Photo: PM Marape addressing Parliament on Tuesday, August 9, 2022

Prime Minister Hon. James Marape says his Government will do its “utmost best” for the people of Papua New Guinea.

He said this recently (Sunday, August 14, 2022) as he goes through the process of selecting ministers and laying the groundwork for the next five years.

“On August 30, 2022, when Parliament resumes, the Governor-General will be addressing MPs,” PM Marape said.

“Our full Cabinet will be in place by then and I will make a response to the Governor-General and the country as to what exactly we will be doing and some Key Performance Indicators (KPIs) that will hold the Government accountable.”

PM Marape said his Inaugural Statement to Parliament on Tuesday, August 9, was a general one that covered the thoughts and intentions of Government.

“When I make a response to the Governor-General’s statement on August 30, 2022, it will be more detailed and will indicate what we will do in different sectors like Health, Education, Law-and-Order, Infrastructure and Economy,” he said.

“These were the bases on which Pangu Pati received overwhelming support nationwide, since we reclaimed Government in 2019.

“We will not let our people down since they shared these aspirations when they voted for Pangu.

“We have committed to a better Papua New Guinea through strategic interventions in these key sectors, which are vital for our country to grow.

“We want to better our Law-and-Order environment, Infrastructure, Economy, Health and Education.

“We will expand on these five focus areas into an exact plan on what we will do.”

PM Marape urged all Papua New Guineans to be positive about the future of the country.

“We are a continuing Government and know exactly what to do for our country over the next five years,” he said.

“The next five years are fundamentally important as we work towards our 50 years of nationhood in 2025.

“We want to steer our country in a better direction guided by our core principles and values like ‘Take Back PNG’, ‘Richest Black Christian Nation’, and ‘Leaving No Place and No-one Behind’.

“These are very much congruent to the Vision 2050 intentions and clarity on what these mean, and our national outcomes will be augmented in the next sitting of Parliament.

“The country can rest assured that we know exactly what we are doing, and that we want our country to be a better place.

“By the time we hop out of this decade, into the 2030s, we must be well on our way to the better destination that we have created in the 2020s.”

Article courtesy of PM Marape News Page

Photo: From Left to Right: Dorothy Koch (Public Relations and fundraising Manger, Buk Bilong Pikinini) Ryan Pini (Corporate Development Manager, Theodist Limited) Shaun Pini (Purchasing Manager, Theodist Limited)

Buk bilong Pikinini (Tok pisin for “Childrens Books”) An independent charity based in Port Moresby was given a boost from Theodist with a generous donation of K50, 000 to help support the charity’s operations in the country.

Theodist is Papua New Guinea’s largest office products and equipment retailer and as a Gold Sponsor of the charity, the company has been supporting Buk bilong Pikinini since 2014 as it recognizes that this is part of a collective effort in combatting illiteracy in Papua New Guinea.

Theodist’s Corporate Development Manager, Ryan Pini said “Like Buk Bilong pikinini, Theodist acknowledges the value of early childhood education and understands that an investment in our children is an investment in the future of Papua New Guinea”.

The partnership has also seen Theodist hosting Buk bilong Pikinini’s reading corner and book shop inside their Waigani shop, where all proceeds from the sale of the books from the book shop go towards supporting the organization’s sustainability.

A presentation was held at the at the Theodist office to renew their annual sponsorship of K50,000 to Buk Bilong Pikinini to support the organization’s focus to alleviate literacy rates in PNG through the fostering of a culture of literacy and reading from early childhood.

During the presentation, Pini highlighted that “One of the pillars of our corporate social responsibility is to invest in organizations and programs that have a positive impact on our communities”.

“We hope this sponsorship will go a long way towards promoting early childhood education among our children, as well as improving access to education and literacy in Papua New Guinea”.

Founded and established in 2007, the buk bilong pikinini charity was created to provide vulnerable children with access to books and create a love of reading and learning in Papua New Guinea.

EU Funded UN Joint STREIT Programme in Papua New Guinea establishes a renewable energy-powered facility to support local government authorities in East Sepik Province, in delivering effective services to rural farmers and entrepreneurs. 

With generous support of the European Union, the FAO-led EU STREIT Programme officially opened a new 3 cluster office building on 10 August 2022, to host the Programme along with the East Sepik provincial divisions of Agriculture and Livestock, Cocoa Board and the National Agriculture Quarantine & Inspection Authority.

The new-look office building is powered by 189 solar panels, which significantly reduce greenhouse gas emissions and reduces the collective dependence on fossil fuel. The solar panels supply the building with 90 KW of energy, relieving the resident agencies and authorities from relying on fossil-generated electricity for their needs, including lighting, ICT, water pumping, and temperature control.

This zero-carbon-emission facility has the capacity to accommodate around 90 experts, technicians and extension service officers. Equipped with 120 batteries, the building can support staff’s operation for 36 hours in case of experiencing high cloud cover.

The building, currently co-resided by the Programme and provincial agricultural bodies, will be transferred over to the East Sepik Provincial Administration at the end of the Programme and will continue to provide a sustainable base for sustainable support to agriculture-related services in the Province.

Officiating the opening ceremony, His Excellency Ambassador Jernej Videtič, Head of the European Union Delegation to PNG, in his address, said: “I am happy to be here and to see that things are moving in the right direction to bring sustainable benefits to the people of East Sepik” Ambassador Videtič further highlighted that “with resources from the citizens of Europe to fund the EU-STREIT Programme in providing training, tools and support, the quantity and quality of cocoa, vanilla and fisheries products will increase. The objective is also to protect these quality products in international markets under the EU-STREIT introduced initiative of Geographical Indication.”

The East Sepik Acting Deputy Provincial Administrator, Mr James Baloiloi, in his speech expressed his appreciation to the EU for funding the EU-STREIT Programme and the interventions that the Programme is doing in East Sepik and Sandaun provinces. “The STREIT Programme has gone ahead to introduce a culture of agribusiness that now enables the people of this Province and the people of Sandaun Province to have cash income that can sustain their livelihoods.” Mr Baloiloi added, “this infrastructure and building supports us and facilitates the service delivery to our people in this Province as well as Sandaun Province.” 

Thanking the EU for its generous funding support, Dr Xuebing Sun, the EU-STREIT Programme Coordinator, said: “the Programme has generated substantial impacts at beneficiary, local institutions and enabling business environment levels. This would not be possible with good partnership, increased ownerships and leaderships of the governments and implementing partners.”

“This co-residing and close co-operation among UN agencies and their national partners in this integrated space reflect the partnership approach taken by the Programme to sustainably develop agri-enterprise activities in the region,” added Dr Xuebing Sun, adding “the new climate-friendly facility, which is fully powered by solar energy, also provides a space to welcome, advise and serve the farmers, including interested women and youth, who play very important roles along agri-food value chains”.

“This kind of ‘green investment’ enables a shift to a more green economy for local institutions and infrastructure to meet cocoa, vanilla and fishery value chains stakeholders” advised Anthony Bennett, the FAO Lead Technical Officer of the EU-STREIT PNG Programme.

United Nations’ implementing partners supporting the FAO-led EU-STREIT PNG present in the office include the International Labour Organization (ILO), International Telecommunication Union (ITU), United Nations Capital Development Fund (UNCDF) and United Nations Development Programme (UNDP).

The EU-STREIT PNG is being implemented as a UN Joint Programme (FAO as leading agency, 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.

Certified Practicing Accountants of Papua New Guinea will be hosting their 23rd annual conference with about 400 participants nationwide expected to attend the two day conference organized by CPA PNG in Lae Morobe Province from August 18 to19, 2022

CPAPNG was established in 1974 and has come a long way with a lot of achievements along the way. Over the years its membership grew from mere numbers to just below 2000 which includes 40% locals and 60% non-citizens. .

The CPA PNG conference is one of CPAs three significant annual events on their calendar with this year's conference theme; Is PNG prepared for the recession?"

The conference will see certain key leaders in executive management roles from both the public and private sector delivering presentations in line with the conference theme.

CPA PNG's Executive Director Mr. Yuwak Tau said the theme of the conference was selected because there was a decline in the global economy and the general so when that eventuates small economies tend to be affected.

He added that they have basically selected the theme that was current and appropriate so that members would find relevance during the course of the conference.

“The meeting is to create intellectual and interactive discussions with seasoned business leaders to present and share their ideas and experiences to find probable outcomes within their business environment and industries in times of economic uncertainty”.

Some of the topics to be presented by consultants are current significant issues such as crypto currency, transport pricing, bit coin block chain technology and stress management. This were some topics that people have heard about but have not really ventured into.

Mr. Tau added that it would be quite hard to measure the benefits immediately but the participants will be able to look at insights shared during the conference that would be appropriate in the areas of employment, accounting, finance, auditing and others. The conference will create an environment where participants can also share information so That they can take points to apply in their work place and industries.

In relation the Kumul petroleum Holdings had also presented a cheque of K50, 000 to support the coming event at their head office. The cheque was presented by KPHL's executive General Manager Corporate Affairs, Luke Liria and was received by CPA PNG Chairman Richard Kuna.

Mr. Liria said KPHL has appreciated the effort put in by CPA PNG to ensure that its members in State owned enterprises and the private sector were given appropriate level of training and as part of KPHL's corporate social responsibility and commitment they hope that their support will continue to help the organization facilitate and make sure the accounting practices is of international standards.

CPA PNG's Chairman, Richard Kuna acknowledged KPHL for their support and stated that he was looking forward to seeing KPHL being a big part of the upcoming conference.

Bank South Pacific's Financial Group Ltd Chief executive officer Mr. Robin Fleming has recently announced that the bank has granted more than K200 million as loans to small to medium enterprises under its credit scheme facility that the then Marape government had released to the bank to support Small to Medium Enterprise (SME) and local businesses during the peak of the COVID-19 pandemic.

Mr. Fleming said about 1523 customer loans have been approved, that is about 60% of loan approval rates since 2019.

Prior to this announcement BSP and the Department of Commerce and Industry (DCI) had agreed to increase the maximum loan under the small-to-medium enterprise (SME) credit enhancement facility to K5 million. The previous limit was K3 million when the Government first released K100 million as security to the bank under its K200 million SME allocation for BSP to rollout the loan facility last year.

Fleming stated that even though they have exhausted and rolled out the bulk of the governments relief funds for SME's they will still be running the SME loan program under its credit facility scheme

“At this stage, BSP has not received the funding planned for this year but that is not preventing BSP from giving loans under the facility”.

“There remains significant capacity for BSP to continue to assess, approve and funds loans under the facility”.

“The agreement with the Government did provide for momentum in the SME facility to be maintained while allowing for the Government budget and funding process to be adhered to”.

As part of the government SME relief funding, Commercial Banks were allocated K200 million with BSP Financial Group receiving K100 million, NDB K80 million and another K20 million was allocated to the department of Commerce and Industry

BSP could not comment on how the National Development Bank (NDB) is dealing with the K80 million it received, but the intent, when discussions were initiated, was that BSP would be lending to more mature SMEs and NDB to startup ventures.

In addition to enabling SMEs to access lower cost of funds through the facility with BSP, the bank has also made it a responsibility to ensure that Government funding is preserved by not approving loans that have a higher risk of default.

Photo: The Caretaker Cabinet with Governor-General Sir Bob Dadae in Government House

Prime Minister Hon. James Marape says he will take no more complacency from heads of Government departments and agencies to move Papua New Guinea forward.

He said this in no uncertain terms during a meeting with them on Loloata Island recently (Thursday August 11 2022).

PM Marape said heads of departments and agencies who failed to perform would be removed immediately.

The Caretaker Cabinet of PM Marape, Deputy Prime Minister Hon. John Rosso, Hon. William Duma, Hon. Ian Ling-Stuckey and Hon. Soroi Eoe are now into checking on Government departments and agencies.

The Prime Minister said fundamental guides such as Vision 2050 and the Eight-Point Plan were already in place to guide heads of departments and agencies and there should be no more excuse for complacency.

“Every department and agency should now have handover-takeover notes for the transition of Government,” PM Marape said.

“We must be equipped with up-to-date statistics and correct information.

“I’m assuming that you have all this ready, and by next Tuesday (August 16 2022), all these reports should be handed in.

“I intend to appoint a full Cabinet by next Thursday (August 18 2022) and heads of departments and agencies should have all these ready for the new ministers.

“I bluntly tell heads of departments and agencies that continution in your job hinges on what you have achieved over the last three years, and your plans for the future, consistent with views of Government.

“There is no gurantee of you continuing your job if you fail to comply with these by next Tuesday

“The days of free rides and complacency are over.

“I have had three years of experience as Prime Minister, from 2019 to 2022, to know who’s who in our political and administration systems.

“I have 15 years of experience as a political leader now, and am well-versed in Vision 2050, and our hopes and aspirations for PNG.

“Before the full Cabinet is appointed, I want to check  the work of all department and agency heads, to see whether or not you have been performing.”

PM Marape said the onus was on this current generation of leaders to fix up the country.

“I want to grow the economy to a K200 billion economy at the very earliest,” he said.

“Pangu Pati went into the elections campaigning on economic independence.

“Albert Einstein once said, ‘doing the same thing over and over, and expecting different results, is insanity’.

“I’ve been talking, and talking, for the last three years and I now want to see tangible outcomes.

“I want results to be placed on the table for all to see.

“We want to better our country as we journey into 50 years of Independence at 2025 and beyond.”

Article courtesy of PM James Marape News Page

Photo credit: Ok Tedi Mining

Ok Tedi Mining Limited (OTML) is committed to ensuring the closure of the mine is done in accordance with the approved mine closure plan when the mine ceases production.

The plan which has been developed and updated since 1997 includes the decommissioning of mining infrastructure, the rehabilitation of operation sites, the ongoing monitoring of the affected environment the transfer of public infrastructure or services currently provided by OTML and the establishment of a fund to implement the plan.

The Company stated this during a Mine Closure Consultation Meeting that was held in Port Moresby from August 03rd – 05th 2022 which was organised by the Mineral Resources Authority (MRA) and attended by landowners, government and OTML representatives.

The meeting was held to discuss OTML’s closure plan which is being reviewed and will be submitted to the MRA before the end of this year.

OTML is required under the Ok Tedi Act to review and submit an updated closure plan to the MRA every 3 years.

One of the key challenges is the transfer of public infrastructure and services which include the Kiunga power, water & sewerage systems, the Tabubil Hospital, the Tabubil township, and the maintenance of the Tabubil/Kiunga highway to third parties before mine closure but is not that simple since the operations of these facilities and assets are heavily subsidised by OTML.

Third parties have shown interest but have been reluctant to take on these assets since they are not viable without OTML’s subsidies. For example, each year the Company spends over K10 Million to subsidise power, water and sewerage services in Kiunga, a government township that has a population of over 20,000 people.

OTML continues to have discussions with potential partners including the Fly River Provincial Government to develop a practical model that will sustain these services post closure and OTML’s plan is to handover these services to the new owners while OTML is still operating.

It was also revealed at the meeting that the Company has set aside USD245 million for the sole purpose of implementing the closure plan when the Company ceases production. The amount is reviewed every 3 years as part of the closure planning process and additional contributions to the closure fund will be made if the estimated closure costs exceeds the current amount.

The Papua New Guinea Energy Summit & Exhibition will take place in-person on 20-22 September 2022 at the Hilton Hotel in Port Moresby, providing a meeting place for the national and international energy industry to reconvene and discuss the next phase of energy sector development, with the newly formed government. The Summit is officially endorsed by the Ministry of Petroleum and Energy and hosted by Kumul Petroleum Holdings Ltd.

The Summit will gather over 1000 attendees for three days of unrivalled networking with international senior-level buyers, local government representatives and international suppliers.

With over 50 speakers focussing on four key conference pillars – energy project development; energy transition and decarbonisation, policy and regulation; and local content - the Papua New Guinea Energy Summit & Exhibition will provide delegates with the latest industry updates and insights into key strategies surrounding the optimisation of Papua New Guinea’s role in the global energy arena, the current global energy market dynamics and explore important project updates including the latest developments on the Papua LNG and Pasca A projects.

Local capacity development is at the forefront of PNG’s energy sector and the Papua New Guinea Energy Summit & Exhibition is committed to developing local content best practices for both government and the energy industry. The aim is to create a platform of thought leadership for a sustainable energy industry, resulting in mutual partnerships and the best possible future for PNG citizens.

The Papua New Guinea Energy Summit & Exhibition is held in partnership with Kumul Petroleum Holdings Ltd. and fully endorsed by the Ministry of Petroleum & Energy. The newly formed national Government will be disseminating key messages relating to the PNG energy sector and discussing new opportunities for development with international buyers, IOCs, NOCs, service providers and local SMEs throughout the Summit and Exhibition.

The Exhibition consists of over 50 exhibitors and provides an opportunity for local SMEs and international service providers to showcase their offerings to the energy value chain. Exhibitors establish their company’s presence within the PNG energy marketplace and present their latest products and services to over 600 senior level energy professionals from over 15 countries.

Speakers at this year’s event include: David Manau, Secretary, Department of Petroleum; Ronald Meketa, Acting Managing Director, National Energy Authority; Wapu Sonk, Managing Director, Kumul Petroleum Holdings Ltd.; Augustine Mano, Managing Director, Mineral Resource Development Company (MRDC); Julien Pouget, Senior Vice President Asia Pacific, TotalEnergies; Jean-Marc Noiray, Managing Director, TotalEnergies PNG Ltd.; Peter Larden, Managing Director, ExxonMobil PNG Ltd.; Stephen Quantrill, Executive Chairman, Twinza; Fereidun Fesharaki, Founder & Chairman, FGE; Paulus Ain, Commissioner & CEO, Independent Consumer & Competition Commission (ICCC); Luke Liria, EGM Corporate Affairs, Kumul Petroleum Holdings Ltd.; Michael Binnion, Chairman of the Board, High Arctic; Andrew Tan, President & CEO Oceania, Chiyoda; Obed Batia, Chief Executive Officer, PNG Power; Dr Genevieve Nelson, Chief Executive Officer, Kokoda Track Foundation; Kori Chan, Managing Director, TWM Group; Francis Kunuma, Co-founder, NARES Engineering Ltd.; Greg Pawson, CEO, Kina Securities Ltd.; Clarence Hoot, Managing Director, Investment Promotion Authority; Julinette Bayking, Senior PPP/Project Finance Advisor, USAID-Papua New Guinea Electrification Partnership; Mairawesi Pulayasi, Distribution & Planning, PNG Power.

Sponsors of the event include: Kumul Petroleum; ExxonMobil | PNG LNG; Santos, TotalEnergies; Twinza; MRDC; Vodafone; ANZ; High Arctic Energy Services; JX Nippon Oil & Gas Exploration; Kina Bank and Puma Energy.

Exhibitors at the event include: AG Energy; Atlas Steel PNG; CEQ Papua New Guinea; Kacific Broadband Satellites Group; Motor Vehicles Insurance Ltd (MVIL); MTIS Group; Nacap PNG; Pacific International Hospital; Pacific MMI Insurance; PNG PEP; Thai Benkan; The Internal Revenue Commission (IRC); The National Energy Authority (NEA); Touchstone

About the Papua New Guinea Energy Summit & Exhibition 

The 4th Papua New Guinea Energy Summit & Exhibition will take place in person on 20-22 September 2022 at Hilton Port Moresby and is the meeting place for the international energy community in Papua New Guinea. View the Summit’s agenda here. Delegate registration is now open. The brochure is available here. For more information, please visit our website www.pngenergysummit.com. Follow us on our social media channels and use #PNGESummit for the latest event news.

About dmg events

For media enquiries, registration, and partnerships at #PNGESummit 2022, please contact: Mara Dragoiu | Marketing Manager | maradragoiu@dmgevents.com 
dmg events is a leading organiser of face-to-face events and a publisher of trade magazines. dmg events organises more than 80 events across 25 countries, attracting over 425,000 attendees and delegates every year. The company’s portfolio of products includes many industry-leading events in the energy, construction, hospitality & design, coatings and transportation sectors. ADIPEC, The Big 5, Gastech, EGYPS, The Hotel Show and INDEX are the company’s flagship events. For more information visit www.dmgevents.com. Click here to read our privacy policy.

For media enquiries, registration, and partnerships at #PNGESummit 2022, please contact: Mara Dragoiu | Marketing Manager | maradragoiu@dmgevents.com

Photo credit: Oro Nickel Limited

The Mining Advisory Council is now evaluating the mining lease application for the Mambare Nickel Project, one of the nation's future nickel and cobalt projects in Northern Province.

According to Jerry Garry, managing director of the Mineral Resources Authority, no decision has been taken regarding the nickel project's start of operations as of yet.

If given a mining permit, the Mambare Nickel Project will transport its ore abroad for processing rather than processing it locally like the Ramu Nickel mine in Madang.

The price and advantages of conveying the ore bodies are included in the critical evaluations.

According to Mr. Garry, Ramu Nickel has a very comparable deposit location. They process the product in Basamuk and send out what is referred to as the intermediate product rather than the ultimate product or mix nickel-cobalt hydroxide.

He said that high-quality ore pockets are what the mine is after.

“If they mine all the high-grade pockets, the low-grade pockets will become uneconomical,” Mr. Garry said.

He said that it is crucial because, if the entire ore body were to be mined in the future, it would be affected because these high-grade spots, which are essentially nickel grades above 1.5%, would have previously been exploited by direct shipping of ore.

The financial benefit of establishing downstream processing, like Ramu Nickel, as well as the benefit of transporting these directly, as well as the total advantages to the state, are the other issues that have been brought up.

All of them, according to Mr. Garry, have been carefully considered by the Mining Advisory Council.

He stated that the council will be in a position to issue or propose the issuance of the mining lease if they are convinced that the plan will better benefit the state and it is the only feasible choice for the exploitation of these resources.

Reference: Wohi, Lorraine. Post-Courier (4 August 2022). “Mambare Application For Lease Under Assessment”.

Photo credit: Post Courier - Mineral Resources Authority Managing Director Jerry Garry

New mining companies looking to invest in the country are currently faced with a significant barrier due to the lack of infrastructure development in the nation.

Although there is a significant demand for nickel cobalt and other high strategic minerals, with prices set to rise, the absence of infrastructure is a serious barrier, according to Mineral Resources Authority (MRA) managing director Jerry Garry.

Even though the nation has the resources, he claimed, the cost of doing business has significantly increased.

“If we have electricity, if we have access road and better wharf, a lot of the average deposits like the Wowo Gap and Mambare would have been developed a long time ago.

“Sometimes we really have to be considerate in whether we want to harvest these resources or we wait for the infrastructure to come or what are the options available,” Mr. Garry said.

He claimed that COVID-19 and the ongoing conflict between Russia and Ukraine over the supply of petroleum are two factors that have raised the cost of doing business in the nation.

“The average cost of building new mine project has gone up by 30 to 40 per cent across the globe.

“If we do not have the basic infrastructures, the cost of building the new mines would really have a toll and may render those projects uneconomical,” Mr. Garry said.

Reference: Wohi, Lorraine. Post-Courier (4 August 2022). “Gerry: Lack of Infrastructure Challenge To Mine Operators”.

Before the end of this year, the Porgera Mine in Papua New Guinea's Enga Province is anticipated to begin operations.

Prime Minister James Marape told the media recently that Porgera is one of the economic assets that must start, apart from Wafi-Golpu, Papua LNG and P’yang Gas.

He said that the Mineral Resource Enga, landowners, and the Enga Provincial Government had several legacy difficulties with Porgera.

The National Government, Barrick Niugini Limited, and Kumul Mining are hoping that the affected parties—the landowners of Porgera and the Enaga Provincial Government—can quickly reach an agreement over sharing of their 15 percent benefit, which was provided without charge.

According to Mr. Marape, the country should profit overall from the opening of the new mine at a rate of 51%.

He said that before the election, his administration had sanctioned K700 million over seven (7) years to build infrastructure in the Porgera Valley.

The Porgera Mine was shut down in April 2020 after the mining lease ran out, and it has been in a care and maintenance condition ever then.

Mark Bistrow, CEO of Barrick Niugini, stated two weeks ago that maintaining the mine was exceedingly expensive.

For maintenance and upkeep, he claimed it costs K35 million every month.

Mr. Marape stated that the Papua LNG project is moving to front-end engineering and design, or FEED, and that production is anticipated to begin in 2024.

Reference: Pacific Mining Watch (2 August 2022). “PNG's Porgera Mine to Start operations this year”.

The National Fisheries Authority named Justin Ilakini as its new Managing Director in an official statement on July 28.

Ilakini has extensive knowledge of the fishing industries in both Papua New Guinea and the region. He was born and raised in Gavuone Village, Central Province, and served with the NFA for eight years before accepting advising positions with the Pacific Islands Forum Fisheries Agency in Honiara, Solomon Islands (FFA). He worked with the governments of Pacific FFA members and key figures in the tuna business throughout his more than nine years of service to the FFA, promoting regional economic integration and facilitating investment.

He rejoined the NFA in 2019, and he has since been given the job of Managing Director. Mr. Ilakini brings to NFA a strong desire to advance a transformation agenda.

Two key elements of this transition will be the organisational and fisheries sector reforms.

The major goal of these changes is to make sure that the NFA, as an organisation, is in the best possible position to preserve the development pillars that are mentioned in the Fisheries Strategic Plan 2021–2030. They are as follows:

• Resource Sustainability
• Maximizing Socio-economic Benefits
• Maximizing Revenue

Ilakini states, “At the NFA our key mandated function is to protect and sustainably manage our resource and to ensure it is secured for our children for generations to come, but at the same time we also have the challenge to generate and raise revenue.”

“Those functions at times can have conflicting policy objectives with each other, so through the wisdom of the National Fisheries Board, and under my leadership, we will endeavour to ensure government policy directives are effectively implemented through appropriate structural changes.”

The primary agenda items backed and strongly supported by the Government are outlined in Ilakini's inaugural 90-day plan as key emphasis areas that aim to jump-start key parts of organisational strengthening along with increasing the NFA's reach into the commercial sphere.

Ilakini states “We have established a commercial entity that is 100% owned by the NFA.

“This commercial entity, namely Fisheries Capital Limited will be the engine room for maximizing revenue, enabling key infrastructure to help expand our fisheries industry, grow downstream processing, increase local participation and be solely responsible for capitalizing the sector with PNG interests at its heart. This can also be seen as our strategy to capitalize on our major source of revenue, the vessel days scheme (VDS), wherein we will look at creating more value from our tuna resources, instead of just rent-seeking.”

"Transform Papua New Guinea into a significant commercial fisheries hub in the Asia Pacific" is the overriding goal of these programmes. This includes embracing efforts for digital transformation to enhance service delivery and better position the NFA to be digitally nimble in the rapidly changing world of e-commerce and digital business.

Reference: Loop (1 August 2022). “Dawn of a new era for NFA”.

Treasurer Ian Ling-Stuckey cites the International Monetary Fund's (IMF) 6.8% inflation forecast for Papua New Guinea.

“PNG’s economy can be greatly affected by shifts in the global economy,” he said.

“The latest IMF World Economic Outlook released last week increased inflation predictions for developing countries to an extraordinary 9.5 per cent average in 2022.

“In contrast, the latest IMF prediction for PNG is 6.8 per cent.

“In these challenging times, PNG needs good economic management to protect PNG from the buffering seas of the international economy,” he said.

The expense of living burden brought on by the conflict between Russia and Ukraine, he claimed, has been managed by the government.

“The K611 million household assistance package announced back in April has already removed all taxes from retail fuel products,” he said.

“Wage earners are receiving up to K42.30 per fortnight due to the reduction in taxes because the tax-free threshold has been moved from K12,500 to K17,500.

“The Department of Education is working with the Treasury to fund all legal school project fee costs in 2022.

“And the IRC is working to reduce prices of key commodities such as rice and tinned fish.”

Reference: The National (1 August 2022). “IMF predicts 6.8pc inflation”.

Photo credit: Islands Business

The Madang business community wishes to contribute more to the growth of the Pacific Marine Industrial Zone (PMIZ) in the region.

The development of the project, according to Kevin Murray, president of the Madang Chamber of Commerce and Industry, would have a favourable effect on the city's economy.

A committee has been formed for the initiative, but according to Murray, corporations have not yet shown an interest in it.

“As far as I know, the business community hasn’t been involved in any discussions,” he said.

“We know there are some plans to develop it, but there has been no communication with the business community.

“We would like the people who are developing and promoting the project to talk to us so we can know what plans they have.”

The PMIZ and the Manus tuna facility are key projects for the fisheries industry, according to Fisheries Minister Dr. Lino Tom.

According to Lino, the government has budgeted K100 million for the PMIZ, which has been delayed by ten years.

The Manus tuna facility will be developed using K30 million of the funds.

“The PMIZ is like a flagship project that will drive our 10-year strategic plan, so it’s actually on foot,” he said.

“We’ve also engaged KPMG to do the financial feasibility.

“We hope to start work this year based on the feasibility and the reports.”

Businesses in Madang want to see the provincial government come together and cooperate for the province's economic advancement.

According to Murray, the lack of leaders who collaborated to promote the province had to change if Madang was to realise its potential.

“In the last term of parliament, we didn’t have this, members were doing their own thing and not cooperating together,” he said.

“This has to change after the elections.”

Murray characterised the economic situation in Madang as typical.

“Everyone is a bit weary but business is fairly close to normal,” he said.

“We would like to see the PMIZ developed, that might happen after the new Government is in place.

“There are some large Chinese businesses coming and stimulating the local economy.

“Basically for all these things to happen we need to have politicians who are going to act in the best interest of people, province and the betterment of the economy.”

Murray also emphasised the importance of finishing the Modilon road, which was still under construction.

He claimed that because of the poor condition of the road, businesses suffered from automobile damage.

“But things are looking up now because there are a lot more activities and we are looking forward to the road being completed.”

The business community hoped that the General Election of 2022 would be conducted peacefully, Murray continued.

Reference: The National (2 August 2022). “Madang businesses want input in PMIZ development: President”.

According to Sir Peter Ipatas, the re-elected governor of Enga province, Mineral Resources Enga will not be rushed into signing the shareholders agreement.

He said they do not want to rush the signing and will only sign when they are satisfied with a better deal. They are negotiating to get a better price, he claimed.

“For years, the company has been operating and now we have a legal opportunity as the lease has expired and we can now negotiate a better deal for the country, province and landowners,” he said.

“We do not want to rush the signing, it will take a little while as two years is not a long time because gold is not like fruits and vegetables that will be rotten and needs to be harvested, it will still be mined and we are not in a hurry to sign until we reach a stage that we are all satisfied with the outcome.”

The Prime Minister has been good and has secured 51% for the nation to hold, while investors will only own 49%, which was not included in the previous deal, he said, adding that the process is proceeding well and would be in the best interests of the people.

“In this agreement, the State will now put K900 million into the valley and of course, the company will put US15 million (K52.8m) into the valley before they fire up the mine and that is for infrastructure and development.

They will also put in US3 million (K10.5m) for the next nine years and these are the big ticket items in the new agreement that we want,” he said.

Reference: Kamus, Maxine. Post-Courier (1 August 2022). “No Rush To Sign Porgera Project”. 

Photo credit: Nasfund - Ian Tarutia

As the long-serving CEO of the fund, Ian Tarutia, CEO of Nasfund, will step down on March 31, 2023.

Mr Tarutia has informed the board of his desire to retire at the end of March 2023, according to chairman Charles Vee's announcement.

He said that the board appreciates his choice and has begun the search for a suitable replacement.

“Ian has served the fund, Nasfund its predecessor NPF and the fund members over the last 35 years with distinction and his departure will be a big loss for the organisation.

“He has led the fund as CEO since November 2011 and presided over a period of sustained profitability, membership growth, balance sheet growth and improved member servicing over his watch.

He has built a strong leadership team and pleasingly most are all competent Papua New Guineans.

The board is comforted that the business of the fund and service to members will continue while a new CEO is recruited and appointed,” Mr Vee said.

In the first quarter of 2023, he will say his final goodbyes formally.

Mr Tarutia declared that he is confident in his choice to leave the fund at the beginning of 2023.

“I have served Nasfund and its predecessor National Provident Fund (NPF) for almost 35 years. Out of this, I have served 15 years at the CEO level.

“As my first employer straight from university, the fund has been a significant part of my adult and professional life.

“I have seen the fund from its lowest time as an organisation on the brink of extinction to its peak of distinction as a leading superannuation and financial institution in Papua New Guinea and the Pacific today,” Mr Tarutia said.

He said that via better governance, an emphasis on customer service, innovative products, higher retirement savings, and return on investments, members had greatly benefited from the fund's revival.

“More importantly, the fund today is staffed by well-qualified, competent and dedicated Papua New Guineans who are as passionate as I am in serving members to the best of our ability. I am privileged and honoured to have played a role in the consolidation, rebuild and transformation phase of the fund to where it is today.

“But the time has come to pass the baton to someone else to take the reins,” he said.

“I am keen to pursue other personal interests and endeavours and look forward to the next phase of life.

“The board has commenced a recruitment process to find my replacement, I will assist with the transition to ensure stability and continuity.”

Mr. Tarutia stated that in the interim, he is still committed to seeing that the fund achieves its goals for the year and continues to produce gains for its members.

Reference: Post-Courier (2 August 2022). “Tarutia To Retre In 2023”. 

Photo credit: Centre for Excellence in Financial Inclusion

Financial information is vital to making informed decisions and NASFUND Contributors Savings and Loan Society (ncsl), as a financial institution, endeavors to provide necessary training and awareness to empower people to make good financial decisions.

On Monday 01 August, ncsl and Centre for Excellence in Financial Inclusion (CEFI) signed a Memorandum of Understanding for Financial Literacy Training.

Under the MoU, CEFI will provide a ‘Train the Trainers’ program to ncsl staff to empower them to go out and conduct educational awareness on financial literacy to the Society’s growing membership.

CEFI’s Financial Literacy Program will train ncsl officers on how to facilitate and deliver financial literacy information to its members so they are empowered to make appropriate financial decisions, including accessing the right types of financial products and services that address their business and household needs at reasonable costs.

ncsl Chief Executive Officer Vari Lahui said ncsl is pleased to partner with a recognized institution in the country that specializes in financial literacy training and is also mandated to drive programs on financial inclusion.

“Through our Lending, we have noticed that our members entering into numerous borrowing arrangements with other financial institutions at exorbitant costs and we believe the partnership with CEFI allows us to gain the knowledge and experience to reach out to our members in such situations and assist them with advice,” he stated.

CEFI Advisor Saliya Ranasinghe said CEFI is privileged and happy to partner with the most innovative and progressive society in the country.

“We are very pleased to work with the largest savings and loan society by membership size to train staff and clients to make a difference in the community through this program.

“Financial literacy is something everybody in this country needs. PNG has a lot of money but the problem is how to manage it. This partnership between the two organizations now enables progress towards better managing the issue of better financial management,” Ranasinghe said.

The MoU will initially run for a period of 12 months and ncsl aims to reach out to as many members as possible and will provide progressive monthly updates to CEFI as part of the agreement with the aim of enhancing the Program where necessary.

Article courtesy of the Centre for Excellence in Financial Inclusion

Photo: Kumul Petroleum Managing Director Wapu Sonk presents to PDL 7 landowner beneficiaries who have established and nominated Kroton Laitepo Equity Limited to receive the KEO benefits on their behalf, their unit certificate and preferential dividends

Papua New Guinea’s national oil and gas company, Kumul Petroleum Holdings Limited announced today that all necessary eligibility process verifications had been completed with the PDL 7 landowners, so that they were able to receive accrued Kroton Equity Option (KEO) preferential dividends.

The 2009 PNG LNG Project Umbrella Benefit Sharing Agreement between the Independent State and recognised provincial governments and landowners impacted by the project were entitled to exercise a commercial option to acquire shares in the State entity taking up shares in the project, known as the Kroton Equity Option. 

Wapu Sonk, Managing Director of Kumul Petroleum said, “working closely with the Department of Petroleum and MRDC, we have completed the landowner identification studies for this landowner group, ensuring that they can receive their KEO entitlements.”

“Today I am pleased to announce that Kumul Petroleum can award this PDL 7 landowner group with a share certificate, recognising them and their nominated company, and therefore a cheque for their accrued preferential dividends from 2017 to 2021, for K22.7 million, this is a significant amount.”

“I thank these landowners for their patience over these past 5 years, we are all glad this moment has come.”

The PDL7 landowner beneficiaries have established and nominated Kroton Laitepo Equity Limited to receive the KEO benefits on their behalf.

Mr Sonk added, “It is important that Kumul Petroleum follows due process, including proper identification verified by the Department of Petroleum.”

“We issued a public notice in May this year notifying all KEO beneficiaries to complete KEO eligibility criteria requirement. The PDL 7 landowner beneficiaries are the first to complete this.”

Mr Sonk took the opportunity to also encourage other beneficiary groups to complete their KEO eligibility criteria compliance so that they could also receive their KEO related benefits.

Article courtesy of Kumul Petroleum

Progressing on improving the efficiency of value chain enablers, including sustainable, climate-proof transport infrastructure development in Papua New Guinea, the EU Funded UN Joint STREIT PNG Programme started with rehabilitation and specific maintenance of two farm-to-market access roads in the Sepik Region.

Led by the International Labour Organization (ILO), these two roads will support farming communities involved in cocoa, vanilla, and fisheries production to access further markets with more rewarding prices, and open up rural communities for agribusiness opportunities.

Two ground-breaking ceremonies were held to mark the start of work on two roads in East Sepik Province. The first ceremony was on 22 July for a 7.8 km Banak-Wautogik Road along the west coast of Wewak District that later followed with the start of a 12.8 km Balif-Araseli Road in the Ambunti-Drekikier District on 28 July.

These roads are part of 15 farm-to-market access roads totalling 264 km planned for rehabilitation and specific maintenance under the EU-STREIT Programme in rural Sepik, Papua New Guinea. 

Straight after the unveiling of the project information board and ribbon cutting for the Banak-Wautogik road, local firm Hiawani Ltd who has been awarded the contract started with grading and clearing of the initial roads section. This road connects two Local Level Governments (LLGs), namely Boikin LLG and Dagua LLG, and will serve over 2000 rural farmers of six villages of Banak, Bogumatai, Kwangen, Walanduom, Wautogik and Kotai (inland).

It was a long-awaited moment for the villagers, particularly women who live at the backend of the road. “This is a happy moment for us. We get up very early in the morning, carry out loads and walk for more than four hours to the main highway to catch a PMV [Public Motor Vehicle] to town. We also carry our sick children and walk this road because vehicles cannot go in. Some mothers deliver their babies on the road,” said Joan Wapiake who reflected on the struggle’s mothers in the area face.

Former Ward Member of Walanduom and village elder Mr David Mangani added: “The provincial authorities said to come and fix our road, but it didn’t happen. Thank you, ILO and STREIT Programme and financiers, the European Union.” 

Many farmers neglected their farming practices because the road was inaccessible for vehicles to receive services and transport their produce to market. On this note, Walanduom Ward Member Mr Tom Talis challenged his farmers to “use it to improve our cocoa, vanilla and fisheries activities to support our living.”

Speaking on behalf of the EU-STREIT PNG Programme, Mr Muhammad Atif Nasim, the International Monitoring and Evaluation Specialist, said: “I have a request for you, because this is your road, you have to take care of it. It is not just another road; it is the key to your future. It will help you to change in 5 to 10 years’ time.”

The road will raise embankment, subgrade with compact gravelling, 27 permanent crossing structures, including two reinforced concrete box culverts and one reinforced concrete causeway, and side drains with traffic signs and signages for year-round serviceable.

To encourage equal participation, a stakeholders meeting was also organised with the communities for better common understanding of the project and intervention. Also present and was very appreciative of this intervention was the Executive Manager of East Sepik Provincial Division of Works and Technical Services and Deputy Provincial Administrator, Mr James Baloiloi. “On behalf of the Governor and Provincial Administrator, I want to say thank you to the EU-STREIT PNG Programme and ILO as the implementer to recognise this road which will benefit many inland communities.”

The second project, the Balif-Araseli Road will provide access to market for more than 5000 farmers of 9 villages, 4 Wards and 1 LLG in Ambunti-Drekikier District. Midway Pacific Ltd is the contractor for this road rehabilitation and specific maintenance project that will also serve existing public facilities in the area like schools, aid posts and health centres as well as opening up agribusiness opportunities for the rural communities.

This 12-months project will also create decent job opportunities for the rural communities. 

Chief Technical Advisor of ILO EU-STREIT PNG, Mr Shailendra Kumar Jha, in his speech during the Balif-Araseli Road ground-breaking ceremony, assured the villagers that there will be ongoing monitoring by ILO engineers to ensure delivery of quality road on time. He also urged the community to take ownership and support road rehabilitation and specific maintenance projects.

Under the road transport infrastructure component of the EU-STREIT PNG Programme, the road rehabilitation/specific maintenance project will support market access for rural farming communities to boost agriculture production and agribusiness activities pertaining to the three targeted value chains of cocoa, vanilla and fisheries for an improved income and cash flow for the rural sector.

The EU-STREIT PNG, is implemented as a UN joint Programme (FAO as leading agency, and ILO, ITU, UNCDF and UNDP as partners). It 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.

Article courtesy of EU Streit 

Photo: Trans Wonderland Limited Board of Directors after a 2-day training by the PNG Institute of Directors in Port Moresby

Santos has commended nine directors from landowner company Trans Wonderland Limited (TWL) including managing director Larry Andagali for attending a 2-day directors’ training facilitated by the Papua New Guinea Institute of Directors (PNGID) in Port Moresby.

Leon Buskens, Santos Country Chair PNG said this was important for any company as part of continuous improvement in quality governance.

The training introduced the basic standards on the roles, responsibilities and tasks required of directors including aspiring directors and corporate executives and managers.

TWL managing director Larry Andagali said the training was important for the directors to learn the basic steps in formulating and implementing key strategic and risk management planning and processes.

The directors gained an understanding of the evolving concept of corporate governance, the distinction between governance and standard financial statements which are very important for us.

“We also had our financial team and some senior managers from our subsidiaries attend this training as part of their career development,” Mr Andagali said.

With the expansion of its operations internationally with joint venture companies (JVCs), TWL is going beyond to upskill its directors and build their confidence in sitting on large boards and to deliberate with directors from different backgrounds.

“Most of our directors have become partners with other international players such as PenTrans, Sarens and TWL Logistics. We organised ourselves as the TWL Group also with a development focus. Each director has the opportunity to sit on various boards to develop a clear understanding of the different subsidiaries they represent,” Mr Andagali added.

TWL has been a member of the PNGID in recent years and the training was timely to reinstate themselves as an active member.

“Having the PNGID come in to help us understand our roles and responsibilities was vital as we continue to expand our flagship transportation company in the country and abroad. This is a very refreshing course. I would recommend it to directors from other organisations.

“We are building a national iconic PNG company and not just a landowner company. This training will help us achieve that vision.”

Article courtesy of Santos

Commenting on the recent announcement by TotalEnergies that the Papua LNG joint venture will launch the first phase of front-end engineering and design (FEED) studies for upstream production facilities on the 5.4 Mt/year LNG project that they are operator of,  Kumul Petroleum managing director Wapu Sonk was congratulatory.

He said, “As a potential co-venturer in this LNG project, we are really glad that this momentous decision has been made by TotalEnergies and its partners, it is a sign of their faith in the future of Papua New Guinea.”

Mr Sonk noted that studies for the downstream liquefaction facilities were also progressing in line with the overall project schedule, with the objective of launching the integrated FEED in the fourth quarter of 2022.

“The project is targeting a final investment decision (FID) around the end of 2023, which will enable project construction to commence, leading to a projected project start-up at the end of 2027. We have been waiting for this good news for a number of years now.”

As the national petroleum company, Kumul Petroleum Holdings will be exercising its right to take up to 22.5% equity in the Papua LNG project, and join the other partners TotalEnergies, ExxonMobil and Santos.

Mr Sonk continued, “We have seen the many benefits that have come about as a result of the ExxonMobil led PNG LNG Project, and I foresee that the lessons learned from that project will enable all Papua New Guinea stakeholders to maximise their various benefits from the Papua LNG development. Papua LNG construction will have large multiplier effects in the economy”

The decision by Papua LNG to enter FEED would benefit many stakeholders since after the completion of an estimated four years of construction it was planned to then start the construction of the P’nyang LNG Project, which would take another 3-4 years to construct.

“The likelihood of up to eight years of LNG related infrastructure construction means that many nationally owned service industries have the opportunity to develop a firm financial, technical and human resource foundation that will ensure their future in a rapidly industrialising Papua New Guinea.”

Mr Sonk confirmed his belief that LNG developments would underpin the economy of PNG for at least the next two decades, assisting in the roll out of electrification across the country and be the catalyst for downstream processing of petroleum into products such as fertilisers and petrochemicals.

“At Kumul Petroleum we will be playing a continuing role in petroleum developments and also intend to play a greater role in related nation-building projects to ensure that benefits from this sector are spread as widely as possible.”

Hela Rural Development Foundation (HRDF) in partnership with BSP Financial Group Limited (BSP) has begun the shift to receiving digital donations on their website through the Online Payment Gateway system.

Established in 2019, HRDF as a development partner to improve the quality of education, health and support sport functions in remote communities in Hela Province, HRDF continues to deliver projects through the support of donation partners and program support organisations in Papua New Guinea and Australia. With operation sites located in Port Moresby and Tari, the foundation has extended support to neighboring provinces in Southern Highlands and Enga.

Founder and Chairman of HRDF Eric Yawas, explained that they currently have a total of ten donation partners and various program support organisations in both PNG and Australia. HRDF delivers range of materials from library books, computers, and teacher’s reading materials, to desks, tables, and chairs. The Foundation also supply mosquito nets, wheelchairs, and hygiene items to support the Health Centers. Nonetheless, provide sporting gears, balls, shorts, uniforms and sponsors to any sporting functions in schools within Hela province.

“Onboarding the BSP online payments system, it will be now be seamless to receive donations that will help the foundation.

“Online payments encourages our sponsor partners and donors to make payments conveniently without having to go visit the nearest branch. With just a click of a button, payments are sent through,” said Yawas.

“Apart from donation partners overseas, the eCommerce platform provides the perfect avenue for anyone to donate money to assist with funding the logistics required to deliver the projects,” he added.

“Digital is the way forward and the solution to all business banking needs, it saves time and adds more value to your business given that we are in the digital age,” he said.

Article courtesy of BSP