Sir Wilson Kamit has been named chairman of the board of directors of TISA Community Finance Limited, a fully owned subsidiary of Teachers Savings and Loan Society, beginning July 21, 2022.

Sir Wilson, according to TISA's chief executive officer Michael Koisen, brings to the TCF board a wealth of knowledge and managerial experience that will help the subsidiary's focus on offering financial services and products to the retail and commercial segment, including small and medium enterprises, be strengthened even more (SMEs).

The board of TCF is confidence in Sir Wilson's selection as board chair, according to Mr. Koisen, who has extensive leadership experience in the financial sector regulation, business, banking, economics, superannuation, investments, and insurance sector.

“Sir Wilson began his career as a graduate research officer at the Central Bank on July 1975 progressing through many management roles before being appointed Deputy Governor in 1991 then Governor in 1999,” he said.

“As Governor, he was also the alternate Governor representing PNG on the International Monetary Fund (IMF) and was the Registrar of Savings and Loans Societies.

Since then, Sir Wilson has served on various corporate boards, including those of InterOil Corporation, PNG Sustainable Development Program Limited, and Credit Corporation Limited. He is also the alternate executive director for the Asian Development Bank in Manila.

With nearly five decades of experience in a variety of professional and volunteer endeavours, Mr. Koisen claimed that Mr. Wilson is an invaluable addition to the TCF board and its efforts to convert its NBFI License into a full Commercial Banking License. Mr. Wilson is currently a member of the Independent Advisory Group and a member of the University of PNG Interim Council, according to Mr. Koisen.

Reference: Post- Courier (27 July 2022). “Sir Wilson Appointed Chair For TISA”.

There have been many divestments and reinvestment in the country by foreign enterprises in past years, according to the Investment Promotion Authority (IPA).

According to IPA managing director Clarence Hoot, 165 foreign enterprise certificates were awarded for the first half of this year as opposed to 364 for the entire previous year.

“We are seeing that some foreign enterprises have diversified their activities, and have applied for variations, that include new activities or changing of locations,” he said.

“The effects of the lack of foreign currency, the business had a lot of money to invest.

“We are seeing in our certification process divestments, reinvestment.

“Companies in Port Moresby are investing in Mt Hagen, Kokopo.

“They are moving to other provinces in the same line of business as well as into other business activities.

We hope this continues.”

The Coronavirus (Covid-19), according to Daroa Peter, director of the IPA Investor Servicing and Promotion section, also had a role.

“Due to Covid-19, the borders closed so companies decided to move within the country.”

According to Hoot, the number of distinct entity types registering with the IPA has increased.

At the end of June, the IPA registration included:

• ASSOCIATIONS – 810 registered in 2021 and 373 registered at the end of June, 2022;
• BUSINESS GROUPS – 641 registered in 2021 and 531 registered at the end of June, 2022;
• BUSINESS NAMES – 23,484 registered in 2021 and 12,853 registered at the end of June, 2022;
• COMPANIES  – 4,255 registered in 2021 and 2,297 registered at the end of June, 2022.

Reference: The National (25 July 2022). “IPA says number of foreign firms reinvesting in PNG increasing”. 

Papua New Guinea’s financial sector accounts for K2.3 billion of its economy in 2022, Treasurer Ian Ling-Stuckey says. Ling-Stuckey said a healthy and modern financial sector was vital for development.

“This is a larger contribution than the size of the manufacturing sector (K1.705 billion), or even our transport and storage systems (K2.05 billion),” he said.

“We must ensure that this part of our economy works efficiently.

“It needs to serve the broader public interest as it helps mobilise savings into productive investment and support for SMEs (small to medium enterprises).”

The Independent Advisory Group (IAG) is conducting a review, and the second phase has begun, according to the newly re-elected Kavieng MP.

According to Ling-Stuckey, the first phase's success prompted changes to the Central Banking Act, which were overwhelmingly approved by Parliament in December.

Robert Igara, chancellor of the University of Papua New Guinea, Sir Wilson Kamit, a former governor of the central bank, and Prof. Stephen Howes of the Australian National University are leading the independent inquiry. “International comparisons suggest there is much that can be done to improve our financial sector,” Ling-Stuckey said.

“We have some of the greatest differences in the world between interest deposit rates paid to savers and interest costs charged to borrowers.

“Fortunately, there are signs that this gap is narrowing as the Marape Government has been clear that changes are required.

“The interest rate gap decreased from 8.51 per cent in 2018 down to 6.51 per cent in 2020, the best performance since 1998.”

Ling-Stuckey said PNG’s financial sector lacked adequate competition which led to monopoly-style profit levels.

“There is a serious problem of excess liquidity in which savings are not turned into investments,” he said.

“There is a need to examine the use of technology and how it can improve access to finance and insurance for many more of our people.

“We also need to address inefficiencies in our payments system which see too many people not being able to deposit funds and too many cheques bouncing due to unnecessary and bureaucratic impositions from our financial sector.”

Public responses are being requested by IAG and are due on August 26.

Ling-Stuckey stated that the Terms of Reference had incorporated the significance of a thorough public engagement process and urged organisations and others to participate.

their opinions on how

The financial system in PNG may be strengthened.

“This is an example of the major structural reforms underway by the Government to modernise the PNG economy and lift our economic growth rate.”

Reference: The National (27 July 2022). “Healthy financial sector key: MP”.

Photo: Barrick Logo

Barrick (Niugini) Limited (BNL), in response to a recent media article that the Port Moresby BNL office would operate out of Perth, Australia, is not accurate. BNL would like to clarify that the Port Moresby Office will continue to be the Head of Country office for its operations in Papua New Guinea, after the incorporation of New Porgera Limited.

Barrick President and Chief Executive officer, Mark Bristow, explained that Barrick recently opened a Perth Office for Barrick’s Asia Pacific growth operations.

“Barrick has recognized the potential for the mining industry in the Asia Pacific region with current operations in Papua New Guinea and Pakistan. We are looking at other mines throughout Asia Pacific, and the new Barrick office in Perth will allow for our move into the region. As for the Porgera Mine, our head office for all of Papua New Guinea operations is Port Moresby and will continue to be after the Shareholders Agreement is fully executed.”

Bristow said that Barrick’s approach is to ensure that the countries in which Barrick has primary operations, is managed by citizens of that country. For PNG, the Porgera Project Commencement Agreement ensures a greater participation by its citizens and the State.

Speaking from Port Moresby Bristow said, “The Porgera Project Commencement Agreement shows our genuine intention to nation building here in Papua New Guinea. On top of the 51% equity to PNG stakeholders, of which 10% is protected equity for Project-impacted landowners, we are committed to building a predominantly PNG national workforce at Porgera Mine - and refining our approach to localizing our supply and business contracts.”

Mark Bristow, who was in country this week, stated that once Mineral Resource Enga Limited signs the Shareholders Agreement and other associated agreements, the long awaited economic benefits for the country will flow.

Article courtesy of Barrick 

Photo credit: Air Niugini Facebook Page

National flag carrier, Air Niugini has performed exceptionally well in delivering its schedule, outperforming many airlines in Australia and the Pacific.

In June Air Niugini operated 2,260 flights with 2,104 of those serving the domestic market.

When compared with key airlines in Australia for the month of June, Air Niugini’s on time departure performance (flights leaving within 15 minutes of the scheduled departure time) sat at 82% as compared with Qantas at 58.7% and Virgin Australia with 59.8%
The cancellation rate for Air Niugini for June was 3.8% while Qantas cancelled 7.5% of all their services and Virgin Australia cancelling 5.8% of their flights.

Chief Executive Officer (CEO), Bruce Alabaster said “It’s not easy ensuring schedule integrity and with the difficult conditions under which we operate here in PNG that places further pressure on our schedule. “

“I commend all our staff, those at the check-in counter, traffic officers to operating crew, engineers, catering, flight planning and all those involved for their great teamwork, producing excellent results often under testing circumstances. Our on time performance is something we take very seriously and are always working to improve on, and to be performing at a level higher than our peer airlines in the region is a wonderful result. I encourage the team to continue to maintain the good work.

Article courtesy of Air Niugini

Photo credit: Papua New Guinea Customs Service

The PNG Customs Service and Investment Promotion Authority (IPA) have renewed their partnership to work together in relation to trade, border protection and facilitation, promoting investment including intellectual property enforcement.

In order to advance their continuous collaboration, customs chief commissioner David Towe and IPA managing director Clarence Hoot signed a memorandum of understanding (MoU) in Port Moresby.

The last Memorandum of Understanding was initially signed in 2013 and expired in 2016.

Hoot claimed that the MoU was a result of the need to uphold the national government's duties and obligations under the World Trade Organization (WTO), particularly with regard to the Trade Related Aspects of Intellectual Property Rights and their responsibilities as the relevant government agencies to carry out enforcement duties and obligations fundamental to the WTO.

The MoU also acknowledges IPA's and Customs PNG's obligations under the Financial Action Task Force and its regional affiliate, the Asia Pacific Group on Money Laundering, as well as their duties as pertinent government organisations to carry out enforcement and obligations essential to countering money laundering and financing for terrorism.

According to him, the MoU will be carried out through the use of approved channels for communication, partnerships and collaboration, information sharing, joint initiatives, and consultations.

The parties will also follow their obligations under the Memorandum of Understanding and within their respective legal systems.

Reference: The National (22 July 2022). “Customs and IPA sign MoU, renew partnership”. 

Photo credit: Post Courier 

Tourism Promotion Authority will invest a capital of K1 million into creating package tours to boost domestic tourism in the country.

A Memorandum of Agreement (MoA) for a Travel Subsidy Partnership between Air Niugini Limited and PNG Tourism Promotion Authority (TPA) has been signed.

TPA Chief Executive Officer Eric Uvovo stated that TPA is now looking at a mechanism to subsidise travel for package tours in order to promote domestic tourism in collaboration with the airline companies, particularly Air Niugini and PNG Air Limited.

According to him, K1 million must be committed initially in order to create package tours, and TPA is considering frontloading K500,000 to Air Niugini for the package tours.

“This is a partnership aimed at encouraging domestic tourism and bringing back tourism in Papua New Guinea post-COVID.

“We want to help stimulate the industry and going forward, this is one way we believe will go a long way in assisting the tourism industry in the country,” he said.

Paul Abbot, general manager of commercial operations for Air Niugini, claimed that nobody in the business, particularly those working in the airline, ground transportation, and hotel industries, benefited from the last two years.

“It is important to put together programs like this which will drive benefit back into the local community and tourism industry.

“Our objective is to make domestic tourism package products a lot more accessible to a lot people whether they are international coming inbound or more importantly domestic people looking at exploring the country,” he said.

The packages will have the fundamental package structure, according to Mr. Abbot.

He stated that the subsidy will be used to actually subsidise the packages so that the ground operators continue to receive their fair share of revenue in order to ensure that people on the ground are supported, whether it be through the use of hotels or rental cars. The subsidy will be deducted from the price of the package by K500 per person.

Reference: Kamus, Maxine. Post-Courier (22 July 2022). “TPA Invests K1 Million To Boost Domestic Tourism”.

Following the overland belt failure earlier this year, the Hidden Valley mine has resumed full operation, according to CEO Peter Steenkamp.

Following the event, full production of the Morobe project, operated by Harmony Gold Mining Company Ltd., has resumed.

This was emphasised by Steenkamp in the company's financial year report that ended on June 30.

The business has activities in PNG and South Africa.

“In Papua New Guinea, our Hidden Valley mine resumed full production after the overland belt failure in January 2022,” Steenkamp said.

“This strategically important asset performed well in the fourth quarter, with good prospects for the new financial year.”

Additionally, the business is a partner in Morobe's Wafi-Golpu mineral project.

“We continue to progress the special mining lease for the Tier One copper-gold Wafi-Golpu project,” Steenkamp said.

“The negotiating team for the Wafi-Golpu joint venture continues to engage with the PNG State negotiating team and we hope to reach an agreement soon.” Meanwhile, commenting on the overall company performance throughout the year, Steenkamp said Harmony did well.

“Throughout FY22, we faced multiple hurdles,” he said.

“It was through our phenomenal display of grit and perseverance that we delivered on our strategic pillar of operational excellence and achieved our annual total production guidance of between 1,480,000 and 1,560,000 ounces.

“The solid platform we have built throughout FY22 has placed Harmony in a strong position to deliver operationally, creating further value for all our stakeholders.

“Not only did we meet our annual production guidance, but we also took a bold step forward on our de-carbonisation journey.

“We finished this financial year on the front foot, confident and with good momentum.

“Our brownfield and greenfield pipeline, alongside the renewable energy projects will ensure continued value creation for our shareholders and stakeholders.”

Reference: The National (20 July 2022). “Hidden Valley mine resumes full operation after setback”.

The Independent Advisory Group overseeing the review of the Central Banking Act 2000 and Financial Sector Regulation has been given the clearance to go ahead with Phase II of the review.

Chairman Robert Igara in a public notice said: “With the successful completion of IAG’s phase I work and decision of the National Executive Council in November 2021, the Minister for Treasury approved on April 07th 2022 the Terms of Reference for Phase II of the IAG’s mandate.”

Phase II, according to Mr. Igara, will concentrate on the financial sector in order to examine its regulatory and supervisory structures, expand access for our citizens and enterprises, especially SMEs, across the nation, and develop PNG's government bond markets to lower borrowing costs.

The Central Banking (Amendment) Act 2021, which includes the restatement of the Central Bank's objectives, a strengthened role for the board of the Central Bank, particularly with regard to monetary policy and financial sector regulation, changed governance arrangements, measures to improve transparency and communication with the government, and the introduction of a new financial sector regulator, was successfully passed as a result of the 32 recommendations in the phase I report, according to him.

“We need to encourage competition, investment, accessibility and growth in our financial sector and use modern technology to increase productivity and efficiency, look at our laws governing our banks and institutions as well as the insurance and superannuation industries, and ask whether they are robust enough to support these reforms,” he said.

“We need to relook at our Anti-Money Laundering and Counter Terrorism Act 2014 and whether it poses a threat to the accessibility of our banking system to farmers and small businesses.

“We need to relook at whether our Central Bank has the appropriate legislation to fulfil its functions in light of changing technologies and global banking dynamics.”

According to him, the Phase II terms of reference address a number of unresolved Phase I problems pertaining to BPNG's financial sector governance and commitment to openness. Dissemination, engagement, advice, and accountability.

Reference: Post-Courier (20 July 2022). “Clearance Given For Phase II Of Review, Says Igara”.

“Foreign Exchange (FX) market inflows gained momentum in June Quarter. FX inflows are expected to seasonally taper in September Quarter, and outstanding FX orders build-up again,” says BSP Group General Manager – Treasury, Rohan George.

“As FX flows can be lumpy, we expect there to be periods where outstanding FX orders build up,” said George.

According to the BSP Pacific and Economic Insight Quarter 2 report, Mr. George emphasised that, the FX market turnover in the June Quarter, rose by 16% from the March Quarter of 2022. Subsequently, FX market turnover was 20% higher than 12 months ago, supported by strong commodity prices in particular Oil, Copper, Palm Oil, and Coffee. These firmer commodity prices have offset the lost FX market inflows from the closure of the Porgera Gold Mine.

Meanwhile, the outstanding FX orders with BSP have fallen by 55% in the past three months, assisted by record June FX inflows, but remain similar to levels seen 12 months ago,” added George.

He said: “BPNG FX intervention in June rose to 260% from May and up 33% from the March Quarter, as global inflation increased FX foreign currency requirements of the Oil, Transportation, Food and other sectors.”

“BPNG increased the Kina Facility Rate (KFR) by 0.25%, and raised Cash Reserve Requirement (CRR) of commercial banks by 1%, tightening monetary policy to combat imported inflation. A move over time to pre Covid-19 monetary policy settings will see reduced liquidity, higher interest rates and reduced demand,” stressed George.

“Recessionary fears amid a tightening of monetary policy in Australia weakened the Australian dollar and saw Kina rise 10% to 0.3985 from March. The Kina remained stable against the U.S. dollar at 0.2840,” said George.

He added that, “Consequently, to manage volatility in foreign currency flows, businesses should place FX orders with correct documentation, as soon as possible, ensure orders are cash backed whilst awaiting execution, ensuring tax clearance certificates are current and reflect the expected FX order execution time,” he said.

Article courtesy of BSP

Barrick Gold Corporation president and CEO Mark Bristow was in Porgera recently to meet with project area landowners and business, church and community representatives.

Approximately project-impacted 50 landowners representing areas affected by the Special Mining Lease (SML), Lease for Mining Purpose (LMP), Porgera Landowners Association (PLOA) and Mineral Resources Enga Limited (MRE) were at the meeting. Bristow reaffirmed BNL’s commitment to restart the mine ensuring that project-impacted landowners would reap the benefits agreed to in the Porgera Project Commencement Agreement (PPCA).

“The Porgera Project Commencement Agreement allows for a wide range of benefits to project-impacted landowners never seen by any other mining project in Papua New Guinea or globally. The immediate requirement is the signing of the Shareholders Agreement by Mineral Resource Enga, and agreement to the equity split at the Development Forum.” Bristow said.

At the meeting, PLOA Chairman Mark Tony Ekepa stated that the PLOA stance was to have the 10% protected equity parked in a separate entity established by the SML landowners, and not in MRE. Ekepa added his support for BNL’s proposal to have the equity split confirmed at the Development Forum along the lines of - 7.5% SML landowners and 2.5% LMP.

Meanwhile, newly elected LMP Association President, Timothy Andambo, stated that the LMP landowners were grateful to have finally been recognized as falling within the impacted group (as defined in the PPCA) that will now hold (2.5%) equity in the project.

“We are appreciative of the recognition granted to the LMP landowners by the SML landowners and BNL and stand ready to participate in the Development Forum.” Mr Andambo said.

The project-impacted landowner representatives thanked Bristow and the Barrick executive for visiting Porgera at this critical time when Porgera is seeing an unprecedented violence in the community at an unimaginable level.

Bristow further expressed his deep disappointment at the security situation on the ground and stated that it was a priority of his to bring the crisis to the attention of the Papua New Guinea government, the immediate urgency being the deployment of security personnel to the Porgera Valley.

Mark Bristow will be meeting with Prime Minister James Marape and representative of Mineral Resource Enga Limited before leaving the country.

Article courtesy of Porgera Joint Venture

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered record production, sales revenue and free cash flow in the first half of 2022, demonstrating the strong performance of the base business and strategic benefits of our diverse portfolio, despite a number of major planned shutdowns in the second quarter.

Strong production combined with higher commodity prices delivered record first half free cash flow of US$1.7 billion, an increase of 199 per cent from the corresponding period last year.

“Santos is positioned as a leading and reliable LNG supplier into Asia and we are well placed to take advantage of growing Asian demand for LNG, which is forecast to double by 2050,” Mr Gallagher said.

“At the same time, we supported the domestic gas market during a period of extreme demand by diverting gas from GLNG and committing to a fifth drilling rig in the Cooper Basin during the quarter.

“Despite the period of price and demand volatility, Santos domestic gas customers paid significantly less than that paid by international customers. These domestic prices are reflective of the long-term contracts that almost all of our Australian customers are on, rather than much publicised spot domestic market prices, which make up approximately only 10 per cent of the east coast gas market.

“Our new capital management framework announced in April combined with strong free cash flows position us well to provide returns to shareholders at the half-year results in August.”

Article courtesy of Santos

Photo credit: TotalEnergies

TotalEnergies, as operator, has announced the decision of the Papua LNG joint venture to launch the first phase of front-end engineering and design (FEED) studies for the Papua LNG project's upstream production facilities.

In parallel, studies for the downstream liquefaction facilities are progressing in line with the overall project schedule, and the objective is to launch the integrated FEED in the fourth quarter of 2022. The project is targeting a final investment decision (FID) around the end of 2023, and a start-up at the end of 2027.

“The commencement of upstream FEED studies is another significant step towards developing the Papua LNG project, which will increase Papua New Guinea’s LNG export capacity and thus contribute to its further development," said Julien Pouget, Senior Vice President Asia Pacific for Exploration & Production and Renewables at TotalEnergies. "The Papua LNG project is well positioned to contribute to growth in LNG supply worldwide, especially for customers in Asia seeking to decarbonize from coal to gas, in line with our strategy to lower global greenhouse gas emissions.”

The Papua LNG joint venture is committed to developing a landmark project in terms of sustainability, biodiversity, and low carbon emissions. Specifically, the project will incorporate a carbon capture and storage scheme for the fields' native CO2, which will be reinjected into the reservoirs.

Article courtesy of TotalEnergies

Barrick Gold President and Chief Executive Officer Mark Bristow arrived in Port Moresby this afternoon as a part of his regular quarterly visits to all Barrick operations globally. During his 3-day visit to PNG, Mr Bristow will meet with the Prime Minister, James Marape and will visit Porgera to meet with project area landowners and business, church and community representatives.

Before his visit to Porgera, Mr Bristow expressed his deep disappointment at the current conflict in Porgera Valley and elsewhere in Enga that has led to numerous deaths, assaults on Porgera residents, including women and children, the burning of houses and businesses, and the closure of critical government services such as the Paiam Hospital and Porgera Secondary school.

“What we are seeing take place in Porgera is inhumane and uncalled for. Barrick (Niugini) Limited (BNL) made a commitment to the community, especially the women and children, to keep Paiam Hospital’s essential services open even after the mine was placed on care and maintenance (C&M).To see the services now closed due to the tribal conflict and violence related to the elections is deeply saddening. The conflict is impacting C&M operations and we remain concerned for the safety of our Porgera employees. BNL urges the national and provincial governments to intervene and restore peace to the Porgera Valley,” Bristow stated.

Porgera Mine is currently into its third year of C&M and restart plans remain on hold, awaiting the completion of the conditions for the mine to reopen, the first of which requires the full execution of the Shareholders Agreement by Mineral Resource Enga Limited (MRE).

Bristow said BNL continues to maintain regular discussions with the State Negotiation Team and concerned parties, including MRE and the Porgera Landowners Association, with the hope that MRE will sign the Shareholders Agreement at the earliest possible date.

“The Porgera Project Commencement Agreement (PPCA) provides a 1% increase to the royalty rate to 3% and an additional 10% free carry equity to be shared between the Enga Province and the wider project-impacted landowners. This is on top of the 2.5% held by each of the Enga Province and the Special Mining Lease landowners through MRE. The PPCA demonstrates that BNL and the national government are committed to providing more tangible benefits for projectimpacted landowners and Enga. It is an unprecedented agreement for any project in PNG,” Bristow said.

Once MRE signs the Shareholders Agreement and other associated agreements, the first step towards restart preparations can commence with incorporation of the new project company, New Porgera Limited, and the submission of a new SML application to the Mineral Resources Authority.

“Further delaying the restart of the Porgera Mine denies benefits to every one of the stakeholders including the Porgera community and the National Department of Treasury. Care and Maintenance is currently costing K35 million a month which will have to be repaid” Mr Bristow said.

Bristow said that Barrick stands ready to finalize all remaining matters to allow the restart of the Porgera Mine for the benefit of all Porgerans, especially the project-impacted landowners, Enga Province, Papua New Guinea, and BNL shareholders.

Article courtesy of Porgera JV

The price of goods and services have continued to increase since the second quarter of 2021, with Consumer Price Index (CPI) rating closing the first quarter of this year at 6.9 percent – the highest level rating since 2010.

To counter this high domestic inflation, the Bank of PNG has tightened the Monetary Policy by increasing the Kina Facility Rate (KFR) by 0.25 percent to 3.25 percent this month (July 2022).

According to the BSP Pacific Economic and Market Insight Q2 2022 Report, BSP Group General Manager for Corporate Banking, Peter Beswick said the uplift in the Kina Facility Rate (KFR) by BPNG in signalling and tightening the Monetary Policy would result in the finance sector reviewing loan and deposit interest rates.

The KFR intends to serve as the interest rate at which funds can be lent or borrowed.  It is a monthly rate and any changes to it should translate to market interest rates.

“The Bank of PNG has flagged the tightening Monetary Policy, with an increase in the KFR by 0.25 percent to 3.25 percent in July 2022. This move is to counter high domestic inflation. Domestic prices have continued to increase since the Q2-21, with headline CPI for the Q1-22 at 6.9 percent. The highest level since 2010,” Mr. Beswick said.

“BPNG has noted the key drivers of inflation as being import inflation (through fuel and food), caused by the pandemic and Russia-Ukraine conflict. Inflation and living costs are expected to remain high for the remainder of 2022, as global recession fears affecting fuel, energy and logistic costs globally,” he added.

Mr. Beswick further said that under this scenario, PNG should benefit from increased prices on commodity exports. However, this lift could be partiality offset by reduced export volumes in the agricultural sector, as small holders and regional communities are involved in the general election.

“In terms of business drivers, we have seen some uplift in select business sectors of the PNG economy. Hotels & Accommodation providers have seen increases in occupancy levels, due to additional consultants and short term contractors arriving to assist government with the general election. Australia has an increased presence, with additional defence force personal assisting with law and order nationally. While aid agencies have committed additional resources on the ground to assist with the election operations, logistic and oversight.

“Major extractive projects on the horizon for 2023, should see improved sentiment as the PNG economy transitions into its next significant growth phase,” Mr Beswick concluded.

The reopening of the Porgera Gold Mine will be a catalyst for continued growth post-COVID despite it currently being on hold due to a delayed stakeholder sign off on the Porgera Project Commencement Agreement and Shareholder Agreement.

BSP Group CEO Robin Fleming in providing his insight in the BSP Pacific Economic and Market Insight Q2, 2022 Report said resumption of production at the Porgera Gold Mine operations later in the year would represent a significant injection into the PNG economy.

He said as some of the key mining industries await the finalisation of negotiations, projections are looking positive with anticipation of some operations commencing as early as the first half of 2023. The outcome of the National General Elections and the policy priorities of the emerging government will determine the pace of these processes.

“We expect that the re-opening of the Porgera Mine will be a key priority for the government that emerges from the 2022 National General Elections. Porgera and other resource investments are important as the post COVID economic activity has been led by government spending in infrastructure, and private investment is important to make the recovery sustainable in the long term,” he said.

“PNG has benefited from high global prices for its major exports in 2022. Mining exports in particular have seen sustained price increases which positively impact PNG’s gross domestic product (GDP), and present much upside for economic activity and government revenue generation.”

Mr. Fleming also said the recent positive announcements made on large resource projects present some upside in the medium term.

“Apart from the reopening of the Porgera gold mine, Wafi-Golpu, Papua LNG and P’nyang LNG are still being progressed. The delivery of these large projects represent a significant injection into the PNG economy and will ultimately impact growth and government revenue.

“Mining-adjacent sectors will also benefit from the uplift in activity with some spill over into retail, wholesale, and accommodation sectors,” the Group CEO added.

Prime Minister Hon. James Marape, MP says the completion of Telstra’s acquisition of Digicel Pacific this month is demonstration of international confidence in the Papua New Guinea economy.

“The government has worked to liberalise the telecommunication market, and to also even out the playing field so that we attract important investments, and build important competition pressure in the marketplace, which translates into low-cost communications charges, and high penetration in a country that remains largely disconnected.”

Prime Minister Marape said that Telstra is rated the number one telecommunication company in Australia and through its successful acquisition of Digicel Pacific, this is a strong vote of confidence in our economy, its current state and more importantly, the future outlook.

“Investments are made with a long-term view, and most certainly a large transaction such as this one is only made when there is confidence and certainty in what the long term prospects in the economy are like.”

“Now that the acquisition is completed, this will only enable our link to the outside world much faster and deeper.

“I want Telstra to maintain links all over our country especially in the unconnected pockets of our out-of-reach communities, and to grow those links.

"The completion of this acquisition also presents an opportunity for the PNG stakeholders to work on possible participation in the telecommunication business, in keeping with the government’s mantra of maximizing participation by its stakeholders.

“We also want Telstra to interface with Telikom and as initially foreshadowed, under the Telstra PNG subsidiary; PNG stakeholders could be offered up to 50 per cent of equity,” he said.

Prime Minister Marape said while Telstra announced its successful acquisition this month, I’d like to reiterate that telecommunication services are critical to PNG’s social and economic development. It has the potential to address education and health concerns and will build a strong resilient population who are aware of what is going on.

“There is an expectation that wherever possible infrastructure sharing will be encouraged, reducing the need to erect several towers at the same location. Telikom will welcome the opportunity to collocate on Digicel infrastructure.

“I want to also thank Telstra and the Australian Government for their confidence in our economy and investing in our country.

“My Government looks forward to working closely with Telstra in developing its ongoing infrastructure network plans for PNG,” the Prime Minister said.

Digicel Pacific is the leading provider of communication services across PNG, Fiji, Nauru, Samoa, Tonga and Vanuatu. This acquisition also includes the businesses in these other countries.

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

Photo: Port Moresby 1980

For 50 years Bishops has been an integral part of the ongoing development of Papua New Guinea through the supply and service of products to a multitude of projects, agriculture, mining, forestry, manufacturing, marine, industrial and of the last decade the evolving oil and gas industry. Bishops in many ways, has grown and developed with the nation. From humble beginnings in 1972 with two brothers working enthusiastically to get established with a handful of staff, to numerous outlets and over 300 staff.

During 1972 Mark & Wayne Bishop came to Papua New Guinea to work with their older brother Ross. The original business in Port Moresby focused on general engineering, mechanical and marine maintenance. As the business developed, the Bishops took advantage of the opportunities PNG presented in this area, and invested in more and varied machinery, leading to the young men working 14 to 20 hour days, 7 days a week to build their business service and brand. The business continued to grow and by 1977 the brothers had purchased their own property, which remains the current site of the Port Moresby sales branch, Equipment Hire and head office.

As PNG developed and flourished after independence, so did the Bishops. The Bishops played an integral part in projects across the country. Bougainville Copper realised the first labor hire of tradesmen, and later a sales outlet at Kieta, followed by a workshop and sales office in Lae in 1985 to manage the maintenance requirements coming off the island, and to service the new projects coming on line in the Misima and Porgera gold mines, and the oil fields of Gobe.

Photo: Lae 1980’s

The brothers established a JV in Tabubil in 1983 when the Ok Tedi mine commenced operations. The venture consisted of a sales office, hardware store, and machining, engineering and fabrication workshops. The JV was responsible for the fabrication and construction of many of the original houses in Tabubil. 

In 1984, a sales branch was established in Mt. Hagen to service the tea, coffee, general agriculture, extended mining and exploration activities in the Highlands. With the success of the Mt. Hagen branch in the agricultural area, a branch was opened in Kimbe in 1987 to provide sales and service to the developing oil palm industry in the province. In 1990 a branch was opened in Rabaul, again to support the cocoa, copra and balsa industries. The volcanic eruptions in 1994 witnessed the decimation of the Rabaul township and the Bishops outlet. After some years, Bishops retuned to the province setting up an outlet in the now thriving Kokopo town.

1991 saw a second JV established, this time in the Porgera township. This outlet serviced the Porgera gold mine with a concentration on hydraulic services. This association lead to major contracts for supply of consumables to be supplied from Lae. In 1999, Bishops set up a sales outlet in Madang, the promise of mining developments was a catalyst for this operation. The final branch expansion came in 2006 when Bishops entered the Solomon Islands with an outlet in Honiara, unfortunately the Honiara branch was closed in 2022 due to ongoing internal tensions which lead to numerous security incursions on all business houses there.    

The brothers established a JV in Tabubil in 1983 when the Ok Tedi mine commenced operations. The venture consisted of a sales office, hardware store, and machining, engineering and fabrication workshops. The JV was responsible for the fabrication and construction of many of the original houses in Tabubil. 

In 1984, a sales branch was established in Mt. Hagen to service the tea, coffee, general agriculture, extended mining and exploration activities in the Highlands. With the success of the Mt. Hagen branch in the agricultural area, a branch was opened in Kimbe in 1987 to provide sales and service to the developing oil palm industry in the province. In 1990 a branch was opened in Rabaul, again to support the cocoa, copra and balsa industries. The volcanic eruptions in 1994 witnessed the decimation of the Rabaul township and the Bishops outlet. After some years, Bishops retuned to the province setting up an outlet in the now thriving Kokopo town.

1991 saw a second JV established, this time in the Porgera township. This outlet serviced the Porgera gold mine with a concentration on hydraulic services. This association lead to major contracts for supply of consumables to be supplied from Lae. In 1999, Bishops set up a sales outlet in Madang, the promise of mining developments was a catalyst for this operation. The final branch expansion came in 2006 when Bishops entered the Solomon Islands with an outlet in Honiara, unfortunately the Honiara branch was closed in 2022 due to ongoing internal tensions which lead to numerous security incursions on all business houses there.    

Bishops Today

After a birth based around engineering and machining services, the thriving Bishops business today is the leading supplier of engineering, industrial, and safety products to PNG. General Manager Len Pianta, who has been with the company for over 25 years of the journey, has continued to drive the business with a strategy based on customer service, competitive pricing, quality products, stock in country, experienced staff, up to date technologies, and a substantial network of suppliers from around the globe.

Presently Bishops operates six sales branches; Port Moresby, Lae, Mt. Hagen, Kimbe, Madang, Kokopo, and an Equipment Hire/Crane hire division. Industrial sales remain as the spine of the business.

Photo: Port Moresby today

Bishops stocks an extensive range of products and superior brands in PNG covering all industries. These product ranges include; safety clothing and footwear, safety equipment, materials handling, workshop, machinery and construction equipment, power and pneumatic tools, lubricants, sealants and chemicals, janitorial, general industrial products, hand and cutting tools, welding and abrasives, hydraulics, valves and hoses, fasteners, bearings and oil seals, power generation, and timber processing equipment. The brands include; Bosch, Stihl, Cigweld, Flexovit, Insectshield, Spanset, Warrior, Milwaukee, Puma, Enerpac, Alfagomma, Macnaught, Steel Blue, Howler, CRC, Penrite, Loctite and Wacker.

Bishops has developed an import program and introduced many now well-known brands to the PNG market; King Tony hand tools, Bulldog boots, Hardman clothing, PPE Select and Wirra safety products, and Genpower generators. The business continues to develop this direct import program to offer PNG a range of quality products at competitive prices.  

Since inception, Bishops has always re-invested profits back into PNG, this has been through land, buildings, redevelopments, stocks and of course our people across the country.  Bishops presently employs 300 staff across PNG and carries 50 million kina of products. Major redevelopments of Port Moresby, Lae, Mt. Hagen and Kimbe now reflect modern facilities with exponential storage capacities to service the major customers across the country.

Photo: Mt Hagen today

Bishops is proud to be associated with and service old and new, large and small clients alike; Exxon Mobile PNG, OTML, NBPOL, Simberi Gold, Kainantu Holdings, Porgera JV, Wood Group, Ramu Agri, Innovative Agro, Hides Gas, Curtain Bros, Associated Mills, Paradise Foods, Ela Motors, Monier, Anitua, Morobe Goldfields, PNG Motors, PNG Forest products, Total Energies and Guarddog to name a few.

Bishops Future

The future looks bright for Bishops and PNG. With several major projects ear marked to continue to develop and enhance the nation. Bishops will continue to grow and develop through the continued custom and support of our communities. Bishops will continue to support and grow our people, as we appreciate they play an integral part of continued business success. 

Photo: Photo of PIF Leaders

Pacific Islands Forum Chair and Host, Fijian Prime Minister Hon. Josaia Voreqe Bainimarama, and other members of this esteemed group.

I am honored to be here today representing my people of Papua New Guinea at this august forum in its 51st year of existence.

On this momentous occassion, let us pause to remember pioneer leaders of the PIF such as the late Sir Kamisese Mara, Grand Chief Sir Michael Somare, Solomon Mamaloni, Walter Lini and many others scattered over our wide Pacific Ocean.

The PIF is very much relevant in this day and age and all our current 16 members stand equal.

It must be representative of our unity as a family of nations.

This togetherness gives us the muscle to overcome the many challenges we face in the contemporary Pacific such as climate change, economic issues, and theft of our resources such as those in the sea, to name a few.

Our oceans hold 60 per cent of the world’s tuna resources, and if we stand together, we can ensure that we get the best deal for our countries.

The PIF must be the instrument to unite all of our countries with one voice. That unity must prevail under all circumstances.

Our organisation must be representative of all our diversity. No voice is too small, no voice is too big, all of us are equal.

Leadership within the PIF must be rotated among all regions of the Pacific and recognise the fact that we are all equal.

I want to also speak of the bigger forces at play within our region through geo-politics.

Papua New Guinea’s foreign policy remains that we are friends to all and enemies to none. With no good reasons, someone else’s enemy is not my enemy. And our intrinsic peaceful Pacific ways must pacify all forces and interests in our region.

In this day and age, foreign relationships is not just historical or philosophical, but more to do with trade and commerce for our national economies.

There is a need for greater trade and commerce not just among ourselves within PIF, but outside our region too, hence, the need to sustain our economies is very much a reality.

Look at the example of Nauru, for instance. It was once very rich from phosphate with one of the highest GDP per capita in the world, however, this is so different today.

That should not be the case in a Pacific region of abundance in maritime and land resources. We in the Pacific must use this unity of nations to push for our collective economic well being to develop and sustain our countries.

For instance, in my own PNG, we do not want to compromise relationships with our fellow APEC member countries because those trade relationships keep our economy functional.

The Pacific is and must be a friendly region to all, especially those that sincerely respect our national and Pacific interests.

And I point to one of our greater interests being our national economic security needs.

An economically strong nation in the  Pacific contributes to a  safe and secure region. And to get there for us in the Pacific, I propose the following:

• A step up of internal trade and commerce between our nations;
• Our friendly nations must assist more in areas of commerce and trade and not just aids and grants;
• Ensure our exposure to climate change and other globally-induced hardships must be collectively addressed and advocated by PIF;
• PIF must be contemporary whilst maintaining our core historical values; and
• Our nations must have person_ to-person, business-to-business relationships too and not just government-to-government.

We in PIF are now outlaying a 2050 strategy, and chief outcome of this strategy must be the economic well being of our people and our nations. In the life of this 2050 strategy, we must become strong and robust economies.

Our traditional and genuine partners need to look within themselves if they can come in better, and instead of giving us free handouts, they must help us to be self-sustaining.

On this note, I thank new Australian Prime Minister, Hon. Anthony Albanese, for his intention to bring in more Pacific islanders to work in Australia and also offer more training.

I also commend Australia for bringing back the Climate Change Mitigation Fund to the Pacific. I appeal to other industrialised nations to follow suit and help small island countries affected by climate change.

My proposal to PIF is to rally for international funds, especially from big industrialised nations, who are contributing to climate change through carbon emissions.

Bring these funds into small island nations like Tuvalu, Kiribati, Marshall Islands, Niue, Tokelau and others. I further propose strongly that instead of talking about victims of climate changes resettling elsewhere, we should use technology and money to assist in land reclamation,  ensuring our small island states and communities live in their island of birth.

My further recommendation to Australia, the biggest nation in the Pacific, is to open up credit facilities for smaller island nations to finance our  development needs as well as to buy more of our produce.

On this note, let me conclude by appreciating Fiji and the leadership of our host and chairman of our PIF Prime Minister Hon.Bainiramara. I also thank all of you sister and brother leaders for coming together in such tough times.

Unity is important. The strength of our combined membership allows us to overcome our local challenges much better, because here in the Pacific, we are and we must be our sisters and brothers keeper. I want to reach out to our Micronesian family that we are better, stronger and secure together. To the rest of us, let us always exercise our Christian principle of doing unto others what we want them to us.

God bless PIF, God bless our people and May God bless you all.