Prime Minister Hon. James Marape expressed his confidence that the Papua New Guinea economy is on the brink of an unprecedented surge, fueled by the advancement of major resource projects within the country. He emphasised that this remarkable economic expansion will inevitably foster the growth of the micro, small, and medium enterprises (MSME) sector.
During his address at the ‘5th SME Breakfast with The Prime Minister’ held at APEC Haus in Port Moresby on Tuesday, June 27, 2023, PM Marape highlighted the significance of five major resource projects—Papua LNG, P’nyang LNG, New Porgera mine, Wafi-Golpu mine, and Pasca LNG—as catalysts for this imminent economic leap.
“The economy is now positioned to soar like never before,” declared PM Marape before an audience comprising small business owners, corporate executives, senior public servants, and politicians.
“Currently, Papua LNG Front End Engineering and Design (FEED) is progressing as planned. By early next year, we anticipate reaching the Final Investment Decision (FID) stage. This project entails a construction worth approximately US$6 to US$7 billion. Additionally, the prospects of LNG production are promising,” elaborated PM Marape.
“We are committed to ensuring a seamless transition from Papua LNG construction to the commencement of the P’nyang project, guaranteeing a continuous inflow of construction investments into our economy even beyond 2027, when the Papua LNG construction concludes. The combined value of these two LNG undertakings alone will exceed US$10 billion, spanning from 2024 to 2032.
“Furthermore, we have successfully renegotiated improved terms for Wafi-Golpu, granting Papua New Guinea a 57 per cent share of the pie, including allocations for landowners, the Morobe Provincial Government, and the National Government.
“The New Porgera venture provides even better terms than Old Porgera, granting us a 51 per cent stake. These initiatives reflect our steadfast commitment to the ‘Take Back PNG’ initiative, ensuring greater benefits for our economy.”
PM Marape emphasised that a robust economy, driven by these five major resource projects, will directly contribute to the growth of MSMEs and bring his vision of a K200 billion economy by 2030 closer to realisation.
“We can effortlessly sustain this K200 billion target if all Papua New Guineans actively participate in the economy,” he stated.
Additionally, PM Marape announced that the Government has partnered with Women’s Micro Bank as a lending institution for SMEs, joining Bank South Pacific and National Development Bank. The Government is also exploring collaborations with other institutions, including TISA Savings and Loan Society, to provide a range of financing options for MSMEs.
“To ensure inclusivity, we encourage all Papua New Guineans to embark on small business ventures aligned with their skills and interests. Alternatively, they can explore opportunities in agriculture, sustainable forestry, and fisheries. I assure you that we are committed to addressing infrastructure needs and ongoing law-and-order challenges to facilitate the growth of businesses,” assured PM Marape.
