy of similar project undertaken and implemented. 

(ii) providing comments/feedbacks on the report produced 

(iii) PNG to consult them as and when needed during the development and implementation of the project.

Beneficiaries and Outputs

Outputs:  

As briefly mentioned in the objective, the project output will be delivered in the following stages: 

Stage 1: Diagnosis of Competition: Knowledge sharing workshop (1) learning from APEC economies

A consultant will be engaged to carry out a diagnosis feasibility study across the entire PNG port industry. The objective of this study is to identify and investigate techniques for anti-competition practices and recommendation of effective remedies and settlements to progress of a well-functioning and competitive port industry for port services market. The study will also compare PNG’s port industry against its similar but slightly advanced APEC economies (e.g. Philippines and Australia) by identifying achievements realized therein. Consultant(s) (preferably based from those similar but slightly advanced APEC economies) will be engaged to carry out this survey.  

Relevant stakeholders from Government Departments, State-Owned-Entities, Statutory Bodies, Port Users and other parties of concern will be engaged in this survey. 

Stage 2: Diagnostic Report

The Consultant(s) will then provide a diagnosis report from the survey. This report will contain the findings of the survey and recommendations of rules and guidelines to be considered in drafting the policy of Competitive Port Industry. 

Stage 3: Workshop for Drafting of Port Competition Policy

The Consultant(s) through partnership of the Department of Treasury (Treasury) and the ICCC will draft the policy. The draft policy will be aimed to encourage open port market by discouraging anti-competitive behavior, promote equal gender participation and wealth creation in the PNG’s port industry. 

About a week’s workshop for all relevant stakeholders and port users will be carried out for further commentary on the draft policy.  The policy will be finalized thereafter before presenting it to the National Executive Council for formal endorsement. 

Outcomes:  

As briefly mentioned above, the stages 1 -3, will require the assistance of APEC Funding for this project up to the Drafting and Implementation phases of the Policy. 

Public Consultation will be undertaken for each of these phases respectively.  The initial public consultation will be carried out prior workshop 1, whilst the other is before workshop 2. The target audience will be the port users (stevedores, shipping agents, ship/vessel owners, pilotage providers, PNG Ports, etc) and other stakeholders (ICCC, Treasury, IPBC, PNG Commence and Industry, etc). 

Following workshop 1, ICCC and Treasury will then have to do a combined Brief to present the Draft Policy to the National Executive Council (NEC) for their consideration and approval the Draft policy. 

Once the NEC approves and gives direction to go ahead with the project, the ICCC and Treasury officers will work together to finalizing the Draft Policy. This will include conducting another public consultation process, inviting views and comments from port users/stakeholders. Workshop 2 hence will be aimed to absorb appropriate changes or solutions needed for the policy’s effectiveness and successful implementation. 

Beneficiaries:  

ICCC and Department of Treasury will learn from international expertize and assistance in developing a more comprehensive and coherent policy for port regulation. Port users (including stevedores, shipping agents, ship/vessel owners, pilotage providers, PNG Ports, etc..), and the business sector (other stakeholders, including ICCC, Treasury and other government agencies) will benefit through inclusion in the consultative process. Long-term benefits to users and consumers will occur outside the timeframe of the project.

Dissemination

The dissemination of outputs will be done as follows through these stages: 

Stage 1: Diagnosis of Competition in PNG’s Port Industry

The target audience will be the ICCC and Treasury and other stakeholders of concern to participate in this survey. 

Stage 2: Diagnostic Report

The findings and recommendations learned from this survey will be consolidated into a report. The report will be made available for public viewing via the ICCC and Treasury’s web-sites and hard-copies. Briefings made by the respective officers from the ICCC and the Treasury and submitted to respective ICCC and Treasury senior management in black and white. 

Stage 3: Workshop for Draft Port Competition Policy

The targeted output will be the Policy on Port Competition and targeted audience will be the ICCC and Treasury. A Policy will be formulated on the basis of the findings and recommendations from the diagnostic report. The Policy will set standards of rules of fair participation of all port users within the port industry. 

The Diagnostic Report and the Policy will be submitted to the National Executive Council (NEC) for endorsement and recommendation. This will be done consistent to the PNG’s national strategic plan of Vision 2050 and the ICCC Act 2002. The report will contain recommendations that push for the establishment of the policy. 

Once the NEC approves and gives directs a go ahead of the project, the ICCC and Treasury officers will work closely with an expert in port competition policy to develop a comprehensive legislative framework containing rules and guidelines. 

The policy will also be communicated to the public using different forms of media, the Government process and workshops. In addition, PNG will give further updates to APEC member economies through PNG EC delegates as and when this project progresses, through mid-year review that APEC will conduct on progress of PNG’s ANSSR plan.

Gender

The participants from the ICCC, Treasury and relevant stakeholders/port users will comprise 50 % of men and 50% of women. All participating organizations will be advised to consider equal gender participation when electing their representatives. Participants will be engaged in all three stages of the project through (i) discussions (ii) broad consultation with all relevant stakeholders by actively liaising and discussing (iii) and, provide comments/ input in the final report and final policy development after stage 3.

Work Plan

The project will involve a workshop to learn from other APEC economies, diagnosis of the problems with current arrangements and development of recommendations to develop a comprehensive and coherent policy for port regulation. Policy recommendations will seek to promote market discipline, eliminate anti-competitive market conduct and contribute to economic efficiency. Outcomes from the Treasury review of the ICCC Act will be taken into account in developing policy recommendations. 

The following outlines the proposed timeframe required for the implementation of this proposed project: 

PROJECT STAGE

TIMELINE

Establishment of Project team

February – March  2015

Preparation and approval of consultancy TOR

February – March 2015

Tender process and selection of Consultants

March – April 2015

Consultants survey of PNG’s port industry structure

April – May 2015

Invitation of 3 experts from APEC economies.

May 2015

Workshop 1 – learn from other experts and consultants

June 2015

Consultant to draft Initial Diagnostic Report and Draft Policy

July 2015

Workshop 2 – stakeholders feedback, hosted by Project Team (and Consultants)

July – August 2015

Consultant to compile all feeds into final report.

August- November 2015

Consultants to develop final policy

December 2015

6 months progress report on results after consultancy.

June 2016

Risks

There is no serious risk associated with the project. However the following may be likely to happen:

(i) delay in the approval of the ToR due to circumstances beyond control

(ii) not having the relevant Consultant (s) to provide the assistance

(iii) rejection / delay in the NEC approval of the Final Policy

(iv) ICCC Act review not completed on time 

Issues (i), (ii) and (iii) relates to the timing and process of approval. The project itself is influenced by the PNG Vision 2050 policy objective of structural reform for purposes of effective service delivery. The government ministers are supportive of policies for effective service delivery through open competition. The government at present is supportive of industry reforms, hence, any move to develop or implement a policy for this purposes would be seen as a way forward for PNG. 

Another reason is to do with the ICCC Act review. In order for this Policy to be implemented, all guidelines or rules must go in line with the ICCC Act. The completion date for this ICCC Act review is uncertain, therefore, the project will only be completed at the drafting stage only. Any changes or new issues arise from the ICCC review can be captured or incorporated when finalizing the Policy.

Monitoring and Evaluation

The project itself will be led by the Project Team. An implementation plan will be will be developed by the Team to be used in the project. The Plan would include the whole three project stages, including:

(i) Detailed task/activity

(ii) Timeframe of completion of the task

(iii) Who is responsible to do the task and who will assist

(iv) Other necessary information. 

Information will be collected from direct Workshop (1), learning from international speakers (from eligible economies) and consultation with stakeholders. This information received is expected to be through feedbacks, comments, discussions, and presentations. All information gathered will be finally used to develop a Diagnosis Report and a Draft Policy at the end of Stage 3. 

The success of this project will be measured through:

(i) development of the Draft Policy for port industry

(ii) presentation to other officers/APEC Economics 

The diagnostic report and the Draft Policy will be made available to officers responsible on port matters as well as the port industry participants as a whole for use. 

The quality of the assistance provided by the Consultant(s) can be measured through: 

(i) Review of the Draft Policy by the APEC Economics. Other APEC Economies, especially those international speakers who attended Workshop (1) will have the chance to review the Policy. Comments/suggestions made from this review will be forwarded to the Project Team. Valid feedbacks will be noted for consideration as and when appropriated. 

(ii) Survey on participants feedbacks. A survey will be conducted by the Project Team, purposely to get feedbacks from the participants about the review. A minimum of 10 feeds will be expected of which 5 feedbacks would be from stakeholders from government and 5 from port users.  Feedbacks will be received through questionnaire. The questionnaire prepared will be based on the diagnostic report and other key issues that need feedbacks. All feedbacks will be compiled. A summary of the survey with necessary recommendations will be developed for future consideration.   

(iii) Survey Presentation.  The survey summary will be presented in black and white to the participant. Presentation of the survey in future APEC meetings is also possible.

Linkages

PNG anticipates to conduct at least 2 primary workshops during course of the project. 

Workshop 1: The ICCC and Treasury will host this workshop whereby experts (consultants) from other APEC economics will be engaged to present findings of survey conducted within the PNG’s port services market,. These experts engaged must have in-depth knowledge of port competition and will be nominated as and when this project is given a go ahead.  Engaging PNG Ports Corporation, port users, interested business groups and other relevant stakeholders including government agencies. 

Workshop 2: To conduct a roundtable discussion on initiatives against anti-competition practices for ensuring an open, well-functioning and competition market for ports services. The workshop will be seek to achieve problem diagnosis and develop a robust work plan so to formulate a comprehensive policy. 

Direct beneficiaries of this project include the ICCC who will develop and administer the rules and guidelines of the Policy and Department of Treasury who will provide policy advice guidance for the ports sector. The indirect beneficiaries would also include consumers ie: ports users/relevant stakeholders. 

Furthermore, this project will build off of information presented through APEC’s former Competition Policy and Deregulation Group, which developed a 2007 training course on competition policy that addressed regulatory issues in PNG’s electricity and telecommunication sectors. Finally, it builds off of APECs LAISR and ANSSR priorities. 

The targeted audience for this project are technical officers of ICCC and Treasury Department. The results will be communicated to the public using different forms of media, the Government process and workshops. In addition, PNG will be able to communicate the results of the project to APEC member economies both through the PNG’s EC delegates as well as through the mid-year review that APEC will conduct on progress towards achieving the objectives as outlined in PNG’s ANSSR plan.

Sustainability

Stage 1: Diagnosis of Competition in PNG’s Port Industry 

Under this stage, the selected speakers (or consultants) from APEC economies will be hired do a survey with the focus on investigating the technique levels of competition and its effects on PNG’s port industry. The select consultants will then conduct the workshop 21 specifically to mentor the ICCC and Treasury officials on competition within port industry as well as by communicating their experiences or any difficulties faced in developing such competition policy in ports industries and how PNG economy relate this this regard.. This will be made so that the ICCC and Treasury officers can be better equipped with necessary skills and knowledge so to contribute effectively during the course of the project. 

Stage 2: Diagnostic Report and Draft Policy 

Under this stage an expert will be engaged to work closely with the relevant ICCC and Treasury officers to develop the initial report and draft policy. 

A thorough consultation will be done to gauge feedbacks. The initial report and draft policy developed will be presented to the stakeholders for comments and feedbacks so that they are tailored to PNG needs. Ongoing meetings/discussions will also be held as and when required should any issues of interest arose during the development period, 

The final draft of the policy will be developed and presented to the NEC for approval for implementation of the policy. 

Stage 3: Implementation and Monitoring 

In this stage framework of the Policy developed will be implemented. This will be considered as a pilot project as such project is a new concept introduced into PNG port sector. Port users and relevant agencies in existence will be engaged in the implementation.

The Policy will be monitored through (i) review of the policy after two years (ii) assessing and monitoring the level of competitiveness of port players in the industry

The success of this project will be measured through:

(i) development of the Draft Policy for port industry

(ii) presentation to other officers/APEC Economics

Project Overseers

1) Stella M Kora – Manager Ports/Postal Services (ICCC)

2) Ricky Dobo – Analyst (ICCC)

3) Heirona Retaw – Manager Markets and Fair Trade (ICCC)

4) Robin Suang – APEC Secretariat (PM & NEC Department)

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
Attachments
Version: 10.0 
Created at 21/01/2015 15:39  by Lucy Phua 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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