More than K500 million in Infrastructure Development Grants (IDG) and High Impact Infrastructure Projects (HIIP) have failed to translate into infrastructure on the ground.

Planning and Monitoring Minister Charles Abel told local media the government had released over K360 million in IDGs and K190 million for HIIPs, which were intended to fund development projects in areas affected by the PNG LNG project.

Abel said the Department of National Planning and Monitoring would start an audit of the expenditure of previous IDG and HIIP funding.

New government plans to manage the grants and ensure proper use of funds would be put in place.

"The government has raised concerns that we have released over K360 million in IDGs and K190 for HIIPs, but this has not translated into infrastructure on the ground," Abel said.

"That is why we are strengthening the process for accessing these funds."

He said the process had already been moved out of Waigani and down to the beneficiaries in the provinces in order to increase transparency.

"And with 5% going to the provincial works units, it will build their capacity to work with the resource developers through a clearer process that will achieve results."

The minister said land owner companies and joint ventures would be given priority through the contracting process, subject to their capacity.

"Engaging strategic partners to assist with implementation is a critical activity of the government and it is part of a boarder strategy around improving implementation and procurement," he added.