A Sea Change for the PNG Project Support Sector

by PNG Business News - July 15, 2021

A company that has operated in Papua New Guinea for 13 years recently announced that it has changed its name to PNG CR Services Company Limited.

Previously known as the Red Sea Housing Company, it has completed 127 major projects, constructing more than 15,000 project accommodation rooms and 750 support facilities for clients such as ExxonMobil, Oil Search, and the Australian Federal Police, while winning 18 awards during the completion of its construction work.

“We are rebranding to create a stronger image, signifying our commitment to Papua New Guinea and strengthening our position in the local infrastructure, camp construction and facilities management sector,” the company said in a statement.

“We are able to offer modular and containerised construction, facilities maintenance and management, MER and technical manpower. To further add value to our clients we provide project accommodation and offices facilities for lease in Port Moresby and at 11 Mile, outside Lae in Morobe Province,” it added.

PNG CR builds on its international connections and technical expertise through its parent company’s operations across four continents. The group’s business model operates under a design-construct-operate, A-Z solution to support the needs of its clients. This approach enables any concept to be effectively delivered since it is solely under the control of one contracting entity, creating a seamless flow that is efficient and robust, producing the quality product and service the group is recognised as delivering.

“We have years of local knowledge, a large national team to deliver projects, no supply chain disruptions, and provide an end to end service covering design, construction and operation,” the company added.

As a PNG company committed to driving national content, PNG CR’s recent community and social responsibility projects include the installation of Sexual Violence units across NCD and, in partnership with St Johns, an ambulance facility at the PNG CR facility in Baruni that will reduce ambulance response times for patients in nearby villages such as Baruni, Lealea, Papa, Boera and Porebada to less than 15 minutes.

Matt Cannon, the CEO for St John Ambulance, stated: “It’s through fantastic partnerships with companies like PNG CR, that enable us to provide essential medical services to the communities. It is great to see corporate clients giving back to the communities, even in tough economic times to those projects saving lives.”  

PNG CR has also supported St Johns Ambulance in its Covid-19 response activities, donating equipment and essential infrastructure along with assisting SME development in the local area through creating a transport and waste management service, and a personnel agency company.

“PNG CR is your local partner in PNG, your partner for success. Please come to one of our offices or check our website for further details of how we can assist in your development project,” the company ended.

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PNG Business News - July 11, 2022

Building Procurement that Benefits PNG

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PNG Business News - April 19, 2021

Bekker Says Contract Reviews Are Important

According to PNG Power Ltd, renegotiation and reviews of current contracts with independent power producers (IPPs) make the business healthier and more competitive (PPL). PPL managing director Flagon Bekker made the statement in response to questions raised by IPP industry groups (IP3) about PPL unilaterally reviewing and renegotiating current contracts and contractually negotiated prices to supply electricity to the grid. IPPs, according to Bekker, must be adaptable enough to evolve as fiscal, technical, and environmental factors change with time. “We asked IPPs to respond to a survey late last year where we asked them for their suggestions and next steps in dealing with the current commercial status quo,” he said. “In fact, we offered four or five alternatives to renegotiation. None responded.” According to Bekker, analysis shows that in terms of pricing, spending, and the overall economy, it is best to keep IPPs' share of the total market minimal. “Egypt is the best example of countries that have kept IPPs to a smaller share of the total (market) and found it easier to weather macro-economic shock and have greater freedom in deciding where to source finance for power investment in the future,” he said. “The IPPs not only make the macroeconomy weaker, but they are also the cause of their own problems. “PPL is leading to change this. “IPPs should not resist. “They should partner by suggesting solutions for the future. “PPL will send the survey out again and we hope they respond this time.” According to Bekker, there was a lot of analysis and support focused on post-negotiation evaluations, which shows that the renegotiation process contributes to the discovery of lessons and eventually the execution of those lessons. “Off the top of my head, here is a list of countries that have renegotiated PPAs in full or in part over the years: Philippines, Brazil, India, Argentina, Mexico, Turkey, Poland, China (among others),” Bekker said.


PNG Business News - March 31, 2021

PNG Ports Explains Their Decision to Deal with Covid-19

COVID-19 had a major impact on Papua New Guinea's exports and port movement, but the PNG Ports Corporation had taken political decisions to handle the situation. In recent months, the world has seen and continues to see a significant shift in everyday lives, which has had significant implications for industry, commerce, and transportation. The pandemic's emergence altered both economic and trade forecasts for 2020. New predictions have reduced forecasts to negative 4.9 per cent, down from an estimate of 3.6 per cent increase in container trade worldwide in the fourth quarter of 2019 to 2.5 per cent in January 2020. PNG Ports chairman Kepas Wali clarified that the company's earnings were the result of tight cost-cutting steps and prudent decisions taken by management. Last year, he said, the closing of borders and prohibitions surrounding the COVID-19 pandemic struck PNG Ports hard, which is dependent on trade. Despite COVID-19, PNG Ports has continued to operate all of its ports. “When COVID-19 hit the country and the world, the management of PNG Ports worked quickly and instituted certain protocols and prevention measures just so we can maintain our ports operations,” he said. “The management’s quick response to the situation has made it possible for all ports to operate during the hit by the pandemic through until now.” He said the pandemic's consequences on the company were expensive, but PNG Ports is happy with the positive results obtained by their management's swift reaction and aims to continue this going forward.

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PNG Business News - August 12, 2022

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