Papua New Guinea's Prime Minister, Peter O'Neill, has told Australian business leaders he is determined to transform his country's economy.
Speaking at the Australia PNG Business Forum in Port Moresby, Mr O'Neill said his government aims to tackle corruption and law and order to deliver better services to his people.He says he is in the process of implementing the biggest budget in PNG's history, including a 50 per cent boost in spending on health and education.
Mr O'Neill has acknowledged the waste and fraud in government programs in the past.
"Our record in actual delivery on these government-funded programs since independence is simply not good enough," he said.
"There has been far too much wastage, far too much red-tape and inefficiency at all levels of government, and far too much fraud and blatant misuse of these funds."
Mr O'Neill says he is determined to deliver $6 billion worth of infrastructure in the next five years.
The Australia PNG Business Forum is the peak business event of the year.
Australia's new Parliamentary Secretary for Pacific Island Affair, Matt Thistlethwaite, says Australia has more investment in PNG than it does in China.
"The relationship between Australian business, PNG business and our governments is at an unprecedented level; $16 billion worth of investment by Australians in the PNG economy.
"So I'm really struck by the level of optimism in the PNG society and economy at the moment.
"I think there's a wonderful opportunity to enhance cooperation for Australians to work with PNG and its government to ensure that the money does go down to a level where all Papua New Guineans can benefit."
ANZ Bank's chief economist Warren Hogan, who was among the 300 Australian business leaders at forum, says PNG has huge potential.
Mr Hogan says PNG could potentially attract investments worth $194 billion by 2030.