The endorsement follows the Bills recommendation in the National Energy Policy titeled Harnessing Energy for Life 2017 – 2027.
Also approved was the Electricity Industry Act 2002 Amendment Bill 2020.
In a statement, Prime Minister, James Marape, said energy plays a critically important role in driving the economic development and industrialisation of PNG.
He said along with the National Energy Authority Bill 2020, Cabinet also approved the drafting instructions for the National Energy Authority Bill 2020 and the drafting instructions to the Electricity Industry Act 2020 Amendment Bill 2020 for the First Legislative Counsel to do a final review of the two Bills already drafted and for tabling in Parliament.
Marape said Cabinet further noted that the proposed National Energy Authority will be established upon the enactment of the National Energy Authority Bill 2020.
A budget for the establishment of the National Energy Authority has been submitted to the Department of Treasury.
The Prime Minister said subsequent funding for National Energy Authority will be the responsibility of the Authority through its own revenue collection.
Additionally, Cabinet has approved an amount of K5 million to be allocated to the Energy Wing of the Department of Petroleum and Energy to be used as bridging finance to establish the National Energy Authority.