National Alliance set to lead PNG government

Papua New Guinea's National Alliance has struck a power-sharing deal with six coalition partners as it is set to form the new government after last month's elections.

The so-called Warangoi Agreement was signed in Kokopo over the weekend by the NA leader, Sir Michael Somare, who hopes to continue as prime minister as his party won 26 seats in the 109-member parliament.

The Post Courier newspaper reports that under the agreement, the NA will nominate the candidate for prime minister who is to be elected next week.

The paper says portfolios will be allocated according to a formula which will see a ministry given for every three MPs of any coalition partner.

Sir Michael is expected to be asked by the governor-general today to form the government for another five-year term.

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