The Papua New Guinea Sovereign Wealth Fund (SWF) is an important mechanism to manage external shocks to the economy, to support the Budget to fund priority areas such as education, health and infrastructure, and to invest for the benefit of future generations.
The Objectives of the SWF are to support:
Intergenerational equity; and
Asset management in relation to financial assets accrued from
mineral and petroleum receipts.
The Organic Law on the Sovereign Wealth Fund was passed by the Parliament in July 2015 and the Fund will come into operation in 2016.
The PNG SWF will be onshore managed, offshore invested and onshore spent and it will be fully integrated with the budget and fiscal frame work. The SWF has two funds, the Stabilisation Fund and the Savings Fund, managed under a single governance frame work.
Tax revenues received from mining and petroleum projects, including the PNG LNG project, will be directed to the Stabilisation Fund, and be available to be drawn down into the Budget to fund expenditure needs. When revenue flows are large, the excess will be deposited into the Savings Fund, according to the SWF Organic Law.
The Stabilisation Fund and the Savings Fund will each receive a proportion of the mining and petroleum dividends paid by state-owned enterprises. The Savings Fund will also receive some of the proceeds of state-owned assets that the Government agrees to sell.
The SWF Board will invest these funds offshore.
GAZETTE - Organic law on Sovereign Wealth Fund
17 April 2015
PAPUA NEW GUINEA SWF PUBLIC INFORMATION
This Public Information Paper was produced to educate the general public on
the establishment of the Sovereign Wealth Fund of Papua New Guinea
PAMPHLET FOR PAPUA NEW GUINEA SWF
To safeguard public mining and petroleum resource revenues
for development of PNG
SOVEREIGN WEALTH FUND FOR ALL PAPUA NEW GUINEANS
To protect the economy and future development of PNG by safeguarding
public mining and resource revenues for future spending
JOINT PRESS RELEASE
Gazettal of the Organic Law on the Sovereign Wealth Fund
NATIONAL GAZETTE - SOVEREIGN WEALTH FUND ORGANIC LAW
November 2nd, 2011