According to James Marape, Papua New Guinea's "strategic position" in relation to Asia's main economies must be used by the country's business community and transformed into commercial possibilities, particularly in the field of food production and supply.

The Prime Minister noted that the populations of the Philippines, China, and Indonesia are likely to face food security challenges in the near future and that PNG must be prepared to enter this market.

Prime Minister Marape addressed members of the corporate community in the nation during a business breakfast meeting co-sponsored by Kina Bank and the Business Council of PNG.

The Prime Minister highlighted the Government's efforts to re-examine the renewable resources sector of forestry, fishery, and agriculture and move into downstream processing while giving an overview of the country's economic prospects for the next five years.

PNG's closeness to Asia's populous economy, he noted, presents the nation with excellent potential to export food to these countries.

“I point Papua New Guinean businesses to this area of investment in agriculture business and the food industry,” he said.

“You have 110 million in the Philippines who are living on 300,000 square kilometres of land. They will have food security issues in the future.

“You have 270 million Indonesians. They will have food security in the future.

“You have more than K1.4 billion people in China.”

These nations already have solid bi-lateral connections with PNG, according to the Prime Minister, which provides the foundation for commercial prospects to be exploited and developed.

PM Marape encouraged investors to explore this field, noting that agreements with the government to carry out these commercial activities always stand and go through regardless of government changes.

“Despite some seasonal economic fluctuations and seemingly weak economic fundamentals, PNG is blessed with a robust system of democracy where the three arms of government are separate,” said PM Marape.

“The Judiciary, for example, will function independently to safeguard all people in our country, including investors, to live within the law and agreement. This foundational tenet of our democracy makes Papua New Guinea a safe place for investment and business addresses.”

The Prime Minister urged investors to begin seriously considering food production and supply for Asian markets, and stated that the government would welcome such collaborative ventures and partnerships.

Reference: Department of Prime Minister and National Executive Council (2 February 2022). “PM Marape Encourages Food Exporting Businesses By Png For Asian Markets”.

From the 3rd to the 8th of February 2022, James Marape, MP will make official trips to the People's Republic of China (PRC) and then to France from the 9th to the 13th of February 2022.

The Prime Minister is visiting the PRC at President Xi Jinping's invitation to attend the Beijing Winter Olympics opening ceremony on February 4th. Apart from this significant international sports event, Prime Minister Marape will meet with President Xi and Premier Li Keqiang for high-level bilateral talks. Indeed, the sports event is only a minor portion of a four-day calendar of events.

Following his visit to the People's Republic of China, Prime Minister Li Keqiang will go to Brest, Western France, for the One Ocean Summit, which will be hosted by French President Emmanuel Macron.

“In terms of the visit to the PRC, I intend for it to be more practical and meaningful and draw tangible outcomes unlike previous visits and will be specifically focusing on securing Business, Trade and Investment opportunities to complement Papua New Guinea’s socio-economic agenda,” the Prime Minister said.

“In this context, I will seize the occasion to invite potential and reputable Chinese State Corporations to invest in downstream processing of our Oil and Gas, Mining, Fisheries, Agriculture (Rice, Coffee & Cocoa, Livestock) and Forestry sectors,” he said.

“It is my intention to secure major Chinese Corporations and offer them incentives that are well within our investment regulations to assist PNG to develop the above sectors to produce and add value to the finished products that will sustain our domestic markets and also export to the lucrative Chinese market.”

 Prime Minister Marape said the tour will give his group a chance to meet with industry leaders and see firsthand the downstream processing facilities and activities of the newly formed Special Economic Zones.

Apart from attending the One Ocean Summit to address conservation and sustainable management of our vast seas, particularly the Pacific, Prime Minister Marape will meet with President Macron for high-level bilateral discussions during his visit to France.

He will also meet separately with Mr Patrick Pouyane, CEO of Total Energies, a French petroleum company, to finalize plans and schedules for the different milestone phases leading to the building of the Papua LNG and P'nyang Gas Projects.

Leaders will be able to participate in discussions about how to protect and conserve the world's oceans from the effects of climate change, as well as how to harness and use the ocean's potential to develop mitigation and adaptation technologies that will help reduce emissions and provide environmental protection.

Furthermore, the focus of the discussions will be on cooperative methods to strengthen port security and combat illicit activities such as IUU fishing (Illegal, Unreported, and Unregulated Fishing).

The bilateral talks with President Macron will provide an opportunity for both leaders to elevate existing bilateral relations and explore potential areas of cooperation with the goal of expanding current engagements in biodiversity, agriculture, forestry, fisheries, and climate change, among other things.

On these two international engagements, the Prime Minister will be accompanied by a smaller delegation of relevant Ministers, Members of Parliament, and Senior Government Officials who will provide policy advisory support in order to produce tangible results that will complement PNG's socio-economic agenda.

The Prime Minister and his delegation are scrupulously adhering to all COVID-19 international travel norms.

Reference: 

Department of Prime Minister and National Executive Council (2 February 2022). “Prime Minister Marape To Embark On Official Visit To China And France In February 2022”.

Photo: Paga Hill Development

Hon. Prime Minister James Marape has told the Papua New Guinean business community and international investors that the country's economy would continue to develop in the coming years, with even more growth expected in the next five years as significant national investment projects come online.

The Prime Minister spoke recently at a business breakfast meeting co-hosted by Kina Bank and the Business Council of PNG, which was attended by representatives of the country's business community.

The Prime Minister presented a picture of the gradual expansion of the economy from K300 million in 1975 to one that is currently pushing over the K100 billion mark in 2022, while underlining the "robustness of our democracy" that has contributed to PNG's current business-operating atmosphere.

“In 1975, our economy was a small one of K300 million. (In) 2008, it was up to K40 billion. By the time we started this business breakfast in 2013, and as a result of PNG LNG construction, we emerged to a K70/K80 billion economy by 2013/2014, and when we took office in 2019, we were a K90 billion economy.

“Today, for the first time in our nation’s history, our economy is pushing past K101 billion. (This) is a landmark sign that our country is a country of growth and opportunity.

“That to me, is the indication that the foundations and fundamental tenets of our country still remain strong, spelling the robustness of our democracy in spite of many speculations (to the contrary),” said the Prime Minister.

He predicted that Papua New Guinea will expand even more in the next five years, citing important national projects such as Papua LNG and P'nyang, which are expected to start building soon.

PM Marape also mentioned the Wafi-Golpu and Porgera mines, which he stated should be operational within the next five years, the most recent of which is Porgera, whose re-opening talks are in the last stages of landowner discussions.

“So a lot of activity is happening in the extractive industry space. I pay my commendation to all our investors who have interest in our oil and gas, and mining spaces,” he said.

PM Marape reassured investors that "PNG is the perfect location to invest" and urged them to keep their enterprises functioning in the nation.

Since entering office, he has pushed for economic diversification, particularly in the renewable resources sector, and has urged investors to join the government in downstream processing in the forestry, fishery, and agriculture sectors.

The offer remains open, according to the Prime Minister, and the government would welcome commercial collaborations in this field.

Reference: Department of Prime Minister and National Executive Council (2 February 2022). “PNG A Country Of Growth And Opportunity: Pm Marape Tells Investors”.

Papua New Guinea's Prime Minister, James Marape, claims his government is devoted to rural development.

He remarked this while presiding at the opening of Siwi Utame Agro Technical High School and Siwi Utame Loop Road in Ponowi Village, Ialibu, Southern Highlands.

Both are initiatives of the Governor of the Southern Highlands Province, Hon. With the help of the National Government, William Powi was able to achieve his goals.

“My Government is visiting the most remote parts of Papua New Guinea,” PM Marape said before leaving by helicopter for Kapuna in Kikori, Gulf, to open a new Level 4 hospital.

“We want to tell our rural people that all hope is not lost yet.

“Just because not much development has been taking place in rural areas over the last 46 years does not mean a gloomy future for us.

“The future of this country is in our own hands, especially in places like Ponowi, where there are no tribal fights.

“Such places will receive more recognition from the Government in terms of roads, schools, and others services.”

PM Marape stated that the national, provincial, district and municipal governments should work together to provide services to the rural population.

Governor Powi's Southern Highlands Provincial Government, he claimed, was delivering impact projects like the East Pangia Road, Wiru Loop Road, and other minor road improvements, as an example.

The Prime Minister praised Governor Powi for constructing the road and school to better serve the people and pledged his government's support for these projects, which would benefit over 50,000 people.

“For many years, before we took over the government in May 2019, there was little support to Southern Highlands Provincial Government (SHPG) from Waigani, but that has improved and in the last two years, SHPG has invested in roads and schools and other rural projects consistent with Government policies," PM Marape said.

“That is the reason why I am here at Ponowi today to compliment and support a working Provincial Government to continue these two important projects,” PM Marape said.

He also praised the residents in the area for allowing the use of their land for these critical services.

PM Marape stated that any land claims will be subjected to a proper survey and appraisal prior to payment, as was done recently with the Walume Station land.

The Prime Minister further informed the public that his government will continue initiatives begun by the previous administration "if the programs are helpful to the community and Governmentcountry, as we have been supporting the Western Pacific University outside of Ialibu Station."

Reference: Department of Prime Minister and National Executive Council (30 January 2022). “Pm Marape Says His Government Is Committed To Rural Development.

The PNG Expo 2020 Pavilion in Dubai hosted a Business to Government (B2G) networking event in cooperation with IBMC Global, a Dubai-based investment firm, which drew interest from investors in tourism, information and communication technology (ICT), transportation, and wood trade.

Investors from the UAE and India met and shared information on prospects in tourism infrastructure, ICT, transportation, and forestry trade at the networking session.

A Letter of Interest (LOI) has been filed by one of the corporations interested in investing in wood, transportation, and tourist infrastructure, while others in the ICT field will do so shortly.

Minister for Information and Communication Technology Timothy Masiu, along with officials from his ministry and the Department of Information and Communication Technology, as well as PNG Pavilion representatives from the PNG Investment Promotion Authority, PNG Tourism Promotion Authority, and the Department of Foreign Affairs and International Trade, presided over the networking event.

Minister Masiu encouraged investors to look into the opportunities that are available in their areas of interest.

"Papua New Guinea is a safe destination for you to invest and I encourage you to take up the opportunities provided by the country, " Mr Masiu said.

He reiterated the PNG government's position that information and communication technology (ICT) is a catalyst for investment in other industries such as eco-tourism, forestry, environmental and conservation, as well as the government's core business of providing basic services such as education and health care.

As a result, the government has launched its digital transformation strategy, which includes essential components such as allowing government-to-citizen (G2C), government-to-government (G2G), and government-to-business (G2B) services (G2B).

Minister Masiu also stated that new technologies such as fintech, artificial intelligence, and blockchain are important in PNG, and that investors in these fields are invited to collaborate with the government on these initiatives.

“The digital government investment will allow local ICT SMEs to grow as they lean on government as a building block and partner with key investors like yourselves,” he told potential investors.

Minister Masiu specifically requested that technology and mobile service companies invest in PNG, stating that these were key sectors for which the government would seriously examine offers.

Reference: Papua New Guinea World Expo 2020 (30 January 2022). “Minister for ICT officiates at B2G networking session in Dubai”. 

PNG Minister for ICT Timothy Masiu and UAE Minister of State for Economic and Commercial Affairs Ahmed Ali Al Sayegh had a high-level discourse on trade and ICT in the UAE Ministry of Foreign Affairs and International Cooperation in Abu Dhabi recently.

Minister Masiu informed Minister Al Sayegh that both PNG and the UAE have maintained cordial and friendly ties since signing the Joint Communique in New York, USA in 2017.

“PNG highly values the cordial bilateral relationship between our two countries and there is a strong willingness on the part of the PNG Government to further strengthen and deepen the relationship.”

Minister Masiu mentioned that the UAE Foreign Minister, His Highness Sheikh Abdullah Bin Zayed Al Nayan, visited Port Moresby, Papua New Guinea, in 2014, and that this was reciprocated by Minister Masiu's visit recently, following the visit in 2021 by Walter Schnaubelt, the former PNG Minister for Forestry.

“I encourage both countries to further enhance high-level visits at both the leaders’ and officials’ level.”

Minister Masiu said he went to Expo2020 to take advantage of any chances presented by the event and to interact with the UAE on a political level in order to advance bilateral cooperation for mutual benefit in cultural exchanges, tourism, commerce and investment, and people-to-people connection.

Minister Masiu went on to highlight PNG's desire to begin negotiations with the UAE on an information and communication technology memorandum of understanding, citing the UAE as a global pioneer in digital transformation.

“The PNG Government has a digital transformation policy and a desire to modernize its whole-of-government ICT infrastructure and shared services. It cannot do that by itself and is seeking international support through long-term partnership arrangements and with like-minded countries like the UAE.”

Minister Masiu stated that the UAE has a sophisticated digital infrastructure and an artificial intelligence agenda and that the PNG government is seeking the UAE's help and commitment to PNG's modernization initiatives through bilateral, technical, and business-to-business collaboration.

Minister Masiu stated that Dubai's and the UAE's economic success is an outstanding case of strategic technology investment, as detailed in the Digital Transformation in UAE 2020 study.

“Papua New Guinea is very keen to explore bilateral support in the Small and Medium Enterprise (SME) space, technology investments and explore trade opportunities that will be of mutual benefit.”

His Excellency Mr Joshua Kalinoe, Papua New Guinea's Ambassador to Belgium, the European Union, and the United Arab Emirates, and Commissioner-General of the PNG Pavilion at the Dubai 2020 Expo accompanied Minister Masiu.

Reference: Papua New Guinea World Expo 2020 (30 January 2022). “Minister Masiu meets U.A.E. Minister of State for Economic and Commercial Affairs: Seeks Cooperation”.

His Excellency Mr Joshua Kalinoe, Papua New Guinea's Ambassador to Belgium and the EU and Commissioner General for Expo2020, has received multiple Letters of Interest from firms in the UAE and India who recently attended the B2G Economic Networking Forum in Dubai, United Arab Emirates.

IBMC Global, a UAE-based investment firm, organized the Economic Forum in collaboration with the PNG Expo 2020 Pavilion.

In addition, IBMC Global is in charge of the SME e-commerce Economy platform.

Mr Sajith Kumar, CEO and Managing Director of IBMC Global, moderated the PNG B2G networking session, which was officiated by the PNG Minister for Information, Communication and Technology, Hon. Masiu, Timothy.

Companies interested in investing and trading in ICT, transportation, smart city technologies, and agriculture goods, including timber imports, submitted letters of intent.

The PNG Pavilion team will discuss specifics with the firms and link them with key government agencies as well as PNG enterprises and SMEs, according to Ambassador Kalinoe.

"I am happy and excited by the response received from the PNG Pavilion Expo team's continuous efforts in promoting and engaging with investors and traders at Expo2020.

"The target-based participation strategy approved by Prime Minister Marape's Cabinet for the team in Dubai to implement is working," Ambassador Kalinoe said.

He explained that, in addition to promoting trade and investment prospects, the PNG Pavilion initiatives help the nation gain awareness, which has hitherto been neglected.

Ambassador Kalinoe advised indigenous enterprises, particularly SMEs, to carefully consider expanding their operations into the worldwide market.

"Our first priority at the World Exposition in Dubai is to create opportunities for the PNG SMEs to prosper.

"Accordingly, we are in contact with the PNG SME Cooperation and some of the LOIs and other opportunities would be referred to the Cooperation for connectivity purposes", Ambassador Kalinoe said.

Reference: Papua New Guinea World Expo (87 January 2022). “PNG Expo2020 receives interests for Investments”,

Hon. Minister of Information and Communications Timothy Masiu, who was recently in Dubai to deliver the Keynote Address at the World Expo 2020 in the PNG Investment Forum themed "Eco-Tourism and Connectivity – Living in Balance with Nature," is pleased with the efforts of the lead Department of Foreign Affairs and Trade and the Management team of the PNG Pavilion in Dubai.

On the request of his brother, Minister of Foreign Affairs and Trade Hon. Masiu, Minister Masiu attended the PNG Investment Forum. Soroi Eoe, as part of the topic "Eco-Tourism and Connectivity — Living in Balance with Nature."

Minister Masiu will deliver the Keynote Address on ICT as a facilitator of connection in all sectors of our economy, with the goal of convincing investors interested in green economy and eco-tourism to choose Papua New Guinea as an investment destination. Minister Masiu will emphasize the Marape-Basil Government's Digital Government strategy and legislative reforms, which would enable Eco-Tourism and Connectivity for potential investors.

Minister Masiu and his delegation on arrival in Dubai were well received by H. E Ambassador Joshua Kalinoe, PNG Ambassador to the Kingdom of Belgium and Commissioner General of PNG Pavilion in Expo Dubai 2020, Deputy Commissioner-General Mrs Jacinta Manua and the organizing team. This was made possible by unremitting support of the Department of Foreign Affairs and Trade, notably officers Ms. Janet Raula-Ila - Acting Director (America, Europe, Middle East & Africas – AMEA) and Ms. Winniehayne Herry- Ugava MBE - Senior Protocol Officer.

“I wholeheartedly thank PNG’s Pavilion management and organizing committee led by Department of Foreign Affairs and Trade and all officials including staff on-site from Investment Promotion Authority (IPA), Tourism Promotion Authority (TPA) and Department of Information and Communications Technology (DICT). The government needs to recognise our hard workers that put our country first on the global stage.”

“I want to thank Ambassador Kalinoe for his leadership in showcasing our country on a global stage.”

“I am reminded of the good works done and on that token extend my utmost gratitude to my brother the former Minister for Forest Hon. Walter Schnaubelt set the pace by coming and visiting PNG’s Pavilion in Dubai and promoted the investment theme ‘Eco-Tourism and Connectivity – Living in Balance with Nature’.”

“I am very impressed with H.E Ambassador Joshua Kalinoe and the team on the ground, and sincerely acknowledge and recognize their dedication and leadership to showcase Papua New Guinea on the global stage as an investment destination”

Before returning to Papua New Guinea at the end of the month, Minister Masiu and his technical delegation will continue their meeting with additional possible investors and government partners in the ICT industry.

Reference: Papua New Guinea World Expo (27 January 2022). “Minister Masiu acknowledges PNG's efforts in Dubai Expo”

Hon Timothy Masiu wants tourists and adventurers visiting Papua New Guinea to be able to experience a mix of modern and traditional PNG lifestyles, so that they can have a cold drink from the fridge, watch the news, and keep in touch with their loved ones even when they are on the most remote islands, hilltops, and valleys.

Minister Masiu was addressing at the third Papua New Guinea Expo2020 Pavilion's investment session, which aimed to promote PNG's eco-tourism and information and communication technology industries to the rest of the globe. The forum is one of the main events put on by the PNG exhibition team in Dubai. The forum took place during the expo's "Travel and Connectivity" theme week.

Minister Masiu said the expo's theme of Connecting Minds and Creating the Future heralded a new age of fresh ideas and innovations aimed at boosting trade and investment, which is one of the PNG government's main priorities.

“Our culture and environmental diversity make our country a most attractive destination for travellers, investors, explorers, scientists and environmental enthusiasts,” he said.

“We do not have sufficient air connectivity to major world destinations, including the UAE and the Gulf States. Also domestically we need roads, wharves and air connectivity as well as internet connectivity. Therefore we need investors and experts that would help us to plan and deliver the connectivity system in a sustainable way. We need partnerships for mutual gains and we need plans that respect and are supportive of conserving our environment so that we can continue to live in balance with nature as part of the global agenda to save our planet from self-destruction.”

The event was attended by a number of significant business and government executives from the UAE and Africa, including His Excellency Humaid Ben Salem, UAE Secretary-General and Chairman of the UAE Chamber of Commerce, who officiated at the event.

In his remark, HE Salem noted that this was his second time attending a PNG event at the expo and that he appreciated PNG maximizing its involvement in the fair by holding such activities. HE Salem also attended PNG's roundtable discussions on education, science, and the green economy in December 2021.

HE Salem stated that technology is driving the world and that artificial intelligence (AI), the Internet of Things (IoT), fintech, blockchain, and cloud computing, among other things, are controlling all industries worldwide.

He also stated that eco-tourism is a natural gift and that the exhibition might help PNG increase its tourist development.

He added that natural eco-tourism in the UAE includes deserts, sand dunes, mangroves, and beaches. During the exhibition, he suggested PNG might benefit from a handful of their case studies.

Reference: PNG World Expo 2020 (26 January 2022). “Minister Masiu opens third Investment Forum on Connectivity and Eco-Tourism”. 

Photo credit: PNG PM Media Unit

The formation of the Independent Commission Against Corruption (ICAC) is advancing, with the ICAC Appointments Committee convening for the second time this year in Port Moresby.

Hon. Prime Minister David Cameron James Marape emphasized the urgent necessity for the government to combat the "disease of corruption" in the country, urging the Committee to move the process forward as soon as possible before Parliament reconvenes for the National General Elections this year.

The meeting, which was hosted by the Department of Justice and Attorney General (DJAG) at its WNB Haus office and chaired by the Prime Minister, discussed the Commission's composition, check and balance and administrative mechanisms, reporting structure, and other administrative and legal requirements, including recruitment for its composition.

The Undisclosed Wealth Act and the Whistle Blowers Act are two pieces of supporting legislation that will help the Commission operationalize its work once it is up and running, according to Prime Minister Marape.

The Committee has agreed to a fairly severe process, the specifics of which will be published when the Commission is ready to begin.

These efforts by DJAG come on the heels of a record number of bills sponsored by the department and enacted by Parliament last and this year, helping to improve PNG's Corruption Perception Index (CPI) by Transparency International, according to a recent study.

PNG has declined from 142nd rank out of 180 nations to 126th place in the 2021 Corruption Perception Index, according to ICAC Interim Chairman Thomas Eluh.

"This is a massive drop in one year, highlighting the positive and strong efforts of the Marape Government in tackling rampant corruption in the country, " said Eluh.

"The full operationalisation of ICAC will further improve PNG’s grading on the CPI."

Prime Minister Marape urged the Appointment Committee, the ICAC team, the DJAG, and other integrity organizations to work towards lowering PNG's CPI ranking to double digits, noting that the CPI rating for 2021 is highly positive for the Government and the country.

He also asked DJAG to use the three years leading up to the country's 50th birthday in 2025 to enhance legislative and administrative systems in time for the Golden Jubilee festivities.

Chief Justice Gibbs Salika, ICAC Interim Chairman Thomas Eluh, Attorney-General Dr Eric Kwa, and other senior officials of DJAG attended the meeting.

Reference: Department of Prime Minister and National Executive Council (27 January 2022). “Work Progressing On The Establishment Of Independent Commission Against Corruption

According to the New Ireland Chamber of Commerce and Industry, local jobs would be produced throughout the upgrading and refurbishing of ports around the nation, which will cost roughly K1.48 billion.

Nolis Thomas, president of the Chamber, said the initiative might boost the province's export earnings.

The Australian government has granted AU$580 million (K1.48bil) to rebuild and enhance ports around the country.

Kavieng port will get K66.4 million, according to State Enterprise Minister William Duma.

“Just by having the project here will provide employment for people in the province,” Thomas told The National.

“In the long run, the possibility of increasing the export of other products, mainly marine, will increase.

“That’s been talked about but how much will come to reality is something that we will wait and see.

“But it will increase the possibility of exporting other goods.

“We have oil palm which is one of the main cash crops.

“So oil palm, logging and fisheries will be boosted and return a little for the province in oversea currencies.”

In a virtual ceremony, Prime Minister James Marape and Australian Prime Minister Scott Morrison signed the agreement.

Morrison stated that the agreement with PNG was aimed at ensuring the country's sovereignty, independence, and self-sufficiency.

In the 1960s and 1970s, the Australian colonial authority developed all of Papua New Guinea's ports.

Reference: The National (25 January 2022). “Ports upgrade will create job opportunities, says chamber”. 

Papua New Guinea's economy is expected to grow by 5.4% in real term in 2022 following a muted recovery of 1.5% in 2021, according to National Budget estimates.

According to BSP’s 2021 Quarter 4 Pacific Economic and Market Insight, the 2022 National Budget and the Asian Development Bank (ADB) estimate real GDP growth in 2021 at 1.5% and 1.3%, respectively. In 2022, the PNG Government forecasts 5.4% growth underpinned by large public infrastructure spending. There is potential for further upside from election-related spending, while the resurgence of COVID and low vaccination rates in the country pose significant downside risk.

BSP Group Chief Executive Officer Robin Fleming says that, “despite a challenging 2021, BSP continues to maintain its efforts to meet the evolving financial needs of our customers.”

He said, “We have maintained funding momentum with our successful SME Credit Enhancement Scheme Loan facility, and total loans funded under the scheme now total in excess of K125m with a firm commitment from Government to provide the next tranche of K100m in coming weeks to further support this important sector.”

Mr Fleming further added that, BSP reduced the Loan equity requirement from 30% to 10%, and increased maximum loan amount from K3m to K5m to support SMEs. For Personal Loans, BSP also recently increased the maximum borrowing limit for our unsecured Personal Loan product from K50, 000 to K75, 000.”, which hopefully will result in an outcome more beneficial to BSP’s shareholders.

In relation to the Market Concentration Tax Levy introduced in the 2022 budget, Fleming noted that BSP had participated in a consultation meeting with Department of Treasury in January and looks forward to further consultation on this with Government.

“Meanwhile, with BSP branches across the Pacific, border restrictions have adversely affected GDP growth and increased public debt in tourism dependent economies. Resuming travel, safeguarding health, promoting fiscal sustainability and strengthening economic management is key to developing a resilient Pacific.  Further, increasing international travel and commodity prices in 2022 bode well for economies in the Pacific region.  However, the pandemic and its variants loom large over economic forecasts in the Pacific, concluded Mr Fleming.

Article courtesy of Bank South Pacific

Stephen Mombi, the Acting Secretary of Agriculture and Livestock, complimented the European Union for sponsoring the EU-STREIT PNG Program, which focuses on the development of sustainable agri-food value chains in the Sepik area.

Mr Mombi was presenting at a two-day Geographical Indication (GI) Awareness Conference recently hosted in Port Moresby by the EU-funded UN Joint STREIT Programme in collaboration with the PNG Investment Promotion Authority.

Mr Mombi explained GI as an intellectual property certification that helps develop brand names for traditional original products to feed the overseas markets, citing the country's vision to build a modern climate-smart business-oriented agriculture sector with diverse products and international cooperation in this sector.

He stressed that GI is a new road map and an ongoing adventure in which the government is excited to participate.

Meanwhile, IPA Managing Director Clarence Hoot stated that GI is entrenched in PNG Trade Policy as a major strategic area to continue to argue for the extension of protection for particular items unique to PNG Geography, such as coffee.

He stated, “The role played by the EU-STREIT PNG in GI initiative as a huge step in the right direction for agriculture and for Government's agencies to take notice that GI is an opportunity to improve infrastructure, facilities and the processes to help our local farmers.”

The workshops were delivered by Pavel Burian, the EU-STREIT PNG's Deputy Programme Coordinator, who emphasized that trademark registration of items originating from PNG under GI seeks to preserve distinctive expertise, regionally related and traditional qualities, and manufacturing techniques.

He went on to say that the conference was a novel concept that was part of a collective consultation process to propose trademark law reforms.

"Together with the Intellectual Property Office of IPA, we already took initial steps to revise relevant framework, primarily the Trademark Law and related legislation, launched identification of pilot products. We started preparation of a roadmap for Geographical Indication implementation to PNG legal framework and its full-scale rollout nation-wide,” said Dr Burian.

Representatives of locally created chocolate, vanilla, coconut, and fish products presented a panel discussion on the details of their goods and how they might be certified under GI during the conference.

Reference: Loop (21 January 2022). “Mombi Lauds EU Program”.

The Autonomous Bougainville Government has signed a Memorandum of Agreement with a South Korean partner for investment prospects in Bougainville through its commercial arm (BIPCL).

The Memorandum of Understanding with South Korean partners led by Mr Geun-Su Kim will result in the formation of a joint venture called BOU&KO Ltd, which will be certified as a public entity to promote investment in Bougainville from Korea.

Bougainville was declared "open for business" by the ABG Minister of Commerce, Trade, and Industry, Hon Patrick Nisira, in 2021. Minister Nisira formally encouraged international investors to Bougainville with this declaration, which is part of the country's broader economic plan.

Minister Nisira stated that while the ABG welcomes international investment, it also demands a fair return and involvement in large-scale projects in the form of ownership and equity.

This cooperation is expected to leverage Korean international investment and technology while also mobilizing the domestic workforce to create infrastructure, including roads, telecommunications, energy, schools, and hospitals, as well as develop resources and industries.

This investment in Bougainville is welcomed by the Toroama-Nisira government. Bougainville's economic growth will be aided by private sector investment as the country moves closer to achieving its political goal of independence.

Reference: Autonomous Bougainville Government (21 January 2022). “ABG partners with Korea for investment opportunities”. 

THE governments of Papua New Guinea and Australia have signed an agreement worth USD435 million (AD580 million or PNGK1.48 billion) for Australia’s funding of the refurbishment and upgrade of ports in PNG.

The massive funding, to be executed through PNG Ports Corporation, is the biggest single investment by Australia in any sector and project in the history of the Australia Infrastructure Financing Facility for the Pacific (AIFFP), Australia’s assistance programme for the region.

The signing of the Memorandum of Understanding took place on Friday, 21 January 2022, headed by the countries’ respective leaders – Prime Minister Hon. James Marape in Port Moresby and Prime Minister Hon. Scott Morrison in Sydney – and televised livestream.

Under the AIFFP, the funding is being given as a combination of grant and low-interest concessional loan. PNG Ports Corporation says the USD70 million component is being given as grant while the balance comes as a loan to be repaid over a 35-year period. A grace period of six years is allowed as an “availability period” during which time, PNG must draw down on the funding.

Minister for State Enterprises Hon. William Duma, while giving a breakdown of monies, said major work will go into Lae port (Lae Tidal Basin) worth A$120million, Kavieng port A$27million, Kimbe A$30million, Oro Bay A$30million, Vanimo A$29million, Wewak A$20million, Lorengau A$19million, while the balance will go into the purchase of pilot boats for all the ports and the upgrade of other port infrastructure.

The agreement is the progression of two earlier agreements signed in June 2021 and August 2020 between the two countries under the new Comprehensive Strategic and Economic Partnership (CSEP) that sets out the plans that Australia and PNG want to achieve together – among them the development of strategic, quality, high-impact infrastructure in PNG.

In Port Moresby, Prime Minister Marape opened the high-level gathering at APEC Haus after Minister Duma presented a brief overview of the breakdown before letting the floor open to his Australian counterpart, Prime Minister Morrison, to comment on his country’s commitment and the remarkable bi-lateral friendship that exists between the two countries.

Prime Minister Marape thanked Prime Minister Morrison and Australia for their continuing support to PNG, not just in the maritime infrastructure sector – but in nearly all sectors including education, health, telecommunications, aviation, electrification and road development.

PM Morrison, in turn, gave credence to the efforts being undertaken by the Marape Government to connect rural PNG and economically empower its citizens.

He said: “You have brought the focus to where that support should go and this inspires a great deal of confidence in Australians – that the investment and support that we are giving is making a difference in the quality of life in PNG.

“As the support is put in place and economic opportunities are realised, the prosperity and the wellbeing of the people of PNG will rise. This has been about enabling and supporting the sovereignty, independence and self-sufficiency of PNG, and that has always been our absolute goal in all our intervention support and assistance.”

As the agreement gets operational, 30 percent of the monies will be used in the engagement of local contractors, meaning the injection of foreign capital into the country to help boost the PNG economy in this COVID-19 recovery period.

All port facilities in the country have been constructed by the Australian colonial administration in the ‘60s and ‘70s and have mostly fallen into disrepair because of lack of funding by PNG over the years, making this commitment by Australia a very important one because of the dependence of coastal PNG communities on shipping and PNG in its trade with the world.

The rehabilitation work by Australia directly complements Marape Government’s key economic driver policy, Connect PNG, which aims to achieve 100 percent connectivity of rural PNG by the year 2040 – something the Morrison Government has recognised and is acknowledging through this massive support.

Photo credit: PNG Chamber of Mines and Petroleum

Parliament recently (January 19 2022) passed the Mineral Resources Development Company (MRDC) Ltd Authorisation (Amendment) Bill 2021, after it was introduced by Prime Minister Hon. James Marape.

The Bill allows for governance procedures relating to appointment of directors on the MRDC board, and the election of directors for the MRDC company boards, to commence as mandated by its respective company constitution.

It rectifies the unintended consequences of the current provision in the Principal Act, in that it prevents the refreshing of representational mandate for directors on the MRDC board as well as project area representative directors on their respective MRDC Company boards, by subjecting it to the respective MRDC company constitution and the Companies Act 1997.

“The refreshing of representational mandate is critical for validity and community support for the MRDC Group,” PM Marape said when introducing the Bill.

“It instills a culture of accountability on the Board members, who are project area landowner representatives, and is also an important aspect of good governance and transparency,

“The Principal Act relating to the ownership of MRDC, as well as its roles and responsibilities as a corporate trustee manager, remain unaffected.

“It is only the administrative arrangements governing the appointment of directors on the MRDC board, and MRDC company boards, that are proposed to be changed in this bill to align with the Companies Act 1997.

“This Bill is necessary as it will allow for Governance procedures relating to the MRDC Board, and the election of directors for the MRDC Company Boards, to commence as mandated by its respective Company constitution.”

Reference: Department of Prime Minister and National Executive Council (19 January 2022). “Parliament Passes MRDC Bill.”