The regional member for Papua New Guinea's Bougainville, Joe Lera, says the autonomous province aims to spend a 48 million US dollar grant from the national government on impact projects.
It is the first of a promised 250 million dollars to be provided by Port Moresby over the next five years.
Development in Bougainville has been held back by a lack of resources and Mr Lera says they want to use these initial funds to create an environment fostering business activity.
"Like hydro, communications, fixing roads, bridges, so people can use this infrastructure to think of other ways they can engage in revenue making activities."
Bougainville's regional member in the national parliament, Joe Lera.
Meanwhile the national government and the Bougainville provincial administration is this week holding a joint consultative meeting in Kokopo.
Mr Lera says the drawing down of powers from Port Moresby is the critical issue.