Madang Pacific Maritime Industrial Zone to be Redeveloped
by PNG Business News - August 30, 2021
Photo Credit: Islands Business
Madang Province's Pacific Maritime Industrial Zone will be redeveloped to become a regional fish processing centre.
The National Fisheries Authority and the Treasury Department are collaborating on the project's development and financing plan.
Ango Wangatau, head of the National Fisheries Authority, said the regional processing hub will bring together other Pacific Island governments to achieve a critical mass of tuna processing and export from the Pacific.
PNG will inevitably emerge as the leading country as the hosting hub.
According to him, the sector expects to gain more than 30,000 new jobs as a result of the PMIZ's launch, with income-producing over K3 to K4 billion.
“Maximising export earnings is contingent on increasing value-adding production and the PMIZ redevelopment is the platform to achieve it.
“The NFA Board is confident that this investment will lift PNGs value-adding capacity to another level in the commercialisation agenda.”
The National Fisheries Board, according to Wangatau, is dedicated to participating in these changes and is convinced that the plan's road map will enable the fisheries sector to contribute to the objective of "Taking Back PNG and Leaving No Child Behind."
He stated that he has been in discussions with super funds about partnering with NFA to invest in infrastructure and allowing private sector participation, which would help the industry to develop additional facilities and achieve the anticipated outcomes.
Reference: Yafoi, Melisha. Post-Courier (27 August 2021). “Pacific Maritime Industrial Zone In Madang Back On The Table”.
PNG Business News - March 11, 2021
Government on Track in Increasing Fisheries Products
According to the National Fisheries Authority, the government is on track to increase downstream processing of fisheries products to 50% by 2025. Papua New Guinea had already accomplished around 23% of the goal, according to Authority managing director John Kasu. “There are a number of (government) objectives such as downstream processing which we have to increase by 2025 – a 50 per cent production,” he said. “We are faring very well to meet the targets and, this year, we have already achieved about 23 per cent. The objective is to grow the sector and invest in infrastructure, bring the cost of doing business in Papua New Guinea down so that we get a lot of business happening.” The key driver, according to Kasu, will be tuna fisheries, with revenue generated going toward developing other fisheries such as coastal and inland. “That’s basically the drive for the next 10 years,” he said. “On tuna, 70 per cent is being exported. The aim is to reduce that number and (have) internal processing plants. Rather than exporting, we can put it through the factories here.” The 2.4 million square kilometre PNG fisheries region is the highest in the South Pacific. It has a large reef system, a number of islands, and a long coastline. It presents a significant monitoring and control problem. On average, the overall market value of the PNG capture is projected to be between K350mil and K400mil.
PNG Business News - March 11, 2021
NFA Seeks to Develop Fishing Industry
The National Fisheries Authority seeks to develop infrastructure in order to grow PNG's fishing industry. According to NFA managing director John Kasu, the company has already submitted a 10-year strategic plan to the National Executive Council, which will be unveiled in April in Parliament to lay the groundwork for the fishing industry's future. “Our aim is to build proper infrastructures such as ports and jetties and when we have proper infrastructures it will attract more investors and that will bring the cost of doing business down,” he said. Kasu claims that doing business in the country is costly and that most fisheries factories aren't running at full capacity. Currently, factories are producing about 30% because they are not receiving enough fish to process, and the NFA aims to raise that production to 80 or 90%. “Our outlook for 2021 is to start work on building the important fisheries infrastructure project such as the Wagang Fisheries Port project in Lae and other major fisheries ports,” he said. “We will be also working on other projects such as the Tuna terminal project in Rabaul and also small jetties throughout the coastal areas in the country.” NFA, he said, would look at downstream manufacturing to ensure that they can increase output as well. When they increase demand, more fish would be available to the factories, allowing them to operate at maximum capacity. Kasu clarified that, unlike other industries, the NFA has been largely unaffected by the COVID-19 pandemic since most of their fishing vassals operate offshore and the NFA has a large offshore presence.
PNG Business News - March 11, 2021
National Fisheries Authority Signs MoU with Korea
To collaborate in fisheries infrastructure development, the National Fisheries Authority (NFA) has signed a Memorandum of Understanding (MOU) with the Korea Fisheries Infrastructure Public Agency of the Republic of Korea on Fisheries Ports Development. The MoU provides a framework for both these groups to facilitate the sharing of best practices and exchange of technical and administrative human resource in the Fisheries Ports Development. This is also to support the development of the fishing industry. National Fisheries Authority Managing Director John Kasu said, “We’ve been having these discussions with the public agency in Korea and that has been for a number of years. So finally last year we agreed and as a result of that we agreed and as a result of that, we developed this MOU.” He said that this MoU is significant because they are building important fisheries infrastructure at the moment. “So it’s an important MOU, for us moving forward,” he said. Ambassador Kang, meanwhile, said. “The signing ceremony today may be small, but I’m sure this event is a big step toward our solidarity and our partnership in the future.”
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PNG Business News - August 12, 2022
Going Green: FAO-led EU-STREIT PNG Programme provides green-powered facility to local agricultural authorities to effectively service rural farmers
EU Funded UN Joint STREIT Programme in Papua New Guinea establishes a renewable energy-powered facility to support local government authorities in East Sepik Province, in delivering effective services to rural farmers and entrepreneurs. With generous support of the European Union, the FAO-led EU STREIT Programme officially opened a new 3 cluster office building on 10 August 2022, to host the Programme along with the East Sepik provincial divisions of Agriculture and Livestock, Cocoa Board and the National Agriculture Quarantine & Inspection Authority. The new-look office building is powered by 189 solar panels, which significantly reduce greenhouse gas emissions and reduces the collective dependence on fossil fuel. The solar panels supply the building with 90 KW of energy, relieving the resident agencies and authorities from relying on fossil-generated electricity for their needs, including lighting, ICT, water pumping, and temperature control. This zero-carbon-emission facility has the capacity to accommodate around 90 experts, technicians and extension service officers. Equipped with 120 batteries, the building can support staff’s operation for 36 hours in case of experiencing high cloud cover. The building, currently co-resided by the Programme and provincial agricultural bodies, will be transferred over to the East Sepik Provincial Administration at the end of the Programme and will continue to provide a sustainable base for sustainable support to agriculture-related services in the Province. Officiating the opening ceremony, His Excellency Ambassador Jernej Videtič, Head of the European Union Delegation to PNG, in his address, said: “I am happy to be here and to see that things are moving in the right direction to bring sustainable benefits to the people of East Sepik” Ambassador Videtič further highlighted that “with resources from the citizens of Europe to fund the EU-STREIT Programme in providing training, tools and support, the quantity and quality of cocoa, vanilla and fisheries products will increase. The objective is also to protect these quality products in international markets under the EU-STREIT introduced initiative of Geographical Indication.” The East Sepik Acting Deputy Provincial Administrator, Mr James Baloiloi, in his speech expressed his appreciation to the EU for funding the EU-STREIT Programme and the interventions that the Programme is doing in East Sepik and Sandaun provinces. “The STREIT Programme has gone ahead to introduce a culture of agribusiness that now enables the people of this Province and the people of Sandaun Province to have cash income that can sustain their livelihoods.” Mr Baloiloi added, “this infrastructure and building supports us and facilitates the service delivery to our people in this Province as well as Sandaun Province.” Thanking the EU for its generous funding support, Dr Xuebing Sun, the EU-STREIT Programme Coordinator, said: “the Programme has generated substantial impacts at beneficiary, local institutions and enabling business environment levels. This would not be possible with good partnership, increased ownerships and leaderships of the governments and implementing partners.” “This co-residing and close co-operation among UN agencies and their national partners in this integrated space reflect the partnership approach taken by the Programme to sustainably develop agri-enterprise activities in the region,” added Dr Xuebing Sun, adding “the new climate-friendly facility, which is fully powered by solar energy, also provides a space to welcome, advise and serve the farmers, including interested women and youth, who play very important roles along agri-food value chains”. “This kind of ‘green investment’ enables a shift to a more green economy for local institutions and infrastructure to meet cocoa, vanilla and fishery value chains stakeholders” advised Anthony Bennett, the FAO Lead Technical Officer of the EU-STREIT PNG Programme. United Nations’ implementing partners supporting the FAO-led EU-STREIT PNG present in the office include the International Labour Organization (ILO), International Telecommunication Union (ITU), United Nations Capital Development Fund (UNCDF) and United Nations Development Programme (UNDP). The EU-STREIT PNG is being implemented as a UN Joint Programme (FAO as leading agency, and ILO, ITU, UNCDF and UNDP as implementing partners), is the largest grant-funded Programme of the European Union in the Country and the Pacific region. It focuses on increasing sustainable and inclusive economic development of rural areas through increasing the economic returns and opportunities from cocoa, vanilla and fishery value chains and strengthening and improving the efficiency of value chain enablers, including the business environment and supporting sustainable, climate-proof transport and energy infrastructure development.
Paul Oeka - August 12, 2022
CPAPNG annual meet to discuss global changes
Certified Practicing Accountants of Papua New Guinea will be hosting their 23rd annual conference with about 400 participants nationwide expected to attend the two day conference organized by CPA PNG in Lae Morobe Province from August 18 to19, 2022 CPAPNG was established in 1974 and has come a long way with a lot of achievements along the way. Over the years its membership grew from mere numbers to just below 2000 which includes 40% locals and 60% non-citizens. . The CPA PNG conference is one of CPAs three significant annual events on their calendar with this year's conference theme; Is PNG prepared for the recession?" The conference will see certain key leaders in executive management roles from both the public and private sector delivering presentations in line with the conference theme. CPA PNG's Executive Director Mr. Yuwak Tau said the theme of the conference was selected because there was a decline in the global economy and the general so when that eventuates small economies tend to be affected. He added that they have basically selected the theme that was current and appropriate so that members would find relevance during the course of the conference. “The meeting is to create intellectual and interactive discussions with seasoned business leaders to present and share their ideas and experiences to find probable outcomes within their business environment and industries in times of economic uncertainty”. Some of the topics to be presented by consultants are current significant issues such as crypto currency, transport pricing, bit coin block chain technology and stress management. This were some topics that people have heard about but have not really ventured into. Mr. Tau added that it would be quite hard to measure the benefits immediately but the participants will be able to look at insights shared during the conference that would be appropriate in the areas of employment, accounting, finance, auditing and others. The conference will create an environment where participants can also share information so That they can take points to apply in their work place and industries. In relation the Kumul petroleum Holdings had also presented a cheque of K50, 000 to support the coming event at their head office. The cheque was presented by KPHL's executive General Manager Corporate Affairs, Luke Liria and was received by CPA PNG Chairman Richard Kuna. Mr. Liria said KPHL has appreciated the effort put in by CPA PNG to ensure that its members in State owned enterprises and the private sector were given appropriate level of training and as part of KPHL's corporate social responsibility and commitment they hope that their support will continue to help the organization facilitate and make sure the accounting practices is of international standards. CPA PNG's Chairman, Richard Kuna acknowledged KPHL for their support and stated that he was looking forward to seeing KPHL being a big part of the upcoming conference.
Paul Oeka - August 12, 2022
BSP: Small to Medium Enterprises Loans reaches 60% rate.
Bank South Pacific's Financial Group Ltd Chief executive officer Mr. Robin Fleming has recently announced that the bank has granted more than K200 million as loans to small to medium enterprises under its credit scheme facility that the then Marape government had released to the bank to support Small to Medium Enterprise (SME) and local businesses during the peak of the COVID-19 pandemic. Mr. Fleming said about 1523 customer loans have been approved, that is about 60% of loan approval rates since 2019. Prior to this announcement BSP and the Department of Commerce and Industry (DCI) had agreed to increase the maximum loan under the small-to-medium enterprise (SME) credit enhancement facility to K5 million. The previous limit was K3 million when the Government first released K100 million as security to the bank under its K200 million SME allocation for BSP to rollout the loan facility last year. Fleming stated that even though they have exhausted and rolled out the bulk of the governments relief funds for SME's they will still be running the SME loan program under its credit facility scheme “At this stage, BSP has not received the funding planned for this year but that is not preventing BSP from giving loans under the facility”. “There remains significant capacity for BSP to continue to assess, approve and funds loans under the facility”. “The agreement with the Government did provide for momentum in the SME facility to be maintained while allowing for the Government budget and funding process to be adhered to”. As part of the government SME relief funding, Commercial Banks were allocated K200 million with BSP Financial Group receiving K100 million, NDB K80 million and another K20 million was allocated to the department of Commerce and Industry BSP could not comment on how the National Development Bank (NDB) is dealing with the K80 million it received, but the intent, when discussions were initiated, was that BSP would be lending to more mature SMEs and NDB to startup ventures. In addition to enabling SMEs to access lower cost of funds through the facility with BSP, the bank has also made it a responsibility to ensure that Government funding is preserved by not approving loans that have a higher risk of default.