The Bank of Papua New Guinea presented to the Port Moresby Chamber of Commerce and Industry the September 2023 Monetary Policy Statement at the Hilton Hotel on the 4th of October 2023.

Ms. Elizabeth Genia, Acting Governor of the Bank of PNG, said: "I would like to thank the POMCCI for inviting the Bank of Papua New Guinea to present the September Monetary Policy Statement over breakfast this morning. Thank you also to the Hilton and to your staff for looking after us so well.”

“I would also like to acknowledge my predecessor, previous Governor of the Bank of Papua New Guinea, Mr. Loi Bakani,” said Ms. Genia.

“We are all impacted by the Bank’s Monetary Policy Decisions, and the Bank needs to express those decisions simply and clearly,” she stated as she highlighted key topics, namely the Bank’s outlook for growth and inflation and recent adjustments to the Monetary Policy Framework.

She also touched on the exchange rate and foreign currency availability and later, some broader issues.

GROWTH OUTLOOK

Ms. Genia said PNG’s economy is likely to grow at a rate of around 2.5 percent this year.

This growth rate is lower than the forecasts from both the IMF and the Mid-Year Economic and Fiscal Outlook (MYEFO), “and that is OK, it’s important for the Bank to be able to independently assess the economic outlook,” she said.

The Bank of Papua New Guinea made assessments a few months after the IMF issued their forecasts, and after the MYEFO was released, the bank updated the information to incorporate into the GDP assessment, she said. This included the likely impact of the delay in re-opening the Porgera Mine on the country's growth forecasts.

“But more important than the percentage point difference in the forecasts, which of course is a constant source of debate among economists, is the source of the growth,” Ms. Genia said.

A projected slowdown in the global economy may see a decline in international commodity prices and this will affect PNG’s traditional growth sectors, she said. In the short term, growth will be driven domestically by the non-mineral sector - the real economy - with growth prospects picking up significantly in both the mineral and non-mineral sectors again in 2024, she added.

ON INFLATION

Inflation peaked above 6.0 per cent in September of last year but eased to 3.4 per cent in December and was as low as 1.7% in March, Ms. Genia noted.

She said 1.7 per cent “is a very low CPI, or headline inflation number, and it masks a lot of the underlying price increases the Bank of PNG have seen in the country's economy over the last 3 to 4 years.”

“Mid-2020 and the arrival of COVID-19, headline inflation increased very quickly and stayed relatively high through to September of last year,” she added.

That two-year-plus period saw significant price increases “that have since moderated, but we have still seen a very large increase in the cost of living and in the cost of doing business - for our SMEs and for our multinationals,” Ms. Genia said.

“There is a mixed message with inflation recently. One of the main reasons is the recent strength in the US Dollar against most of the major traded currencies around the world. As you know, the value of the PNG Kina is set against the US dollar, and this means any change in the value of the US dollar affects our purchasing power in other currencies.”

“The US Federal Reserve has been consistently raising their interest rates to rein in inflation. They paused in September at between 5.25 per cent and 5.5 per cent, but since April 2022, the Fed has increased their policy rate eleven times. This has resulted in a significant flow of funds into the US Dollar to take advantage of those higher interest rates. Australian interest rates have also been rising but not at the same rate, and this led to the selling of Australian Dollars to buy US Dollars.”

The Australian Dollar has declined around 15 per cent this year, to around 64 cents against the US Dollar currently compared to more than 76 cents a year earlier, she noted. “This has been very good news for the Kina-Aussie cross rate.”

“While the Kina has been depreciating against the US Dollar and is more than three per cent lower this year, the Kina has been appreciating against the Aussie Dollar and is close to six per cent higher over the last 12 months,” Ms. Genia said.

“In addition, another major source of imports is China, and the Chinese Yuan has also depreciated against the US dollar - by around five percent since the beginning of this year, and this has also helped to keep inflation down,” she noted.

Australia and China are two of PNG's significant trading partners, and the strengthening Kina against their respective currencies has contributed to lower imported inflation, Ms. Genia said.

Moving away from the US Dollar strengthening against other major currencies, other contributing factors to the lower headline inflation figure have been the subsidies in school fees and in fuel, she said.

“BPNG have now reached the end of fuel subsidies and can expect those international currencies to rebalance against the US Dollar and at some point, this will result in inflationary pressures building and a drop in the value of the Kina-Aussie cross rate.”

The Bank of Papua New Guinea is only too aware of this, and acknowledge inflationary pressures are on the horizon and they will continue to build, Ms. Genia said.

“This small window of easing inflationary pressure is temporary and we are watching closely for when things start to turn. Looking at these inflationary pressures emerging, appropriate action will be taken but for now, the Monetary Policy Stance is neutral,” she added.

ADJUSTMENTS TO THE MONETARY POLICY FRAMEWORK

BPNG know and understand the pressures that individual, the business community, are facing the country's economy, Ms. Genia said. “Its job is to balance the pressures falling on all parts of society – on individuals, on families, on communities, and on small, medium, and large businesses,” she said.

As part of the Government’s economic reforms to stabilise the economy, BPNG is working with the IMF to introduce changes to the Monetary Policy Framework, Ms. Genia said.

The first action, in August this year, was to introduce the Bank’s first Fixed Rate Full Allotment Auction for the 7-Day Central Bank Bill at 2.0%.

“High liquidity - essentially, too much cash sitting with the commercial banks - has been a major issue for the Bank of PNG in implementing Monetary Policy and in being able to influence market interest rates,” she said.

The introduction of the 7-Day Bill is intended to absorb that excess liquidity and improve interest rates by bringing them closer to the rates set by the Bank of PNG, Ms. Genia added.

“When the Central Bank raises interest rates via the Kina Facility Rate, the effect SHOULD be felt in terms of higher lending costs and in higher rates paid on deposits. This is how it works in most countries around the world. But in PNG, there is increase passed on to depositors,” she noted.

No country will see a 100 percent pass-through from a change in Central Bank rates to deposit rates and to lending rates, but PNG “has a particularly weak transmission mechanism through to deposit rates,” Ms. Genia noted.

“BPNG's aim is to improve this situation, so that there is some level of pass through to those deposit rates as well as to lending rates,” she said.

AVAILABILITY OF FOREIGN CURRENCY

September was a very difficult month for foreign currency inflows and the Bank “has an important role to play in balancing the inflows of foreign currency with the demand for imports through our FX intervention program,” Ms. Genia noted.

After many years where the allocation of foreign currency was around USD 40 million per month, in 2023 the Bank significantly increased that allocation to USD 100 million per month, she said.

“In May of this year, BPNG increased this to almost USD 300 million in an attempt to meaningfully decrease the volume of foreign exchange orders, clearing one billion Kina of outstanding orders. This is by far the most significant support provided to the foreign exchange market in many years and there is prudency in keeping with the ability to maintain the FX reserves at an appropriate level,” Ms. Genia said.

“The BPNG is committed to supporting the Kina through this adjustment phase lower in the exchange rate. The inflationary impact of a lower Kina is first and foremost in everyone’s mind at the Bank, this depreciation needs to be undertaken steadily, and it also needs to be undertaken purposefully.”

“The theory says to test the sensitivity of foreign currency inflows increasing in response to the lower exchange rate. However, in practical terms is to know that a Final Investment Decision on Papua LNG and the re-opening of Porgera will ease some of the pressures seen in PNG’s foreign exchange market and the Government is working in the background with both these projects to ensure they get started,” she said.

“September was a particularly difficult month for inward flows and the Bank is currently looking at what can be done to assist with the intervention program through to the end of the year,” Ms. Genia said.

There will be better times ahead turning into mid-2024, she said, as the Government “is also working very hard, to ensure having the right policy settings to lead into that growth.”

BROADER ISSUES

Ms. Genia also gave an update on the IMF Program.

The end of August was a very important deadline for the Central Bank to meet structural benchmarks on

1. Moving towards greater flexibility in the exchange rate, and
2. Introducing the Fixed Rate Full Allotment auction through the 7-day CBILL and start to absorb some of the excess liquidity in the banking system.

“Both benchmarks I am happy to say have been met and if needed we will look at making further adjustments in the months ahead to the Monetary Policy Framework and the exchange rate regime to ensure we have the correct policy setting for both,” she said.

On the Phase II IAG Report, Ms. Genia said it is nearing completion, and just as the reforms from the Phase I review strengthened the Governance of the Central Bank and resulted in the amendments to the Central Banking Act in 2021, the Phase II report will likely see further reforms to the roles and to the functions of the Central Bank.

The Phase II Report will primarily look at the Bank of Papua New Guinea’s role in the broader development of the financial system, she said.

She also noted the Bank of Papua New Guinea turns 50 on November 1st this year “and will be celebrating its Golden Anniversary - a milestone the nation itself will reach in just under two years’ time.”

“The official establishment of the Bank of Papua New Guinea as the country’s Central Bank in November 1973 was one of the essential steps needed before ultimately achieving Independence in 1975,” she said.

"Our story is inextricably linked with the history of our country and 50 years on, the Bank continues to play an important role in the stability of our financial system and in its future development.”

"This significant milestone marks an important time to reflect on the challenges we have faced, to look back on our trials and on our triumphs and to acknowledge the challenges ahead – challenges that are to be embraced, because with challenge - comes opportunity,” Ms. Genia added.

"Just as in the early 2000s when the Bank underwent a series of significant reforms introduced by the Mekere government to strengthen both the Bank and the financial system, we are now seeing similar reforms being considered and introduced to prepare us for the next 25 years and I look forward to being able to share some of that change with you over the next 12 months as we move through our 50th year.”

"I remain, as always, available to meet and discuss these and other issues relating to the Bank,” said Ms. Genia.

The Asian Development Bank (ADB) has approved an additional financing package of $42 million to support the delivery of affordable and high-quality health services in Papua New Guinea (PNG).

The second additional financing package for the Health Services Sector Development Program comprises a concessional loan worth $35 million and a $7 million grant sourced from the Asian Development Fund, which provides grants to ADB’s poorest and most vulnerable developing member countries.

“For over a decade, ADB has been supporting PNG’s health system to deliver improved rural health services,” ADB Senior Health Specialist Inez Mikkelsen-Lopez. “The second additional financing builds on ADB’s prior investments in the rural health sector on training, management capacity building, and climate-smart civil works.” 

The original investment program aims to achieve a more sustainable and efficient health care system, including building two district hospitals and six health centers, which would benefit over 250,000 people living in remote areas. The first additional financing, through a cofinancing grant from the Government of Australia, expanded the scope of health facility upgrades, by extending the network of rural health services to include one more health center and eight community health posts.

This second additional financing will scale up the project by extending the network of rural health services to include an additional district hospital. The ADB financing will also help establish a national reference laboratory to improve diagnostic and regional surveillance capacity and extend health workforce training.

The Health Services Sector Development Program combines a policy-based operation and project financing to support critical sector reforms and investments in PNG, enabling the long-term sustainability and effective use of the country’s health sector financing. Deficiencies in health sector governance, weak public financial management, and fragmented funds flows are also being addressed through the program.

The Bougainville Vision 2052 and the Bougainville Integrated Strategic Development Plan 2023-2027 represents a shared, home-grown vision that sets the course for Bougainville’s socio-economic and political prosperity over the next three decades.

The Autonomous Bougainville Government officially launched these two significant strategic plans at Toniva in the Kieta District in Central Bougainville.

ABG President Hon. Ishmael Tororama officiated in this program, and delivered his keynote address to an audience of ABG political leaders, senior public servants from the headquarter and districts, community government representatives from North, Central and South Bougainville, and the general public.

President Toroama stated that the long term plans were an extension of his Government's Six Point Strategy, and focuses on holistic development that will build Bougainville’s capacity through human resource development, encourage proper development of our natural resources and addressing social issues like education and healthcare.

"By taking a holistic approach, integrated approach to planning, we can ensure that our efforts are targeted, effective and sustainable,” he said.

"Another important benefit of strategic planning is that it helps us to allocate resources effectively. It is essential that we prioritize our spending and invest in areas that will have the greatest impact."

The formulation of the plans was driven by the Bougainville Strategic Research and Planning Secretariat together with the Directorate of Strategic Planning and Policy, taking on a consultative and research approach to ensure the long terms plans for Bougainville were comprehensive, all-inclusive and genuinely reflected the true aspirations of Bougainville.

“Formulating these two important plans took two years of research and consultations. So much work has been put into these two plans by our hardworking team in the government in capturing the true essence of our vision for a new Bougainville.”

President Toroama called on the Bougainville Public Service as the Government’s implementing machinery to play an integral role in ensuring Bougainville achieves its goals through:

• Economic development by creating a conducive environment for economic growth, job opportunities, alleviate poverty, increase investments through foreign investments and promoting local entrepreneurship.
• Social development to address issues such as inequality, education, healthcare, and basic living standards for our citizens and improving law and order.
• Political development ensuring a vibrant democracy by improving our governance systems and promoting accountability and transparency.
• Environmental sustainability is an important aspect of development for a developing nation to be such as Bougainville. We have a lot of natural resources with the potential for development. We must strive to protect the environment and conserve our resources.
• Technological advancement is essential for Bougainville to be a part of the global community. We must seek to modernize technology on Bougainville to increase efficiency and competitiveness at the global level.  

Hosting the World Indigenous Business Forum (WIBF) in Port Moresby from October 24-26, 2023, is a wonderful opportunity to promote Papua New Guinea as a tourism destination, says the Minister for International Trade and Investment, Hon. Richard Maru. Minister Maru said this recently during the announcement by the Tourism Promotion Authority (TPA) to support the WIBF with the gold sponsorship of K250, 000.

“It is a clear objective of our Government to not only host the World Indigenous Business Forum but importantly use it as an opportunity to market our country as a tourism destination and as an investment destination, apart from our indigenous businesses mingling with their counterparts from all over the world to build partnerships and learn from the success of many very successful indigenous businesses worldwide,” said Minister Maru.

“There is so much negative news on the media about our country. This is really an opportunity for TPA to step up and market our country as a tourism destination and also as a destination for potential investors in the tourism sector to invest in things like casinos, hotels, and ferries, etc. This is really a wonderful opportunity; this is in fact the biggest opportunity after APEC 2018 to really promote Papua New Guinea and put PNG on the world stage,” said Minister Maru.

Minister Maru said TPA’s support was an investment that would pay dividends for many years to come.

“This is an opportunity to promote tourism in a big way, so we are really excited about your sponsorship. With this sponsorship, TPA will be given the opportunity to be one of the three PNG guest speakers at the World Indigenous Business Forum where TPA can really market PNG’s tourism sector in a big way. It also gives them a chance to have a booth where TPA can use to promote our country,” said Minister Maru.

Minister Maru said over 400 international guests were expected to attend the forum both as delegates and as speakers, and international media were also expected to come.

“We also understand that many of the foreign delegates who will be coming are CEOs of their own companies and one thing we want to do is to attract them to stay for another week or two or go back and bring their families for a holiday in Papua New Guinea,” said Minister Maru.

Minister Maru also announced that there was a grand opening ceremony being planned.

“I am excited to announce that we are planning a grand welcome ceremony with NCDC and the Amazing Port Moresby team where all our own delegates and the foreign delegates and their families will be welcomed at the Sir Hubert Murray Stadium with a big cultural show where the 22 provinces will welcome them. This will be followed by the 2-day event and on the evenings of these two days including the closing ceremony we will still be promoting PNG culture and PNG as a tourism destination,” said Minister Maru.

Minister for Tourism, Arts and Culture, Hon. Isi Henry Leonard thanked Minister Maru and the WIBF Secretariat for the opportunity to participate in the WIBF.

“When we talk about tourism in Papua New Guinea, our product is the country. You are bringing the world to the country, and it is a great honor for TPA to participate in the World Indigenous Business Forum as this is an opportunity that we will showcase the opportunity that we have not only as a destination but also as a place where you can invest in tourism industry; the potential is right here. PNG is one of the last frontiers of the world that needs to be discovered, so we need this platform where we can participate to make that awareness,” said Hon. Leonard.

The regulator of the Capital Market of Papua New Guinea, the Securities Commission of Papua New Guinea (SCPNG) recently granted exemptions for the merger between the Newmont Corporation and Newcrest Mining Limited to proceed after being satisfied that all the requirements of the regulator were met.

“We have now reached an understanding which is now covered by a Memorandum of Agreement (MOA) between the two parties which was signed today,” said the Minister for International Trade and Investment, Hon. Richard Maru.

Minister Maru, on behalf of the Marape-Rosso Government thanked Newmont Corporation for choosing to invest in Papua New Guinea and for their understanding in reaching the agreement with the regulator of the Capital Market of Papua New Guinea to allow for these critical exemptions that were issued today.

Newmont received an approval from the ICCC in August this year and was just awaiting the approval from the SCPNG which was granted recently (October 2nd, 2023).

“The exemptions granted today completes all the regulatory approvals required in PNG for the merger to proceed,” said Minister Maru.

“Newmont is a gold leader in the world and to have them come to invest in Papua New Guinea will boost investor confidence for other investors to follow suit,” added Minister Maru.

Prime Minister Hon. James Marape expressed his enthusiasm for the ongoing rehabilitation of key road networks, including the Highlands Highway, Ramu Highway, Bulolo Highway, and Lae-Nadzab Road, during the inauguration of Papua New Guinea’s second international airport at Nadzab Tomodachi International Airport on Monday, October 2, 2023.

Prime Minister Marape underscored the strategic importance of these infrastructure projects, emphasising their role in enhancing connectivity to Nadzab Tomodachi International Airport. Once completed, these road upgrades will significantly benefit residents of the Highlands, Madang, and Morobe regions, making it easier for them to access international and domestic flights.

The government’s commitment to the rehabilitation of these vital roads is evident through substantial investments, including:

• K300 million allocated for the improvement of Kassam Pass, Daulo Pass, and the Chimbu sections of the Highlands Highway.
• A K1 billion budget designated for the construction of 73 double-lane bridges between Kagamuga in Mt Hagen and Nadzab.
• K450 million dedicated to upgrading the Ramu Highway from Watarais to Madang.
• K70 million in assistance from the Australian Government, supplemented by Papua New Guinea Government funding, to rehabilitate the Bulolo Highway, extending all the way to Garaina, Menyamya, Kaintiba in Gulf, and Marawaka in Eastern Highlands.
• An investment of K600 million for the development of a four-lane road from Yalu Bridge to Nadzab.

Prime Minister Marape emphasised that these infrastructure projects are part of a deliberate effort to stimulate economic growth in the country. He stated, “We have seen the jigsaw puzzle of development since we took Government in 2019. We are stitching everything together for a modern Papua New Guinea economy. Development does not happen overnight. Rome was not built in a day. Building a country does not take overnight miracles, but consistent intervention in programmes that matter most, and will be catalysts for the next wave of development to come into our country.”

These investments in infrastructure reflect the government’s commitment to fostering progress and creating opportunities for the people of Papua New Guinea.

Prime Minister Hon. James Marape celebrated the unveiling of the remarkable K794 million Nadzab Tomodachi International Airport on Monday, October 2, 2023, underscoring the enduring bond between Japan and Papua New Guinea. This project was made possible through a K692 million soft loan extended by the Japan International Cooperation Agency (JICA), with the Papua New Guinea Government contributing the remaining funds.

The contract for this transformative project was in November 2019 shortly after Prime Minister Marape took office and was one of the first for the Pangu Pati.Despite encountering challenges such as the onset of the COVID-19 pandemic, the Nadzab Airport Redevelopment Project persevered.

Prime Minister Marape made these remarks before a gathering of thousands of attendees, including from the surrounding villages, who converged upon Nadzab on Monday, October 2, 2023, to witness this historic occasion.

The event was graced by the presence of Japan’s Vice-Minister for Foreign Affairs Hon. Iwao Horri, Ambassador to Papua New Guinea H.E. Nobuyuki Watanabe, and esteemed Japanese delegates.

Accompanying Prime Minister Marape were Deputy Prime Minister and Lae MP Hon. John Rosso, Civil Aviation Minister Hon. Walter Schnaubelt, Morobe Governor Hon. Luther Wenge, along with several other dignitaries, ministers, and Members of Parliament.

Prime Minister Marape emphasised the significance of the Nadzab Tomodachi International Airport, stating, “The Nadzab Tomodachi International Airport reflects the bond of shared history, the present friendship between Japan and Papua New Guinea, as well as the collective future that lies ahead of us.”

He recounted that the conception of the Nadzab Tomodachi International Airport project dates back to 2005 when the late Prime Ministers Shinzo Abe of Japan and Sir Michael Somare of Papua New Guinea met. Prime Minister Marape also acknowledged the visionary Governor Wenge for his pivotal role in initiating the idea of an international airport in Nadzab.

Highlighting the vital economic contribution of regions like Morobe, the Highlands, Momase, and the New Guinea Islands, which account for over 70 percent of the Gross Domestic Product (GDP), Prime Minister Marape declared, “I want to announce that this will be our second international gateway, after Jackson International Airport in Port Moresby, as far as air travel is concerned. We have established state-of-the-art facilities to accommodate international flights to and from Nadzab Tomodachi International Airport.”

Prime Minister Marape expressed his vision for the airport, stating, “There must be flights from Nadzab to Japan carrying tuna and agricultural produce, tourists, students, and businesspeople, as well as bringing back Japanese tourists and businesspeople. In Japanese, ‘Tomodachi’ means ‘friends’ who support each other, and this is precisely what the new Nadzab Tomaodachi International Airport represents.”

He continued, “I want Japan, a global economic superpower, to know that it has its ‘Tomodachi’ here in Papua New Guinea. My government is committed to establishing a cold storage facility in Nadzab to store fresh fish for export directly to Japan. We aspire to be your significant partner.”

Prime Minister Marape also urged Air Niugini and the National Airports Corporation (NAC) to ensure regular flights from Nadzab to Australian cities like Brisbane or Cairns. “This will facilitate travelers from the Highlands, Momase, and New Guinea Islands to fly directly to Australia, bypassing the need to go through Port Moresby,” he emphasised.

This momentous occasion marks a new chapter in the friendship between Japan and Papua New Guinea, fostering economic cooperation and strengthening the bonds between the two nations. The Nadzab Tomodachi International Airport stands as a testament to their enduring partnership and shared commitment to a prosperous future.

Mayur Resources Limited is pleased to provide an update on the construction of the Central Lime Project’s (CLP) wharf infrastructure.

Following construction commencing in June 2023, the inner rubble core of the wharf has now largely been completed. Mayur has continued to engage ‘lock step’ with the Regulator on the wharf infrastructure and will continue to do so leading up to the CLP’s broader planned Financial Close and then beyond into full-scale construction. This wharf infrastructure will facilitate early barging operations for the transport of goods and materials and provide the platform to extend the wharf to enable the CLP to take advantage of early cashflow opportunities in 2024, through the sale of high-grade limestone to potential domestic and international customers.

Prioritising the construction of the wharf infrastructure not only enables the opportunity for cash flow to be achieved next year but also sets a platform to optimise the Quicklime kilns’ construction logistics supply chain, shortening parts of the development schedule. Importantly, the creation of the opportunity for early cashflow is intended to occur in parallel with the construction of the quicklime kilns.

The construction update was discussed at the CLP site with Vision Blue (VB) Partners who were in Papua New Guinea (PNG) last week to progress the previously announced US$40 million investment for a 49% stake in the CLP. The VB commercial and technical Partners inspected the construction works completed to date, as well as the on-site areas selected for the delivery of key work packages upon Financial Close. The opportunity was also taken to meet with a range of PNG Ministers and Members of Parliament as well as the Heads of various regulatory bodies.

Mayur’s Managing Director, Paul Mulder, stated:

"We take great satisfaction in the support we have received from the Landowners, the PNG Government and VB on the CLP’s early construction activities. There is a strong focus to create early cashflow opportunities this coming calendar year through initial limestone sales whilst developing the broader CLP.”

“Our accelerated work on the initial stages of the wharf infrastructure, both enables early cash flow opportunities and underpins future supply chain and logistics optimisations.”

“Mayur is also extremely focussed on completion of the overall funding transaction including finalisation of a debt package to achieve Financial Close and shall provide the market with further updates.”

Central Province marked a milestone on the 27th of September 2023 as the Cocoa Board (CB) of PNG officially opened its Southern Regional Office in Port Moresby.

The board also signed a Memorandum of Understanding (MoU) with the Central Provincial Government in a significant ceremony, which will now form a pathway for Central Cocoa

Central Governor Rufina Peter, newly appointed CBPNG CEO Jesse Anjen, and Brown Konabe, Acting Secretary for Department of Agriculture and Livestock, opened the CB Southern Regional Office at the third floor of the Monian Tower in Boroko’s central business district.

The office consists of a reception area where clients like cocoa farmers can wait to be served, a work space for two officers, an office for the manager, and a small board room where meetings and consultations can take place.

Upon unveiling and cutting the ribbon of the new Office, Governor Peter on behalf of the People of Central thanked the Cocoa Board for the office.

The governor also highlighted that cocoa has big economic potential for the Central Province, but it has been untapped and thus collaborative efforts is needed.

“I am sure, with collaborative efforts with the Cocoa Board, we want to add to the statistics of cocoa production in the province,” said Ms. Peter.

The second part of the program at the Lamana Hotel saw the MoU signing between CBPNG and the Central Provincial Government (CPG).

Cocoa Board CEO Anjen emphasized that actions speak louder than words, and stressed that Central is the host province for the board.

“We have a lot of potential here (in Central). If we talk for nothing and open the office, there’s no meaning, but thanks to the Central Provincial Government, this is the first ever provincial agreement in the Southern Region, and I am pleased this is what has happened,” he said.

“What we say and what we preach must happen. We are here to assist small holders in the Central Province, particularly the Southern Region but we must do the work for it to become a reality,” said Mr. Anjen.

As part of the MoU, the Central Provincial Government allocated K1 million to assist the CBPNG in pushing the cocoa industry in the province, from the production stage to marketing, exporting and downstream processing.

This will ensure that small cocoa plot holders and farmers in the rural areas and wards are supported by extension officers, identifying markets at their level, Ms. Peter said.

For the Governor, it’s exciting times ahead for cocoa in Central, and for the cocoa industry in PNG.

“I congratulate the management of the Cocoa Board for this decision to finally consider Central Province as a potential cocoa producing province,” she said.

"Central Province has an untapped potential in cocoa production, which has not been realized due to the lack of coordination from the industry,” said Governor Peter.

She also highlighted that in August, staff from the CPG and CP Department of Agriculture and Livestock held a one-week Agriculture Stakeholder Workshop in Kwikila.

The workshop meant to bring all agriculture commodity boards and agencies together for a discussion to establish the current state of operation of each organization in the province and to plan a way for development of each sector.

The consultation workshop had the following organizations in attendance:

1. Cocoa Board
2. Coffee Industry Corporation
3. Fresh Produce Development Agency
4. Kokonas Indastri korporesin
5. Rubber industry experts
6. Livestock development Corporation
7. National Agriculture Research Institute

The aim of the workshop was to:

1. Establish the constraints affecting the various commodity sectors and industry growth in the province;
2. Evaluate and establish strategies to mitigate these limitations for the growth of the various commodities in the province; and
3. The parties involved, the commodity bodies, and the Central Provincial Government to mobilise and combine resources to develop the specific commodity sector in Central province.

The cocoa industry was once thriving in Central Province in the days when the Department of Agriculture, Stock and Fisheries (DASF) was responsible for both development and marketing of all agricultural commodities.

When policy changes took place and the responsibility of marketing was transferred to the private sector (middlemen and exporters), the agriculture commodity marketing fell apart in most provinces, especially remote areas in the country, and Central Province was no exception.

The same story goes for Arabica coffee in Goilala and inland Rigo, Koiari and Abau. There are old stands of cocoa from those days and recent planting across the Central province.
Abau District was the largest cocoa producer in the days of DASF, but it all fell apart.

Data from three other districts minus Abau stands as:  Kairuku – 6, 500 trees; Hiri koiari – 17,345 trees; Rigo – 75,700 trees.

The current “guesstimate” would put the cocoa tree numbers at around 200,000, Central Province said.

“Establishment of cocoa fermenters and driers in the current production locations is a first priority to give confidence to the farmers to get into cocoa production. Establishing a market outlet apart from Paradise Foods would be a second priority,” the governor said.

As part of our commitment to education and the future of a skilled workforce in Papua New Guinea. Ok Tedi Mining Limited (OTML) is proudly supporting the University of Papua New Guinea's Earth Sciences Division in hosting the 2023 UPNG Geosciences Open Day with K5000.

Scheduled for October 6th, 2023, at UPNG's Waigani Campus in Port Moresby, the 2023 UPNG Geosciences Open Day marks the second successive year that the Earth Sciences Division is hosting this educational networking event.

OTML Manager Corporate Affairs, Dexter Wagambie, presented a cheque of K5000 to Dr. Joseph Espi, Associate Professor and Head of the Earth Sciences Division, in front of budding geoscientists and staff members.

Dr. Espi, stated, "The last Open Day was held in the late 1990s, In 2022, we had our first Geosciences Open Day, and this year's event will mark the second successive Geosciences Open Day.”

He said “We are immensely grateful to OTML, under the leadership of Chief Executive Officer and Managing Director, Kedi Ilimbit, for their unwavering support."

Mr. Ilimbit expressed his pride in OTML's involvement, stating, "OTML is proud to be part of this milestone, and we look forward to continuing this partnership to inspire the next generation of geoscientists.

The 2023 UPNG Geosciences Open Day promises to be a platform where geoscience enthusiasts, students, and professionals congregate to exchange ideas, showcase research, and inspire the future leaders of the industry.

2023 also holds a special significance for the Earth Sciences Division, as it celebrates its "Golden Jubilee" – 50 years of providing quality, relevant, innovative and progressive geoscience education, research, community services, and partnerships and graduates from 1973 to 2023.

This year Wan PNG's had the honour of travelling to CANCONEX to share its message. At the event Wan PNG was able to engage with various enterprises operating in Papua New Guinea. Their proactive approach allowed them to connect with a multitude of sectors, including financial institutions like BSP, Moni Plus, and Nasfund; FMCG giants such as Paradise Foods and IPI; and key players in the mining and petroleum industry like Papua LNG, Santos, Exxon Mobil Newcrest, and Wafi-Golpu.

Kumul Petroleum, as a gold sponsor of the event, played a significant role in shining the spotlight on Wan PNG. This level of support underscored the potential and importance of Wan PNG as a project under Kumul Petroleum's umbrella, elevating their presence at CANCONEX.

One of the most rewarding aspects of such events is the opportunity to put faces to names that were previously only known through email exchanges and phone calls. Wan PNG seized this opportunity and created valuable connections with individuals and companies interested in their platform.

The pinnacle of Wan PNG's CANCONEX experience came on Tuesday, August 29th, when they had the privilege of delivering a one-hour presentation during the FOCUS TALK Segment. The presentation provided a platform to showcase Wan PNG's vision and its potential to boost national content.

However, the true highlight was when Wan PNG had the honour of introducing Prime Minister James Marape to their platform. This great occasion was marked by a memorable selfie, symbolising the alignment of Wan PNG's vision with the nation's leadership. It was a powerful illustration of how a small initiative can make a big impact when it aligns with the broader goals of society.

In conclusion, Wan PNG's attendance at CANCONEX aligned with the platform’s commitment to building connections, sharing its vision, and engaging with key stakeholders has the potential to shape the future of Papua New Guinea. The event inspired the team to dream big, work hard, and believe in the power of positive change of the Wan PNG platform.

Wan PNG thanks its platform partner Papua LNG and appreciates the Royal Papua Yacht Club’s support.

The Minister for Commerce and Industry, Hon. Henry Amuli MP, has told an international audience that Papua New Guinean businesses, including Small and Medium Size Enterprises require technological and financial strength to meaningfully participate in trade and investment, including in service industries like tourism.

The Minister was speaking at the launching of the Industries Integrated International Trade Flow System in Abu Dhabi, the United Arab Emirates.

He said that the platform does not only provide the opportunity for  corporate businesses to grow but it also has the potential to facilitate the growth and expansion of the Small and Medium Enterprises (SMEs).

"As one of the founding members of the platform, it is my hope and expectation that it will bring forth innovative, inclusive and sustainable mechanisms that will empower Papua New Guinean SMEs to participate meaningfully and productively in the global market, " Minister Amuli said.

The platform is an initiative of the Dubai based Investment Company, International Business Management Council (IBMC).

IBMC partnered with the PNG Expo2020 pavilion in the promotion and facilitation of the country's trade and investment potentials.

Through this partnership 22 Letters of Intent (LOIs) were signed with potential investors. The Investment Promotion Authority is the lead agency in the implementation of the Post Expo2020 trade and investment strategy.

"Today's occasion marks an important legacy of our participation in one of the World's most dynamic and inclusive World Expositions,"  he said.

He said SMEs in Papua New Guinea lack the appropriate requirements to meaningfully integrate into the international economy. These includes market access, quality assurance, mobility infrastructure and finance.

"It is my hope and expectation that the Industries Integrated International Trade Flow System would provide solutions to these challenges, " Minister Amuli said.

The three main objectives of the platform is to provide support to partipants in the areas of market access, compliance with best international practices, finance and quality assurance.

Minister Amuli said while quality control, compliance to international standards, best practices, finance and quality assurance would be addressed by the platform, the challenge for the Ministry of Commerce and Industry and Papua New Guinea is mobility infrastructure like efficient transport means, competitive import and export facilities and processes, including taxation and customs.

The Minister's delegation on the Post Expo2020 investment mission, includes the Minister for Culture, Arts and Tourism, Hon Isi Henry Leonard, Member for Goilala and Assistant Speaker of Parliament, Hon. Casmiro Aia, Managing Director of the Investment Promotion Authority Mr. Clarence Hoot and former Ambassador to the Kingdom of Belgium and the European Union and Expo2020 Commissioner General,  Amb. Joshua Kalinoe.

The Minister was invited by the Chairman of IBMC, International HE Sheikh Khalid bin Ahmed Al Hamed. Apart from launching the Industries Integrated International Trade Flow, Minister Amuli met with the Sheikh Khalid bin Ahmed Al Hamed and the Chairman of the stateowned companies, Dubai Multi Commodities Corporation (DMCC), HE Ahmed Bin Sulayem.

Newcrest Mining Limited and the National Energy Authority (NEA) have formalized their collaboration by signing a Memorandum of Understanding (MOU) aimed at identifying, developing, implementing, and financing potential renewable energy initiatives in selected locations across Papua New Guinea (PNG). The signing ceremony, which marked a significant milestone in the extractive industry, took place on September 13th, 2023, at the Hilton Hotel in Port Moresby during the Petroleum & Energy Conference.

National Energy Authority (NEA) Managing Director, Ronald Meketa, underscored the groundbreaking nature of this MOU, stating, "This MOU is a first for the extractive industry, leading the way for other capital-intensive operators, and/or for net emitters operating in PNG, to align their operations with the government vision to address the country’s lack of electricity coverage by developing renewable energy projects throughout the country at the same time achieving their own target in its transitioning to become a net-zero emitter by 2050."

Meketa further elaborated on the significance of this collaboration, saying, "As the custodian of the National Energy Policy 2017-2027 target to provide electricity to 70 per cent of households in the country by 2030 by harnessing renewable energy sources, the MOU sets out the framework for closer cooperation and partnership with the Newcrest Mining Limited to deliver strategically placed development of renewable energy projects throughout the country."

He praised Newcrest Mining Limited's commitment to the cause and added, "From the MOU, relevant parties will enter into separate implementation Agreements to operationalize the areas of cooperation stated therein."

Newcrest Mining Limited has already begun mobilization of a dedication to develop a technological roadmap towards decarbonization, including their supply chain, as a critical part of building a business for the future.

Newcrest Mining's intervention into the country’s energy space also reflects its appreciation of the National Government’s vision to address the country’s lack of electricity coverage to improve the socio-economic development of PNG.

Both the National Energy Authority and Newcrest Mining Limited have acknowledged there are options for hybrid power systems that will improve current power system and establish new power generation systems for areas where there is lack or unreliable power supply.

Mr. Meketa said the effort by the NEA and Newcrest is also consistent with the global effort in addressing climate change and greenhouse effect by providing greener and friendlier energy for the government, businesses, civic societies, and the people of the country.

Operator of the US$19 billion PNG LNG Project, ExxonMobil PNG has come onboard as the third platinum sponsor for the Inaugural Papua New Guinea (PNG)-Asia Investment Conference in Hong Kong.

Hosted by the PNG Chamber of Mines and Petroleum under the theme ‘Partnership for Prosperity’, the PNG-Asia Investment Conference will take place at the Kowloon Shangri-La Hotel from the 16th to 17th October 2023.

With registration numbers and sponsorship takers picking up, the conference is expected to be well attended with delegates including representatives of some of the largest investment houses and organisations in China and other Asian markets, as well as business and government leaders from PNG.

It will showcase the strong and enduring success of Asian investment into PNG, the robust trade linkages between Asia and PNG and particularly delving into how PNG is actively catalyzing the growth of Asian investments through its energy sector and other export avenues.

PNG LNG Project being a major supplier and has four long-term customers in the Asia region particularly, Sinopec, JERA Co.Inc, Osaka Gas Co. Ltd, and CPC Corp.Taiwan, and is a classic example of the success stories the conference sets to highlight.

ExxonMobil PNG Chairperson and Managing Director Tera Shandro said ExxonMobil’s Outlook for Energy predicts by 2050 the world population will increase by around 2 billion people and to meet this demand natural gas will play a critical role thanks to its abundance, low cost, and ability to reduce emissions.

“Papua New Guinea – through its geographical location and high-quality resources – is well positioned to support this growing demand especially here in the Asia Pacific where its countries are set to be a core natural gas customer for decades to come.

We’re excited to continue supporting the PNG Chamber of Mines and Petroleum to raise the profile of the strong pipeline of investment potential Papua New Guinea offers,” she said.

President of the PNG Chamber of Mines and Petroleum Anthony Smaré in welcoming ExxonMobil PNG as a platinum sponsor stated, “PNGLNG is a demonstration of the strong linkages between PNG and Asia through the fact that its major customers are in the Asian markets. The sustained success of the PNGLNG, under Exxon Mobil’s leadership, in supplying these important markets is a great illustration of the reliability of PNG as an important trade partner for Asian partners, and it is fitting that the PNGLNG story will be featured and promoted in Hong Kong at this conference.”

K92 Mining Inc. is pleased to announce that it has entered into a loan agreement with Trafigura Pte Ltd, a market leader in the global commodities industry, pursuant to which Trafigura will provide a US$100 million senior secured loan to K92.

In addition, the Papua New Guinea subsidiary of the Company, K92 Mining Limited, and Trafigura have amended and restated the offtake agreement dated July 1, 2019 for the purchase by Trafigura of 100% of K92’s copper/gold concentrates produced at the Kainantu Gold Mine in Papua New Guinea (“ the Amended Offtake Agreement ”). The Loan and the Amended Offtake Agreement will only come into effect upon satisfaction of express conditions precedent, including but not limited to (i) the execution and registration of the Security and (ii) regulatory approvals. These conditions precedent have not as yet been satisfied. K92 expects first drawdown to occur in early to mid-Q4 2023.

The Loan is at the corporate-level and may be used for general corporate purposes, working capital purposes, and capital expenditures. No hedging is required for the Loan. The Loan further strengthens K92’s strong financial position, with US$95.6 million and no debt as at June 30, 2023.

Key Terms

US$100 Million Senior Secured Loan

• 4-year term from the date which the first advance of funds are made.
• Competitive interest rates.
• One-year interest only repayment grace period.
• No hedging conditions.
• The Loan will be secured by, among other things, a charge over the assets of K92 Mining Limited and a pledge of the shares of both K92 Mining Limited and K92 Holdings International Limited (the “ Security ”).
• Drawdown of the first US$25 million under the Loan (the “ Initial Advance ”) is subject to conditions precedent, including but not limited to (i) the execution and registration of the Security and (ii) regulatory approvals, which have not as yet been satisfied.
• Drawdown of the balance of the Loan is subject to subsequent conditions in relation to the registration of certain items which form part of the Security (the “ Conditions Subsequent ”).
• Prior to satisfaction of the Conditions Subsequent, should an event of default occur under the Loan, Trafigura has, among other rights, the right to accelerate repayment of the Loan, and convert all or any portion of the Initial Advance into common shares of K92 (the “ Conversion Right ”).
• Once the Conditions Subsequent are satisfied, the Conversion Right will expire and be of no further force or effect.

Amended Offtake Agreement

• The term of the Offtake Agreement will extend and continue for an additional 7 consecutive calendar years, beginning January 1, 2026, or until a minimum quantity of 600,000 dry metric tons of concentrate have been delivered to Trafigura.
• Competitive industry terms in relation to all metrics at London Metals Exchange spot prices.
• Attractive payment arrangements which provide for upfront payment on delivery of concentrates to port of dispatch and provision of certain shipping documents.
• Amended and improved metals payabilities for deliveries of concentrates, which includes amending penalties, treatment and refining charges, and transport charges, all of which are better than the assumptions outlined in the Kainantu Integrated Development Plan (“IDP”) Definitive Feasibility and Preliminary Economic Assessment cases (see September 12, 2022 press release – K92 Mining Inc Announces Robust Kainantu Gold Mine Integrated Development Plan).

John Lewins, K92 Chief Executive Officer and Director, stated, “We are extremely pleased to be expanding our partnership with Trafigura, with a US$100 million Loan and amended off-take agreement. Trafigura has been our offtake partner since the start of operations at the Kainantu Gold Mine, and these agreements reinforce our strong relationship with Trafigura.

In combination with K92’s already strong cash position of $96m at the end of Q2 2023, the US$100 million Loan effectively fully finances the growth capital outlined in the IDP for both the Stage 3 DFS and Stage 4 PEA cases, which transform Kainantu into a Tier 1 producer with run-rate production of 300 koz AuEq and 470 koz AuEq per annum, respectively. Importantly, the Loan enables K92 to more confidently invest and potentially increase exploration activities while completing the major production expansions. The offtake agreement also secures long-term competitive terms and provides security and confidence in our income from the sale of our concentrate product.”

Through his participation, President Toroama is proud to announce the signing of an Infrastructure Agreement, which provides the framework to deliver critical infrastructures for Bougainville worth an estimated value of USD$4.8 billion (PGK17.5 billion) comprising government buildings, schools, hospitals, airport, sea ports, bridges, roads, power, telecommunications, and other essential infrastructure.

“The first ABG was elected on 15 June 2005. In the 18 years since then there has been frustratingly slow progress in the delivery of critical Bougainville infrastructure,” President Toroama said.

“This Infrastructure Agreement provides the framework to deliver critical infrastructures for Bougainville in a short timeframe while maintaining quality, value, and transparency.”

The Infrastructure Agreement represents a momentous step for the ABG towards building a prosperous future for Bougainville through substantial advancements in critical infrastructure development.

The Infrastructure Agreement is between the ABG and the following Companies:

• Bougainville Public Private Partnership Limited (BPPPL) is appointed as the Program Manager responsible for fundraising and project delivery of Bougainville Infrastructure Development Plan.
• Kramer Ausenco (PNG) Limited is appointed as the Project Manager responsible for project design documentation, project management and facilities management of infrastructures under Bougainville Infrastructure Development Plan.
• Bougainville Islands Group Limited (BIGL) has agreed in principle to provide land to the BPPPL partnership as part of the infrastructure agreement.

President Toroama assured the founder of Kramer Ausenco (PNG) Limited, Frank Kramer, that his Government will collaborate closely under this new Infrastructure Agreement, with the shared goal of delivering urgently needed infrastructure for the people of Bougainville.

“ABG will be working together in partnership with Kramer Ausenco and BIGL to deliver transformative benefits for the people of Bougainville and agree to work closely together to achieve this,” President Toroama. 

The Pacific Infrastructure Conference brings together political, business representatives from Pacific Islands, Australia, New Zealand, the USA, Japan, France, and various international partners, including the Asian Development Bank, World Bank, and United Nations Development Programme, making it the most inclusive event of its kind in the Pacific's history. 

Prime Minister Hon. James Marape has told American government officials and the business sector that Pacific Island nations were not there in the United States to ask for Aid and grant but to negotiate for better business opportunities for themselves.

Prime Minister Marape, who was the spokesperson for the Pacific Island nations, was speaking at a meeting hosted by the US Treasury Department and Business Council for International Understanding.

The Prime Minister stressed once more the importance of the combined air and water space that Pacific people possess and the opportunities that this presents.

“Our combined Pacific air and water space is almost 30 percent of the Earth’s surface while our ocean holds substantial marine resources. Likewise, our forests and land hold rich bio-diversity, minerals and other resources while our island communities are places of huge cultural diversity,” he said.

“This is why we need genuine businesses to take up residency in the Pacific.

“We want to process our fish, coffee, cocoa, copra, timber, and minerals into finished products and sell to markets in the United States, or together we can sell to the Asian market place.”

The Prime Minister went further by inviting American companies to venture into the Pacific to join the world’s four leading companies in mining, and oil & gas – Newmont, Barrick, ExxonMobil and TotalEnergies – who are already in Papua New Guinea.

He said the presence of these companies demonstrates the reliability of PNG and the Pacific as investment destinations.

“We do not want aid and grant but we need investors to partner our local companies in businesses. We also want more tourists to visit the Pacific, and we want our students to have the opportunity to study and work in USA.”

In discussing Climate Change issues, the Prime Minister has asked for a review of the structure of the international financial architecture so that victims of Climate Change such as Pacific Island nations, who hold big carbon sinks in their forests and oceans, could be compensated and are able to access low-cost infrastructure financing and the Green Climate Fund.

US Treasury Secretary J Yellen affirmed President Joe Biden’s call to support Pacific nations better in their economic and environmental resilience endeavors.

Dr Kurt Campbell, Senior White House Adviser for the Pacific, has been tasked to rally financial institutions, banks and private businesses to assist PNG and Pacific in their aspirations and needs.

The meeting was attended by senior United States officials and big businesses including Google while PNG’s Treasurer Hon. Ian Ling-Stucky and his officials joined Pacific Island leaders and officials for this important side meeting.

Prime Minister Hon. James Marape has used the opportunity of the 2nd US-PIF Summit to push for more follow-up action from the United States besides Security and Politics that he said must also encompass Trade & Commerce and other development areas.

He pointed out that a “full” relationship between the two countries “must embody all other areas including Commerce, Trade and Economics”, and that one year since the first meeting, there has to be a practical measurement of how much progress has been made between the US and Pacific Island Forum nations including PNG.

The Prime Minister made the points during his Statement at the summit, chaired by President Joe Biden and held on Monday 25th September 2023, at the White House, as he continues to push for additional gains for PNG, especially in the areas of Climate Change, business and trade, and PNG/Pacific’s access to USA for study and work.

He said: “We are here today to measure how much we have progressed since our inaugural summit in September last year. 

“Papua New Guinea comes to this Summit in 2023 from a much-improved relationship with the United States but that is mostly from the Security perspective, which we must step up on all other fronts.

“The full strength of our relationship must also embody other development areas including Commerce, Trade and Economics.

“Last year, for instance, our trade volume with USA – the number one economy – did not go past $300million. The United States runs miles behind Australia, China, Japan, Taiwan, and Europe, using PNG’s trade data.

“As PNG is closer and has more access to the Asian market, we know that the depth of any nation-to-nation relationship is usually anchored and balanced when there is more commerce and trade relationship,” PM Marape said. 

Prime Minister Marape encouraged the United States to consolidate its place as a true and significant partner in the Pacific by increasing its presence in the area of people-to-people and business-to-business exchanges between the two countries, and the greater South Pacific (Blue Pacific Continent). 

He said PNG recognized the value of Public-Private Partnerships, provided through the opportunity of the Summit and related engagement with renowned global business icons in the mobilization of resources to support the implementation of regional priorities.

“These includes Fisheries development, Climate and Oceans finance, Trade, Labour mobility, as well as other opportunities for sustainable growth and development. These are all critical issues under the 2050 Strategy and the 2050 Implementation Plan.

“As one of the larger economies of the Pacific region, PNG seeks to source support through regional cooperation on areas in Fisheries, Oceans, Agriculture, and Vulnerabilities to the effects of Climate Change.

“For us, our five-year Medium-Term Development Plan IV recognizes strategic development partnerships; this cooperative arrangement will not only benefit PNG but it will assist PNG to help the rest of the Pacific region.”

PM Marape said the PNG-Pacific Cooperation Strategy demonstrates PNG’s commitment to ensuring that Papua New Guinea was contributing effectively to achieving the sustainable development aspirations of the Pacific region through its engagement with development partners such as the United States.

“PNG looks forward to a fruitful outcome of this second USA-PIF Summit,” PM Marape concluded. 

Prime Minister James Marape, today concluded the US-Pacific Leaders’ Summit and expressed his gratitude to the Biden Administration.

The summit was an excellent opportunity for Pacific Island leaders to meet with President Biden and discuss issues related to mutual prosperity, security, and sustainability in the region.

He said it is great to see the United States reaffirming its commitment to the Pacific Island nations and working towards strengthening partnerships in various areas.In the welcome address,

President Biden made several significant announcements aimed at enhancing relations and addressing the shared challenges faced by our region.

“The summit highlighted the strong partnership and cooperation between the United States and the Pacific Island nations.

“This reaffirmation of robust bonds will help in addressing the shared challenges faced by the region, and work towards a more secure and prosperous Pacific,” Prime Minister Marape said.

He said the United States' pledge to provide financial support such as allocating US$40 million towards the Pacific Islands Infrastructure Initiative; the signing of a new 10-year US$600 million agreement to support the sustainable development of Pacific Islands fisheries; and the intention by US alongside its Quad partners to invest US$11 million in cutting-edge maritime domain awareness technology, are very significant investments in the region's economic growth.

“This infrastructure development can help to bridge the digital divide and enhance economic growth, as well as improve access to services such as healthcare and education,” Prime Minister Marape said.

“It is commendable that the United States is committed to promoting sustainable and resilient infrastructure that can benefit the people of the Pacific for generations to come.

“President Biden's commitment to a free, open, prosperous, and secure Indo-Pacific region is significant, and his willingness to collaborate with all nations present at the summit to achieve this shared goal, is commendable.

“This commitment helps to strengthen the United States' partnership with the Pacific Island nations in promoting economic growth, addressing climate change, ensuring public health, and countering illegal fishing.”

Prime Minister Marape said the United States' collaboration with can help to tackle the common challenges faced by the Pacific Island nations and enhance mutual prosperity and security in the region.

“It is also encouraging to see the US working with partners such as Japan and Australia to focus on climate-resilient economic development,” he said.

“This broader initiative involving multiple partners can help to leverage resources and expertise towards achieving sustainable, resilient, and climate-resilient economic growth in the region.”

Prime Minister Marape said the United States’ commitment to the Pacific islands follows the Biden Administration's pledge to help the region fend off economic coercion from other nations.

The US aims to strengthen its partnership with Pacific Island nations in various areas, including climate change, economic growth, sustainable development, public health, and countering illegal fishing.

Prime Minister Marape says PNG embraces the stronger US regional presence as a step towards making the Pacific more secure and prosperous.

He said it is also encouraging to see the Pacific Island Forum leaders’ meeting being endorsed to further enhance cooperation with a focus on mutual prosperity, security, and sustainability.

“PNG remains committed to working closely with the United States and other Pacific Island nations to address common challenges and seize opportunities for growth and development,” Prime Minister Marape said.

Overall, this summit marks a significant step towards making the Pacific more secure and prosperous.

Mount Hagen’s first large scale, mixed-use development, Wonye Dobel is progressing well, as on Thursday 21st September, Steamships and Tininga Group of Companies sign an agreement to move forward with Phase II of the project.

The capex investment worth an approximate K200 million is a joint venture with the Duckworth family of Tininga and was identified by Steamships as an area of growth and opportunity within the region.

The mixed-use development already houses BSP Financial Group, which is due to open shortly. Plans for Dobel phase II is a retail led development which is to include supermarkets, restaurants, homeware, and retail stores as well as government and financial agencies. The project is currently being managed by Steamships Property Division, Pacific Palms Property.

The Wonye Dobel joint venture is one of a number of mixed-use development projects Steamships is currently managing. Recently the company shared a video at the Business Advantage investment conference, sharing with the business community plans for expansion in Port Moresby, namely the establishment of Portside Business Park, which is anticipated to be the future industrial and commercial hub for Port Moresby. The team are currently in discussions with the Government to zone the park as a Special Economic Zone to attract more businesses and industries focused around in-country manufacturing and downstream processing.

Additionally, Steamships is expected to open Harbourside South, the latest development as part of the Harbourside Precinct, offering A-grade retail and office space, and is housing the Marriott Executive Apartments in Downtown, Port Moresby.

Steamships Managing Director Rupert Bray is expected to travel to Hong Kong in October to support the Prime Minister and National Government in the PNG-Asia Investment Conference to encourage foreign direction investment in Papua New Guinea in the resource and non-resource space of the economy.  

“We encourage more international investors and development partners to come into PNG, with synergies opportunities, to work with Steamships as their partner of choice. The Company has a strong financial balance sheet and history of joint ventures with landowners and provincial governments, especially in these larger investments which we are starting to see and are well positioned to execute.”

Prime Minister Hon. James Marape is preparing to attend two significant overseas engagements in October – the inaugural PNG-Asia Mining & Petroleum Investment Conference in Hong Kong and the 3rd Belt & Road Forum for International Cooperation in Beijing, China. 

Prime Minister Marape was being briefed recently by Chinese Ambassador to PNG, HE. Zeng Fanhua on the two upcoming engagements. 

PM Marape will attend the conference which will be on 16th and 17th October 2023 where he will deliver the keynote address. 

He will then depart for the People’s Republic of China on his Official State Visit to meet President Xi Jinping and Premier Li Qiang in bilateral meetings, and attend the forum where he will deliver another statement. 

A visit and address at a Chinese university is also being planned for the Prime Minister where he will advocate for Pacific Island Countries being affected by the impact of Climate Change.

PM Marape will also pay visits to Chinese enterprises and the headquarters of the Asian Infrastructure Investment Bank to witness PNG’s membership to this financial institution. 

ABG President Hon. Ishmael Toroama announced a cabinet reshuffle, welcoming the swearing-in of Hon. Robin Wilson as the new Minister for Finance and Treasury in the Bougainville Executive Government.

 

President Toroama also revealed his assumption of the portfolio of the Minister for the Department of Mineral Energy Resources, previously held by Minister Wilson.

In a significant swearing-in ceremony held yesterday in Buka, President Toroama highlighted the importance of these changes in aligning his government’s vision with the Six Point Strategy.

He further acknowledged the important contributions of the outgoing Minister for Finance and Treasury, Hon. Mathias Salas, who successfully delivered three budgets for the ABG and oversaw the permanent appointment of the Department Secretary Mr. Johnny Auna.

"These changes are vital to ensure consistency in my vision for Bougainville's development and our independence readiness mission," President Toroama declared.

He emphasized that changes in cabinet were driven by the need to institute outcomes consistent with his government's development and independence policies.

President Toroama charged Minister Wilson with reforming administrative functions within the department and expanding its responsibilities to include financial analysis, tax management, risk management, and investment management, as some of the immediate tasks he must undertake as the new Minister.

“Minister Wilson, your first task in getting the Ministry and Department in order is to take control of the administrative functions of department. You will have the full support of the Presidency and the Bougainville Executive Council to introduce the changes that will ensure the department functions efficiently and in accordance with the vision of my government,” President Toroama stated.

President Toroama emphasized the urgent need to revitalize the Bougainville Tax Office, pushing for a policy change to keep tax collections within Bougainville rather than remitting them to the Internal Revenue Commission in Port Moresby.

In his new role as Minister for Mineral Energy Resources, President Toroama outlined his priorities, which include redeveloping the extractive industry and expanding the energy sector. He highlighted the establishment of the Bougainville Energy Office and the potential for renewable energy sources such as hydro and wind energy.

“It is time we look at alternative sources of renewable and clean energy to address the perennial energy crisis that we are facing today. We have the potential for hydro and wind energy generation. I will be looking at the possibility of reviving the hydro stations at Togarau and Ramazon and getting them online as soon as possible,” he said.

The President also addressed the longstanding issue of mining, acknowledging that despite regulation and exploration efforts, no mine had been opened since the establishment of the Mining Department.

He urged the department to focus on existing small-scale mining activities, emphasizing the potential of the Bougainville Refineries Limited to generate revenue, provide employment, and ensure quality control of gold production.

“We have a multi-million-kina industry where gold is mined and smelted by our own people and sold outside of Bougainville. The government currently owns a very new gold refinery, Bougainville Refineries Limited. The refinery gives us the opportunity to create our own gold bullion and generate revenue for the government.”

President Toroama called for innovation and alignment in governance and administrative structures and urged his ministers to create change that builds capacity and prepares Bougainville for independence.

“As President, I want us to move away from just managing the status quo in our government Ministries and Departments. We must strive to introduce innovative means to building our capacity in our governance and administrative structures.”  

“There must be alignment in our political and administrative structures with what the government wants and needs. Each Minister of the Bougainville Executive Council is charged with the responsibility of taking control of your department and creating change that builds capacity and preparing us for independence,” he said.