Photo: Managing Director with three awards: International Travel Award-Best Boutique Hotel 2022, World Luxury Hotel Award - Luxury Business Hotel 2022, and Luxe Global Awards-Best Luxury Hotel & Conference Center 2022

Situated at a hilltop haven at the center of Port Moresby overlooking the Seaview of Ela Beach is the remodeled, prestigious, and modern five-star Crown Hotel welcoming international guests, business professionals, or those on a holiday getaway experience.

The Hotel was established in 1978 and is renowned for housing public figures and celebrities around the world in world-class standard accommodations, with its historical aspect in Papua New Guinea's road to development, which puts Crown Hotel on its reputable status.

General Manager for Crown Hotel Mr. Shanka Ghoshal said the Hotel prides itself in providing the best hospitality services for its guests at affordable rates and has over 200 well-trained staff to meet the guests' demands.

"Although some people may think that this hotel may be old, it's actually striving for excellence given the current renovation done to all the sections of the Hotel, giving it a new, improved look," said Mr. Ghoshal.

"So far, Crown Hotel has been awarded three prestigious awards (last year), including International Travel Award-Best Boutique Hotel 2022, World Luxury Hotel Award - Luxury Business Hotel 2022, and Luxe Global Awards-Best Luxury Hotel & Conference Center 2022.

The Hotel property itself offers an outdoor pool, a day spa, two restaurants, and a cocktail bar. Crown Hotel is a 5-minute walk from Ela Beach. All accommodation rooms feature a flat-screen TV and views of the Coral Sea or harbour. Guests enjoy free airport transfers.

Crown Hotel is within a 20-minute drive of Jackson International Airport and the National Museum & Art Gallery. The boardwalks of the National Capital Botanical Gardens are a 25-minute drive away.

Boasting 24/7 security, the hotel features a fitness centre, secure covered on-site parking, and a tour desk. One can relax on the sun loungers alongside the pool or unwind with a massage or facial at the Lotus Spa.

The air-conditioned accommodation options include private rooms and suites. All offer a satellite TV, a refrigerator, and tea/coffee-making facilities. Each has a private bathroom with a shower or bathtub, a hairdryer, and bathrobes.

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Rapala Restaurant and Cafe Restaurant offers a grill menu, an international buffet, and a selection of fine wines, while the Pondo Tavern offers international cuisine and boasts a patio deck offering sea views. If guests would like to indulge themselves, the Heritage Bar promises to provide homemade freshly brewed beer to quench the taste buds of beer lovers.

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Guests can relax on the sun loungers alongside the pool, or unwind with a massage or facial at the Lotus Spa.

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So far, guests who were housed at the hotel have given an excellent rating on their stay with Crown Hotel.

Photo credit: Wafi Golpu JV

The Wafi-Golpu project in Morobe Province could become one of the world's largest copper and gold mines, according to Dairi Vele, the State Negotiation Team chairman. In an interview with a local paper, Vele said that the state is working to ensure that all stakeholders benefit from the US$5.4 billion (K18.5 billion) project.

"We need to make sure that the state gets its fair share, that the company gets a good return on its investments, and all of us ensure that the landowners and the provincial government are able to participate and receive strong benefits as well," he said.

Vele emphasized that negotiations are progressing as scheduled and that an announcement will be made in the next few months. "We are confident that PNG will get a much more mature deal," he said.

"We are two months into the New Year and six weeks away to the end of the first quarter, so we believe we are on schedule."

Vele also noted that the project will take a long time to complete. "It's not like we sign something today and we have a gold mine tomorrow," he said. "Because it's a big project, it will take a little bit of time to get it up and going."

He added that the developers, Harmony and Newcrest, understand the expectations of the country and their shareholders. "At the same time, they have shareholders that they need to give to as well, so we will have that fine balance and be able to make announcements shortly," he said.

Photo credit: Kumul Petroleum  

Kumul Petroleum Holdings Limited (KPHL) plans to supply LNG from the coast of Huon Gulf district to power the Wafi-Golpu mine project in Bulolo district, Morobe province. The two business models being pursued are the Floating Storage Regasification and Power (FSRP) unit and the Labu Special Economic Zone project, which will cost an estimated $1.2Bn. KPHL's General Manager, Ephraim Tammy, announced these projects to the Lae business community last week. 

In his announcement, Tammy said, "The FSRP unit will provide 200 megawatts of power from the ship up to Wafi-Golpu or the access can be piped back to Lae and it will give reliable costs, competitive energy solutions for Lae. It will give the local grid access power and will give revenue to the state, Morobe provincial government and local landowners." He also added, "The Labu SEZ is estimated to provide up to 20,000 jobs and will give you access to manufacturing and downstream processing, and can increase the Gross Domestic Product (GPD) of the country. We see that area as a chance for us to really bring some development that we can all see and be part of." 

Tammy highlighted that the projects aim to address the power reliability issue in Lae and bring more development to the country. He said, "We know there is an issue in Lae with power, we see Lae as the market that we can develop for energy and also bring more development to this country and with these projects, we aim to help the power reliability that we have in Lae."

The National Superannuation Fund, Nasfund, has continued its partnership with Kalang Advertising Limited, FM100, as naming rights sponsor for the Nasfund FM100 Talkback Program.

Nasfund FM100 Talkback, Papua New Guinea’s longest running radio talk show, launched its 2023 Season this morning, with Prime Minister James Marape, State Ministers, and representatives from sponsors in attendance.

In providing the keynote address, Prime Minister Marape, thanked Nasfund for its continued support to a vibrant media in PNG.

“The media in PNG plays a crucial role in informing our people. Given the rise of social media commentaries in recent times, our people still look to mainstream media for factual, accurate news and information. Programs such as Nasfund FM100 Talkback provide that avenue for our people to engage with leaders across all levels on a daily basis. We thank Nasfund for continuing to support this important program that continues to be the flagship for talkback radio in PNG. As a responsible government, we will continue to ensure that the media remains independent and free from political influence, so that Papua New Guineans are informed, and make the right decisions to effect change in communities across the country. We look forward to also engaging with our people through Nasfund FM100 Talkback over the coming months.”

Similar sentiments were shared by Nasfund Acting CEO Rajeev Sharma, who highlighted the importance of talkback radio in PNG.

“Nasfund is pleased and honoured to once again continue our partnership with Kalang Advertising Limited, as the naming rights sponsor of the nation’s leading talkback program – the Nasfund FM100 Talkback Show. Nasfund has been a sponsor of the FM100 Talkback Show since late Roger Hauofa’s days. This represents over 20 years of partnership, more than 4,500 shows and over 9,000 hours of airtime of quality radio service to the people of Papua New Guinea. As the country’s leading superannuation service provider and largest by membership, we believe that an informed society makes informed decisions. More specifically for us, an informed superannuation membership makes the right choices for the future financial security for themselves and their beneficiaries. Utilizing radio is one such method in ensuring an educated membership and reaching a wider audience, especially those in rural or geographically dispersed areas. We use the Nasfund Talkback Show as a one of our key engagement platforms with our members and registered employers, to inform, update and educate Nasfund members and the public on all matters relating to the Fund (governance, services, investments, new innovations). We believe this is important, as more Papua New Guineans now understand the importance of superannuation and savings in general.”

Photo: Kuma Baliah (Theodist-Chief Executive Officer), Collin Pake (Director of Life PNG Care Inc), Ryan Pini (Theodist-Business Development Manager), and Kevin Anderson (Theodist-National Sales and Marketing Manager)

The Executive Team of Theodist Ltd. was present at the Theodist showroom office in Waigani on 8 February to give a donation of K25,000 towards the education and well-being of more than 600 underprivileged children under the care of Life PNG Care Inc. through its Strongim Pikinini Education Program.

Present to receive the cheque was the Director of Life PNG Care Inc., Mr. Collin Pake, who thanked Thoedist Ltd. -- the country's leading office products supplier -- for the much-needed assistance for its special education program that will give the underprivileged and less-fortunate children who are mostly from the streets a chance at education and growing them to be the leaders of tomorrow.

"I appreciate the support of Thoedist over the past six years who have contributed from K200,000 to K300,000 towards Life PNG Care Inc. as part of its corporate responsibility program. They are putting the money where the mouth is for a worthy cause, as most children in PNG do not have a chance at proper education," stated Mr. Pake

Speaking on behalf of Theodist Ltd., Business Development Manager Mr. Ryan Pini stated that the company was more than happy to support the children through the care of Life PNG Care Inc. to receive a better chance in education, shelter, and opportunity to progress in life, and hope to see more children benefit in the future. 

Life PNG Care Inc. has recently helped its youth complete a Bachelor's Degree in Accounting, who is now working for an accounting firm, as part of its success story and is striving to make all its children get a better chance in life.

Photo credit: International Trade and Investment Ministry of Papua New Guinea Facebook Page

Outgoing Malaysian High Commissioner to Papua New Guinea, His Excellency Melvin Cheah Chee Aun will be leaving the country tomorrow with one regret and that is COVID-19 prevented him from working to assist many more interested Malaysian investors who were keen to invest in Papua New Guinea. In his parting message to the Minister for International Trade and Investment, Hon. Richard Maru yesterday, His Excellency Aun requested Minister Maru to travel to Malaysia to meet over five major Malaysian investors who would very much like to explore investment opportunities and invest in Papua New Guinea.

His Excellency Aun stressed that these five Malaysian investors were keen on investing in the agriculture and manufacturing industries. He said they were especially keen on downstream processing of Papua New Guinea’s raw materials and were also interested in shipping services.

“Papua New Guinea has one of the highest freight rates in the world for domestic transshipment of goods and we need more competition to reduce the cost of shipping,” said Minister Maru.

Minister Maru assured His Excellency Aun that he will be in Malaysia in two weeks’ time to meet with the Malaysian investors who are requesting to meet with him to explore the vast investment opportunities in Papua New Guinea.

“PNG is not new to Malaysian investors. Malaysia is already the second biggest investor in Papua New Guinea behind Australia. We are excited about more investors from Malaysia showing interest to invest in Papua New Guinea,” said Minister Maru.

Photo: MV Rabaul Chief sailing on Papua New Guinea waters. The vessel will be deployed on the new PWX service.

Swire Shipping, a leading operator of liner shipping services in the Asia Pacific, has introduced the Pacific Weekly Express (PWX) service, a new fixed-day weekly service that connects South-East Asia, Europe, India, and the Middle East with Papua New Guinea and the Pacific Islands.

The new service operates on a seven-day frequency to Papua New Guinea, Solomon Islands, New Caledonia, and Fiji, with connections in Fiji and Nouméa to the Pacific Islands of Tonga, Vanuatu, Samoa, American Samoa, and Tahiti.

PWX combines and expands two existing services – superseding the existing Southeast Asia (SEA) and East Southeast Asia (ESEA) services – offering greater frequency, predictability, and speed. The new service underlines Swire Shipping’s commitment to connecting the communities of the Pacific, doubling frequency to the ports of Lae, Motukea, Nouméa, Suva, and Honiara.

Ben Pike, Chief Operating Officer for Swire Shipping, said: “As a partner of choice to many, we believe it is our duty to support our customers’ supply chains with best-in-class liner services. With this in mind, we are pleased to introduce a significant upgrade to our network by including more fixed-day weekly and fixed-day fortnightly products in our key markets. The PWX service will bring significant value to our customers immediately and help to support communities and trade in the region.”

PWX service enhances supply chain planning while reducing risks

With a weekly frequency, customers in the Pacific will now be able to optimise their supply chains and reduce risk. The predictability and reliability of the weekly service will enable them to reduce inventories, lower holding costs, and improve stock management, whilst reducing supply chain risk and the possibility of stock outs. Customers will be able to standardise and repeat processes at both origin and destination locations, making it easier to plan their supply chains. They will also benefit from shorter waiting times and fewer vessel clashes in ports with better on time performance.

An improved network of services in the Pacific

The introduction of the PWX service enables Swire Shipping to upgrade its Papua New Guinea (PNG) Service (serving Australia to Papua New Guinea and Solomon Islands) to a fixed-day fortnightly service. This complements existing fixed-day fortnightly products on the Australia-Pacific Islands (PIS) Service and North Asia Express (NAX) Service (serving North Asia to Papua New Guinea and Townsville, Australia).

Swire Shipping’s integrated logistics division will support the network of services in the Pacific by providing first-mile and last-mile logistics services, facilitating a seamless process.

Acting Bougainville Chief Tax Collector Aloyis Daton has appealed to the Bougainville Executive Council (BEC) to review the taxation laws in Bougainville as some regulations were harsh and did not contribute to the economic development.

Mr Daton said that he had presented the submission on the suggested taxation policies to the Minister for Finance in Bougainville and that they are waiting for a formal meeting with the Bougainville Executive Council (BEC) to discuss further on how to reduce the taxation laws next month.

This would result in the introduction of the new taxation policies, he said.

Mr Daton said that Bougainville needed its own taxation laws that were suitable and applicable to the business environment in Bougainville.

Business ventures of Bougainville were unique and differ significantly from business ventures in Papua New Guinea, he said.

He said that the current taxation laws that were adopted from Papua New Guinea into the taxation system of Bougainville were not successfully working however, those laws needed to be reviewed to suit the needs of the business ventures.

Mr Daton said that the suggested five taxation policies that would work in the region were:

• Taxation Legal framework for Bougainville
• Exemption from GST for sales tax payers
• Forgiveness of tax debt for Bougainville businesses
• Amalgamation of tax and revenue agencies and
• Enactment of road user tax

He said that these were the five policies papers that the Minister for Finance will present to the BEC next month.

Mr Daton said that the objectives of the five taxation policies were to;

• Recognize the rights and responsibilities of the citizens and the government
• Define a taxation system and administration and
• Raise the revenue.

Mr Daton said that the initial purpose of the review was to welcome a healthy cash flow of the tax payment by the business ventures.

At the moment, there is no involvement by the Autonomous Bougainville Government (ABG) in any business ventures but if the laws are reviewed, then this can make changes and allow the government to be involved by means of becoming shareholders and also paying tax that business ventures also pay, he said.

The taxation policies would see significant change in the behavior of the tax contributors in the business sector and government and that is healthy to the growth of the economy of Bougainville, he said.

Photo credit: International Trade and Investment Ministry of Papua New Guinea Facebook Page

Minister for International Trade and Investment, Hon. Richard Maru has highly commended Prime Minister James Marape and the NEC for the very bold and visionary decision to set up a Mission in Thailand amongst the four new missions to be established by the Marape-Rosso Government. The other three are Israel, UAE and Switzerland.

“In my view after visiting Thailand last week on a Trade and Investment Mission, the decision by the Marape-Rosso Government to set up a Mission in Thailand this year as part of our walk across Asia strategy will in time prove to be one of the best decisions taken by any Government since Independence. My delegation marveled at the sheer size and achievements of Thai industries to become world leaders and pacesetters in industries like the fish processing industry, chicken processing industry, starch from cassava, rice and sugar. They used to be third world nation producing agriculture raw materials like PNG is still doing 47 years after Independence while Thailand has transformed to become world leaders in food processing and exports,” said Minister Maru.

Thailand has 40 fish processing plants and is tuna capital of the world with no local fishing industry. They are able to buy and become the leading world supplier of finished fishing products from fish supplied to them from fishing grounds all over the world including Papua New Guinea (PNG).

“We visited and found out that they are major suppliers of fresh and cooked chicken products to Japan, US and the European Union after meeting Japan, US and European Union quality processing standards and accreditation. Thailand is now the world’s leading cassava starch supplier and also sugar. It’s unbelievable they also supply finished products only and do not export raw materials or semi processed agriculture products like PNG does,” said Minister Maru.

“During our visit, leading Thai companies have expressed interest to invest in Papua New Guinea if we are able to provide land, electricity, good roads, wharves and all the enabling infrastructure and incentives to come and set up world class industries to mainly assist them to meet growing world demand for their quality products for countries in the ASEAN region like Indonesia, Australia and our own domestic market demand and Indo Pacific Region. By building a strong trade and investment relationship with the Government of Thailand, the private sector of Thailand, targeting potential investors and the people to people ties with Thailand, the Thai investors can help us develop our vast agriculture, fisheries and manufacturing industries into world class industries in our country,” said Minister Maru.

“We were amazed when they told us that Japan has 30, 000 companies operating in Thailand and they employ over 1 million people from Myanmar to assist with low-cost labor in their manufacturing industry, to ensure they continue to be a low-cost producer of goods and services for the world. They have developed their tourism industry and today enjoy an influx of 40 million tourists a year. Thailand has moved to industrialization starting with manufacturing first all their agriculture products and now they have moved to automobile and other hi-tech industries,” said Minister Maru.

“I was inspired by the trip because I envision if we follow the same path as Thailand and the same trajectory, our PNG economy can be transformed over the next 20 years if we develop a long and enduring partnership with Thailand and benefit from their business models, capital and technology, and their leading global brands and reputation and access their well-established global markets,” Minister Maru added.

Minister Maru said PNG can also benefit from a strong trade and investment partnership with Thailand in areas like tourism development and developing Special Economic Zones (SEZs).

“We found out from our visit to the Industrial Estates Authority of Thailand that is equivalent to our new Special Economic Authority that over the last 30 years they have built 4922 factories, built 4 international ports, accumulated over US$200 billion in Special Economic Zones and created directly 932,258 new jobs,” said Minister Maru.

“The Marape-Rosso Government’s vision to anchor our future by building Special Economic Zones to drive economic growth, large scale mass employment opportunities for our people and create vast wealth creation opportunities for our people and our country is the right way to go based on global experience from countries like Thailand so opening our new Embassy this year in Thailand has to be given our highest priority,” said Minister Maru.

“I am very inspired, and I have no doubt that cementing a trade and investment relationship with Thailand on a Prime Minister to Prime Minister level with a State visit this year by our Prime Minister and the opening of our new Embassy in Thailand will be one of the greatest contribution the Marape led Government will do to secure an even brighter and better future for our beautiful country,” said Minister Maru.

Meanwhile, the first large scale investor that the Delegation met and have invited to come to explore investment opportunities in PNG are scheduled to arrive in Port Moresby early next month.

“My Ministry and the Department will work to invite more Thai investors to come and invest in Papua New Guinea as a major focus of Marape-Rosso Government’s economic growth initiative,” said Minister Maru.

Statistics in 2022 have proven that the return of the Government’s investment in subsidizing price and freight for local coffee farmers is working.

Coffee Industry Corporation (CIC) Acting Chief Executive Officer Charles Dambui said the K1 million price and subsidy funding generated K7 million last year, and the Government’s intervention of K30 million for the price and freight subsidy in the 2023 National Budget is commendable.

“In terms of coffee, we always prioritize farmers that are reached by third-level airlines which are followed by Marine transportation and then of course by road. As we speak, the freight cost of getting a kilogram of coffee from a remote area across to the buying point is equivalent to the coffee price so sometimes you will realize that it is not economical,” Dambui said.

Mr Dambui stated that the continuation of the Marape Government’s subsidy program will increase coffee production statistics and put more money into rural farmer’s pockets.

He predicts there will be a likely increase in coffee production in 2023 on the back of the National Government’s financial support in the price and freight subsidy program.

“The government gave us K1 million for the freight subsidy and the return on investment was K7 million, in actual fact we freighted the coffee out from remote areas using that K1 million and when the cost of export was calculated it generated almost K7 million, so the freight subsidy program is the way forward,” he said.

The Minister for Agriculture, Aye Tambua, recently presented cheques to CIC with other agriculture commodity boards that received their first share of funding from the K30 million price and freight subsidy program -- this means the price of parchment coffee will now be tied at K7 per kilogram.

A portion of K1.5 million was given to the Coffee Industry Corporation (CIC) to carry out the price and freight subsidy support program this year.

Under its 2023 budget, the government has allocated a total of K30 million for the agriculture price support program and K20 million for the freight subsidy. The price support is specifically designed to support all commodities across the country to boost production in those sectors.

"The government has taken the right steps by setting the price at K7 and the CICs job is to make sure that the K7 price is realized by the farmers on the ground. We are taking that onboard and we will be working with selected buying points to ensure that we drive the government policy,” Dambui said.

Meanwhile, the CIC will continue to invest time and money to contain coffee berry borer pests throughout the country.

Dambui said the National Government’s drive to increase production level for this agricultural cash crop will fail if the disease wipes out the multimillion-kina coffee industry of the country.

“Without the coffee beans, all our initiatives will come to a stop so that's why our focus now is to control and contain the spread of the coffee berry borer. It's an economic pest that has a high chance of reducing the production in PNG as well as the country's coffee export,” he said.

"The coffee berry borer is currently spreading but the government is seriously looking into it to support the coffee industry so that we can control and minimize the spread of coffee berry borer,” Dambui said.

Mining or exploration licenses that are given to a company go through a process called a warden hearing. This gives opportunities to communities, individuals, or organizations to present their objections.

The Alliance of Solwara Warriors, a coalition of coastal communities in PNG, recently held a warden hearing concerning seabed mining, but no officials or representatives from the Mineral Resource Authority (MRA) and the Government were present.

In a press conference, the Alliance called on the government to cancel seabed mining and exploration licenses in the country. It is also calling for the termination of Nautilus Minerals’ license as it is still active after the company went bankrupt in 2019.

Director of NGO group West Coast Development Foundation, Jonathan Mesulam, issued the call during a media conference in Port Moresby. He said PNG should follow the footsteps of other Pacific islands that are calling for a pause or a complete ban on seabed mining.

“Our stance today is to call on the government to cancel all the licenses on sea bed mining either exploration or mining licenses. We want those licenses to be canceled, why should we keep those licenses and invite other investors to come and destroy our ocean?”

“If we are talking about ocean then we are also addressing a climate action so when we are talking about the ocean we are also talking about climate change so both these aspects are connected.”

“We also want the government to respond to the objections in a petitioned that we have presented in 2022 and also in a media statement that was published in November last year. To date there has been no response from the government. Prior to this we are also yet to be given a response from objections that were presented in a petition in 2018 and 2021 especially from Mineral Resource Authority,” Mesulam said.

Meanwhile, Caritas PNG supports the Alliance of Solwara Warriors campaign as Mesulam together with his West Coast Development Foundation team had launched three objections in pursuit of the cancellation and ban of seabed mining.

“Objection number one states that there is no national policy on seabed mining, two states that there is no legal regulatory framework in provinces or at the national level to monitor impacts of projects, and the third objective states that the intended project is unknown, as there is not enough information on the impacts, the benefits, and the risks for it. These are some of the points that we have stated in our objections,” Mesulam highlighted.

Three objections have already been filed under the Mining Act sections 4 and 14, with one filed on 31 January.

“For this campaign on seabed mining this will be the third objection. We filed the first objection in 2018 to EL 1196, and in 2020 we filed the second objection to EL2537 and yesterday (Tuesday 31st Jan.) we filed the third objection to EL 1374 to cancel exploration license to Nautilus Minerals or Companies that have paid off Nautilus assets,” Mesulam said.

Most coastal provinces are in support of this campaign and are currently awaiting the government’s responses on the objections that were launched and presented.

Papua New Guinea will observe its Golden Jubilee as an independent nation 5 years from now in the next term of parliament, and since the country gained its independence the election of the Prime Minister was mandated to the members of parliament, who at national elections were elected by their constituencies.

That system is likely to change as there will be a major constitutional review on the form and system of the government, particularly the election of the Prime Minister which is to be decided by the people.

The constitutional office mandated by law to review legislation that is already passed by parliament will now undertake a major review.

The Constitution and Law Reform Commission (CLRC) will launch the work into reviewing the form and system of government this month.

In the year 2025, the country will be commemorating 50 years as an independent nation and a nationwide public consultation looking at changing the constitutional law to give Papua New Guineans the right to elect the Prime Minister will now be considered.

The nationwide consultation is to run from March to April this year.

According to public notice, a final report with recommendations will be submitted to the office of the Prime Minister in December 2023.

CLRC states that the review is in line with a decision by the National Executive Council (NEC).

In turn, the NEC has directed the head of state to issue a directive to CLRC to review the constitution on the organic law at the provincial and local level government systems as well as other related laws that concern the formation of the government with the focus on the process of electing a Prime Minister.

The government believes that the time is right to initiate this major review of the current form and system of government. The type of government that Papua New Guinea has today is a result of recommendations on the system of government by the constitutional planning committee.

The recommendations were fitting for a new country then, but after nearly 50 years, it is time for a review to reflect the current circumstances of PNG.

Photo: RIFL's Chief Executive Officer, Peter Boutcher

CEO sets sights on next growth phase for the year after challenging pandemic period in the finance industry.

Established and incorporated by the PNG Banking Corporation in 1979 as Papua New Guinea’s first merchant bank, Resources & Investment Finance Limited (RIFL) is a traditional asset finance business mainly focused on commercial customers. RIFL operated as a merchant bank until it withdrew from the market in the mid to late 1990s.

The company lay dormant over the years before a revival commenced in 2012, resulting in the successful application for a new license and the acquisition and reactivation of RIFL as a licensed financial institution.

The company kept the name RIFL because it still had amity in the business community and in the marketplace. In 2015, the company reached a milestone achievement by issuing 12 million new shares for cash consideration to fund ongoing growth. The business was based primarily on commercial asset finance and has since formalized its appropriate process and structures that have now fallen more in line with traditional finance operations.

Pandemic Period

Despite the pandemic’s severe economic impacts on Papua New Guinea’s financial institutions, RIFL achieved steady revenues and profits in 2021. PNG Business News recently sat down with the company’s Chief Executive Officer, Peter Boutcher, to discuss its successes and plans for growth.

Boutcher has spent the last 30 years working in PNG and is also a citizen of the country. As a seasoned banker, he has gained vast experience and has a broad understanding of the county’s financial sector while he held top posts with ANZ and Bank South Pacific (BSP) over the years prior to his current role as the CEO of RIFL.

While his current focus is establishing RIFL’s clientele base and profit margin, he revealed that for the past 12 months post-Covid, the company has also focused on its staffing, loan documentation, policies, and procedures, at the same time building a predominantly commercial equipment finance portfolio.

“Covid gave us a great opportunity to focus internally, looking at our own processes, procedures, and our own policies on all aspects including equipment financing, financial reporting and administration, business development, operations, systems, credit risk management, policy and procedure development and training of personnel,” he said.

“We are progressing to get all these things right as we do have to be compliant because we come under the guidelines and oversight of the Bank of PNG, so from a prudential point of view our greatest achievement post-Covid was focusing on our company’s mechanisms and how well we could be able to adapt our services within this period,” he added.

“It has been a struggle with Covid as a lot of our clients had issues, especially with trucking and logistics as a lot of provinces had closed their borders, and moving between these provinces became problematic for some of our clients. Travel bans were imposed and that put a lot of pressure on a lot of people over a period of time.”

“On the bright side, we sat down with these businesses and have guided them through this period and most of them are now starting to reestablish the business that they had. As mentioned, it’s also been a fairly tough twelve months post-Covid and currently, we’re exploring new markets and those existing areas that haven’t been completely dominated by other industry players,” Boutcher said.

Focus & Strengths

RIFL is focused on four core financial aspects: Asset Finance, Insurance Funding, Financial Leasing, and Personal Loans. Their services range from providing equipment finance for commercial and consumer purposes, including motor vehicles, trucks and earth-moving machinery, and mining and construction equipment. They also specialize in funding technology assets like information technology and office equipment, software, and telecommunications.

“We want to be a market leader in finance, with a healthy loan book and a steady growth rate over the years to come. Our response to clients is a serious priority for us. We have a strong customer base, and we ensure they are given a good turnaround time for their investments,” Boutcher said.

“We have been doing quite well with term deposits which ensure that our clients get a guaranteed rate of interest, and our growth phase is now more aligned in embarking and venturing more into this financial aspect.”

"RIFL has already grown from a small finance company over the years to a well-known competitor in the finance industry. It is important that we strengthen the management to ensure we have the necessary governance and compliance and appropriate human resources to continue this upward trend,” Boutcher said.

Growth Phase

In proceeding with the growth and expansion of its services, RIFL has ensured that risk and security measures including collaterals are in place. Although risks are being taken, they are calculated based on the serviceability and sustainability of loans.

“We are a small organization, but we also have many years of data that we can use to assess and mitigate risks. PNG is a tough lending environment, and it comes with its own challenges, however, we must persevere with our businesses,” Boutcher said.

RIFL have also been looking at growing the business, particularly with established SMEs to help them grow, consideration had been given to several SMEs and local companies that they have funded into various projects, especially in road and construction projects.

Others have diversified into agricultural projects such as palm oil, coffee, and other sectors such as shipping, but the goal is to spread the risk by investing with established SMEs instead of being too reliant on a few multi-corporate clients. That’s a significant part of the finance company’s strategy going forward.

“From a business perspective what we’re looking at is financing heavy equipment trucks and machinery, but we have also been keen on assisting people with working capital requirements, consumer lending to people in the management level who are looking to create self-wealth or those who are willing to buy motor cars, white goods, and brown goods,” Boutcher said.

“Another aspect is to look at retirees in both the public and private sector and offer long-term deposits with good interest rates and pay monthly interest similar to a pension.”

“So, for retirees opting to invest with us who have superannuation funds from K200,000 can get a constant income in their retirement. That is something that we are looking to embark on this year and hopefully attract a lot of those retiree funds, as the banks pay relatively low rates on investments,” Boutcher explained.

Expected Outcomes

RIFL’s progress in maintaining their clients has been great as they have had some long-term loyal clients although some have had financial difficulties. The finance company has been able to go through a process with these clients by working with them based on their current and future contracts and then determining a way forward.

“In the future, we would like to get to a stage where we are considered the premiere finance company in PNG and tap into the superannuation of retirees to try and help them, and also help us as well, because if they invest with us that will help us with our funding,” Boutcher said.

Previously RIFL took a different approach in program alliances with vendors and committed sponsorships within the community and sports. But now they have made a collective decision and have decided to invest more into branding and brand awareness and have been progressing quite well.

“Operations of the company depends on going out and engaging with our clients so since we are a finance company based in Port Moresby, one of our focuses would be to give more emphasis on clients outside of the city in other provinces,” he said.

“Some (clients) get into situations where they need to sell assets whether that be machinery or property to try and reduce the debt burden and we try to support them as best as we can through those times,” the RIFL chief said.

“We are open to new business as well as new challenges. For us, we want to continue to grow the business and have a long-term relationship with Papua New Guineans as a finance company, so what we are looking at is continued and controlled growth,” Boutcher ended.

Photo: The PNG Business & Logistics Park provides tenants with the perfect strategic location and operational base for project staging.  Specialising in project cargo, the park and its port is ‘making business easy’ in PNG.  Pictured is one of the tankers that regularly transfer an average of 300,000 litres of fuel into a park tenant’s 5,000,000 litre, purpose-built storage tank.

The PNG Business and Logistics Park is operating as a ‘supply base’ for an increasing number of tenants keen to take advantage of its location, modern port, and facilities as they stage their projects for the country’s long-anticipated next LNG construction phase.  Perfectly located on Fairfax Harbour between Port Moresby and the expanding LNG plant, the park provides a range of businesses with purpose-built industrial facilities and offices, as well as various accommodation options.  Park tenants benefit from a full suite of on-site logistics services, taking advantage of the park’s project cargo specialisation, as well as its port’s 24/7 operating capacity.

Companies involved in the next LNG construction phase –a mammoth construction project located in some of the world’s remotest terrain – need to do as much preparation and prefabrication as possible in Port Moresby where they can readily access essential infrastructure and services prior to sending project cargo via charter vessel to site.

The PNG Business and Logistics Park enjoys a reputation as the ‘perfect supply base from which to safely and efficiently stage projects for remote resource sector projects’.  It is privately owned and operated by AES, a local company with nearly 70 years’ experience in PNG. 

AES provides its tenants with purpose-built industrial facilities – from cement silos, specialised workshops, and truck loading facilities, to office complexes, warehouses, laydown yards, and more.  Importantly, over half of the 94-hectare park is yet to be developed, which means ample space is available for new tenants or those needing to scale up their operations.

Central to the park’s project staging capabilities is its modern and well-equipped port – ISPS certified – with 540 metres of berth.  Its specialised RoRo facility spans 40 metres of clear ramp and its wharf configuration enables simultaneous loading of RoRo and containerised cargo on the one vessel.

With 24/7 capacity – 365 days a year, an in-house stevedoring team and its own power supply, the AES port doesn’t ‘sleep’.  Moreover, it is home to an extensive fleet of specialised equipment, including ‘back up’ equipment and an onsite workshop to mitigate delays due to scheduled or unanticipated maintenance.   Regular investments are made in new port infrastructure and equipment, such as a recently installed 100-tonne weighbridge.

The PNG Business and Logistics Park specialises in project cargo and has considerable experience servicing the oil and gas sector.  It supports staging of upstream and downstream projects, as well as onshore and offshore projects, playing a significant role in the safe and efficient transportation of all sorts of project cargo (e.g., prefab camps, bridge trusses, trucks, cranes) around the country for its oil and gas clients. 

The PNG Business and Logistics Park’s philosophy of ‘making business easy’ is evident in its inclusion of a 300-person camp and 45-house accommodation complex.  Park tenants also enjoy the convenience of a HACCP-certified restaurant and mess, as well as a range of recreation facilities.

Tenants value the complete package offering of the park in that they can work there, stage their projects there, store their equipment, ship their project cargo direct from its port, as well as live there.  The PNG Business and Logistics Park is not only making doing business in PNG possible (especially for international tenants), but as easy as possible.

The Investment Promotion Authority (IPA) has assisted a small bee farming business in Simbu Province with bee keeping equipment to help boost its production capacity.

Bussy Honey & Integrated Farming is a family business owned by Mr. Mek Degene and his wife Mrs. Matri Degene and located in Ainanimin Village in the Tabare LLG, Simbu Province.  The couple were appreciative of the IPA’s gesture and sincerely thanked the Organisation for their assistance.   

The IPA support is a one-off sponsorship assistance given in the form of 40 beehive trays, industrial sugar feed for the beehives and honey extractor frame. The items were purchased from the PNG Beekeeping Supplies, a well-known SME in the Eastern Highlands province who also provides skillset training to local honey bee farmers.

In handing over the equipment to Bussy Honey & Integrated Farming, IPA Managing Director Mr. Clarence Hoot said the IPA was happy to support such impactful community-based projects in such small ways to contribute to their growth into a fully developed SME in the beekeeping and honey production industry.

“IPA does not provide funding to SMEs and this is a good-will gesture to Bussy Honey as one of the local SMEs we have worked with through our Hagen Office” Mr. Hoot said. “It is a success story of some of the promotional programs our Hagen based Highlands Regional Office has been doing in the Highlands region, “Mr. Hoot said. 

Bussy Honey & Integrated Farming started off with only two beehives in 2021 and started selling their honey after registering their business in May 2022. Their honey product is now being supplied to a major retail outlet in Kundiawa. It comes in 500g jars and its brand name is BUSSY HONEY, Simbu’s own 100% pure organic Honey. With the IPA sponsored 40 beehives, they are now looking to supply throughout Simbu province.

PNG Beekeeping Supplies manager, Mr. Loie Tella thanked IPA for supporting Bussy Honey & Integrated Farming business stating that there was a huge need for capacity to develop the honey production industry in the country.

“PNG consumes 200 tonnes of honey annually while the local production capacity is at 120 tonnes only,” Mr Tella said. “Hence, the market is ready both domestically and internationally for us to develop this industry.”  

Mr. Hoot reiterated that the IPA is here to promote such business opportunities and identify investment ready projects for both domestic and international markets and partnerships. He further called upon leaders and other government departments and agencies to support SMEs in the agriculture sector as such interventions could see agriculture SME propel to fully pledged businesses in future thus contributing to our economic development.

The presentation was witnessed by bee-farmers, DAL, Commerce and SME Officers from the Chimbu and Eastern Highlands provinces as well as representatives of the IPA senior management.

Photo credit: Investment Promotion Authority 

The Investment Promotion Authority (IPA) has signed a Memorandum of Understanding (MOU) with the Eastern Highlands Provincial Administration (EHPA).

The MOU paves way for the Eastern Highlands Provincial Administration to deliver IPA services through the Help Desk to be established within the Commerce Division in the province.

The MOU was signed by the IPA Managing Director Mr. Clarence Hoot and Eastern Highlands Acting Provincial Administrator Mr. Ipa’e Maniha and provides the avenue for IPA to collaborate with the provincial administration, business community and the general public of Eastern Highlands to ensure that IPA services are accessible.

It also provides training opportunities for provincial commerce advisors and business development officers through work attachments with the IPA Head Office or its Regional Office in Mt Hagen. After officers have been trained they will work with IPA to carry out awareness in Goroka and within the districts of EHP.

The MOU with EHP is the first for the highlands region with similar arrangements to be extended to other Highlands Provinces in the immediate future.  “One of the key things that we would like to consult on through this MOU is the review of the Reserved Activities List as further work from the last approved RAL by government, “Mr. Hoot said.

An immediate task under the MOU is the training of EHP Commerce by IPA on how to use the new Online Registry Services to register and re-register their business entities. As support to ensure the EHP Commerce Division performs efficiently and diligently, the IPA also donated a computer set hereafter including a three-in-one, printer/scanner/copier and a wifi modem to assist the Commerce Officers’ use in providing these services.   

Mr. Hoot said he was happy to see that the MOU was finally signed after a while and reinforced the IPA’s commitment in making available its services right down to the district level with the use of information technology. “The IPA has been around for the last thirty years and over the years has been committed in ensuring that its services trickle down to ordinary citizens,” Mr. Hoot said. “That is why we have been investing resources in strengthening partnerships and enhancing collaboration with Provincial Administrations and other stakeholder agencies as well as private sector stakeholders,” he added.

Whilst acknowledging the internet connectivity issues currently being experienced in some parts of the country, Mr. Hoot said this must not limit the government from continuing to strive to deliver services using technology.

Mr. Maniha was pleased with the IPA for choosing the EHP stating that the province was big with a population of almost 800, 000 and the Government needed to empower the people by creating business opportunities for them to participate in.

“We have to start creating employment for our people and people must be trained to create their own business, “he said. “With such services we can help our people to do that.”

Mr. Maniha also said that there were many businesses operating in the province but his office was unsure whether these businesses have been registered or not. He said with the set up of the IPA help desk the team can conduct spot checks to identify what activities these businesses were conducting and whether they were legally registered and paying taxes.

He said as the Acting PA of the province he would ensure that the help desk was effectively implemented so that IPA can eventually set up a full IPA branch in EHP.

The MOU with EHPA now brings the number of MOUs and IPA help desks established with Provincial Administrations to nine provinces. The IPA will work with other provinces soon starting with Enga, Jiwaka, Chimbu and to Southern Highlands and Hela provinces.

IPA has existing MOUs with its colleague regulatory agencies such as the Internal Revenue Commission, Immigration and Citizenship Services Authority, Customs PNG, Financial Analysis and Supervision Unit (Bank of Papua New Guinea), National Information and Communication Technology Authority, PNG Fraud Directorate, Department of Implementation and Rural Development and National Cultural Commission.

Mr. Hoot is calling on other Provincial Administrations and Government Agencies to partner with the IPA so that all government services can be streamlined and delivered to the people in rural communities and provinces so they can equally participate in nation building going forward.

The Department of Commerce, Trade and Industry reached another milestone recently when it signed a Memorandum of Understanding (MoU) with the Papua New Guinea (PNG) Tourism and Promotions Authority (TPA).

The MOU paves the way forward for both parties to continue bilateral partnership based on the understanding of tourism and promotions in Bougainville.

The MOU was signed by the PNG TPA and the ABG Department of Commerce, Trade and Industry on the understanding relating to a joint partnership for the protection and preservation of tangible and intangible culture, development and promotion of tourism, contemporary culture and the arts and sustainable tourism in the autonomous region of Bougainville.

ABG Vice President and Minister for Commerce Trade and Industry, Hon. Patrick Nisira (MHR) acknowledged the PNGTPA for its tremendous support so far since the first MoU was signed in 2016.

The support has cemented many agreements already signed and has proven that Bougainville is truly a tourism destination that is worth investing time and money on.

Mr. Nisira acknowledged the PNG TPA officers for their continuous negotiation with the Bougainville partners in pushing for significant income generating programmes to proceed in the region.

“Standing here today it gives me great pleasure to witness and participate in this significant event that will go down in history books of this nation to be. We are here today to mark this important event on the signing of the MOU between my ministry and the department of national government and PNG Tourism Promotions Authority (PNG TPA).”

This agreement adds value to our collective vision, ideas and consultations that the local tourism and cultural practitioners in both government and private sectors, he said.

“As a way forward the agreement presents a realistic and workable approach to tourism development and its sustainability in the region.”

“The MOU also sets out a framework for future development for tourism emphasizing on effective and determined and holistic approaches.”

He said that the agreement generally outlines the pros and cons of tourism development in Bougainville and the framework and strategy of reaching the targeted goals and vision earmarked to reaching the overarching goals of economic building and development.        

Deputy Chief Secretary for Operations Anthony Koiri approved and signed the MOU on behalf of the Bougainville Public Service Chief Secretary who is on sick leave at the moment.

The signing was witnessed by the staff of the PNG Tourism Promotions Authority (PNGTPA), Department of Commerce, Trade and Industry, senior officers and a small crowd at the Bel Isi park.

The PNGEITI Head of Secretariat Mr. Lucas Alkan says all parties to the Pogera Mine must adhere to rules governing the extractive industry, particularly when dealing with fiscal matters that must be administered and observed according to law. His comments follow a news article on The National citing the Internal Revenue Commission (IRC) that unmet tax obligations of the Pogera mine stood in the way to expedite the mine re-opening process.  Mr. Alkan says a workable and timely strategy that does not impinge on basic laws is a way forward.   Below is the full comment on this issue. 

“The Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) commends The National newspaper for attempting to bring to light what appears to be the final outstanding issue (among others) in the Porgera Mine recommencement negotiations (more on this in footnote). We’ve noted from the reporting that taxation matters are legacy issues that appear to be standing in the way for the multi-million-kina Porgera Gold Mine to re-open.

We have observed that the Government was on track to conclude negotiations and re-open the Mine by June last year, however this did not eventuate as anticipated. Attempts to reopening the Mine in the second half of last year was not feasible due to the national general elections and the formation of government. It appeared that all negotiations were concluded and a new Porgera Mining Agreement Framework was in place for the Mine to be re-opened in the first quarter of this year.

Surprisingly, we learn that an old Porgera Tax liability dispute is standing in the way for the Mine to be re-opened. The early recommencement of the Mine, preferably within the first quarter of this year is critical for the country as the lead time required for mobilizing resources and the significant start-up capital needed to get the mine back into its full operating capacity would be a significant challenge. On this, we are aware there are also discussions going on with the developer and the government as to who is going to meet the startup cost but we understand Barrick Niugini Limited might meet the full cost of starting up the Mine and government would refund later but unsure as to whether this understanding has been reached or not yet.

With regards to the current standoff, the EITI based on its global best practice principles is of the view that the existing law governing taxation matters must dictate or take precedence over any political intervention. We do not know the specifics of the on-going tax matter but understand that it is related to a tax dispute concerning the ‘old Porgera Mine’. If it is a significant amount of tax owed by Barrick to the Government based IRC’s audit in 2013 then it is a legal tax obligation that Barrick and its joint venture partners need to settle as required by law.

We fail to understand as to why the old Porgera tax obligation/liability clause was inserted into the new Porgera Mining Framework Agreement making it a condition to resolve this legacy tax issue before reopening the Mine. If whatever was reported and commented by PM Marape recently is true then Barrick Niugini Limited and the State need to speed up the negotiation process and resolve this dispute immediately. Both parties should exercise good faith – Barrick Niugini Limited should not pull strings on this old Porgera tax liability matter and delay the re-opening of the Mine. It is understood the State (IRC) may not easily forego if there is a substantial amount of tax liability to be paid by the operator.

Whatever the parties decide to do, they should resolve the tax liability issue through the due process of law but allow the Mine to re-open immediately under the New Porgera Framework Agreement. Political intervention is not recommended to resolve this dispute as this can undermine investor confidence, set bad precedence for the Government and create an uneven playing field for project developers. Barrack Niugini Limited should not put undue pressure on the State to resolve this matter politically in order to re-open the mine as it is not a best business practice.

All stakeholders and the citizens have the right to know the specific issues or the nature of this tax liability issue between Barrick Niugini Limited (BNL) and the Internal Revenue Commission (IRC) as the continued delay in re-opening the Mine continues to have negative consequences on the economy.  The prolonged delay has not only resulted in significant revenue loss to the Government (including the provincial and local level governments in the impacted resource area) but also loss of employment, business opportunities and spin-off benefits to the landowners and the wider communities.

The shutting down of the Mine 3 years ago has had significant negative consequences on the economy including the current foreign exchange shortage that has constrained business operations in the other sectors of the economy. Porgera Mine had been a good source of foreign exchange inflows and its continued shutdown will definitely not going to contribute to the 4% economic growth (that was largely to be driven by the extractive sector) projected for by the World Bank for last year and the real GDP growth of 4% projected for this year in the 2023 National Budget.

PNGEITI commends the transparent negotiation process to date that took substantial amount of time and effort to ensure the interests of all parties were reflected in those agreements. We encourage all parties to continue to respect and observe the laws of the land in this dispute resolution process to address the tax liability issue. We believe that a win-win situation for both parties (Government and Barrick) is to re-open the mine first and work together to resolve the outstanding tax liability dispute later going forward.

Photo: The Warman Slurry Pumping Handbook is the definitive guide for most slurry pumping applications.

Weir Minerals, manufacturer of the industry-leading Warman®  slurry pump, has released the latest edition of their coveted Warman® Slurry Pumping Handbook. The 6th edition, compiled by the most trusted name in slurry pumps, features detailed engineering data required for most slurry pumping applications.

Drawing on decades of Weir Minerals’ inhouse expertise in innovative engineering and slurry pumping technology, the new handbook has updated reference material based on new learnings, improved understanding and technological developments within the mining industry.

With customers always in mind, the handbook aims to empower engineers to achieve optimal performance from their Warman® slurry pumps. An increased global focus on the environment, energy consumption and water conservation will influence slurry pump design and considerations – making this latest handbook an essential tool for all current and future pump engineers.

“Pumping slurry has many challenges and I’m excited to publish our latest handbook, packed with fundamental theory, application advice, standard practices and latest Warman learnings from the field; all aimed to help our customers, present and future, deliver with excellence.” Marcus Lane, Director, Slurry Pumping Technology Group

Weir Minerals are continually striving to shape the next generation of smart, efficient and sustainable solutions with cutting-edge science and innovation. The comprehensive handbook includes over 140 pages of detailed information, including performance charts, impeller design, part configuration, assembly and slurry considerations – fully supported by accurate technical renders and specifications.

“The high quality of the reference material in this essential resource reflects the leading status of the Warman slurry pumps. As the industry leader, we have a responsibility to develop our future engineers; we will make the latest version of the Warman Slurry Pumping Handbook available not only to our customers, but also to the leading schools worldwide, so they can learn from the best in the industry.” John McNulty, Vice President Global Engineering & Technology.

As part of Weir Minerals’ commitment to investing in STEM education and developing the next generation of engineers, copies of this essential resource will be gifted to the leading mining and engineering educational facilities around the world, including the winner of the 2022 Warman Design & Build competition, Deakin University in Australia.

Photo credit: PNG LNG

The PNG LNG project has generated K16.5 billion for the state over eight years of production (2014-2022). This includes K7.5 billion to Kumul from the state's 19.4% equity, K1.3 billion paid to the Mineral Resources Development Corporation, K0.8 billion in royalty payments, K0.7 billion in development levy payments, and K6.2 billion in tax payments.

David Manau, Secretary for the Department of Petroleum, stated: “The PNG LNG project remains to date one of the biggest capital-intensive investment projects ever undertaken in the history of the country at the capital investment cost of US$17.7 billion (K62.4 billion), injecting millions of foreign currency into the local economy at the time of construction.“

Manau added: “I am happy to say that the future of the petroleum industry looks very promising with the government of Papua New Guinea signing the US$13 billion Papua LNG Gas agreement in April 2019 to develop the Elk and Antelope gas fields in the Gulf Province of PNG.“

“The signing of the two gas agreements defined the fiscal framework and paved the way for the commercial development of the two mega projects in the country after the successful delivery of the PNG LNG project.“

Regarding the impact of these projects, Manau said: “The development of the two mega projects will certainly put PNG on the world map as the major regional LNG player, boosting PNG’s GDP, creating more job opportunities, increasing government revenue and injecting more foreign currency into the local economy in the years to come, while further elevating the country as a friendly foreign investment destination and attracting more interest in the industry.“