Photo: PM Marape and Chinese President Xi Jinping before their bilateral meeting in Bangkok, Thailand, on the sidelines of APEC 2022.

Prime Minister Hon. James Marape says Chinese President Xi Jinping has given him an undertaking to buy more or all that Papua New Guinea produces.

The undertaking was made during a bilateral meeting between President Xi and PM Marape on the sidelines of APEC 2022 in Bangkok, Thailand (Friday, November 18, 2022), where PM Marape said that it was no longer aid or grant that was in the forefront of his agenda but trade, commerce and more business between both countries.

PM Marape said after the meeting that the onus was now on Papua New Guinea to start increasing production in agriculture, forestry, fisheries, mining, oil and gas, and other areas like tourism to supply the very big Chinese market.

He was accompanied by International Trade and Investment Minister Hon. Richard Maru, Foreign Affairs Minister Hon. Justin Tkatchenko and Secretary Elias Wohengu, PNG Ambassador responsible for Thailand H.E. Peter Vincent, as well as senior Government officials.

“The meeting with President Xi Jinping went very well,” PM Marape said.

“I congratulated him on his re-election and mentioned that we look forward to entrenching China-PNG relations, especially in the area of trade and commerce.

“President Xi also congratulated me on my re-election as Prime Minister of PNG,

“We agreed that a Free Trade Agreement must be concluded at the very earliest that would secure both nation’s interest so that trade and commerce happens within this realm.

“President Xi invited me for a State Visit to China next year during which time we hope to sign the Free Trade Agreement.

“He supported PNG’s move into downstream processing of our natural resources at our Special Economic Zones and said the Chinese market was ‘endless’ for PNG products.

“The Chinese President said he supported PNG’s move into downstream processing and would get Chinese companies to invest in this space.

“President Xi supported my idea to have direct flights between Shanghai and Port Moresby, which will complement our plan to increase business opportunities between our two countries, as well as people-to-people relationships.

“There over 100 million tourists leaving China every year and direct flights to Shanghai from Port Moresby can target this market.”

PM Marape thanked President Xi and the Chinese Government for continued support to PNG over the last 47 years and pledged continued partnership going forward into the future.

The Papua New Guinea Trade Union Congress (PNGTUC) and its affiliated unions have supported the points that were raised by the Minister for international Trade and Investment, Hon Richard Maru on the urgency to investigate companies and businesses that have been operating on loss every financial year.

PNGTUC Secretary, Mr Clemence Kanau said no sane person or rather a Government will condone such businesses to conduct their business while declaring nil profit to avoid paying taxes.

“Where is the logic of doing business continuously whilst incurring nil profit”? He questioned.

He urged the Government to immediately investigate these businesses that have been deliberately evading and bypassing our tax laws.

“This matter is a very serious crime in other countries where offenders are slapped with fines or banned from doing business again. If businesses are paying due taxes on time, these taxes will be used by the Government to invest in education, Health, Law and order and most importantly it would create more employment opportunities for citizens”. Mr Kanau said

He said the workers throughout the country are currently paying K4 billion in taxes annually while the country’s  extractive industries pays a mere K2 billion  when earning billions more  in profit. This shows a huge disparity.

“The major oil palm companies are classical examples of those companies that evade tax. They have never paid any taxes to date while still in business but they continue to declare nil profit annually”.

“The extractive industries such as mining, logging companies etc are multibillion kina industries, they obviously earn billions but they are only a minimal taxpayer in comparison to the business they operate”. Mr Kanau said.

“It is a glaring disparity between our workers and businesses , where the workers are taxed through their salaries and wages automatically whilst these so called businesses keep bypassing the law by declaring nil profit to avoid paying tax” He said

He added that the law must be strengthened to investigate and impose severe penalties to such businesses.

The office of censorship has finally launched its Corporate Censorship Plan 2022 to 2026 in Port Moresby recently.

In launching the plan, Community development Youth and Religion Minister, Hon Jason Peter said the document was important as it focuses on the organisations capacity and it will help them to implement ‘The National Censorship Policy II’ to run from 2022 to 2025.

“This is one of the important corporate plans that our Government has introduced, I want to thank the Chief Censor for his leadership in driving the policy process to its conclusion and also the hardworking staff of The Censorship board of Papua New Guinea for leading a very consultative process in developing the corporate strategic Plan of the organisation.” Said Minister Peter.

 “The office of Censorship plays an important role in protecting our values, our minds and the overall national security of our country by ensuring that information that is available for public consumption is safe and clean”. He further stated.

On the same note, Chief Censor of the Office of Censorship, Mr Jim Abani also stressed on the importance of the plan by emphasizing on the significance of partnerships.

“As a Government agency we can achieve our expected outcomes if we strengthen our partnerships. Sustainable partnership is the key and its strategies are very clear for smooth functioning and expansion of our services with others,”

“Censorship is about making a judgement call on the values of content and information.” Chief Censor Abani said.

The Minister for state enterprises, William duma has announced the approval that there will be a new commercial bank to be established in the country next year, He stated this when responding to the NCD Governor, Powes Parkop regarding banking related issues in the country in parliament recently.

Minister Duma stated that the Marape-Rosso Government has decided to apply for and establish another commercial bank in the country; he explained that when taking into consideration and comparison with other countries such as Fiji and that they have more than 8 commercial banks.

“In a country of more than 10 million people we need more commercial banks because if you consider current commercial banks like Westpac and ANZ, they have not been quite keen in expanding their presence and services to other parts of the country”, Minister Duma said.

“We must be considerate of our people and take into account that we have a lot of people in remote areas and such it is incumbent upon us as leaders to establish another commercial bank”.

“Major commercial banks such as BSP have not been able to provide the services that our people need, many of our people are unbanked due to BSP’s conduct in charging and setting a lot of fees”. Minister Duma said.

Minister Duma further said that it is the responsibility of the National Government to set another commercial bank in the country.

“I can announce that cabinet has already approved in principle for a new commercial bank to be established and be called The National Banking Corporation”, Minister Duma announced.

Minister Duma concluded that under the leadership of our Prime Minister all necessary requirements have been completed and we are now 85 per cent through in reaching that goal, and before the end of next year this country should have a fully fledged commercial bank.

Photo: National Development Bank Head Office

The National Development Bank (NDB) in partnership with the Sohe District has launched its Small to Medium Enterprise (SME) credit scheme program, last week in Oro, Northern Province.

Member for Sohe and Minister for Commerce and industry, Henry Amuli, together with executives of The National Development Bank (NDB) and other important dignitaries were present to witness the ceremony. The occasion was witnessed by hundreds that had interest in engaging in the SME sector.

Speaking during the launching of the Sohe District SME credit scheme program, Executive Manager for NDB, Gary Copeland stated that K500, 000 had been paid by Sohe District into NDB to roll out the credit scheme program. Prior to this, the Sohe District paid an initial sum of K500, 000 and with the current deposit the district now has K1 million in totals to carry out the credit scheme program.

Mr Copeland said this is a partnership between the Sohe district and The National Development Bank to assist local people who are engaged in SME activities in the district.

“We welcome everyone in the District who are engaged in SME activities to visit the branch and open an account with Peoples Micro bank and be able to access and take out loans to grow your SME”, he said.

“All it takes from you is 20% deposit, so if you want to borrow K10, 000, you can access the loan with equity of K2, 000, why because the rest of the loan security is taken care of by the Hon Minister and MP through the credit scheme”, Mr Copeland explained.

Meantime, Mr Copeland said one of the main factors of NDB facilitating such services is because of the reopening of the NDB branch in Northern Province that had been closed for almost 3-4 years. He also challenged the people of Oro to utilise the services of National Development Bank for business purposes.

Photo: Kavieng Airport

Minister for Treasury Ian Lin-Stuckey has stated that the upgrade of Airports in the Country is Vital for Papua New Guinea's Development.

“I was honoured that Prime Minister James Marape opened the Kavieng Airport upgrade.  This was a historic day for Kavieng, making for safer and better linkages to the rest of PNG and the world."

The expansion of the runway by 500 metres to 2,200 metres means that larger aircraft can take more produce to international markets. More tourists can visit. Kavieng becomes an easier place for doing business. These types of benefits flow from airport upgrades anywhere in our country. Our country’s geography is beautiful but challenging for transport with so many islands and high mountains. The Marape-Rosso Government understands these challenges. 

"The historic PNG Connect program includes not only major road connections but also airport upgrades and wharf upgrades. This is an infrastructure government working towards a fully connected PNG” stated the Treasurer, Ian Ling-Stuckey.

“In addition to the airport runway extension, the quality of the runway was upgraded to make for safer travel. An upgraded airport terminal also makes for more comfortable travel and better handling of cargo and produce. New lights and navigational aids have been added.  A public market has also been built to tap into the expanded economic opportunities from the airport upgrade. The upgrades open the door for direct international flights from Australia and other destinations, making Kavieng more accessible to the world.

“The Kavieng airport upgrade represents the close work between the National Airports Corporation (NAC) and the Asian Development Bank (ADB). It is one of many airports across the country that have been upgraded under the “Civil Aviation Development Investment Program” (CADIP).

Since taking Office in 2019 and continuing his tenure as the Prime Minister after the recent elections, Hon James Marape has always been adamant about connecting the whole of Papua New Guinea through a road network that links the whole nation.

Prime Minister Marape continues to be vocal about the Connect PNG Program of which his government has already commenced work on and ensuring funds are available to realize his vision.

The Marape-Rosso Government has now legislated the Connect PNG Program making it legally binding for the following two decades. This will now make certain successive governments obliged to make funding available for the program, which began in 2020 and will conclude in 2040. The anticipated overall cost is estimated at K20 billion.

This is a prime public funded infrastructure improvement ever undertaken in the last forty seven years. Within this remaining month, the people of Papua New Guinea will witness the launching of 3 of the six roads recognized to be funded under the Connect PNG Program.

They are the Manus East West Highway, which was launched on November 3, Vanimo-Wewak Coastal Highway, which was launched on November 17 and East and West New Britain Highway, which is to be launched before the end of the year.

During the launching of the Wewak to Aitape Road Upgrading and Sealing Project under the Connect PNG Program, Minister for Works and Highway Hon. Solan Mirisim emphasised that the Marape-Rosso Government is devoted to empowering all Papua New Guineans with sustainable road connectivity and accessibility to an entire variety of activities inclusive of easy access basic goods and services and easy access to sell their cash crops and market their fresh produce.

“I must highlight and emphasise that the Connect PNG Program is a National Roads Infrastructure Development Program implemented in all regions and provinces. It involves improving existing key economic roads and constructing the missing links,” he said.

“In the medium term, the program aims to connect the Momase and Highlands Regions to the Southern Region through the Trans-national Highway by 2025.

“For the long term, the program aims to have 100 percent road connectivity from the Wutung Border Post all the way to the East Cape in Milne Bay Province.

The Minister for Works and Highways said the Sepik Coastal Highway is part of a larger road network under the Connect PNG program that is considered as the Momase Economic Road Corridor that starts from the Wutung Border Post, passing through East Sepik and Madang provinces and ending in Morobe Province.

“Marape-Rosso Government recognises the strategic importance of the Momase Economic Corridor Road Network and its huge potential to effect socio-economic development in the Momase Region and PNG as a whole.” Mr Mirisim said the Sepik Coastal Highway is valued at K139.85 million. An initial funding of 10 percent of the total value has already been paid to the local Contractor, Green Hills Limited and the road works will cover 40 kilometres of the 1,318 kilometres of the Momase Economic Corridor Road network.

Minister for Tourism arts and Culture, Hon Isi Henry Leonard said the culture and creative industry in Papua New Guinea is an untapped industry and a sleeping giant. The Minister made a bold statement pointing out that the industry can also contribute immensely to the country’s economic growth.

“Besides, we have so much to offer especially in tourism in terms of creativity from our diverse culture. We have traditional items and artefacts, tattoos, traditional wood carvings, sculptures and many more. Many of these activities were part of our ancestral culture and have been passed down from many generations”, Minister Leonard said.

The creative arts industry in the country is still struggling to get to its prominence in many of its respective areas. This industry plays a significant role in connecting and uniting Papua New Guineans through their creative arts establishments. The industry has had less recognition by authorities for a long time and has desperately struggled to sustain itself.

Creative arts and culture involve sub sectors of economical value such as modern day contemporary music, traditional sculptures and carvings, dances, paintings and crafts, films, drama etc.

Last year, during the opening of the National contemporary arts exhibition in Port Moresby, Minister Leonard stated that the Culture and creative arts industry if given proper recognition will contribute to the National purse and will assist and support in building the economy.

Upholding of cultural arts heritage has been part of our society’s foundation such as the cultural significance and importance of the Haus Tambaran in which PNG’s House of parliament resembles.

However, something must be done to push this industry forward to be in line with global standard especially in the aspects of modern music and film making which other countries benefit from economically. Although we are new in the other areas of advance modern arts, dance drama and music, the school of creative arts in PNG has produced several qualified people in various aspects and fields of the strand since the school’s inception.

This industry needs immediate help to create development programs and policy interventions that can be harnessed into economic value and sustainability. There is likely potential in this industry but lack of understanding and supporting mechanisms have deprived its growth.

The industry presents an opening to build economic opportunities through the unique capabilities of artists, musicians, designers, and performers to showcase their talents and what they can offer. It is a massive part of Papua New Guineas diverse culture that needs to be developed, utilised, and supported regularly.

Photo: Mr Musje Werror

The Ok Tedi Mining Limited (OTML) Board Chairman Dr. Roger Higgins is concerned with the media reports on the purported removal of Mr Musje Werror.

Mr Werror remains the Managing Director and CEO of OTML.

Dr. Higgins makes particular reference to and agrees with the statement by the Minister for State Enterprise Hon. William Duma that only the OTML Board has the power to terminate its Managing Director and that has not been done.

The Board understands the expectations of the government whose interest in OTML is managed by Kumul Minerals Holdings Limited (KMHL) on behalf of the Trustee Shareholder and Minister for State Enterprise.

The Board appreciates that our majority Shareholder KMHL is concerned with the economic factors, including international copper and gold prices, as well as international energy prices, that exert pressure on the financial position of the mine, and has commissioned an independent peer review of the mine.

The OTML Board and Management are fully supportive and cooperating with the review Consultant so as to deliver an outcome that can be beneficial to the company and all our stakeholders.

Dr Higgins notes that the OTML board will meet in December and consider a dividend distribution as is normal practice.

It is important that there is stability and confidence in the governance structure of the company and that a focus of the Board and Management is on safely meeting production targets.

Article courtesy of Ok Tedi Mining

Photo credit: PNGEITI - Porgera Mine

The Porgera chamber of commerce and industry hopes that the re-opening of the mine will go ahead as planned.

Chamber president Nickson Pakea said the mine must be re-opened next month as announced recently by Prime Minister James Marape.

Pakea said the mine closure had led to criminal activities.

“The mine ensures business activities continue and keeps locals busy,” he said.

“During its closure, people have nothing to do and easily end up in (illegal) activities.”

Pakea said around the valley, nearly 3,000 businesses registered with the Investment Promotion Authority had been dormant because of the slump in economic activity. The chamber has about 706 members, 210 of which are contracted to the mine.

The Porgera mine is a joint venture between Barrick Niugini and Zinjing Mining Ltd. 

It was closed in 2019 when the special mining lease expired.

In 2020, care and maintenance began while awaiting negotiations between the developers, the Government and the landowners. “The Government, in a way, has failed us because the recent fighting has been the worst in history in the valley,” he said.

“We’re (therefore) excited with the (scheduled reopening) in December.

“Re-opening the mine will bring back all the services ceased since the closure.”

Reference: The National (15 November 2022). “Chamber hoping mine re-opens as planned”.

Photo credit: Shuttershock

The government rating's outlook has been improved by Moody's Investors Service from "negative" to "stable."

The move from negative to stable is attributed to "a stabilisation in the Government's debt load coming in part from the positive terms of trade shock from better global prices for Papua New Guinea's commodities exports," according to the report.

A "renewed commitment to long-term fiscal sustainability that has been strengthened by its re-engagement with development partners" is another factor that contributed to it.

“Moody’s now expects a stable debt burden and debt affordability in the next few years,” a statement said.

“In addition, government liquidity and external vulnerability risks have ebbed given improvements in domestic funding conditions and the balance of payments, leading to lower domestic interest rates and higher foreign exchange reserves, respectively, which Moody’s expects to continue. The affirmation of the B2 rating reflects the confluence of relatively weak economic strength, institutions and governance strength, and susceptibility to event risk.

“Nonetheless, progress on large resource projects, particularly for liquefied natural gas (LNG), improve the outlook for medium-term growth and fiscal repair, while the re-election of the Government of Prime Minister James Marape allows for policy continuity and no meaningful deviation from the negotiations already conducted with regards to the large resource projects or with development partners and the International Monetary Fund (IMF).”

PNG's performance under several IMF staff-monitored programmes during the past two years, according to Treasurer Ian Ling-Stuckey, demonstrates a renewed emphasis on interaction with the international community. He also noted that PNG has exhibited progress on reforms.

According to Ling-Stuckey, the Government is now negotiating a new programme with the IMF's extended loan facility that is scheduled to begin in 2019.

“The shift towards more concessional funding sources and away from the PNG’s traditional reliance on domestic market-based financing will lower debt servicing costs and debt affordability, as well as bolster external stability,” he said.

Reference: The National (15 November 2022). “PNG outlook stable: Moody’s”.

The Queensland government through the Ministry of Treasurer and International Trade and Investment will be appointing a Queensland Trade Commissioner for the Pacific by next year 2023.

This is part of the Queensland government’s effort in strengthening the trade, economic and relationship that exists between Papua New Guinea and Queensland.

Queensland Treasurer and Minister for Trade and Investment, Cameron Dick made this announcement during his official trip to the country on Sunday, November 12.

He said the establishment of the Trade Commissioners Office in the country is part of their new trade investment strategy for the Pacific that their government will be releasing.

“As part of that we wish to base a business development manager in PNG to work on supporting the relationship and strengthening the relationship that exists between PNG and Queensland,” he said.

“That is part of the AU$150 million trade strategy that will run for 10 years.

“As part of that we will spend around $4.5 million investing in the Pacific because of the value and importance of the Pacific in Queensland.”

Mr Dick said in 2021 and 2022 financial year, Queensland’s goods exported to the Pacific region were worth about AU$1 billion.

“About K2.3 billion of that amount, 80 per cent of that (K1.8 billion), was with PNG and that emphasises how important the relationship both the country and the state have,” he said.

“We want to further develop the economic opportunities both for PNG and for Queensland.

“We want the relationship to be based on partnership and values, whether that is in the development of skills and training, for individuals, whether it is economic opportunities for businesses, whether it is the investment pathway that exists between PNG and Queensland and Queensland and PNG, whether that is opportunities in sporting and cultural pursuits.

We think that is the first inland area of development between the two states.”

Reference: Wohi, Lorraine. Post-Courier (15 November 2022). “QLD To Set Up Trade Commissioners Office In PNG”.

Photo credit: Papua New Guinea Today

The Papua New Guinea Independent Commission Against Corruption (ICAC) launched its Anti-Corruption and Integrity Strategy 2023-2025 in Port Moresby recently.

The two-year Strategy is a roadmap for combating corruption within ICAC.

The document is an outcome of a Memorandum of Understanding between ICAC and its partner Transparency International signed in 2021.

In a small but significant ceremony, the document was officially launched.

According to ICAC Interim Chairman, Thomas Eluh, ICAC foresees that the threat of corruption is not only from the outside but also within, thus it is critically important for ICAC to ensure that they have systems and processes that can help them eradicate corruption.

The document ties ICAC down to four key objectives.

Mr. Eluh called for greater collaboration among its partners to fight corruption in the country collectively.

Transparency International Chief Executive Officer, Arianne Kassman described the launch of the two-year strategy as a milestone achievement towards the State’s efforts in achieving its National Anti-Corruption Strategy 2010-2030 and equally important as the establishment and operationalization of ICAC.

With the launch of the strategy, ICAC is now ready to carry out its mandated responsibilities.

Reference: Papua New Guinea Today (11 November 2022). “ICAC launches Strategy to Combat Corruption in PNG”. 

Photo credit: Papua New Guinea Today

Kumul Consolidated Holdings (KCH) has paid dividends to the State after 7- years. 

The country's Minister for State Enterprise William Duma officially handed over a dummy cheque of K80 Million Kina to Treasurer Ian Ling-Stuckey and Prime Minister James Marape this week. 

The dividend amount from all state-owned companies bypasses the executive government projected estimates by K60 million.    

The conference room at the Manasupe Building was packed with board and executive management of State Owned Companies, to witness, long overdue dividend payments to the state. 

The last combined dividend payment by Kumul Consolidated Holdings was in 2015. 

State Enterprise Minister William Duma before handing over a dummy cheque worth K80 million praised Prime Minister James Marape for reforms introduced when taking office in 2019. 

Treasurer Ian Ling-Stuckey praised the state business arm for exceeding the government's projected estimates of K20 Million.

Reference: Papua New Guinea Today (11 November 2022). “PNG's KCH pays K80 Million Dividend to the State after 7 years”.

According to an official, the National Energy Authority is enforcing stricter regulations on the energy and electrical industries in Papua New Guinea, and experts must hold a licence to practise.

In Kavieng, New Ireland, recently, acting managing director Ronald Meketa made this statement at the start of the first electrical licensure exam for the New Guinea Islands conducted under his supervision.

“Power-generating firms and plants will have to adhere to industry best practices and technical standards when setting up operations, so professionals in the electrical sector must be certified or have a licence to be able to carry out installation work in PNG,” he said.

The initial 29 electricians took their two-day electrical exams under test subjects ‘Theory of Applied Electricity’ and ‘PNG Wiring Rules’.

“We will continue to conduct these examinations in the other regions of PNG because it is of importance that we have well equipped and certified professionals carrying out electrical installations in the energy sector,” Meketa said.

He stated that candidates taking the exam had to meet requirements such as being at least 19 years old, having finished an apprenticeship program, holding an electrical trade certificate, having graduated from electrical engineering school, and having at least five years of work experience.

“The electrical licences are recognised internationally and have to be renewed after every seven years,” Meketa said.

“While all overseas electrical professionals will also be required to show the same certification to work in PNG.”

Meketa said that his organisation was working to enlist additional alternative power producers to assist address the ongoing power disruptions that

“For better management of power distribution, we have to have separate power producers and distributors,” he said.

“The authority is on the path to rectifying this issue by engaging a wider stakeholder approach which involves provincial governments and district development authorities.”

Reference: The National (16 November 2022). “Energy sector lifts standards”.

As a result of climate change, international crime, and tax evasion, Pacific Island nations must continue to collaborate in order to solve security challenges.

David Towe, the Chief Commissioner of PNG Customs, made this statement at the fourth Joint Heads of Pacific Security conference in Fiji.

According to him, it was necessary to utilise the regional organisations and institutions already in place to support the Pacific region's security capabilities. In order to improve regional maritime security and lessen the security concerns the Pacific Island countries are currently experiencing as a result of climate change, illegal fishing, illicit drug use, and other threats, according to Towe, the delegates decided to establish a partnership for information sharing.

The participants talked about how climate change would affect security and looked at ways to build security capacities throughout the Pacific for readiness and efficient response.

More than 70 delegates, including officials of regional bodies and observers from Australia, Japan and the United States, attended the meeting.

Anote Tong, the keynote speaker and former president of Kiribati, asked the chiefs of security to discover the answers to the queries he

“We must save the island to save the world,” he said.

Towe stressed to the meeting that it needed to act quickly since the repercussions of climate change were real as she talked about the consequences of increasing sea levels and the eviction of Bougainville's Carteret Islanders.

He stated that 18 results, known as the "Denarau Outcomes," had been agreed upon by the forum and would be distributed to the member nations.

Following Palau's acceptance of the offer to host the fifth edition the following year, PNG will host the sixth conference in November 2024.

Reference: The National (16 November 2022). “Pacific Island countries urged to address security issues”.

ransparency mechanisms built into the topical Papua New Guinea Sovereign Wealth Fund (SFW) will enable an effective functioning of the fund, according to the PNG Extractive Industries Transparency Initiative.

PNGEITI welcomed the announcement of an initial injection of K5.6 million into the fund making it operational more than five years after the enactment of its enabling legislation. However, the PNGEITI raised concern over the lack of transparency around the operational and structural se-up of the fund.

“While PNGEITI commends the operationalization of the fund, the status quo raises transparency questions that needs to be answered by way of building in transparency mechanisms into the SWF arrangement”  Head of PNGEITI National Secretariat Mr Lucas Alkan said.
“The PNGEITI which has been implementing the global best practice standard on transparency around revenues generated from the mining and petroleum sectors of the economy strongly holds the view that international best practice standard is also built into the SWF arrangement for better governance of the SWF operation, derived from the Santiago principles to be adhered to,” Mr. Lucas Alkan said.

“One of the key objectives for SWF under the Santiago principle underpins a transparent and sound  governance structure that provides for adequate operational controls, risks management and accountability- PNGEITI strongly encourages that this objective be fully met in the PNG SWF set-up.

“SWF are  regarded as important players in the international monetary system and for Papua New Guinea to have one requires due diligence in ensuring the fund stands out well in the international monetary system and is credible” Mr Alkan commented.

“Consistent with the Santiago principles, the PNG SWF must bear economic and financial benefits for Papua New Guinea and the international financial system.

“We welcome the first SWF payment and hope to capture more payments and distributions of funds in the EITI Reports, particularly those taken from our lucrative extractive industry.

While commenting on the Government’s effort to operationalise the long-awaited SWF which is a positive step Mr Alkan said the Government needed to seriously conclude its pending dividend policy review and address the current parallel arrangements or set ups through the Kumul entities that have been empowered through their respective boards as to how much windfall revenues from the extractive sector could be paid to the Treasury or the SWF. He said to ensure the SWF operates on a strong financial footing to perform what it was set up to do, it needs to have access to all the windfalls that come out from extractive sector.

“The opportunity cost of parking such funds (which may be significant in the long run when commodity prices are good) in entities of State that are playing duplicate functions will not assist in using such windfalls to pay down current high levels of public debt.

We would be better off using the windfalls to pay off current high levels of debt than parking money in such arrangements that may be tempted to use for other purpose than what was intended for originally. Therefore, transparency mechanism is highly encouraged in the SWF set up”, Mr Alkan suggested.

“We have had similar experiences in the 1980s and 1990s where the so-called commodity stabilisation funds that were established for similar purpose that never worked and we need to learn from these and ensure the SWF is properly established and operationalised,” Mr Alkan said.

EU-STREIT PNG, in collaboration with local partners and government agencies, trained 1375 farmers, including women and youths, in the Sepik River area of Papua New Guinea on best cocoa farming techniques and on gender inclusion in agriculture development and financial literacy skills.

The FAO-led EU-STREIT PNG Programme continues to provide learning opportunities to improve cocoa farmers’ skills in hard-to-reach areas of the Sepik region for increased profitability and improved livelihoods of thousands of households who depend on this cash crop.

In collaboration with the Division of Agriculture and Livestock (DAL) in Angoram District of East Sepik Province and PNG Cocoa Board, a total of 1375 farmers, inclusive of women and youths from three villages, were upskilled in best block management practices, and cocoa propagation techniques – critical to producing pest tolerant seedlings.  

Conducted in Asangumut, Murken and Jungit villages (in Yuwat and Marienberg Rural Local Level Governments), the training sessions had lasted for three weeks, brought together 1350 participants from the three villages plus an additional 25 farmers who enthusiastically trekked from surrounding villages to join. In terms of gender and youth participation, there were 665 women and youths representing 48% of total 1375 farmers who were very keen to attend the training and learn new skills.

In Asangumut Village, residents in collaboration with Manbanda Cooperative Society, assisted the Programme to organise the training which was conducted under the theme ‘Integrated Pest and Disease Management (IPDM) and focused on application of appropriate pruning methods on matured cocoa trees following the crop calendar.

Pruning is an important cocoa farming activity in block management that allows for shade control for sufficient sunlight and airflow to reduce risk of diseases such as black pod and to provide more nutrients that leads to abundant flowering and hence increased fruit yields.

The cocoa budding training was the focus of training sessions organised in Murken and Jungit villages, in partnership with Jangama Apaukra Cooperative Society and Jungit Cooperative Society, which pulled together 943 farmers with a high interest from women and youths numbering 487 or 52% of the participants.

“I learned many good things, like how to properly look after our cocoa trees to produce quality beans that will give us more money to pay school fees for our children, buy new clothes to wear and pots to cook. Only cocoa will move us, and I want to say thank you,” said a female farmer and mother Mrs Ruta Sore form Jungit Village.

Sharing on behalf of the youth, Vincent Anduare and young cocoa farmers said: “The budding skills will help us to produce CPB pest tolerant cocoas that will provide a source of income to help get rural youths out of poverty.”

Commenting on the challenges people in these remote communities face and how the Programme, in collaboration with local partners, is trying to improve cash flow and economic opportunities in these rural communities, the FAO National Cocoa Production Officer, Michael Lames, said: “These are very remote and hard-to-reach communities like Jungit which is located towards Madang Province, so it was a relief to come to their aid. When these cocoa trees come into production, the income will support improve their lives in the villages.”

Lames added: “It was good to see many villagers opening their bank accounts with MiBank – a partner of EU-STREIT PNG Programme – instead of taking the risk to travel long distances along the Sepik River and then onto a Public Motor Vehicle to Wewak Town and it’s good we came to them.”

As is the practice in all STREIT’s implementation sites, the Programme will follow up with the distribution of agricultural inputs and materials like polybags and shade cloths to help the trained farmers in these three locations to set up their nurseries for the production of CPB tolerant seedlings. These seedlings will then be procured by FAO and re-distributed to farmers in the same area.

During the gender and youth mainstreaming sessions, aimed at promoting women and youths’ involvement in decision-making processes for an increased income from agrifood value chain activities, farmers were divided into groups according to their ages and sex in a view to discussing their 24-hour activities. Men and women, both old and young, explored their roles and responsibilities, starting from household chores to farming, in order to identify where workloads could be shared to improve production and income as well as respect and togetherness at household levels.

Through this activity, participants came to the self-realisation that valued labour inputs especially by women that were neither balanced and nor recognised within family farming setups.

The Gender and Youth Inclusion team will conduct regular follow-ups to ensure women and youths are included in the cocoa cooperative management committees and also to ensure the official registration and lagalisation of youth groups in these remote villages.

MiBank officers under the Programme’s mandate to create an enabling environment for improved access to finance and banking services also accompanied the FAO mission team and staged multiple sessions on financial literacy awareness and opened bank accounts for the farmers and villagers.

The EU-STREIT PNG Programme, being implemented as a UN Joint Programme (FAO as the leading agency, and ILO, ITU, UNCDF and UNDP as partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. The Programme aims to help improve the lives of the people from East Sepik and Sandaun provinces, by focusing on increasing sustainable and inclusive economic development of rural areas through improved economic returns and opportunities from cocoa, vanilla and fishery value chains while strengthening and improving the efficiency of value chain enablers, including the business environment and supporting sustainable, climate-proof transport and energy infrastructure development.

Photo: PM Marape and Secretary Blinken during a recent bilateral meeting

Prime Minister Hon. James Marape has invited the United States of America to invest in downstream processing in Papua New Guinea, especially in fisheries.

He made the invitation to US Secretary of State, Antony Blinken, during their bilateral meeting on the sidelines of APEC 2022 in Bangkok, Thailand.

PM Marape said it was a privilege for PNG to have been given the honor of meeting Secretary Blinken.

The bilateral also comes after the Biden administration hosted the first-ever U.S.-Pacific Island Country Summit in Washington, D.C. on September 28–29, bringing together more than a dozen Pacific Island leaders and other key observers to discuss areas of shared interest, including climate change, maritime security, and economic development; and as the US prepares to open its new Embassy building in Port Moresby later this month.

The bilateral was the culmination of a busy first day at APEC 2022 at which PM Marape had meetings with several international companies in which he invited them to invest in PNG.

PM Marape was accompanied by Foreign Affairs Minister Hon. Justin Tkatchenko, Secretary for PM and NEC Ivan Pomaleu and Foreign Affairs Secretary Elias Wohengu at today’s meeting with Secretary Blinken.

The US pledged to engage more with us and asked us what kind of support we wanted,” he said after the meeting.

“We didn’t ask them to give us more grants and aid – all we asked was for them to bring in more US businesses into PNG, particularly in the downstream sector.

“We pointed them to the area of fisheries, saying that’s the best they can do for us, to economically empower us not just today, but more importantly into the future.

“We invited them, as the biggest global economy, to bring in their companies and take up residence in PNG.”

The meeting also touched on:

• Follow-up on discussions from the Washington meeting, especially that PNG’s case was different from smaller Pacific nations;
• PNG’s location in the Indo-Pacific region;
• PNG’s reliance on Asia for commerce and trade;
• US companies operating in PNG, especially ExxonMobil, which recently celebrated 100 years in the country;
• USA inviting Pacific Island countries to the next APEC which it will host
• Various other matters

Article courtesy of PM James Marape 

For 30 Years, Oilmin Field Services has been part of remote field projects throughout Papua New Guinea. Oilmin has been a key stakeholder and partner in the evolving Oil & Gas Industry since 1992 and continues this legacy throughout Papua New Guinea today.

Founded by the late George Leahy and partners, Leahy took full ownership of the Company several years later and launched OM Holdings. George was the son of Dan Leahy, famously known for his exploration expeditions with his brother Mick into the Highlands, later documented by Australian writers and filmmakers Bob Connolly and Robyn Anderson in the documentary, First Contact.

Oilmin has grown and expanded in many ways since its inception and continues to diversify its business model.

OILMIN - Earlier Years

In the earlier years of operations, Oilmin was directly involved and responsible for the Community Affairs Management within a project. This was possible with a selective number of key Field Managers who had experience with these requirements. They possessed a sound understanding of Papua New Guinea and its people.

The Core Business of Oilmin Field Services during the earlier years was Seismic Support Services. Clients at the time consisted of Chevron, Oil Search, ESSO PNG, Geco Prakla, and Union Texas, to name a few. Seismic Projects ranged from a vast number of services and Oilmin continuously delivered these services to its clients. Examples of these services included but not limited to –

• Community Affair Management
• Line Preparation
• Labour Hire & Management
• Logistics & Procurement
• Remote Bush Camp Construction (Fly Camps)

Known for the ability to deliver projects in the most remote areas of the Country, Oilmin became a respected entity that specialised in lightweight, rapid deployment camps. These camps were portable by air and did not depend on machinery to mobilise and construct. They were fabricated from Oilmin’s Head Office, located in Mt Hagen.

Over time, Oilmin Field Services diversified into a variety of industries and services that could be offered to clients for their project requirements. The diversification offered project solutions to clients in terms of Aviation, Shipping, and Timber Supply.

Oilmin continued to diversify over the years and entered projects that were new to the company but expanded the core business and brought in many more employment opportunities for Papua New Guineans to be part of an experienced remote field team.

It entered the Rig Pad Construction sector, and Oilmin managed to mobilise a fleet of heavy equipment into the remotest sites to clear and build rig sites for clients. The work involved with the rig pad projects is quite amazing and unique. The crews would disassemble heavy equipment into 4 to 6 different pieces and fly them under helicopters through the remote jungles before having to reassemble the machines ready for the civil works to commence.

Oilmin has built and delivered over 20 rig pads throughout PNG. The terrain for each location is quite different and the project team adapted to the conditions and requirements for executing these jobs. The locations have been stretched through the provinces including Hela, Western, and Gulf Provinces.

In 2015, the Company and the Oilmin Family were saddened with the news that it had lost its leader -- George Leahy passed away in his beloved town, Mt Hagen. His leadership in the company would be missed for the years to come. He left the company in the hands of his children, who had already been involved in the company and had been working on the remote Oilmin sites throughout the Country. Late George’s vision would live on through the next generation of Leahy’s to lead Oilmin forward.

OILMIN - NEW GENERATION

The Company focused on the core business, remote field services. Oilmin continued to service the Oil & Gas Industry throughout the later years to come and continued to diversify into Camp and Catering Services on the remote sites. It continued to excel with Camps and Catering Management Services, delivering services to the highest expectations. This would lead to the company obtaining International Accreditation for Food Safety and Quality.

Its accreditation is still intact today with ongoing regular facility audits from an International External Auditor. The Auditors’ comments during the 2020 audit were truly pleasing to the management and team -- “The kitchen facility was the cleanest he has seen in all of his years auditing Catering Companies.”

The team continued to invest in its personnel. Training and development have delivered several of its National Employees to being promoted and obtaining Management Positions throughout the Project Sites that Oilmin manages today. These positions include but not limited to:

• ​​Catering Managers
• Camp Managers Crew Managers
• Community Affairs Managers 
• Personnel Managers
• Construction Managers
• Logistics and Procurement Managers

​​​​A NEW SEISMIC PROJECT MODEL

Oilmin partnered with Smart Seismic Solutions to offer clients an in-country solution to manage and execute Seismic Surveys. This new model of Seismic Project Management was developed for PNG and the Oil & Gas Companies that operate here.

For the first time in PNG, a PNG-owned company is now operating a world-class seismic crew on behalf of international exploration companies. The crew has recently passed 1,000,000 man-hours on the project LTI Free.

With vast local and regional knowledge and as one of the PNG’s leading suppliers of remote field support services, Oilmin aims to be the premier support service provider for major Oil & Gas Projects and other industries.

PNG Company

Oilmin is a TruTru PNG Company -- not just a registered PNG Entity, but a PNG-Owned Company that is and will be permanently in PNG for the good times and the bad.

During the years, Oilmin has faced several situations that put the company through some tough and trying times. These challenging times have made the company what it is today. Stronger than ever before, Oilmin will continue to grow and expand into the future.

With a new generation of the Leahy Family at the helm, Oilmin continues to expand and looks forward to new opportunities and further growth for our people. It is an exciting time at Oilmin, and the company and its staff all look forward to seeing what the years ahead will bring.

Before we end the year, let us have a recap of Twinza Oil Limited’s presentation during the 2021 PNG Mining and Petroleum Conference and Exhibition. Although the report was presented a year ago, (2 December 2021), Twinza’s Executive Chairman, Stephen Quantrill, provided a remarkable forecast and insights on how their Pasca A Development Project will boost the economy of Papua New Guinea.

Twinza Oil Limited is an upstream Oil and Gas company with assets in Papua New Guinea. Their principal asset is the Pasca A liquid-rich gas field offshore Papua New Guinea. According to their company website, “the Pasca A field development plan has been completed, the petroleum resources certified and the programme necessary to obtain the licenses for full field development is complete.” [1]

“Once the necessary government approvals are received, the Pasca A development is poised to become the first offshore gas field development in Papua New Guinea.” The company foresees that the development of the gas field will encourage and lead more exploration of other fields in the Gulf of Papua.   

With its main headquarters in Perth, Australia, Twinza is expanding their presence in Papua New Guinea to support the Pasca A Development. The company also has offices in Sydney, Brisbane, Port Moresby and in Singapore.

“Twinza’s executive management team has a proven track record in the early identification, development and operation of highly prospective oil and gas projects.”

During his presentation, Mr Quantrill described the Pasca A Development as a “Low Hanging Fruit”. To explain this, he enumerated the following highlights of the project, namely: investor pedigree, experienced team, GCA Resources Estimate of >120mmboe (or million barrels of oil equivalent per day), simple development, short time to production, and strong economics.

He reported that Pasca A Development will boost the PNG economy. Moreover, the project delivers long-term investment, provides increase in government revenue, and supports economic growth. Here are more key points and numbers about Pasca A Development:

• 500 million Kina - Annual Tax levies, royalties
• 5 billion Kina, full development cost
• +6% increase in government annual revenue
• Forecast expansion of PNG Economy - more than double PNG's share of the project revenue
• 600 million Kina expenditure within PNG during construction

Regarding Pasca A Project’s contribution to PNG’s Economy, Mr Quantrill reported, “Direct PNG revenues from the Pasca A Project are expected to exceed US$2.5bn (Kina 8.7bn) and increase PNG's real GDP by over Kina 18bn.”

He also discussed the Economic Multiplier Effect of the Pasca A Project. "Pasca A Project will have a positive benefit on PNG's overall economic performance as a result of the flow-on to other industry sectors.” He gave the following key points, such as the "Multiplier effects" of the project is 2x to 3x the direct benefits. The project also entails investment in physical assets (marine facilities) and social assets (education and health). Additionally, the project will generate employment benefits such as hiring more than 100 full-time workers during development, and/or total PNG operating workforce of 400 to 500.

For the macro-economic benefits in Papua New Guinea, it forecasts an increase in real GDP by K18.1 billion and an increase in real income of K4.6 billion. Aggregations could further enhance State revenues by more than 3x. [2]

Below is Pasca A Project development timeline.

The Pasca A project also supports PNG's energy transition initiatives. The company sees this as an excellent opportunity to provide a bridge to electrification to 70% of PNG population by 2030, or a 12 to 15 year bridge to renewable power.

The Pasca A gas condensate field is a carbonate pinnacle reef that was discovered around 50 years ago. However, for almost 30 years, this was dormant with no further technical follow-on work. Then, in 2011, Twinza Oil Limited acquired the field. By 2018 they drilled a new exploration well. “Improvements in drilling efficiency, production technology, and development engineering have transformed the technical and commercial viability of the Pasca A gas condensate discovery.”[1]

Hopefully, once government approvals are complete, the first offshore gas field development in Papua New Guinea will move forward and eventually fulfill their goal of helping the country’s economy.

This year, the 16th Papua New Guinea Mining and Petroleum Investment Conference and Exhibition will be held on the 5-7th December at Hilton Hotel Sydney. PNG Business News is media partner of this event.

Reference:

[1] Twinza Oil Limited company website - https://www.twinzaoil.com/

[2] Quantrill, Stephen (2 December 2021). “Twinza Oil Limited - Pasca A Project - Gulf of Papua”. A presentation during the PNG Mining and Petroleum Conference, Port Moresby and Brisbane

Photos and charts: Credit to Mr Stephen Quantrill, Twinza Oil Limited

Photo: Deputy PM Hon John Rosso

The Government plans on implementing a affordable land and housing program in the market to alleviate housing issues for middle and low income earners in the country's urban areas. This was stated by Deputy Prime Minister Hon John Rosso in light of questions raised by the media in relation to the recent evictions on settlers who have settled on government and privately owned land in most parts of urban areas around Papua New Guinea.

He said the Government has inherited a legacy issue on the issue of unplanned and illegal settlements in and around the vicinity and boundaries of urban areas in many parts of PNG. Mr. Rosso who is also the Lands, Physical Planning and Urbanisation Minister said the issue of people living in settlements and illegal settlements is a critical issue that needs a comprehensive approach. These settlements also have a lot of working-class people and taxpayers who are living there.

“I have been brought up in a settlement myself and I do feel for those people being evicted from the settlements. However, you cannot just settle on land that someone else owns,” Rosso said.

“Most of those recent evictions are based on court orders from the National and Supreme courts by people who have the legal titles. These titles were issued before my tenure as Lands Minister, sometime in 2011.

“That is something beyond the National Government’s control as the title holders have the legal authority and right to remove or evict the settlers from their land for development purposes.

“And to be direct, some of those evictions started as far back as 2011 and were delayed due to court battles.”

Deputy Prime Minister Rosso said that most people who go looking for opportunities and in search of better lives go and settle in this land by dealing with landowners and pay a minimal fee as there is no house and rooms for rent or are too expensive for our average wage earner.

He said previous governments have not built any new suburbs like the ones established in Port Moresby especially in many parts of other provinces and urban areas and towns such as Lae, Mt Hagen, Madang and Wewak. However, he said the National Government plans to address some of those legacy issues by introducing a house and land package in the market starting next year, 2023.

“The National Government and I as Lands Minister, we have started with the Tuhava House and Land package with the landowners of the Motu-Koitabu and their development partner people to build up to 4000 houses costing 300-400 thousand kina on the market so middle income earners can purchase and own. This will put 400 houses on the market.

“The program is at no cost to the government and we have not put in any single toea,” he said.

In the Tuhava case, the landowners have formed their company and will have shares in the program and get their land subdivided and portioned so that the land remains with them through their landowner company.

The Lands Department will help with the necessary support to the program including Policy and Planning of the land in close collaboration and consultation with the landowners who have allowed their land to be piloted.

Mr Rosso also said some of the houses on the markets are more than 500-600 thousand kina and that is very expensive for our middle-income earners, he said.

Deputy Prime Minister Rosso said the Government will and is looking at acquiring more land as there is a shortage of State land in many parts of the country’s urban areas. There is no more land in areas such as Port Moresby, Lae, Kokopo and Rabaul and in West New Britain, Eastern Highlands, Western Highlands, Madang and East Sepik provinces. We want to access more land and extend the urban boundaries with careful planning and to pay or partner those land in careful consultation with the landowners.”

The Deputy Prime Minister said that they will ensure that also low-income earners are part of the program. That will be targeted at our lower income workers and SME around the 100 thousand kina packages.

Minister for International trade and Investment and MP for Yangoru-Sausia in the East Sepik Province, Hon. Richard Maru announced that his district headquarters in Yangoru station will be upgraded to a town.

“We are determined to develop a new town plan and start putting a new shopping Centre within the Yangoru station to have it transformed into a township so people no longer have to go to Wewak every day by waking up at 4am and spending K20 on PMVs just to go to Wewak and K20 to come back; this is an unnecessary waste of money and time.

“We are determined to build a township in Yangoru so our people can be serviced from our district headquarter,” he said.

Maru said the Department of Lands would be sending their officers to Yangoru in the next couple of weeks to look at the district’s town development plan.

Maru added that he was also looking at building a district hospital that would house three doctors in the district headquarter of Yangoru as well.