Government of Papua New Guinea

Release of new Finance Instruction 08/2020 on COVID-19 stimulus funding for Provinces and Districts

A new Finance Instruction 08/2020 has been released by the Department of Finance. This FI gives direction to all the Provincial Administrators, CEOs of District Development Authorities (DDA) and Provincial and District Finance Managers on the mechanisms for managing funds transferred to COVID-19 Emergency Trust Accounts in accordance with NEC Decision 331/2020 for the purpose of stimulating economic activity in provinces and districts to address the COVID-19 emergency.

The FI outlines the following procurement limits:

a) District Development Authority procurements, K2.5 million, with procurements above this limit to be referred to the Provincial Administrator.

b) Provincial Procurements, KS million, with procurement above this limit to be referred to the NPC;

c) National Procurement Commission, K10 million, with procurements above this limit to be referred to the NEC;

d) National Executive Council(NEC), Unlimited.

Funds can only be used for activities identified under the National Response Plan under the National Pandemic Act and cannot be used for other purposes.  A Finance and Procurement Committee establishes the control and distribution of these funds under the National Pandemic Act.

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