“The Prime Minister and Hon. James Marape’s opening address at the 11th Parliament session on “Restructuring Governance and Real Development Outcomes” was well received by the market,” said BSP Group General Manager for Corporate Banking, Peter Beswick.

According to Beswick, “The message of the Prime Minister was well received. With its key focus on support for foreign direct investment and agricultural outputs that have high potential to be competitive across global markets.”

“The specific commitment made by the Prime Minister that his Government “will see that Papua LNG, Porgera, Wafi Golpu, P’nyang LNG and Pasca A projects will all move across the line” improves investor sentiment,” said Beswick.

He added that; “With the conclusion of the national election, we are seeing a significant uplift in consumer and business enquiries for investing and spending across all sectors.”

He said; “This is expected to build momentum leading into a strong 2023/2024, initially driven by Barrick's reopening of the Porgera Gold Mine and then Papua LNG Financial Investment Decision.”

“Also note that a major positive was that CPI Inflation has tapered to 5.5% in the June quarter 2022, when the headline CPI for the March quarter was 6.9%,” he said.

He continued that; “This is a positive sign, however inflation is significantly impacting business costs and consumer purchasing power nationwide.”

The key drivers of inflation remain unchanged—supply chain disruptions, logistic costs, fuel and food.

Photo credit: Newcrest

Prime Minister Hon. James Marape wants maximum benefits to be paid to landowners and their provincial governments from the resource projects around the country.

The Prime Minister said this today during a meeting with Morobe Governor Hon. Luther Wenge MP, the Mineral Resources Authority, representatives from Morobe Provincial Government, and the State Negotiating Team on Wafi-Golpu mining project.

PM Marape said landowners should receive maximum benefits according to the prescribed value of royalty payments, project equity and integrated development grants (IDG).

At the same time, PM Marape said he also wanted “early benefits for the country” as well.

He said other key components for the project which the SNT should finalise with the developers was for the appropriate financial structure to prevent burdening the country with repayments and with the best and least cost environmental measures for Wafi-Golpu.

“The first principle is maximum benefits for provincial governments and landowners,” PM Marape said.

“However the agreement is structured, should feature early benefits for the country.

“The financial structure of the project should also feature the least cost and lastly the best and least cost to the environment when the mine is in full operation.”

PM Marape also commended Governor Wenge for his “clarity” on the position of the Morobe Provincial Government relating to deep sea tailings dumping proposed for the mine following his assurance that there will be no legal objection to the matter.

“This is the first time I have seen such clarity from the Morobe provincial government in as far at the DSTP is concerned and other matters including royalty, equity for landowners and tax entitlements relating to the project,” PM Marape said.

Outlining the provincial government’s position on the project, Governor Wenge said he wanted the special mining lease (SML) to be signed by mid-December this year, a guarantee of K100 million in IDG grants over 10 years plus other considerations over equity from the government’s share on top of royalty payments.

Governor Wenge reiterated that issues over DSTP would only be taken up based on proven scientific evidence.

“I commend Governor Wenge on coming out clear for the first time on DSTP, his view on royalty, on tax in as far as their position is concerned,” PM Marape said.

He also assured stakeholders that as a safety net there would be an escrow account created for their benefit if problems were encountered in relation to environmental issues.

“All these issues would be brought up at a meeting with the company and investors at our upcoming meeting next week,” PM Marape said.

“My position on the issuance of the SML will depend on further negotiations with the investors and the State team.

"Next week we will meet the investors to finalize project negotiations now that we have blessings from Morobe Provincial government," he said.

Photo: Tokyo meeting last month

Prime Minister Hon. James Marape has welcomed Japanese think tank Japan Development Institute (JDI) into Papua New Guinea to help develop a new Special Economic Zone (SEZ) Master Plan for the country and work with partners like the Asian Development Bank (ADB), Japan International Cooperation Agency (JICA) and the World Bank to build SEZs right across the country.

The visit of JDI CEO and Chairman, Dr. Shoichi Kobayashi, follows an invitation by PM Marape during a meeting with him in Tokyo last month.

PM Marape at the Tokyo meeting was accompanied by International Trade and Investment Minister Hon. Richard Maru, East Sepik Governor Hon. Allan Bird and Papua New Guinea Ambassador to Japan Hon. Samuel Abal.

Minister Maru and Ambassador Abal also had comprehensive discussions with Dr Kobayashi to progress the SEZ concept in PNG as a matter of urgency, starting with the Pacific Marine Industrial Zone (PMIZ) in Madang.

Dr Kobayashi and Ambassador Abal will be in PNG this week to further discussions with the Government on progressing the SEZ concept.

They met with the SEZ Authority and Minister Maru today (October 25) and visited the Rigo Rice Project in Central.

Tomorrow (October 26), they travel to Madang to visit the PMIZ and Middle Ramu, and will overnight there.

On Thursday (October 27), the team meets with PM Marape and Treasurer Hon. Ian Ling-Stuckey in Port Moresby, and will return to Japan on Friday.

“I welcome JDI into PNG and thank them for responding promptly to my invitation when I was in Tokyo on September 27,” PM Marape said.

“I thank them for coming to PNG to progress the SEZ concept.

“We have moved ahead with passage of the Special Economic Zones Authority Act in 2019, so the political will is there, it’s just a matter of getting the nuts and bolts in place.”

The JDI is an independent think tank/consulting firm, specialised in international development. It was first established in 1982 as the World Consultant Service (WCS) and later changed its name as JDI after merging with the think tank of the Institution of Engineering Consulting Firms Association, Japan (ECFA) in 1997. With its distinguished experts from numerous disciplines and the network with its associate institutions and experts in the world, JDI provides a broad range of consulting services in the field of development, carries out practical studies, and proposes concrete projects and strategies.

Starting with industrial development in southern Thailand in 1978, JDI has dealt with 40 SEZ projects in 20 countries, to date.

Photo credit: Department of Prime Minister & National Executive Council

The country’s treasurer, Ian Ling-Stuckey addressed the parliament when it resumed recently that Papua New Guinea’s domestic outlook on the state of the economy looks to be improving but the current global trend on the international economic situation is looking uncertain and seems to be getting worse with dominant countries looking plausible to head into recession.

“The 2023 budget will be more difficult with this global looming economic uncertainty, if we the Government can study and understand the pressures of this international situation it can help MPs to prepare on how to contemplate the 2023 budget in the next Parliament.” Ling-Stuckey said.

The changes that are taking place globally are well beyond our country’s comprehension in which our economy only accounts for just 0.03% GDP growth in terms of its ranking and capabilities.

Many now expect that major economies will likely move back into a global recession and the International Monetary Fund (IMF) has also released its world economic outlook report showing a decline in global economic growth and a likely forecast on global inflation.

The Treasurer added by sharing a quote from the chief economist of the IMF; ‘The three largest economies which are the US, Europe and China  will continue to stall and for many people 2023 will feel like recession and the worst is yet to come’ Ling-Stuckey quoted.

He explained that there are three main factors for this depressing international news: Firstly, is the ongoing and evolving supply chain shortage originating from the Covid-19 pandemic particularly resulting from the constant lockdowns in China. Secondly is the distressing Ukraine- Russian War and thirdly is the looming economic threat on global inflation.

The treasurer went on and pointed out that the inflation rates in the US has dramatically increased from 1.3% in the year 2020 to estimates that currently show a rate of 8.2% in 2022 with inflation hitting consumers at levels not experienced in more than 40 years. Due to this rapid increase in their inflation rates, the US Federal Reserve has lifted interest rates from 0% to 3% and are still considering further increases depending on whether US prices will fall, which does not seem likely to happen anytime sooner and is prompting the US to head into recession,’ he explained.

He further stated that in relation to the economic situation that is trending in the US, Central banks around the world are rapidly increasing their interest rates as well. These global economic issues will have a significant implication on PNG and a huge unfavourable impact on our economy.

“First our export markets will be affected and there will be less opportunities for our coffee, cocoa and other commodities in global markets, secondly our international interest cost will increase and will affect our budget. Thirdly, the economic slowdown will put declining pressure on oil prices,” he said.

Ling-Stuckey reiterated by saying “When sanctions were being imposed on Russia, there were increasing inflationary pressures across the globe with interest rates forecasted to rise and since PNG had insignificant trading partners with Russia and Ukraine our economy was likely to benefit.  So, when designing the 2023 supplementary budget with almost 1.2 billion in additional expenditures we understood that the boom in oil prices was temporary. We did not want a repetition of the tragic budgetary mistakes of 2014 by spending excessively before revenues were accounted and received” he said.

Treasurer Ling-Stuckey affirmed parliament that the Marape-Rosso Government is adamant in informing the people of the country about the state of the economy its progresses and development.

Prime Minister, Hon.  James Marape has urged the country and its people to aspire to be more productive. In his diligence in aiming for the country to achieve economic independence, Prime Minister Marape has forged new ties for trade and investment during his trip and also helped in consolidating relations between PNG and the countries he visited.

The meetings he had with these world leaders recently are an indication that these nations are important bilateral partners with Papua New Guinea. United States, United Kingdom, Australia and Japan are members of the G7 economies. The meeting with their heads of government means these leaders acknowledge that PNG has a lot to offer in trade and commerce.

 “We must start something or start to grow something, Every Papua New Guinean must have a purpose or motive for oneness, growth and prosperity. We must return to our land and sea and toil and harvest them because there is so much potential there, the markets in the United States are endless for us the people of the ‘blue pacific’ from agriculture to forestry, from fisheries to tourism” he said.

He urged that the creation of the new ministries reveals greater focus of the government in agriculture and the respective ministries should not snail its way to making things work in these sectors but move hastily with astute and positive governmental interventions. It has been two months now since the creation of these portfolios and by now we should know where to start and move ahead from our state agencies. It is now up to our Ministers, departments, sectors and our people to work to speed up, and move forward domestic productions going into the future.

The Prime Minister reflected on his trip and said, “I am burning the midnight oil, travelling non-stop with little sleep in between because I want to make these connections, these opportunities must never be wasted.”  

PM Marape continued by reiterating the same thoughts he expressed to the United Nations “The world needs food, Energy, water and tourism sites for rest and recreation. We have them in PNG, we just have to rise up and work; the market is there, we must create a secure and orderly environment and go into production”.

“It is also good to note that our starting point in 2022 is not horribly bad; that the worst of the economic recession that has hit us is now behind us although inflation is hitting us hard as it is doing too many economies around the world” he said.

Under the Marape-administration, the economy of the country has surged to K109 billion (World Bank Prediction) by the end of this year 2022. The previous Government grew the economy by K35 billion from 2010 to 2018 under eight years. The Marape led Government grew the economy under three years by K30 billion by getting concessional loans at cheaper rates and spending it domestically during the Covid-19 period pandemic.

The Prime Minister also welcomed the latest World Bank report on PNG, which has shown that the Governments economic reform program is delivering on its promise on better times ahead.

 “The biggest beneficiaries of these improvements will be the people in rural areas working in agriculture, forestry, fisheries and all its associated sectors.”

“The projection is clear, management of the economy is better, the government will continue to tighten expenditure and domestic spending while restructuring our state of affairs on real money making sectors in the agricultural space and let our people feel the benefits” he said.

Photo credit: Goilala District News

Managing and conducting business activities in the Central Province particularly in the Goilala District is quite demanding and challenging, according to a business entrepreneur who operates in the remote mountainous region of Central province.

Billy Mang from the Auga Dilava valley that surrounds the entire Tolokuma Gold Mine in the Woitape LLG, said that the nature of doing business is challenging, incurred with the hefty cost of chatter flights from Port Moresby into the remote mountainous region.

He said business activities in the area is mainly trade store setups and prices of store goods are expensive with the mark up price trade store owners put up to recoup from the thousands of kinas spent on air freight charges.

The area is only accessed by air transport so that leaves the freighting of goods from Port Moresby dependable by air. He said a charter costs K2000-K3000 depending of various airline operators with freight charges also varying from K15-K20 per kg.

‘’So, it leaves no choice for trade store owners to put a hefty markup price on their store goods,’’ he said.

He said a can of fish ranges from K15-K20, while a 1kg packet of rice ranges from K25-K30 and a packet of noodles is around K7.

‘’So now you have a clear picture on what I am saying on the challenges of doing business in Goilala,’’ he said.

‘’It is indeed very difficult to do business in Goilala with very high charges on dry goods transported for retailing. Most people don’t know how to calculate their selling price and markup price and as a result end up making big loses and eventually run down their operations.’’

He said one advantage they get back to business is from the alluvial activities.

‘’But yet again the same thing occurs again and again. Business runs down and they return to alluvial activities to revive their business and there is no serious intention to doing business proficiently,’’ he said.

‘’I try to do my selling price and markup and my retail price will most likely to be high considering all the costs involved.’’

He said one factor that puts business operators at risk is limited understanding to calculate markup prices. He added that this was because many of them are illiterate or have low level of education. The business setting in the area is not viable when majority of persons are selling their goods at a very cheap price without calculating all those necessary costs incurred with.

He has further called on the open MP for Goilala Casmiro Aia and the Central Governor Ms Rufina Peter to subsidize airline fees or purchase an airplane to service the people in the remote parts of this area.

The Opposition Leader of Papua New Guinea, Hon Joseph Lelang, has questioned the Marape-Rosso Government on its immediate and long-term solutions to resolve the public sector rental crisis being experienced by numerous key government departments in Port Moresby.

He said millions of kina has been allocated to address arrears and outstanding claims each year by Parliament through the budget, but why has rental arrears remained unattended to??

Lelang said paying rental bills is a basic obligation to operate the public service machinery.

The Nambawan Super Limited (NSL) acting as Trustee of the Nambawan Super Fund posted notices on its locked premises explaining their regretful position.

The Opposition is concerned that despite extensive discussions with the State to settle the amounts owing, that the negotiations have failed due to the nonpayment of rentals.

NSL is exercising its rights under law in taking the action to shock the government into action. Mr. Lelang said: “The super fund is protecting its members. They (NSL) are merely redeeming money owing to their members.”

The Opposition takes a grave view of the fact that PNG public servants are being locked out of offices. Lelang claimed that hundreds of ministerial staff have been advised that they would not be paid until November 2022.

He said the Government must improve how it manages its cash flow line with the budget so that we do not experience public servants and ministers getting locked out.

Institute of National Affairs Executive Director Paul Barker stated that corruption is a certainty of life, but it has a massive cost in business, the economy and wider society, He said this during the closing of the third EU-PNG Business, Trade and Investment conference in Port Moresby.

Mr. Barker said the perception of corruption in PNG is not a good one. When giving an overview of corruption in his presentation.

He said: “Corruption existed in PNG but largely small scale in the early in the 1970s and early 80s although the first effort to divert the major public funds took place in the 1980s with the diversion of the sectorial funds.”

Mr. Barker however said corruption has a massive cost in business, the economy and wider society.

“Tackling corruption requires a combination of prevention, oversight and penalties. It’s not the size of penalties of probabilities of getting caught,” he explained.

“PNG has extensive laws and the laws are reasonable as constitution are highly regarded, but the problem is, we have limited applications of those laws, they are not widely unknown, including by official working in institutions, and they are not enforced in this regard. But it is not the law that is the issue, but it is not applying these laws.”

He also said corruption is a worldwide problem and it can’t be eliminated entirely but it can be drastically curtailed in short period.

Photo credit: PNG Bulletin

Fisheries and Marine Resources Minister, Hon Jelta Wong, MP, has stated that THE Prime Minister Hon James Marape has opened doors to create new market opportunities for PNG seafood exports to Japan. He said this when welcoming the Prime Minister upon his return from international duties.

“The Prime Minister is the first Minister of the nation, who as team captain supports each minister in our duties, and on behalf of the Fisheries sector l am very pleased to see the inroads he has created during recent international engagements,” Minister Wong said.

“During his meetings in Tokyo in particular, the Prime Minister opened doors to create new market opportunities for PNG seafood exports to Japan.

“We can sell more tuna, prawns and other seafood to Japan at a premium price, but that does not happen by magic. Negotiations between the PNG and Japan Governments, and between our governments with businesses in both countries, have to take place to make new trade happen. With the COVID-19 threat receding, now is the time to negotiate the return of direct flights to Tokyo, so they can carry our fresh tuna to meet high end market demand in Japan.

“The PM and his delegation drew the right people together to expand our fisheries exports, and we will have positive announcements on these matters in the coming weeks.”

Photo credit: Department of Prime Minister & National Executive Council

Prime Minister Hon. James Marape has congratulated ExxonMobil on its 100 years in Papua New Guinea and says the company is welcome to stay on for another 100 years.

He said this when addressing ExxonMobil’s 100th Anniversary Dinner in Port Moresby on Saturday night, which was also attended by Ministers, Governors, MPs, members of the business community and senior executives of ExxonMobil.

PM Marape said he had attended ExxonMobil’s 100 anniversary and asked the company to be around for PNG’s 100th anniversary, and hopefully by then, ExxonMobil in partnership with Government had contributed to a better-developed PNG.

“Tonight is worth celebrating,” PM Marape said.

“One hundred years is a huge milestone, and not just any ordinary company but a global Triple A-rated company and global leader, to have 100 years of unbroken business and service to PNG.

“I am duty-bound to thank you on behalf of all Papua New Guineans - past, present and future – for choosing PNG as an investment destination.”

PM Marape said ExxonMobil had started from humble beginnings in Rabaul in 1922 and had grown with PNG over the last 100 years.

“Your investment in the PNG LNG Project is testament to the fact that PNG, despite many of the headline negativities, remains a vibrant place for consistent presence of businesses,” he said.

“ExxonMobil has shown that PNG is a place to do business, and can be a place to do business.

“Today, I stand as leader of this nation of a thousand tribes, to thank you and point ExxonMobil to us living together for the next 100 years.

“Why not? Yes, we can.”

PM Marape said PNG was now moving into an exciting new phase of LNG developments with Papua, P’nyang and others, and goalposts set with investors would remain fixed.

He was pleased that Total, the biggest energy company in the world and operator of Papua LNG, was also present for the occasion.

“Together with Total, and Exxon Mobil, our participation in the petro-chemical business is set and secured going forward,” PM Marape said.

He thanked buyers of PNG LNG in Japan, China and Taiwan for being regular customers since first exports in 2014.

“We have other LNG projects that are being lined up and we look forward to more buyers coming onboard,” PM Marape said.

PM Marape also thanked ExxonMobil for employing Papua New Guineans in key positions within the company, making available spin-off businesses for nationals and landowners, for paying taxes, and for continued foreign direct investments such as in Papua and Pn’yang.

“We look forward to going into the future with you, as you continue to partner us, and to make Papua New Guinea a better place,” he said.

Article courtesy of Department of Prime Minister & National Executive Council

Investment Promotion Authority celebrates its 30 years of being in operation in the country.

Commerce and Industry Minister Henry Amuli said celebrating 30 years of operation is a momentous occasion because the Investment Promotion Authority (IPA) is the top performing agency in the Commerce and Trade ministry.

He said that previous prime ministers and ministers established IPA to encourage and facilitate trade and investment inside the nation, resulting in the growth of enterprises and industries, the generation of money for the country, and the employment of its residents.

According to Mr. Amuli, these former leaders had the vision to establish and sustain the IPA as a significant State institution.

“Having come into the political arena from the SME space, I have learned and observed that since its establishment, the IPA among other commercial statutory agencies within the Ministry of Commerce and Industry has been and is one of the top-performing, transparent, accountable, independent and evolving agency,” he said.

“The IPA has grown stronger from its humble beginning in 1992.

Some of you seated here saw the transaction from 2010 to 2013, the IPA undertook a wholesale review of a number of key legislations, including the Business Name Act, and the Companies Act, and delivered a web-based registry system that now takes the operation efficiency of the registry to a whole new level.”

According to Mr. Amuli, the IPA Strategic Plan 2021–2023 focuses on restructuring, realignment, innovation in regulation, and promotion, and takes into account current business trends around the world and other best practises from around the world to create an environment that will support the growth of agriculture, small and medium-sized businesses, and the economy.

He expressed his satisfaction and admiration for IPA for its 30-year success story and expressed interest in what IPA has in store.

Reference: Kamus, Maxine. Post-Courier (20 October 2022). “IPA Celebrates 30th Anniversary”.

In 2022, the PNG GDP is anticipated to reach K110 billion.

Speaking at the 2022 PNG Update, which was organised by the University of PNG in partnership with the Australia National University, Prime Minister James Marape stated that the GDP of PNG was K79.4 billion in December 2018 and K83.8 billion in 2019.

According to him, the government has been expanding over the last three years by adopting budget strategies to guarantee that the economy is fueled for debt restructuring and reduction, economic stimulation and growth, as well as the productive sustenance of the nation in the provision of public services.

Speaking on the 2022 Budget, Mr. Marape stated that the National Research Institute acknowledged that the enormous 2022 billion Kina budget will support economic growth through expenditure and its following impact on rising consumer demand, in line with the Keynesian school of thought.

“It recognises that consumer demand is vital for businesses to perform well, and create more income and employment in the economy,” he said.

“The national GDP in 2019 was K83.8 billion with a growth rate of 4.5 per cent.

The GDP projected for 2022 is K109 billion, a growth rate of 4 per cent.

BSP delivering a net profit of K1.075 billion in 2021 off the back of a strangled economy can only mean that high budgetary investments by the government have found their way into the banking sector.”

Mr. Marape expressed his happiness that the World Bank acknowledges the expansion of the agriculture industry, which has fared better than other sectors in surviving the epidemic.

“The relatively strong performance of the agriculture sector reflects additional government financial support to small to medium enterprises during the pandemic. Our agriculture price support and freight subsidies will continue going forward,” he said.

Reference: Kamus, Maxine. Post-Courier (21 October 2022). “PNG Economy To Pass K110 Billion In 2022”.

Photo credit: Verdict

According to Prime Minister James Marape, Papua New Guinea can learn a lot from Israel, particularly in the field of agricultural technology.

Marape made the comment in Parliament in response to a query from Morobe Governor Luther Wenge on the potential for PNG to open an embassy in Israel and vice versa as a Christian nation.

According to Marape, former prime minister Peter O'Neill originally suggested creating a PNG Embassy in Israel when travelling to that country in 2013. During the most recent United Nations General Assembly in New York, United States, he claimed to have also met Israeli Prime Minister Yair Lapid.

They talked about the prospect of travelling to one another's nations.

“It is not only in religion that we can relate to Israel,” Marape said.

“Israel is a knowledge-based economy that exports agriculture products grown using hydroponic technology.

“Israel has eight flights a week, transporting exports of vegetables and fruits, although it is only half the size of Angoram, East Sepik.

“We can learn much from Israel.”

Having a bilateral connection with them, according to Marape, is crucial in the field of agricultural technology and is not based on shared religious beliefs.

“I look forward to our officials progressing what the political leaders have discussed,” he said.

Reference: The National (17 October 2022). “Israel can offer agro tech: PM”.

According to acting chief executive Rodney Begley, PNG Ports Corporation Ltd. is spending K1.5 billion on port infrastructure around the nation.

Lae's major dock and tidal basin will get K470 million in investments to become an international freight centre.

Begley said that Lae was of interest to the port authorities because 9.9 million tonnes of freight, or 400,000 complete containers, was landed there each year.

He claimed that the Australia Infrastructure Financial Facility for the Pacific granted them a soft (concessional) loan (AIFFP).

“We negotiated a soft loan of US$365 million (about K1.28 billion) that comes with a grant component of US$70 million (about K246.47 million) — around K1.5 billion will be spread across the country,” he said.

The Lae tidal basin has a budget of about K470 million.

“The aim is to make Lae an international freight hub of the (region),” Begley said.

Robert Maxwell, the chief executive of International Container Terminal Services Inc (ICTSI) South Pacific, stated that the business will assist the investment by delivering two new ship-to-shore cranes from Shanghai, China, valued at K105 million.

“We’ve three mobile habour cranes in operation, but by January, the two ship-to-shore cranes will be installed at the Lae tidal basin.”

Reference: The National (14 October 2022). “K1.5bil for port infrastructure nationwide”. 

The Petroleum Sector National Content Policy is anticipated to be finished by the end of this month and presented to the National Executive Council the following month, according to Department of Petroleum and Energy Secretary David Manau.

Manau stated that this strategy will also establish an office to look at the practical elements of assisting the sector in profiting from national content during the Chamber of Mines and Petroleum workshop in Port Moresby.

“If successful, a national content policy intervention may increase national job creation, boost the domestic private sector businesses, facilitate technology transfer and build a

competitive national workforce,” he said.

“Main challenge worldwide is that national content goals are often unfulfilled and the opportunities are not captured and not tangibly measured.

“National content in the petroleum sector should firstly aim at the landowners who give access for the investor's licenses to gain access into their regions to operate.

“And the circle spreads to the local level, district, provincial, and the national level,

“Each of the stages also looks at the different magnitude and impact of the project, for example in the early exploration stages in the petroleum sector, you will only focus on the bull's eye, so your social licensing is you deal with the landowners on the ground, you have access to them, and then you give them some services, some businesses.

“At the next level, now if Papua LNG and P’nyang come on in the next 5 years, the national content plan in the petroleum sector should also look at the national level down to the host communities.

“So you look at the national level, you are talking Steamships, Curtain Brothers, however, if they can participate with local level company through a JV arrangement participation, that is even better, the local content policy works for all.”

Manau said that the national content requirement will affect upcoming projects in the pipeline, such as:

• The PNG LNG already has a national content strategy in place that has been effectively completed and executed, and it may eventually coincide with the national content policy. The difficulties for us are that they provide reports on their corporate image, which we require in order to measure;
• FEED for Papua LNG begins in January 2023; first gas is expected in January 2024;
• Construction on P'nyang will begin in 2026 or 2027 (project sequencing will transfer trained labour from Papua to P'nyang);
• Pasca offshore Gas Project;
• PDL 10 Stanley Gas; and,
• Future oil/gas projects.

Reference: Esila, Peter. The National (17 October 2022). “All eyes on petroleum policy”.

EU-STREIT PNG collaborates with National Fisheries Authority (NFA) to support sustainable development of the fisheries value chain in rural Papua New Guinea.

The Food and Agriculture Organization of the United Nations FAO), under the EU-STREIT PNG Programme is partnering with the National Fisheries Authority (NFA) to assist in the sustainable development of fisheries sector in the Sepik Region of Papua New Guinea.

Under this collaboration, a four-day stakeholders’ workshop was organized in Wewak, East Sepik Province, on 11th - 14th October 2022, to validate the results of a fisheries value chain study commissioned by the EU-STREIT PNG Programme to NFA and conducted between year 2020 and 2022 in the Sepik. The purpose of the study was to understand the challenges faced by key actors in the three fishery value chains (aquaculture, riverine and coastal) in the region to determine upgrading strategies and investment plans.

The workshop attracted over 60 participants who represented a wide spectrum of the fisheries sector stakeholders that includes the Department of Agriculture and Livestock, the Department of National Planning and Monitoring, local community fisher folks and cooperatives, and also the European Union Delegation in PNG.  Also in attendance were the private sector, and non-governmental organizations.

The workshop discussed challenges in the fisheries value chain identified in the study and upgrading opportunities and strategies, investment options and implementation plans to improve the performance of the aquaculture, riverine and coastal fisheries during the duration of the Programme and beyond. 

The last day of the workshop was dedicated to consultations between the key stakeholders only who identified some specific roles and responsibilities for immediate actions that will contribute to the development agenda under the EU-STREIT PNG Strategic Objectives and the National Fisheries Strategic Plan 2021–2030.

Some activities identified in the fisheries value chain study for upgrading the value chains include the provision of capacity development activities to improve the technical skills of fisheries extension officers and fishers and  facilitation of supply of inputs including quality fingerlings, quality fish feed for fishers to improve quality of fishes.

Moreover, the lack of collective action by value chain actors under coastal and riverine fisheries coupled with insufficient support from key government agencies at the National, Provincial, District and Local Level Government was highlighted as a key constraint which negatively affects the fisheries sector in the Sepik Region and PNG as a whole. Addressing these issues collaboratively may unveil the industries potential to venture into agribusiness as an income generating option for the people.

The key priorities discussed and proposed in the workshop will be captured in an existing Memorandum of Agreement between NFA and the East Sepik and Sandaun Provincial Governments’ and the review of the 5 years Provincial Integrated Development Plans under the National Government’s Medium Term Development Plan III logical framework through the Department of National Planning and Monitoring.

“We are particularly interested in the vision, upgrading strategy,  implementation plans and investment plans for the three fisheries value chains that came out of this value chains study,” said the EU-STREIT PNG Programme Coordinator Dr Xuebing Sun in his opening remarks.

The Executive Manager of Aquaculture and Inland Fisheries Unit of NFA, Mr Jacob Wani while expressing his appreciation of this partnership forged with EU-STREIT PNG for conducting the fisheries value chain study in the Sepik. He announced that NFA intends to replicate the value chain study in other regions of the country as NFA is now equipped with the fisheries value chain methodology and tools transferred via technical advisory of the EU-STREIT PNG. 

The fisheries sector plays an important role in ensuring good nutrition of the people in the Sepik and it is one of three value chains supported under this rural agriculture development programme.

The EU-STREIT PNG, being implemented as a UN Joint Programme (FAO as the leading agency/administrative agent, and ILO, ITU, UNCDF and UNDP as implementing partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. It focuses on increasing sustainable and inclusive economic development of rural areas through Increasing the economic returns and opportunities from cocoa, vanilla and fishery value chains and strengthening and improving the efficiency of value chain enablers including the business environment and supporting sustainable, climate-proof transport and energy infrastructure development.

PNGX, Papua New Guinea’s national stock exchange, has released proposed new Listing Rules for consultation.

A key step towards the development of a more effective secondary market in equity securities is the modernisation of the PNGX Listing Rules.

PNGX’s Listing Rules govern the quotation of securities, their admission to the official list and hence the listing of the issuer, the suspension of securities from quotation and the removal of securities from quotation. They also govern disclosure and some aspects of a listed entity’s conduct.

The existing PNGX Listing Rules were introduced in April 1999 and were closely based upon the Listing Rules of the Australian Stock Exchange. They were last amended in November 2012. They are based upon the Securities Act 1997, which was replaced in November 2018 by the Capital Market Act 2015.

PNGX is proposing to introduce new Listing Rules to replace the existing Listing Rules. The objectives of the rewrite are to: 

1. Update the Listing Rules to reflect the Capital Market Act 2015; and 
2. Introduce Listing Rules which are “fit for purpose” for the nature and scale of the PNG capital market; whilst 
3. Aligning the proposed rules with contemporary ASX Listing Rules, but not replicating the ASX Listing Rules, in recognition of the significant portion of the PNGX market which is dual listed on ASX, thereby minimizing compliance costs which would arise from significant variance between the rules.

A key drafting principle in the proposed rules is, to the maximum extent possible, not to replicate obligations set out in the Companies Act 1997 or the Capital Market Act 2015. It is not the role of PNGX to supervise or enforce the Companies Act or the Capital Market Act nor does PNGX have any jurisdiction to do so. This also helps manage compliance costs for listed companies.

To date, PNGX has operated a single equities market. Having regard to the nature of the PNG capital market, PNGX will be developing specialist markets for differing sectors of the capital market in order to better facilitate access to capital for issuers with different levels of maturity and for different financial products and services.

The markets which have been or are being developed are as follows: 

1. The current equities market will be known as the BikMaket or Main Market; 
2. The new corporate debt market will be known as the DinauMaket or Debt Market; 
3. A new market for medium sized issuers will be developed and known as the PasisMaket or Passage Market; and 
4. A new platform for small and medium sized issuers to access funding and social fund raising will be developed and known as the GroMaket or Growth Market

The current consultation relates solely to the BikMaket or Main Market.

PNGX and investors in the PNGX markets have an interest in high standards of corporate governance practices by the Boards of companies in which they invest. The proposed rules refer to reporting corporate governance matters as set out in the PNGX Corporate Governance Standards. These standards are presently under development with the assistance of the International Finance Corporation and will be made available for comment shortly.

Photo credit: Department of Prime Minister & National Executive Council

After a decade, the PNG/lndonesia SOM was convened in the Indonesian harbour city of Jayapura from 11th-12th October 2022. 

The PNG side was led by Mr Frank M. Aisi, Deputy Secretary Policy 1 responsible for Economic and Infrastructure Sectors and International Relations of the Department of Prime Minister and NEC, whilst the Indonesian delegation was led by His Excellency Mr Abdul Kadir Jailani, Director General for Asia Pacific and Africa of the Indonesian Ministry of Foreign Affairs.

In his opening remarks Mr Aisi informed that the SOM was timely in that it presented the opportunity to refocus attention and add value and practical meaning to the existing bilateral relations following Prime Minister Marape's Official Visit to Indonesia.

Prime Minister Marape embarked on a whistle-stop visit to the Republic of Indonesia in early March this year and was well received by President Widodo and their discussions set in motion a series of bilateral issues that we bureaucrats need to take note of and commence implementation, said Mr Aisi.

Mr Aisi at the outset also referred to President Widodo's remarks during the above visit, that "you cannot choose your neighbours". This resonated well with the common desire by both sides to elevate the relations to complement PNGs long term commitment to industrialize, downstream and value add its vast renewable and non- renewable resources to be a net exporter and supplier to the global and nearby lucrative Asian markets including Indonesia.

The strong partnership with Indonesia to promote business, trade, investment, construct economic infrastructure and particularly harnessing the agriculture sector was vital in growing the rural economy of PNG in the immediate to long term.

These also included, first and foremost the immediate re-opening of the Wutung-Skouw PNG/lndonesia Border which was closed at the height of the COVID-19 pandemic.

I have checked with the PNG Immigration and Citizenship Authority Head Mr Stanislaus Hulahau and his Team including, Foreign Affairs, Customs, Quarantine,Provincial and Local Level Government Affairs and the Sandaun Provincial Authorities and they have given their full assurance that issues relating to infrastructure, are now being attended to, to ensure the PNG Border Post at Wutung is fully functional, said Mr Aisi.

In fact, Mr Aisi informed the SOM, that following thorough consultations with the above PNG Agencies the border was set to re-open on 24th October 2022.

In terms of the SOM, agreement was reached on configuring the annual, SOM, Joint Border Committee and Border Liaison Meetings and Joint Ministerial Commission Meetings to ensure continuity in terms of reporting and evaluation of our bilateral relations going forward with security, people to people contact, visa and consular, business, trade, investment and cultural and educational exchanges.

The SOM also agreed to establish a Working Committee to review the array of PNG/lndonesia Treaties and MoUs to ensure they are relevant and positively driving our existing relations. The PNG Embassy in Jakarta will work closely with the Indonesian Ministry of Foreign Affairs to identify these 100 or so arrangements before the Working Committee headed by the PNG Department of Foreign Affairs and Attorney General commence the review and related processes in close consultation with the relevant Sector Agencies and Departments.

In light of the deepening bilateral cooperation both sides underlined the urgent need to ratify and bring into force the Basic Agreement on Border Arrangements, Visa Exemption for Diplomatic and Official Passport Holders and Defence Cooperation Agreement.

To strengthen trade and economic cooperation the SOM agreed for the need for both sides to take immediate steps to commence negotiations for the Preferential Trade Agreement (PTA). This can start with the PNG National Trade Office taking the lead, while the feasibility study is being undertaken. In fact the Indonesian side informed of their readiness to prepare the modalities for the feasibility study and incorporate the views of both sides so that it is wholly inclusive.

This would also set the basis for in-depth discussions by both sides for a Bilateral Investment Treaty to promote business, trade, and investment and to support the above the PNG Customs informed that following completion of our domestic processes the Customs to Customs MoU will be formalised in the near future.

In related SOM matters, the issues of technical, vocational and tertiary institution support was raised to support PNGs initiatives to become a knowledge-based economy to complement our development agenda. The Indonesian side agreed to look into this matter urgently and revert, given that it was a Prime Ministerial request.

For consular matters, the Indonesian Delegation Leader raised the recent shooting incident of the Calvin Vessel in PNG Territorial waters and Tonolei camp in Bougainville as well as the arrest of the Arsylla 77 Baraka Fariz 21 Fishing Vessel. The PNG side informed that investigations were ongoing by PNG Authorities with a view to bringing full closure to these matters.

Overall the Jayapura SOM was a resounding success, with decisions discussed and arrived at in an amicable manner. The pathway forward now especially for the PNG side is to ensure all participating Departments and Agencies complete our domestic processes on our sectoral issues before we report to the next SOM, as that will be an indication of our commitment to advancing the existing excellent bilateral relations with our nearest neighbour, Indonesia, said Mr Aisi.

Article courtesy of the Department of Prime Minister & National Executive Council

Photo: Chairman of MRA board Mr Benny Kimisive cutting the ribbon to officially commission the solar project. Present is OIC Mr Nathan Mosusu and from PPL Mr Roy Daggy.

The Mineral Resources Authority (MRA) will save about 60 percent of its annual energy bills averaging about K650, 000, with the launching of its new Photo-Voltaic (PV) solar power system.

The PV solar power system was launched today at the Mining Haus by the Chairman of the MRA Board, Mr. Benny Kimisive and Officer-In-Charge (OIC) Nathan Mosusu.

The grid-tie system installed on the roof-top of the Mining Haus has a capacity of 162 Kilo Watt. It will be used as a power source which will operate concurrently with the PNG Power Limited (PPL) grid, to supply the building’s power demand of about 250 KW. The system is designed to operate at optimum with the balance of the building’s power demand to be supplied by the PPL utility grid. This will have a great effect on the final electricity bills.

The project has been installed in partnership with PNG Power Limited (PPL). It is part of PPL’s project called the ‘Roof-top solar photovoltaic pilot project.

Mr Mosusu while officiating at the event, said the project is a demonstration of the MRA’s commitment towards achieving the government’s national strategic development plan of generating 25 percent of electricity from renewable resources by 2030.

He said we had been relying on fossil fuel for electricity and that this was the beginning of a paradigm shift towards doing things smarter using greener technology, and solar energy is a step in the right direction.

Mr. Mosusu said in 2018 alone, PNG imported about 42, 000 barrels of fossil fuel oil, adding that the MRA’s new power source would contribute to the reduction in these statistics. The OIC said the biggest share of the 42, 000 barrels of oil, would no doubt, be attributed to the power requirements of the mining industry. “As the regulator, we at MRA must set the standards in reducing our carbon footprint, so that the industry can hopefully follow suit,” said Mr Mosusu.

Chairman of the MRA Board Benny Kimisive, said that the board had been supportive of this project since inception adding that this would greatly reduce MRA’s power cost. He said there were more of such projects in the pipeline and that the board would continue to support the MRA’s management in achieving these projects.

PNG Power Limited CEO Obed Batia said in a statement that the initiative of Roof-top Solar PV project is part of the organisation’s Pacific Renewable Energy Advisory Project, which is supported by the International Finance Corporation (IFC). Mr Batia said under this project, there were 10 organisations were participating including MRA. He said MRA was the first participant to have successfully installed the system.

Sky Health and Medical Services (SHMS), a 100% nationally owned Medical Service Provider specialized in proving Occupation Health services to the Industry of Mining, Petroleum and Energy was privilege to be given the opportunity to participate and exhibit in this Event.

At SHMS we support and promote Local Business in the country, through specialist care, affordable and reliable medical services and are ISO Certified. We have a medical team of expertise with a wealth of experience in managing Occupational Health Care in the Industry.

We would like to thank the Host Sponsor (Kumul Petroleum) for the Invite and look forward to establishment of new business opportunities reconnoitered from the PNG 22 Energy Summit and Exhibition.