PNG Business News - June 05, 2023
PM Marape holds bilateral with Australia on margins of Korea-Pacific Islands Summit
Photo: Prime Minister Hon. James Marape and Australia Deputy Prime Minister Hon. Richard Marles in Seoul, Korea.-DEPARTMENT OF PM & NEC MEDIA Prime Minister Hon. James Marape met with the Deputy Prime Minister of Australia Hon. Richard Marles on Monday, May 29, 2023, on the margins of the inaugural Korea-Pacific Islands Summit in Seoul, Korea. PM Marape and DPM Marles discussed issues of concern for both countries, including giving each other updates on the recently-signed Defence Cooperation Agreement (DCA) with the United States and the proposed Bilateral Security Treaty (BST) with Australia, visa issues and the PNG NRL bid. He informed DPM Marles that the Bilateral Security Treat that Australia would like to have with Papua New Guinea “is a work in progress at the moment”. “It is a work in progress and requires the PNG side to consult our domestic processes and sovereign laws in relation to certain wordings and provisions,” PM Marape said. He also conveyed his apologies to Australian Prime Minister Hon. Anthony Albanese for the delay in formalising this proposed Treaty with Australia For the DCA with the US, PM Marape informed that it was centered around improving the PNG Defence Force’s capabilities and interoperability, including protecting our frontiers and sovereignty. He said it was non-discriminatory and PNG was open to entering into similar arrangements with its other bilateral partners. “In fact, the DCA would also complement domestic law enforcement,” PM Marape said. “The Ship Rider Agreement, on the other hand, was also vital in combating illegal fishing and transnational crimes.” For Visa issues, DPM Marles informed that the current Australian Government was fully aware of the situation and following the Ministerial Forum in February this year in Canberra, had established a Joint Ministerial Team to work on bringing the Australian visa processing facility back on shore to PNG. PM Marape, in his response, said that all processes from both sides had to be attended to in order for smooth facilitation and for citizens and businesses to continue without much hindrance now and heading into 2O25 when PNG celebrated 50 years of nationhood. He informed DPM Marles that the Republic of Korea and PNG signed a Visa Waiver Agreement on Monday before the Australia-PNG bilateral. On PNG’s NRL Bid, PM Marape explained that PNG was still very keen, as rugby league was a major unifying factor, bringing 800 tribes together as one people. In closing, PM Marape assured DPM Marles that PNG in no way would compromise its excellent existing bilateral relations with Australia and further stressed that PNG was capable of managing its sovereign affairs on its terms, systems and processes.
PNG Business News - June 05, 2023
Minister Maru Discusses Broad Trade and Investment Framework with Korean Minister
Minister for International Trade and Investment, Hon. Richard Maru met with his counterpart Minister, Hon. Chan-Yang Lee the Korean Minister for Trade, Industry and Energy on the margins of the inaugural PIC-Korea Leaders’ Summit in Seoul, Republic of Korea on May 30, 2023. Minister Maru was part of Prime Minister Marape’s delegation to the Inaugural Pacific Island Countries and Korea Leaders meeting held in Seoul on May 29, 2023. He was accompanied by Vice Minister for Treasury Hon. Solan Loifa. Minister Maru expressed that PNG since establishing formal diplomatic relations with Korea never had a formal arrangement in place to facilitate trade and investment of its products, including fish, coffee, cocoa and chocolate products, timber products and LNG and many others; and to also allow for Korean investors to invest in PNG. He stressed for Korean investors to invest in manufacturing sector where they can downstream process and value add PNG's vast natural resources in agriculture, forestry, fisheries, energy and opportunities in the ICT sectors. Since Korea already has markets for its products and positive reputation as a quality manufacturer and supplier of products to the world, for them to invest and produce in PNG, the overseas markets for these products are already secured. Minister Maru informed his Korean counterpart of the Special Economic Zones he is championing and invited Korean companies to invest in these zones where Government will accord them special incentives. Minister Lee responded positively for more Korean investors to consider investing in PNG while acknowledging PNG’s available resources unlike Korea. Minister Lee further informed that Korea now prefers Economic Cooperation Framework arrangement rather than the traditional Free Trade Agreement and so far has signed such arrangements with several countries. Such arrangements can appropriately facilitate trade and investment between trading partners, hence welcomed Minister Maru’s proposal for a broad framework arrangement to facilitate trade and investment between the two countries. Minister Lee also informed Minister Maru of the Korean Trade and Investment Authority (KOTRA), which is Korea’s national Trade and Investment promotion organisation established in 1962 whose mandate include promoting Korea’s trade and investment and encouraged PNG to also work with KOTRA to realise increased trade and investment with Korea. Minister Maru and Minister Yang Lee concluded their meeting on a high note agreeing for PNG to share its draft for the Trade and Investment Framework Arrangement with Korea for their views going forward.
PNG Business News - June 03, 2023
STEAMSHIPS ESTABLISHES PORTSIDE BUSINESS PARK
Steamships Limited recently took possession of Motukea North from Curtain Bros Limited. This is a significant milestone for Steamships in its plans to develop the 38-hectare site to the north-west of Motukea Wharf into Portside Business Park. Steamships Managing Director, Rupert Bray, said “We see the Portside Business Park precinct as the future industrial and commercial hub for Port Moresby. Steamships is proactively working with the respective PNG Government agencies to have Portside Business Park become a Special Economic Zone. This industrial park has the potential to become the catalyst for economic development in both the resource and non-resource sectors.” Mr. Bray added that “Consistent with the PNG Government’s National Development Goals, Portside Business Park will not only generate economic activity but also promote downstream processing, manufacturing and the export of local goods and services, encourage domestic and international investment, create employment, and develop infrastructure.” Portside Business Park will be developed and operated by Steamships’ property arm, Pacific Palms Property. It will be a mixed-use industrial development with three core zones – an Industrial Zone with a wharf and open-yard storage; a Light Industrial Zone with warehouses and flexible warehouse with office mezzanines; and a Commercial Zone for supermarkets, petrol stations, banks and ATMs, primary healthcare, food & beverage outlets, a business hotel, and other businesses that support the locators at Portside Business Park etc. It is anticipated that the total investment to develop the Park to its full potential will exceed PGK 1billion. With direct access to Motukea International Port and its own deepwater wharf, the project also has key road frontage along the Napa Napa Road, giving tenants access to key trading centres within 20 minutes of the site - including Papa Lealea LNG Site, Puma Energy Refinery, Baruni Industrial Centre, Waigani Business District, Port Moresby Downtown, and Jacksons International Airport. Steamships’ General Manager Corporate Affairs, Mr. Vele Rupa, believes “the Portside Business Park demonstrates the interconnectivity between key stakeholders including the State, Provincial and local level Government, landowners, and the landowner companies”.
PNG Business News - June 03, 2023
ENZO’s Pizza Servicing Manu Auto Port
Residents of Manu and it’s surrounds can now treat themselves to an ENZO’s Pizza. The latest addition to PNG’s favourite Pizza outlet is conveniently located at the recently reopened Puma Station on Taurama Road. ENZO’s Pizza Country Development Manager Sudeep Geethanandan said, “Our vision is to make ENZO’s more accessible to all Papua New Guineans. By opening at outlet at the Puma Service it gives our patrons the added convenience and security.” The new outlets operate seven days a week and are open from 9am-9pm. The new store brings ENZO’s Pizza offering in Port Moresby to seven stores, and the national coverage for the chain to 11 outlets across Port Moresby, Lae, Hagen, Goroka and Kiunga. “We are growing at an exponential rate making us the fastest-growing Quick Service Restaurant brand in Papua New Guinea. We are making it more accessible to our pizza-loving customers with the opening of these ENZO’s new outlets,” says Mr. Geethanandan. Treat yourself, your family, friends, or your team to one of ENZO’s saucy, toppings-loaded, hot, and deliciously cheesy pizzas today, and share your images with us using the hashtag #YumiCelebrate on Enzo’s Facebook page @enzospizza.p.n.g
PNG Business News - May 31, 2023
Strengthening Bilateral Trade: Indian High Commissioner Calls for Diversification with PNG
Photo credit: Embassy of India, Port Moresby Inbasekar Sundaramurthi, the Indian High Commissioner, has revealed that the bilateral trade between Papua New Guinea (PNG) and India currently amounts to approximately US$350 million (equivalent to about K1.2 billion). Sundaramurthi further stated that in the previous year, India's exports to PNG reached around US$70 million (approximately K247.8 million), while imports from PNG totaled approximately US$280 million (about K991.8 million). "PNG's exports to India is four times to one, and the balance of trade is in favor of India," Sundaramurthi highlighted. He expressed contentment with the existing trade partnership between the two nations and underscored the potential for diversifying bilateral trade beyond commodity supply, emphasizing the importance of downstream processing. "This means our bilateral trade can diversify into more areas instead of being a commodity supplier but assess downstream processing," Sundaramurthi explained during a press briefing. During the briefing, Sundaramurthi appealed to Richard Maru, the Minister for International Trade and Investment in PNG, requesting policy announcements that could be shared with Indian investors. He stressed the need to address the specific requirements of Indian investors, such as business safety, security, and investment protection, to create an attractive business environment. "Indian charity is different, and business is different because they need the safety of business, security, and investment. Such requirements should be put in place to attract investments in India," Sundaramurthi added. Sundaramurthi expressed his aspirations to facilitate the entry of Indian investors into Papua New Guinea, further strengthening the economic ties between the two nations. By nurturing an environment that meets the needs of Indian investors, the potential for expanded trade and investment between PNG and India can be realized. "We have been happy to trade with PNG as a country that is in partnership with them. We hope to bring Indian investors to PNG," Sundaramurthi concluded.
PNG Business News - May 31, 2023
Commissioner General Sam Koim Urges Thoughtful Implementation of Special Economic Zones
Photo: Commissioner General Sam Koim of the Internal Revenue Commission In a recent speech at the National Press Club event, Commissioner General Sam Koim of the Internal Revenue Commission (IRC) highlighted the importance of Special Economic Zones (SEZs) in stimulating economic growth. However, he cautioned against hastily establishing SEZs throughout the country, emphasizing the need for careful monitoring. Koim proposed a strategic approach, advocating for the creation of one or two successful SEZs as models before replicating the concept elsewhere. Koim acknowledged the positive impact SEZs have had in various countries, while also recognizing instances where they have fallen short. He commended the government's proactive stance in promoting and encouraging SEZs, emphasizing their potential benefits for tax revenue and national development. Koim stressed the importance of precise implementation, noting several aspects that require careful consideration. "SEZ is a good concept. It has worked well in many countries and also faced challenges in others," Mr. Koim said. "It's encouraging that the government is promoting and supporting it." According to the IRC Commissioner General, simply offering tax holidays may not be sufficient to attract investors. He emphasized the need for a comprehensive approach, where investments in security, power infrastructure, transportation, and other related factors would complement the tax benefits. Koim stressed the necessity of incorporating diverse perspectives and strategies to optimize the effectiveness of SEZs. "When it comes to the tax holiday itself, it's not the main attraction. There are other factors to consider. If investors receive a tax holiday but the same amount is spent on security, power, and other attractions, I don't think it will attract business," Koim explained. "A range of views need to be taken into account." The government's commitment to facilitating investor attraction is commendable, and Koim emphasized the need for robust mechanisms to ensure the success of these initiatives. The IRC is actively collaborating with the SEZ committee, with one of Koim's commissioners serving on the SEZ Board. Their primary objective is to protect taxpayer funds while creating an environment conducive to attracting investments. "The government is on the right track by promoting ways to attract investors. However, we need various mechanisms to make it work," Koim affirmed. "We are working closely with the SEZ committee, and one of my commissioners is on the SEZ Board. We will ensure the protection of taxpayer funds."
PNG Business News - May 31, 2023
"Thirteen TB Deaths Every Day of the Year: A Persistent Crisis in Papua New Guinea"
Contrary to recent news outlets, PNG Business News aims to shed light on PNG's ongoing tuberculosis (TB) crisis. In 2020, the global number of TB deaths rose for the first time in a decade, and the situation in PNG is particularly dire. With thirteen daily TB-related deaths, the impact on workforce health and productivity is significant, as TB cases and fatalities mainly affect individuals of working age and children. Tuberculosis remains a leading infectious disease worldwide, claiming the lives of over 1.6 million people in the last year alone. It continues to be the primary cause of death for individuals living with HIV. While recent news has focused on the reduced threat level of the COVID pandemic, the repercussions of COVID-induced shutdowns on TB and HIV services persist. Delayed diagnoses and interrupted treatments have resulted in more deaths, severe cases, and increased hospitalisations. To address this crisis, we call for attention to the headline: "Thirteen, 100% Preventable TB Deaths Every Day," emphasizing that TB is both preventable and curable. We urge every media outlet to share this headline, accompanied by details highlighting the preventability and curability of TB. Unfortunately, TB in PNG often goes unnoticed amidst other news dominating the headlines. A quick internet search reveals a plethora of news items concerning geographical and diplomatic issues, followed by reports on PNG's economy. These economic updates discuss topics such as fiscal deficit reduction and the government's efforts to safeguard macroeconomic stability. However, there is a notable absence of news regarding the need for increased funding in national TB programs or the toll TB takes on workforce productivity, essential for success in global markets. The news frequently covers special economic zones, loans, and debt discussions without mentioning the costs of TB to the nation's reputation, economy, or its National TB program. The hardworking national TB program team, heavily reliant on international donors like the Global Fund and the Australian government, receives little recognition for their contributions towards training, expertise, testing and treatment innovations, workforce development, and the expansion of TB and HIV services. While glossy World Bank reports may be of interest to social media warriors advocating for change, they fail to address the importance of reducing TB deaths and drug resistance rates in relation to autonomy and economic sustainability. In 2016, the WHO estimated that the median cost per patient for TB treatment was USD 1,253 or approximately PGK 4,500. With an additional 42,000 new TB cases projected this year, the required funding for treating drug-sensitive TB amounts to nearly 200 million kina. Let's then consider and add the cost of treating drug-resistant TB. The WHO estimated the median cost per patient for MDR-TB treatment at a whopping USD 9,529 or PGK 34,000. Based on last year's figures, we can expect another 2,000 cases of drug-resistant TB this year. Consequently, we must add PGK 68,000,000 to the previous 200,000,000. Here's the headline: "As COVID Surviving Business Leaders, Let's Address TB: Over 5,000 Lives and a Quarter of a Billion Kina at Stake in PNG AGAIN THIS Year" To grab your attention and highlight the urgency of the matter, we invite you to engage with the Businesses for Health’s mission to end TB and the burden it places on your workforce, their families and local communities. Allow us to speak to your board and management team and enrol your employees in Businesses for Health: TB & HIV workplace TB training program. By taking immediate action, we can collectively combat this pressing issue, save lives, and safeguard the economic stability and prosperity of Papua New Guinea." Thank you email@example.com See www.businesses4health.com for training dates in Port Moresby, Lae or by arrangement in your workplace. Dr Ann Clarke Businesses for Health PNG
PNG Business News - May 29, 2023
Government to give ‘special incentives’ to downstream players in agriculture, forestry, fisheries
The Marape-Rosso government will very soon announce “special incentives” to support loyal players in the manufacturing, agriculture, forestry and fisheries sectors focused on serious downstream processing in the country, Prime Minister Hon. James Marape has said. PM Marape announced this to members of Lae Chamber of Commerce & Industry on Thursday, May 25, 2023, when he was addressing a breakfast meeting in Lae. Pointing out Goodman Fielders latest K800 million processing facility in Morobe Province as an example, the Prime Minister encouraged Lae’s manufacturers and those with businesses in agriculture, forestry and fisheries to get into this downstream processing space. “I want to pay special mention to Goodman Fielder who have come in and brought in a K800 million worth of investments in the country,” said PM Marape. “For those of you already doing business, we want to put up incentives so you can produce here and export from here, and bring back the money into the country. “Those of you in this space, our Ministry of International Trade has announced the policy initiative on giving you tax holidays on the investments you are putting into the downstream of agriculture, fisheries and forestry. So keep a look out and keep working. “These incentives will be announced very soon. In fact, within the six months before the 2024 Budget is brought in. “Agriculture remains the great focus for us – agriculture exports, downstream forestry exports, downstream fisheries exports. We will not make a subtle turn.” He said Lae and Port Moresby would be the starting points, to act as “agriculture enclaves” from where the Government would like to expand to other areas that already have enabling infrastructure such as a developed port, sustaining power, good road and other supporting infrastructure. For the Fisheries sector, the Prime Minister said the recently-signed Shipriders Agreement with the United States opened up the opportunity for the US Navy to help the country in monitoring and surveillance of Papua New Guinea waters. “For the first time ever, we have a very real chance of properly monitoring and containing illegal fishing, and knowing exactly what we are capable of making in fisheries. We are developing the Madang Maritime Industrial to add to what we are doing in the Fisheries sector. “We also have set aside money for the development of Special Economic Zones to achieve a sustainable economy in agriculture, forestry and fisheries. We want to move toward the downstream processing space at the earliest,” PM Marape said.
PNG Business News - May 28, 2023
PNG's National Airline Air Niugini meets with Palau President
Photo: Front row, from left: Palau President, Surangel Whipps Jr (in blue shirt holding PX aircraft model) and his delegation met with ANG A/CEO, Gary Seddon and his executives in Port Moresby recently. Acting Air Niugini Chief Executive Officer, Mr Gary Seddon and his executives met with Palau President, Surangel Whipps Jr in Port Moresby over the weekend to deliberate on the current Air Niugini flights between PNG and Palau. Both parties expressed that there are further opportunities to explore to promote the sector, build interest and steadily grow passenger volumes. They further added that by connecting Pacific Islands to drive trade and tourism, it provides an opportunity for Air Niugini to strengthen its position as a regional airline, supporting the sixth freedom traffic which is the right or privilege of operating scheduled international air services via the home state of the carrier to move traffic between the two states. Mr Seddon said “ This is a fantastic opportunity for Air Niugini to participate in an invaluable initiative connecting people across the Pacific. We are honoured to have had the chance to share Air Niugini’s future plans with the President and his delegation. “ “This will further be underpinned by Air Niugini’s fleet replacement program.” Mr Seddon added The sector between PNG and Palau is supported by the Australian Government through an initiative to promote regional connectivity. The Air Niugini PNG/Palau flights commenced in February this year with weekly flights operating every Tuesday from Brisbane via Port Moresby and Koror (Palau). The Palau President and his delegation were in Port Moresby for the India Pacific Islands Co-operation forum, which ended last Monday.
PNG Business News - May 28, 2023
PNG Government Secures 60 Percent in Wafi-Golpu Mine Project
Photo: PNG Government Secures 60 Percent in Wafi-Golpu Mine Project, PM Marape announces The Papua New Guinea Government has finally settled on the total benefit sharing at over 60 per cent from the Wafi-Golpu project. Prime Minister James Marape, in addressing the Morobe Tutumang in Lae, said the total benefits sharing included taxes, equity, royalty and also an additional social fee for the environment around the project area. “The framework that was signed in Port Moresby recently is a guide on how best the Government, the developer and the resource owners will be working with each other to take the project from this point on,” he said. Marape added under the recently signed MoU framework, the Government had secured a “better defined royalty”. PM Marape also explained that according to the law the developer could only pay two per cent. “This is the case with resource owners from other projects in the country. PM Marape said there were three layers of deductions on that two per cent. The Prime Minister said that was why the Morobe government had pushed for the royalty percentage to be taken up to five per cent and reduce the equity to 20 per cent. He said considering the demand from the Morobe government, the State had to adjust the numbers to add up the monetary value of the total benefit and settled for 3.5 per cent. PM Marape explained that the 3.5 per cent that was settled for was just K100 million less compared to the original five per cent. “The Government also secured an additional 10 per cent equity on total benefits sharing because the previous government’s agreement was to forfeit 10 per cent of the benefits as royalty to settle for just 20 per cent equity,” Marape said. PM Marape explained that was why former governor Ginson Saonu took the matter to court. “So through the court, we recouped that 10 per cent in equity,” Marape said. PM Marape confirmed that the financing of that additional 10 per cent would be done similar to the Porgera project. “Seventy per cent of that additional 10 per cent equity will be raised by the developer while the government balances it,” PM Marape said. "This additional 10 per cent has been fully secured and is for the people of Morobe.
PNG Business News - May 28, 2023
PNG and Malaysia to Consolidate Trade and Investment Relationship
Papua New Guinea and Malaysian Governments need to do more to build government-to-government and people-to-people relations between the two countries, says the Minister for International Trade and Investment, Hon Richard Maru. Minister Maru said this during his bilateral meeting with the Malaysian Deputy Minister of Investment, Trade and Industry, His Excellency Liew Chin Tong at the margins of the APEC Trade Ministers Meeting in Detroit, United States. “Malaysia is the second biggest investor in Papua New Guinea in the non-renewable sector with over US$10 million investment and over 200 companies. In terms of trade, the total trade between the two countries stands at over K22 billion in 2021 and is expected to increase over time. This trade and investment relations is purely built on the private sector,” said Minister Maru. “There is a great opportunity for both countries to further enhance their existing bilateral relations by encouraging greater cooperation in trade and investment, including a possible Investment Protection and Promotion Agreement (IPPA), a trade agreement and other technical cooperation, including the areas of education and digital trade,” said Minister Maru. The two Ministers agreed for senior officials to meet in July this year to discuss steps forward on the scope of the possible exchange visits by the Prime Ministers of both countries hopefully by the end of this year. “We are encouraged by Malaysian investors like WR Carpenters who are already in PNG and invested in manufacturing and shipping services and we want to see more investment from Malaysia in downstream processing of raw materials such as logs and timber products,” said Minister Maru. Minister Maru also informed Deputy Minister Tong that PNG Government had made the decision to ban round log export by 2025 and he invited Malaysian investors, especially those that have experience in global forestry product market to come and invest in this sector. “The agriculture and manufacturing industries in PNG have grasped the interest of the Malaysian investors and further extended the invitation to Malaysian investors to invest in PNG’s proposed SEZ sites. On other issues of bilateral cooperation, Minister Maru noted that Malaysian High Commission in Port Moresby had secured a piece of land in Port Moresby to build its Chancery, but it is yet to build its Office. “Similarly, Department of Foreign Affairs should commence discussion with their Malaysian counterpart for a reciprocal arrangement for the Government of Malaysia to allocate a piece of land for PNG High Commission Chancery to be built in Kuala Lumpur. This is necessary to enhance the PNG-Malaysia bilateral relations,” said Minister Maru. This will be one of the issues that will be discussed in the suggested Senior Officials Meeting between the two countries later in the year. Meanwhile, Minister Maru will visit Malaysia straight after the APEC meetings to meet with his counterpart Minister and potential investors who are interested in investing in coconut, palm oil, cattle, and manufacturing sector in PNG. Plans have advanced to a point where Minister Maru will be in Malaysia to finalize discussions for two new coconut oil refineries to be built in Madang and Kokopo this year so PNG will for the first time since independence cease exporting crude coconut oil from the oil mills in Madang and in Rabaul. “This exciting development will signal the start of the Marape Government’s efforts to downstream produce all our agriculture raw materials to final products to meet our own local demand and export to markets in other countries,” said Minister Maru.
PNG Business News - May 25, 2023
Remington Group Launches ‘Loyal to Local’ Campaign
Photo: Remington Group CEO, Peter Goodwin (L) and POMCCI Consultant Brian Riches (R). The Remington Group is proud to announce the launch of its ‘Loyal to Local’ campaign with the support of the Port Moresby Chamber of Commerce and Industry. The core objective of this campaign is to inspire and encourage both business communities and individuals to reconsider their purchasing choices and embrace the power of buying locally. By raising awareness about the vital importance of supporting local enterprises, the campaign aims to increase local business visibility, stimulate the local economy and foster a sense of community pride through supporting local businesses, and most importantly ensure that PNG financial resources stay in PNG. The COVID-19 pandemic has had an immense negative impact on all businesses, and now with the possibility of a global recession looming, it is more important than ever to support our very own PNG businesses. By consciously choosing to purchase from local businesses, both corporate entities and residents have the power to sustain local businesses and strengthen our national economy. Expressing his passion for the cause, Remington Group CEO, Peter Goodwin says,” Our goal is to raise awareness around the importance of supporting local business houses. The Remington Group itself, is a 100% PNG-owned Group of businesses, we suffer when PNG based businesses, foreign missions and NGO’s choose to buy equipment and products that we sell, from overseas For further enquiries Contact Esther Gegelagi Email: firstname.lastname@example.org or Call: 312 3400 sources. Even worse, then they expect us to service and sustain their purchases for them. We all know how expensive it is to do business here. The high cost and unreliability of utilities, worsening law and order, lack of foreign exchange shortages, bad roads and transport, rising unemployment, inflation…the list goes on and on. We need local businesses to stay loyal to PNG, for the benefit of all concerned.” “When we choose to buy from local businesses, we are supporting our neighbours, creating local jobs, and investing in the future of our community”, he added. The Remington Group will be partnering with other local businesses to share what we are doing as we strive to support each other during these challenging times. This will feature different activities within our own Group of companies, from promoting other local businesses, discounts on our products and services, and working in partnership on initiatives to influence and support PNG businesses. The Remington Group encourages businesses and individuals nationwide to seize this opportunity to make a difference by embracing the 'Loyal to Local' campaign and actively supporting each other through their purchasing choices. Together, we have the power to influence each other to benefit our communities, stimulate economic growth, and pave the way for a prosperous future.
Edison Mating - May 24, 2023
Economic Boost on the Horizon: Examining the Newmont-Newcrest Deal's Impact on Papua New Guinea
Photo: Lihir Gold Mine. Photo Credit: Newcrest Mining Limited Website The recently announced acquisition deal between Newmont (NYSE: NEM, TSX NGT) and Newcrest Mining Limited (ASX, TSX, PNGX: NCM) on May 14, 2023, is set to have a significant impact on Papua New Guinea (PNG). The deal involves Newmont acquiring 100% of the issued shares in Newcrest by way of an Australian Scheme of Arrangement. Newcrest shareholders will receive 0.400 Newmont shares for each Newcrest share and a special dividend of up to $1.10 per share paid by Newcrest. This represents a 30.4% premium. The deal is worth A$ 28.8 billion creating the largest-ever gold M&A transaction and solidifying Newmont as the largest global gold producer. Newcrest initially rejected a A$19bn offer from Newmont in February 2023. What does this mean for Newcrest's assets in Papua New Guinea (PNG)? Strengthening the Mining Sector: Newcrest's assets in PNG have a long-standing presence, with established mining operations and infrastructure in place. Their experience in operating in the country provides them with a deep understanding of the local business environment, regulatory frameworks, and cultural dynamics. This familiarity can be a significant advantage in ensuring smooth operations and stakeholder engagement. The acquisition of Newcrest by Newmont reinforces the position of both companies as leading gold producers and consolidates their presence in PNG. The combined portfolio of assets offers substantial opportunities for optimisation, paving the way for enhanced operational efficiency and increased production. Lihir Gold Mine: Located on Lihir Island in the New Ireland Province, the Lihir Gold Mine is one of the largest gold mines in the world. It began production in 1997 and has since yielded significant gold reserves. The mine utilizes both open-pit and underground mining methods, and it has substantial processing facilities on-site, including a large-scale autoclave for processing refractory ore. Newcrest creates economic value for PNG and local communities including direct revenues from operations, investments in public infrastructure and services, support of local suppliers and a range of indirect economic benefits. It employs approximately 4,500 people of which around 90% are Papua New Guineans. Wafi-Golpu Project: The Wafi-Golpu Project is a significant joint venture between Newcrest Mining (50%) and Harmony Gold (50%) in the highly prospective Morobe Province through the Wafi-Golpu Joint Venture (WGJV). It encompasses the exploration and development of a world-class gold-copper deposit. Deep drilling has identified a world-class copper-gold porphyry deposit at Wafi-Golpu (the Golpu deposit) suited to bulk underground mining techniques, similar to Newcrest’s Cadia operations in Australia. Photo: The Wafi-Golpu Joint Venture (WGJV) hosts one of the highest-grade porphyry copper systems in Southeast Asia. Economic Growth and Employment Opportunities: Through the acquisition, Newcrest can leverage its existing assets and expand its operations to tap into additional mineral deposits since it now has a bigger market capitalisation. This could lead to increased production, improved economies of scale, and a more diversified portfolio of mining projects thus bringing an economic boost for PNG. Optimised operations, coupled with the expansion of mining activities, can lead to increased job opportunities, both directly and indirectly. This infusion of employment opportunities has the potential to contribute to poverty reduction and overall economic growth in the country. Synergies and Cost Efficiencies: The consolidation of operations between Newmont and Newcrest creates synergies and cost efficiencies. It is estimated that the deal could generate annual pre-tax synergies of $500 million within the first 24 months. These cost savings can be reinvested into further development, exploration, and sustainable mining practices, benefiting the companies and the local communities. Sustainability and Environmental Practices: Both Newcrest’s and Newmont's track record as a leader in sustainability and responsible mining practices can bring positive changes to Newcrest's assets in PNG. Social and Community Development: Both the companies’ expertise and experience in community engagement and social development initiatives will further the development of the community. The acquisition of Newcrest by Newmont holds promising prospects for PNG's mining industry and economy. The deal's potential to drive economic growth, create employment opportunities, enhance sustainability practices, and optimise operations brings an economic boost to the country's mining sector. However, it is important for all parties involved to navigate the regulatory and stakeholder considerations diligently to ensure a successful and mutually beneficial outcome. References: Newcrest Mining Limited. (2023). Wafi-Golpu. Retrieved from https://www.newcrest.com/our-assets/wafi-golpu. Retrieved on 19 May 2023. Newcrest Mining Limited. (2023). Lihir. Retrieved from https://www.newcrest.com/our-assets/lihir. Retrieved on 19 May 2023. Newmont Corporation. (2023). Newmont Enters into Definitive Agreement to Acquire Newcrest. Retrieved from [https://www.newmont.com/investors/news-release/news-details/2023/Newmont-Enters-into-Definitive-Agreement-to-Acquire-Newcrest/default.aspx]. Retrieved on 19 May 2023.
PNG Business News - May 24, 2023
Central Provincial Government Presents a Cheque of K280,000 as counterpart funding for Rural Service Delivery Project
The Central Provincial Government has facilitated yesterday (18th of May, 2023) at Crown Hotel with a cheque of K280,000 for their 4 districts including their 5083 wards to help improve its communities access basic infrastructure and services through the Rural Service Delivery Project. The Rural Service Delivery Project is sanctioned and implemented by the Government of Papua New Guinea under the Department of Provincial and Local Government Affairs through World Bank's credit facility and the Australian Government's grant for a period of five years. Present to witness this ongoing 5 year project to become a reality where stakeholders including Member for Kikori and Minister for Department of Provincial and Local Level Government Affairs, Hon. Soroi Marepo Eoe and dignitaries from the Central Provincial Government and Department of Provincial and local Government Affairs. Central Governor Honorable Rufina Peter was pleased to see stakeholders present for the occasion and emphasized the importance of the RSD project which is a community oriented project involving the community to participate in basic services and infrastructure developments lacking in their community. "We are talking about taking back Papua New Guinea well this RSD Project is a community based initiative where communities take part in development by doing so we are leaving no one behind " said Governor Peter. Minister for Department of Provincial and local Government Affairs Honourable Soroi Eoe thanked the Central Provincial Government for taking the lead in the RSD project as Central Province was so far a successful recipient in previous projects received along with East New Britain Province, Chimbu Province and Western Province. "With the experience received by our madam governor for Central Province as a former project Manager for RSDP I believe that this counter funding will go a long way with the support of my ministry taking the lead in establishing key projects in the Central Province ", stated Hon. Soroi Eoe. Also present to give his support for the RSD project was Member for Rigo Honourable Ano Pala who pledge to make funding available for this project to become a reality under his district of Rigo in the Central Province. "I thank the Honourable Governor of Central Province in facilitating this great initiative and I as the member for Rigo pledge my support in working with the good Governor's office for vital projects in my district to become a reality" stated honourable Ano Pala. Koiari President Mr. Willie Wavi shared his experience in benefiting from the previous 5 year project with an establishment of a solar power project in the Koiri LLG which is now currently benefiting the people. "I am happy to witness this occasion and have benefited in the previous RSD Project all it takes is commitment and involving the community with an initial sweat equity contribution by the community,” said Mr. Wavi. All local Level ward councils in Central Province present at the occasion pledged their support in participating meaningfully by identifying key community based projects that will benefit their respective wards.
PNG Business News - May 24, 2023
Central Provincial Government Presents Cheques to Various Tertiary Institutions for Governor's 2023 Tuition Fees Support Program
Photo: Central Governor Hon. Rufina Peter with representatives of various tertiary institutions holding on to their check payments A timely step has been taken by the Central Provincial Government to relief Central Tertiary Students for its 2023 tuition fees totally at the cost of K3, 456 050 presented to various Tertiary Institutions in the country on Friday 19th of May, 2023 at the Crown Plaza Hotel. The Governor's Tuition support fee program is a first of its kind under the leadership of Central Governor Rufina Peter where investigative research had been carried out to roll out the program. "Human Resource Development is our first priority in the Central Province it is a valuable asset in equipping our people to contribute meaningfully in the Province development. "This is a first of its kind and we hope to improve well with students performance evaluated according to their GPA. "K2, 000 000 was taken out of Central Province Internal Revenue and K1, 456 050 from PIP funding hopefully we make an increase to provide K2, 000 per student but for now each student will receive K1,200 said Governor Rufina. Coordinator of Central Governor's Tuition Fees Support Program Mr. Paul Senkai commented that they had to to start from scratch in collecting data and making sure credible records were kept of students who were able to participate in the program. " We are more than happy to liase with the various Tertiary Institutions and make sure that our students perform well to continue on with their studies", said Mr. Senkai. The following representative of various Tertiary Institutions present were Datec Learning Centre, Port Moresby Business College, Asia Pacific College, Mapex Training Institute, Kumul Training Institute, International Training Institute and Highlands Youth Vocational. Other Tertiary Institutions absent on the occasion were University of Papua New Guinea open and main campus and University of Technology.
PNG Business News - May 24, 2023
Building Better Solutions
From mining camps, to health and education facilities, to retail and commercial fit outs, PNGFP’s NiuBuild provides complete project solutions throughout PNG and the South Pacific. In fact, you might be surprised to know that PNG Forest Products is the largest supplier of timber housing & infrastructure projects in the South Pacific. Having delivered more than 10,000 buildings, PNGFP supply PNG's only preservative pressure treated kit-set buildings, engineered to PNG and Australian building codes, that are fully protected from termites and rotting. NiuBuild’s team of Designers, Draftsmen, Engineers and QA Managers provide solutions that are cost effective, user friendly and serviceable even in the remotest areas. Having built in excess of 2,000 buildings in PNG including numerous Mining and Exploration Camps, PNGFP has supplied over 1,000 School Buildings and hundreds of Education and Health Facilities throughout the country. Their prefabricated, transportable and modular buildings are designed for permanent large-scale infrastructure developments as well as temporary mining and exploration camps. The prefabricated system means ease of construction and allows for the involvement of local stakeholders in the camp construction stage. NiuBuild has also developed an innovative range of transportable, modular solutions for mining, gas and petroleum camps that provide instant accommodation without the need for on-site construction. Each unit in the range is affixed to a steel chassis skid frame with lifting eyes for easy craning onto trucks for transport to site. The range includes a transportable duplex with ensuites; 4-Man duplex; 3-Storey stackable duplex and transportable ablution blocks. Employing over 1,300 Papua New Guineans, PNGFP is committed to building a better future through sustainable manufacturing practices. All timber is sourced from renewable PNG pine plantations while the processing plants are powered by PNGFP’s own sustainable Hydro Power stations in Bulolo. So when you invest in PNGFP products and services, you are not only investing in the best value, highest quality engineered wood products in PNG, you are also investing in 1,200 local jobs and supporting the economy whilst also supporting the environment… and that’s an investment in PNG’s future! For more information contact the NiuBuild team on 478 8111 or email email@example.com.
PNG Business News - May 24, 2023
PM Marape says Defence Cooperation Agreement with USA does not affect sovereignty of PNG
Prime Minister Hon. James Marape says the Defence Cooperation Agreement (DCA) between the United States of America and Papua New Guinea does not in any way encroach into the sovereignty of the country. And he has assured Papua New Guineans that all aspects of the DCA will be made available to the public through a Parliamentary Statement that he will make. “I am working to release the agreement for public knowledge, and on Thursday this week, we will send the State Solicitor and Foreign Affairs and Defence Secretaries, to go through the DCA with students and interest groups to ensure they are informed correctly.” PM Marape said this during the historic signing of the DCA by US Secretary of State Antony Blinken and Defence Minister Hon. Win Daki at APEC Haus in Port Moresby today (Monday, May 22, 2023). “This agreement in no way encroaches into our sovereignty,” PM Marape said. “We will, after this signing, inform all stakeholders and our citizens on all aspects of the agreement. “It will be transparent and shown to everyone who has an interest in it. “It in no way affects other defence cooperation agreements, defence relationships and bilateral relationships we already have with other countries. “This is a straight two-way highway between the Pentagon and Murray Barracks, between Washington and Waigani, between USA and PNG. “I am satisfied that this agreement will add value to and strengthen our economy going into the future.” PM Marape said the DCA would also strengthen US-PNG relations going into the future. “We have been important partners of the past,” PM Marape said. “Our shared bonds and experiences have kept our two nations together until 2023, when we elevate this, in as far as our defence cooperation is concerned. “We are elevating from what used to be a generic relationship under the 1989 Status of Force Agreement (SOFA) to a specific relationship with the United States people, government and defence force “Papua New Guinea has a Visiting Forces Act of 1975 which allows for these agreements to be entered into.” PM Marape said this law was born out of Section 206 of the Constitution and the DCA was done transparently and following proper processes. He said it was the result of many years of hard work by both countries. “It is mutually beneficial, and in the PNG context, secures our national interest as we grow into a robust economy in this part of the world,” he said. “I am very happy that we have reached this milestone and thank Secretary Blinken for his patience, as well as our State Solicitor, Department of Defence and Department of Foreign Affairs for their leadership. “We have similar DCAs with countries like Indonesia and Australia, and ask our citizens not to panic or fear unnecessarily, in the midst of much misinformation being circulated.”
Paul Oeka - May 24, 2023
FIA PNG Excels in Global Standards
Fishing Industry Association of PNG's Tuna Purse Seine Fishery rated the largest global tuna source of MSC-certified tuna The Fishing Industry Association of Papua New Guinea (FIA PNG) has once more gone beyond its expected boundaries to achieve another milestone for the fishing industry relating to the association’s purse seine fishing method. Purse seines are used in the open ocean to target dense schools of single-species pelagic (midwater) fish like tuna and mackerel. Some of the main species fished with purse seine gear are southern bluefin tuna, Australian sardine, blue mackerel, and jack mackerel. FIA has recently undergone a strict, exhaustive, and robust scope extension assessment by Scientific Certification System (SCS) Global Services for their Geographical Scope extension into the waters of the Parties to the Nauru Agreement (PNA) and the Western Central Pacific Ocean waters. They are proud to announce that they have collectively become the "largest tuna supply source with 750,000 MT of raw material that includes Yellowfin tuna, Skipjack tuna and Bigeye tuna” under their FIA PNG Marine Stewardship Council (MSC) tuna fishery certification. The waters of the PNA member-countries consist of Kiribati, Tokelau, Tuvalu, Solomon Islands, Nauru, Marshall Islands, Federated States of Micronesia, and Palau, and are the most productive waters that supply more than 50% of the global tuna raw material. The President and Chairman of FIA PNG, Sylvester Pokajam stated: “Our current tuna fleet of fifty-five (55) tuna purse seiners is fishing inside the PNG Exclusive Economic Zone and Archipelagic Waters and are having good catches. However, we applied for the geographical scope extension only because we do not know how climate change will influence the tuna stocks' behaviour and migration patterns”. "We safely guarantee our stakeholders, clients, and retailer partners that we will maintain the same rigor with the 100% observer onboard coverage, iFIMS real-time data collection and Global Fishing Watch (GFW) in accessing our Vessel Monitoring System". "FIA will also like to ensure our clients that we will maintain best practices in Global Dialogue on Seafood Traceability Key Data Elements, data collection & share, and most importantly, the FIA PNG accountability and management control system under our Responsible Sourcing Policy", Mr Pokajam said. The announcement of becoming the largest tuna supply source “is a result of great teamwork by our FIA PNG tuna fleet members and our FIA PNG office team to provide enough verifiable evidence to show how we are managing our fishery in a responsible and transparent manner to SCS Global services, the MSC conformity assessment body,” he said. Mr Pokajam also expressed his gratitude to the country's flagship in the fisheries sector, and expressed that FIA greatly appreciates the support of the National Fisheries Authority (NFA) as “the guard and regulator of our fisheries and tuna fleets.” Pokajam urged all of FIA's retailers and global tuna markets to ensure a stable and sustainable tuna supply, aligning with the United Nations Sustainable Development Goals (SDGs) of food security.
Paul Oeka - May 24, 2023
European Union Signifies Role in PNG's Economy
Recently, the European Union Delegation in Papua New Guinea was delighted to have Prime Minister James Marape deliver a speech during the Europe Day reception on the 9th of May 2023 at the Lamana Hotel in Port Moresby. Ambassador Jacques Fradin, the Head of the EU Delegation to Papua New Guinea, stated in his speech: "Papua New Guinea continues to be a key partner for the EU's engagement with the Pacific against the background of a changing geopolitical context" "EU acknowledges PNG's prominent role as a lead negotiator for the Pacific region with ongoing negotiations with other Pacific Island nations". In his speech, Prime Minister Marape delivered a congratulatory address on behalf of the PNG Government and praised the excellent partnership and collaboration between the European Union and Papua New Guinea. The event was attended by diplomatic missions in PNG and representatives from both the PNG government and the private sector, including representatives from the civil society who joined the delegation at the official Europe Day Reception. Brief History of the European Union and its progress in PNG Since 1987 the European Union has been one of Papua New Guinea's biggest and oldest development partners and have enjoyed more than 40 years of partnership with the country. Papua New Guinea has received over K2 billion in grants as development support from the European Union through the European Development Fund (EDF). Further support has also been provided through dedicated programs in relation to issues such as Law and Order, Gender-Based Violence (GBV) and support to NGOs as well as community-based development projects throughout the country. The EU and its Member States are one of the largest donors of humanitarian aid and the biggest donor of international development aid in the world, providing around 50% of official development assistance to help overcome poverty and advance global development. Earlier this year, Ambassador Fradin stated the EU will spend more than K400 million in Papua New Guinea in the next three years. This grant is the largest in the Pacific and was one of the major dialogue agendas between EU and the PNG Government held in Port Moresby earlier this year. "The EU has spent over K2 billion on projects since 1987 and its not the money that counts but its what we do with the money, so in the next four years the EU will be spending almost K430 million on projects in the country which is the largest in the Pacific." "These are grants and they are not loans. We differ from other donors in PNG, if we invest, we invest for you. It is not about the money, it is what we build together and then you take over after", Ambassador Fradin said. EU's Projects and Programmes in PNG SUPPORT TO RURAL ENTREPRENEURSHIP INVESTMENT AND TRADE (STREIT) This Program is locally known as EU STREIT PNG and is based on the development priorities of Papua New Guinea. The EU's Support to Rural Entrepreneurship, Investment and Trade in Papua New Guinea aims to improve sustainable and inclusive economic development and job creation in the Momase Region. In 2020 the European Union started the implementation of the EU STREIT programme which is a rural development action designed to revitalise existing economic opportunities particularly on the value chain development of cocoa, vanilla and fisheries mostly in the Sepik region, with a specific focus on women and youth and climate change. EU-UNICEF National WaSH (Water, Sanitation and Hygiene) Policy The European Union in partnership with UNICEF has continued to support the PNG Government's WaSH policy, the objective of which is to provide equitable access to safe, convenient and sustainable water supply and sanitation, and to promote improved hygiene practices and long-term hygiene behaviour change at the personal, household, community and institutional level particular to rural and urban settlement areas. Currently the 3-year 21.3 million euro EU-UNICEF water and sanitation project in Papua New Guinea is expected to benefit 160,000 people, including 40,000 children from 200 schools, 36 health centers and 800 neighboring communities in four Papua New Guinea districts. These include Hagen Central in Western Highlands Province, Goroka in Eastern Highlands, Naweab in Morobe, and Bougainville Central in the Autonomous Region of Bougainville. Additionally, the EU is also providing funding of K5.9 million to support Covid-19 response to access clean and safe water to vulnerable communities throughout the country. EU's Support to Education For the last 10 years, the European Union and the Government of Papua New Guinea has been actively supporting education, including technical and vocational training, in PNG with a total grant funding of approximately K160 million. One recent development is the construction of infrastructure and the supply of equipment to 10 Technical and Vocational Education Training (TVET) centres throughout PNG. In 2022 the EU-PNG partnership for good governance and transparency had also been discussed and the European Union had designed its first EU Grant budget support worth K100 million to be assured and used for good governance, justice, and anti-corruption. “Under the EU-PNG Partnership for Good Governance, the European Union allocated approximately 100 million Kina for actions aiming at promoting good governance and the respect of the rule of law. The European Union stands by the PNG Government to progress core reforms to strengthen law and order, including support to police who enforce anticorruption laws,” said the EU Delegation to PNG. European Union's Contribution to PNG's Business Sector One of the key benefits of EU membership is access to the single market, which allows for the free movement of goods, services, capital, and people within the EU. This has helped to boost trade and investment between member states, creating jobs and economic growth. The EU also provides funding for various projects and initiatives, such as research and development, infrastructure, and social programs.  Following the success of the previous three EU-PNG Business, Trade and Investment Conferences in 2019, 2021 and 2022, the Delegation of the European Union to PNG is likely to host another conference this year. The focus of the conference is to help increase business contacts, discover new business opportunities, and find new collaboration partners between the EU and PNG, Fiji, Samoa, Solomon Islands, Tonga and Timor-Leste, with particular attention to trade and investment aspects of sustainable development.  A practical dimension of the conference was how it concentrated on particular business sectors in PNG and the region and their development in a sustainable way. European Union Stresses Importance of Informal Economy In the context of Papua New Guinea, the urban informal sector is described as livelihood activities which include microenterprises or day-to-day livelihood activities such as selling, distributing, producing or manufacturing goods and providing services, either regularly or occasionally or on a needs basis and being carried out in unprescribed markets or areas such as streets, roadsides, in front of supermarkets or offices, at bus stops, and in yards of houses. The current review of the Informal Economy Policy is implemented under the Markets Economic Recovery and Inclusion (MERI) program with funding from the Government of Australia, and European Union. Recently during a panel discussion at the National Markets Convention in April 2023 held at the Apec house in Port Moresby, the European Union’s Policy Coordinator for Economy, Public Finance Management and Trade, Carlos Padilla Perez, noted that for the policy to have an impact on the livelihoods of the people of Papua New Guinea, stakeholder involvement was a key inclusion at the time of implementation. Perez noted that the common issue raised in all regional consultations “was the lack of implementation of the former informal economy policy, which is undergoing review. These issues of implementation must be addressed strongly in the revision of this policy". The EU’s ultimate goal is to build stronger political relations with PNG, and the entire Pacific region, while supporting good governance, security and sustainable development. References: 1) European Day Reception, 9th May 2023 Hosted by the EU delegation to PNG at the Lamana Hotel, Port Moresby (Attended) 2) The European Union and Papua New Guinea - EEAS /Eeas.europa.eu (Press Releases) https://www.eeas.europa.eu › europ... 3) Papua New Guinea: 5th high-level Political Dialogue with the European Union ... 27th February 2023| Eeas.europa.eu https://www.eeas.europa.eu › eeas https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.eeas.europa.eu/eeas/papua-new-guinea-5th-high-level-political-dialogue-european-union-takes-place_ 4) EMTV Online /European Union to Fund Ten Selected Vocational Training Centres in PNG – EMTV Online https://www.google.com/url?sa=t&source=web&rct=j&url=https://emtv.com.pg/european-union-to-fund-ten-selected-vocational-training-centres-in-png/ 5) Papua New Guinea Today| Boost for Asset recovery and Corruption investigations in PNG 24 Nov 2022 https://www.google.com/url?sa=t&source=web&rct=j&url=https://news.pngfacts.com/2022/11/boost-for-asset-recovery-and-corruption. 6) National Markets Conventions 2023... 19-21 April 2023, Apec Haus, Port Moresby (Attended 21 April) https://drive.google.com/file/d/1m0qpTnI-O-ECR_nfJqDiMmH58g2y5vLv/view
PNG Business News - May 24, 2023
Progress on Papua LNG Development Brightens Economic Prospects
The advantages of having a second Liquefied Natural Gas (LNG) project in a country like Papua New Guinea is important and strategic in that the people are attached to the land, and they want to feel they are part of the extraction of resources and wealth -- and they can only do that through the development of their customary land. The focus has shifted from Oil to Liquefied Natural Gas (LNG) in the 2000s and the country is now looking at three more LNG trains to be added to the two trains that exist now. Total Energies EPPNG, the developer of the Papua LNG project in the Gulf Province, will be progressing to utilize the Elk and Antelope gas fields before ExxonMobil's proposed development of P’nyang in Western Province, as this phased approach to gas development would support ongoing economic growth in Papua New Guinea. Design work on the upstream, gas production side of the Papua LNG project, involving tapping the Elk and Antelope fields in the eastern Papuan Basin, started in July 2022, and this will now be extended to be ready for construction that could begin as soon as 2024. In contrast, the P’nyang project will be an independent project with landowner benefits to be provided under a future benefit sharing agreement to be negotiated by the State in accordance with the Oil and Gas Act. Currently the Papua LNG project is on course to be PNG’s second natural gas project, and PNG Prime Minister James Marape hopes the development will spur economic growth in a country where majority of the population live below the poverty line. Wapu Sonk, Managing Director of the country's national petroleum company Kumul Petroleum Holdings Limited (KPHL) recently stated in an interview: "Papua New Guinea is well known for its extensive and profitable gas fields. While our LNG reserves are lower than those found in Qatar or Mozambique, for example, we still have a significant amount of discovered gas, and that allows us to play an increasingly important role in the global LNG supply chain".  "We will continue to benefit from our proximity to Asian markets, which limits transportation costs and offers lower geopolitical risk than the Middle Eastern market. It will be important for us to capitalise on this advantage by maintaining the progress we have made in terms of project development in our country". Mr Sonk said. Papua LNG Project - Early Works and Infrastructure Recently the business fraternity in Port Moresby sat over a breakfast organised by Papua LNG's project developer TotalEnergies EPPNG in conjunction with Port Moresby Chamber of Commerce and Industry (POMCCI) to give both national and international businesses an insight on the early works of the Papua LNG project, and a brief on the progress of the project on the 11th of May 2023 at the Royal Papua Yacht Club in Port Moresby.  Speaking at the breakfast was Managing Director of Total Energies EPPNG Jean-Marc Noiray, who said the Project has not yet started work but has already started implementing community based projects and infrastructure within the project area. [a] "The Papua LNG Project is a big project and we are just at the begining of construction of its multi-decade production life, but already we can see the impact through the successful early works and start up in and around the project," Noiray said. [a] "Do not underestimate the confidence that the Papua LNG project's reputation will give others as they consider investing in this great country,” he said. "Integrated efforts by all stakeholders in the early progress of the project is key to see PNG reap benefits from the project through development of Roads, Bridges, Airstrips as well as developing local content during the early works and infrastructure start up phase of the project". Mr Noiray said. [a] The project is expected to create significant economic benefits for Papua New Guinea, including job opportunities, infrastructure development, and revenue generation. The project is also expected to contribute to the country's energy security and reduce its reliance on imported fuel. [a] During the information session, representatives from TotalEnergies and EPPNG provided details on the project's timeline, scope, and potential impact on the local communities. They also discussed the company's commitment to environmental sustainability and social responsibility. [a] Local business owners and entrepreneurs expressed their interest in participating in the project and learning more about potential business opportunities. They also raised concerns about the project's potential impact on the environment and the need for effective community engagement and consultation.  National Content Business opportunities for PNG companies will be mostly in the aspect of supplier development of the project. This will be In accordance with the Oil and Gas Act, and PNG companies will be used for the supply of goods and services wherever they are competitive with foreign sourced goods and services.  Strategic Community Investments will be a mainstay within the lifespan of the project as these are corporate contributions and other voluntary community investments made in host communities. They are designed to reduce barriers to development, build capacity and improve standards of living through programs targeting health, education, sustainable livelihoods and environment. [b] The Papua LNG project will ensure that a skilled local workforce is established and expected to offer over 5,000 positions to nationals through the WAN PNG recruitment platform over its lifespan. The project is focused on setting an exemplary stance in its implementation by paying particular attention to the environment and biodiversity, while ensuring the rights of the local communities and landowners. [b] Wan PNG platform The much anticipated strain on human resources, particularly in relevant skilled areas, is a contributing factor in phasing each developing project.  The competition for skilled workforce is already underway domestically and internationally. Its also a revolutionary opportunity to build up PNG’s current local workforce, with the technical and soft skills which will be needed as the country progresses into this new wave of economic development.  The collaboration between Ubidy and KPHL with the support of Total Energies has made way for the emergences of Wan PNG a National recruitment Platform focused on developing local talents and is intended to provide 5,000 job opportunities for PNG nationals for the Papua LNG project when it launches. [c] At a glance, the Wan PNG platform was developed by Ubidy, a global recruitment marketplace for employers, jointly with KPHL. The platform is dedicated to expanding opportunities for local Papua New Guineans with the goal to increase the development and employment of local PNG talent in sharing newfound opportunities in the country's booming resource and industrial sectors. [c] Papua LNG Project objectives Papua LNG project's commitment is to produce natural gas, the lowest carbon fossil fuel, with a very high focus on protecting land, wildlife, local inhabitants, and their livelihoods, as well as expanding knowledge of PNG's biodiversity and its preservation. [d] The project also aims at creating employment opportunities during both construction and production to provide a catalyst for further gas-based industry development in the country. It supports capacity building of government agencies involved in the petroleum sector as well as supporting capacity building and skills development of domestic SMEs and workforce. [d] To move national content, TotalEnergies and its partners are working closely with an independent panel of experts highly recognized for their contribution on environment and socio-economic development, to make the Papua LNG project best-in-class in terms of sustainability. [d] Technological aspect - LNG e-Trains The most important infrastructure needed for LNG production and transportation is an LNG plant consisting of one or more LNG trains, each of which is an independent unit for gas liquefaction (melting and condensing) and purification.  A typical LNG train consists of a compression area, propane condenser area, and methane and ethane areas. In the context of the midstream oil & gas sector, a train consists of various components to process, purify, and convert natural gas to liquefied natural gas (LNG).  They are called trains because of the consecutive arrangement of the equipment used to process and liquefy natural gas. TotalEnergies confirmed the use of four electric LNG trains to process gas at 6 million tonnes a year. The use of the revolutionary new technology for processing gas will ensure lower emissions and better efficiency.  The electric trains will be supplemented by two of the existing conventional trains used at the PNG LNG facility at Caution Bay, which is 20km out of Port Moresby. One of the new LNG trains would be fed by the P’nyang expansion and the other two by Papua LNG. By sharing infrastructure at the PNG LNG plant, it is estimated that stakeholders could save US$2bn-3bn in construction costs. Altogether the two projects would almost double the country’s LNG export capacity, with Papua LNG alone adding 5.5m tonnes per year to existing capacity at the PNG LNG plant.  Papua LNG is expected to have liquefaction capacity of up to six million mt/year of LNG, with first production expected by the end of 2027 or early 2028. Current Project Timeline Prime Minister Hon James Marape recently remarked that the project is on track, setting the stage for 4 years of Papua LNG construction, immediately followed by another 4 years of the P’ynang project construction, and that the FEED phase will be completed in less than 12 months, which will include the marketing project resources to potential markets and counterparts abroad compared to PNG LNG FEED phase which spans over 16 months.  Papua LNGs FID is expected by 4th quarter 2023 or 1st Quarter 2024 and construction is to begin thereafter from 2024 to 2027. P’nyang LNG will commence construction in 2027 to 2032, effectively giving 8 years of construction phase and its benefits to the economy.  The venture partners in the Papua LNG project are currently TotalEnergies (31.1 per cent), ExxonMobil (37 per cent) and Santos (22.8 per cent). A final investment decision is expected to trigger the PNG State’s direct involvement in the venture, with the following percentages expected.  References: 1) Australian Financial Review (23 March 2023) | PNG hatches plan for new,gas fields https://www.afr.com › ... › Energy 2) TotalEnergies insight into Early Works and Infrastructure of Papua LNG (11th May 2023/ Business Breakfast and Infornation Session (Attended session) Papua LNG Project - Early Works and Infrastructure National Content Wan PNG platform Papua LNG Project objectives See press releases and full insight and speeches on website: https://papualng.com.pg/ 3) What is an LNG Train? Cameron LNG/ LNG and Liquefaction https://cameronlng.com › lng-facility 4) Papua New Guinea: TotalEnergies launches integrated engineering studies ... ( 7th March 2023) https://www.google.com/url?sa=t&source=web&rct=j&url=https://totalenergies.com/media/news/press-releases/papua-new-guinea-totalenergies-launches-integrated-engineering- 5) Oil & Gas Journal (7 March 2023) TotalEnergies launches integrated FEED for Papua LNG project https://www.ogj.com › ... › LNG
PNG Business News - May 22, 2023
PacTow Increases Ocean Towage Services
Photo: Pacific Towing towed a replacement 250m oil transfer hose from Port Moresby to an offshore export terminal in the Gulf of Papua in February as part of the terminal’s scheduled routine maintenance. Pacific Towing also towed the replaced transfer hose back to Port Moresby. Pacific Towing (PacTow) is increasingly performing ocean towages, including outside of Papua New Guinea and broader Melanesia. Recent months have seen the marine services company perform two towage projects from Northern Australia and another for an oil and gas major in the Gulf of Papua. PacTow anticipates further growth in ocean towage services as barges and vessels, as well as heavy plant and equipment are sourced internationally for the imminent construction phase of PNG’s next LNG project. PacTow is a PNG business in its 46th year of operation. Employing in excess of 200 staff, the company operates out of PNG’s five main ports as well as in Honiara, Solomon Islands. Although harbour towage represents approximately 70 percent of its business, PacTow also provides a range of niche services to the oil and gas sector and is Melanesia’s leading salvage operator. General Manager Neil Papenfus reports that PacTow has provided international towage services for at least two decades but that these have increased in frequency over the last five years. Two significant projects were the 2019 towage of a stranded barge from Micronesia to Indonesia, as well as the 2020 tandem towage of a vessel and barge from American waters in Guam. Papenfus says that PacTow has increased its capacity to perform long distance ocean tows and that this is “primarily due to the company’s refleeting programme” which it embarked upon in 2020. The company’s 20-vessel fleet has been modernised and more than half of its tugs are Azimuth Stern Drive (ASD) tugs. Several vessels in PacTow’s fleet are also specialised ‘blue water’ tugs ideally suited to long distance tows, including multi-week projects such as international tows and salvages. The company’s diverse fleet and experienced crews have the capacity to tow a wide range of vessels and even ‘items’ as evident by its first three ocean tows for 2023. PacTow delivers excellent, reliable, and safe marine services through PNG and the broader region. A well-maintained fleet, as well as a dedicated and exceptionally trained team underpin the company’s ongoing expansion and success. PacTow is part of a larger sea and land logistics group wholly owned by Steamships Limited. To learn more about PacTow: www.pacifictowingmarineservices.com.
PNG Business News - May 22, 2023
Australia's Strong Investment Focus: Roads, Ports, and Electricity in Papua New Guinea
Photo: Senator Tim Ayres. Credit: Senator Tim Ayres Facebook Page Australia Assistant Minister for Trade and Manufacturing, Senator Tim Ayres, addressed the 38th Australia PNG Business Forum and Trade Expo, highlighting Australia's focus on investing in roads, ports, and electricity in Papua New Guinea (PNG). He stressed the importance of reliable infrastructure for uninterrupted travel, trade, and commerce within PNG. Senator Ayres pointed out the long-standing collaboration between Australia and Papua New Guinea in maintaining the national road network through the Australia PNG Transport sector program (TSSP). He noted that the TSSP, initiated in 2007, represents the largest bilateral program Australia has invested in within PNG's transport sector. The program has significantly improved the lives of the people of Papua New Guinea. "Australia is PNG's number one infrastructure partner, and these investments play a significant role in creating employment opportunities in these projects," stated Senator Ayres. He further emphasized the involvement of local companies in PNG, saying, "Most of Australian contracts go to local companies here in PNG. It isn't just a case of Australian workers arriving to do quick-built projects and buggering off with the profits." According to Senator Ayres, the focus extends beyond completing projects; it involves investing in local communities, providing training for young people, promoting entrepreneurship, creating opportunities, and building up the economy. The ultimate goal is to foster sustainable development and strengthen the partnership between Australia and PNG. Australia's dedication to infrastructure development in Papua New Guinea underscores its commitment to enhancing connectivity, stimulating economic growth, and improving the overall well-being of the people of PNG. Through these ongoing investments, Australia aims to forge a long-term partnership with PNG and contribute to the region's sustainable development.
PNG Business News - May 22, 2023
Professor Stephen Howes Addresses Foreign Exchange Shortage in Papua New Guinea
Photo: Professor Stephen Howes. Credit: Australia National University Papua New Guinea is grappling with a foreign exchange shortage, resulting in higher imports and lower exports, according to economist Professor Stephen Howes from the Australia National University (ANU) Development Policy Centre. Speaking at the 38th Australia-PNG Business Forum and Trade Expo in Port Moresby, Professor Howes highlighted the country's loss of competitive economic gains from the 1990s during the resource boom between 2000 and 2014 as a major contributing factor. "The country is faced with a foreign exchange (forex) shortage largely because PNG lost its competitive and hardline economic gains from the 1990s during the resource boom between 2000 and 2014," Professor Howes explained. While the growth of the economy and forex was observed following the boom, the real exchange rate remained persistently high over the past decade, exacerbating the shortage. This high exchange rate has both boosted the economy and contributed to the scarcity of forex. "The PNG Kina has depreciated from 2013 to 2020 according to statistics from the Bank of Papua New Guinea (BPNG), however the real exchange rate has remained high," Professor Howes stated. The depreciation of the Kina was primarily driven by an increase in imports and inflation, impacting the country's forex reserves over the last decade. The highest depreciation rate, amounting to 14 percent, was recorded at the end of 2015, coinciding with Papua New Guinea hosting the 2015 Pacific Games, where significant infrastructure spending occurred. "In the last three years, the kina had hardly moved against the US dollar, however it did appreciate by 17 per cent over other currencies on a trade-weighted basis, which included a depreciation rate of zero per cent from the end of 2021 to September 2022," Professor Howes noted. The resource boom generated increased revenue for Papua New Guinea; however, the real exchange rate offset the economic shortages that followed, significantly impacting forex availability. "The Kina was floated in 1995 to make PNG exports competitive on the international market. The Kina value is now determined by demand and supply in the foreign exchange market," Professor Howes explained. Regarding the exchange rate policy of the Bank of Papua New Guinea, Professor Howes clarified that the central bank was not obligated to meet all market demands and did not require buyers to bid for forex or set prices. This policy primarily aimed to control inflation, limiting the growth of the country's forex reserves in preparation for future resource booms.
PNG Business News - May 22, 2023
Latest Update on the Wan PNG Platform
The Wan PNG platform has been moving from strength to strength over the last few weeks as it prepares for its official launch soon. After signing the Memorandum of Understanding between Papua LNG and Kumul Petroleum Holdings Limited, the platform has now been presented at a number of events such as the recently organised Port Moresby Chamber of Commerce and Industries breakfast on the 11th of May. The presentation was well received with numerous engaging questions. Significant interest was expressed by the audience after the event with a number of attendees reviewing the platform after the event and signing up. An additional session was organised at Kumul Petroleum Holdings Limited (who are the organisation who initiated, sponsored and had the vision to launch the project) which was attended by further local Papua New Guinean employers. Since then, the FM100 team carried out a live streamed interview that received a number of interested callers discussing how the platform will help the nation. It was explained how the platform will solve a number of challenges around skill shortages and finding jobs. The Wan PNG team is preparing for an official launch coming up over the next months which will be announced soon. Papua New Guineans will be encouraged to sign up during the official launch and take part in the platform which is aimed at driving prosperity in PNG by: Showcasing Local Talent: First and foremost, Wan PNG’s goal is to showcase the best PNG talent to both local and foreign business through a national candidate database. Kickstarting Careers: Wan PNG is dedicated to the promotion of internship and entry-level positions to school-leavers and other entrants into the workforce. Expanding Diversity: Wan PNG is committed to highlighting women and other under-represented people to employers to build a more diverse, successful workforce. Training and Upskilling: Job Seekers can access expert career advice and courses offered by the community of training partners to develop the skills they need to succeed. Educating and Informing: Job Seekers have instant access to news, resources, and courses offered by the community of educational partners to build the foundation for their future. Supporting Landowners: Wan PNG is dedicated to raising the participation and prospects of landowners across Papua New Guinea, including highlighted Wan PNG profiles. Beyond allowing employers to find suitable employees, the platform reveals the data on skill gaps identified on the platform, allowing training and education institutions to ensure they offer the right skill development needed by the nation now. New features are being continually added to help increase the development and sustainable employment of local PNG talent, so everyone can share in newfound resources and growing prosperity.