Steamships Trading Company Ltd (Steamships) and GFS Limited are pleased to announce the launch of a new joint venture partnership, and the establishment of Gulf Maritime Services Limited (GMS) with the MOU being signed on Wednesday 14 June. 

GMS will provide marine, quayside and land logistics services to Papua LNG and more broadly to the Gulf Province. GFS and Steamships recognise the growth opportunities within the Gulf of Papua. The partners are committed to working with Gulf landowners to ensure opportunities for employment and economic advancement are captured in the project impacted areas.   

GFS will own 44%, the Gulf Provincial Government 2.5%, Project Impacted Landowners 6% (spread between PRL 15 Landowners 2%, Pipeline Landowners 2%, Riverine Landowners 2%) with Steamships holding the remaining 47.5%.  The 8.5% equity made available to the Gulf Provincial Government and the PRL-15 impacted landowners will be free-carried by the partners. The Gulf Provincial Government through its business arm holds shares in GFS which makes GMS a truly Gulf Province company.

The Governor of the Gulf Province, Hon. Chris Haiveta CMG, GCL, MP said, “The Gulf Provincial Government and Gulf landowners are excited about the new joint venture between the GPG, landowners, Steamships and GFS. The local partnership should put Gulf Maritime Services in a strong position to tender and win projects in our Gulf region, particularly P’nyang and Papua LNG. We hope to utilise this opportunity to create more opportunities for growth, development, and employment within the region.”

Steamships will provide the corporate governance, operational and financial support to GMS, with GFS leveraging its extensive experience in riverine and land-based logistics in the Gulf.  Both companies will allocate existing tonnage to the joint venture as well as look to procure additional vessels and vehicles to support the expected increase in work.

“The 6% interest of the Project Impacted Area Landowners will be held in trust until such time as the Minister for Petroleum & Energy signs and gazettes the Landowner Ministerial Determination for the Papua LNG Project,” says Steamships Managing Director, Rupert Bray, “Once this has been formalised, Steamships will work with the Gulf Provincial Government to transfer the shareholdings to the respective incorporated landowner entities.”

Mr. Dickson Tasi, Director GFS, added that “GFS are delighted to be working with another strong local partner to provide local Gulf solutions to the logistics needs of Papua LNG and beyond.  GFS’ credentials as the premier logistics operator over the last 26 years in the Gulf Province are without a doubt, and teaming up with a company like Steamships provides GFS and GMS the ability to continue to grow.

PT Citilink, an Indonesia airline will now commence flights to and from Port Moresby and Indonesia.

Minister for Transport & Civil Aviation Walter Schnaubelt confirmed this in a media statement last week.

PT Citilink Indonesia has met all requirements under the PNG Civil Aviation Act as a foreign air operator to commence flights to and from Port Moresby. PT Citilink Indonesia initially requested to commence flights to Port Moresby on July 2, 2023.

The Civil Aviation Safety Authority has issued Citilink with a Foreign Air Operator certificate under CAR rule part 129.

The Secretary of the Department of Transport (DOT) as the licensing authority for foreign international airline in Papua New Guinea, has also issued Citilink with an international airline license.

This will allow Citilink to commence flights to and from Port Moresby and Denpasar, Indonesia, two times a week commencing with the inaugural flight on July 2, 2023.

PT Citilink Indonesia is a low-cost operating airline, based in Jakarta and Surabaya.

The airline has served more than 330 daily flight frequencies with 97 routed to 49 cities in Indonesia.

PT Citilink Indonesia operates 61 aircrafts which include aircraft types: A330-900 NEO, A320-200 NEO, ATR 72-600 and Freighter B737-500.

The Asian Development Bank (ADB) and the governments of Australia and Papua New Guinea recently commissioned the Alotau Wharf as part of the cofinanced Building Resilience to Climate Change in Papua New Guinea (PNG) project, which has upgraded Alotau Wharf to improve safety and make it less vulnerable to climate change.

Papua New Guinea’s Deputy Prime Minister John Rosso led the commissioning, together with ADB Country Director for Papua New Guinea David Hill and Australian High Commission's Minister Counsellor Paul Lehmann. The ceremony involved ribbon-cutting and a tour of the completed wharf.

“The new Alotau Wharf will be more resilient to climate change and will serve as a model for climate-proofing infrastructure in PNG,” said Mr. Rosso. “The improved wharf will also open up Alotau’s access to new markets, supporting private sector investment.”

The original Alotau Wharf structure was demolished, and a new wharf built alongside, with a concrete pontoon bridge and a causeway. The new wharf was elevated high enough to minimize wave and debris damage on the underside, as well as including pilings able to withstand earthquakes.

“Connectivity from Alotau to the remote islands of Milne Bay and other parts of PNG will be boosted and access to employment opportunities will increase, especially for women involved in agriculture and marketing,” said Mr. Hill. “The new wharf will be a lifeline to the people of the outer islands, during an emergency.”

The new wharf was funded by $10.5 million additional financing grants—$7.6 million from ADB and $2.9 million from the Australian government.

“This project demonstrates our commitment to investing in quality, purpose-built, and climate resilient infrastructure that meets the needs of your communities,” said Mr. Lehmann. “As PNG’s largest maritime province, resilient quality infrastructure is critical for Milne Bay. The upgraded wharf will help drive economic growth. “

Prime Minister Hon. James Marape has issued a directive recently, (Sunday, July 9, 2023) mandating all Government departments and agencies to align themselves with the Medium-Term Development Plan (MTDP) IV (2023-2027), which was launched on Friday, July 7, 2023.

Under the directive, Prime Minister Marape stressed the importance of immediate action and the need for all departments and agencies to deliver tangible benefits to the people of Papua New Guinea, so that the targets of MTDP IV are achieved.

He stated that his Pangu Pati participated in the 2022 elections with a primary focus on five key areas: fostering economic growth for achieving economic independence, developing vital infrastructure like Connect PNG, enhancing education, improving healthcare, and enhancing law enforcement. All of these priorities align with Vision 2050 and are further consolidated in MTDP IV.

“I have instructed Chief Secretary Ivan Pomaleu to ensure that all Government departments and agencies operate under a unified plan for the next four years,” stated Prime Minister Marape.

“All Government departments and agencies have been directed to ensure that their corporate plans are aligned with MTDP IV. If they are currently midway through their corporate plans, they must realign them with MTDP IV. For those nearing the end of their corporate plans, new ones must be drawn up in alignment with MTDP IV and the Government’s objectives.”

Prime Minister Marape emphasised that the Government’s objectives are not new and are aligned with Vision 2050, which was introduced by the late Sir Michael Somare in October 2009.

“Our long-term goal, as outlined in Vision 2050, is to become a middle-income nation by 2050,” he added.

“Between now and 2050, our focus will be on economic growth, enhancing public service efficiency, meeting targets, job creation, developing essential infrastructure, and addressing law-and-order challenges. To achieve these objectives, I urge all Government departments and agencies to familiarise themselves with the plan. Chief Secretary Pomaleu will also convene a meeting with all heads of departments and agencies to ensure that deliverables are aligned with the targets of MTDP IV.”

Furthermore, Prime Minister Marape announced that starting from next year until 2027, all Budget submissions will be required to align with the targets set forth in MTDP IV.

“This measure is implemented to ensure that every stakeholder is aligned with MTDP IV, thereby maximising our chances of achieving the desired outcomes,” he explained.

Prime Minister Hon. James Marape recently announced the inaugural Papua New Guinea-Asia Investment Conference, scheduled to take place in Hong Kong on October 16-17, 2023. The conference will be hosted by the PNG Chamber of Mines and Petroleum (PNGCMP) and will serve as a platform for government and business representatives from China and other parts of Asia to explore investment opportunities in Papua New Guinea.

Apart from opportunities in invest in the mining, petroleum and energy sector, PNG will also provide information on investing in the non-resource sector like in agriculture, fisheries, forestry, manufacturing and service industries. Opportunities to invest in new and exciting opportunities like Special Economic Zones will also be on the agenda.

Highlighting the significance of the event, Prime Minister Marape emphasised the timeliness of the PNG-Asia Investment Conference, particularly in light of PNG’s ambition to tap into foreign direct investment from the rapidly growing Asian region.

“While discussions about strengthening ties with China and greater Asia have been ongoing for many years, the focus has mostly been on the political front,” said Prime Minister Marape.

“In recent years, we have witnessed a notable increase in Asian investments in PNG, which has created further potential for growth.”

He continued, “The time has come for substantive collaboration, working hand in hand with businesses and industries to create investment opportunities for Asian investors, particularly in the minerals and energy sectors.”

Prime Minister Marape further expressed his intention to address the conference, shedding light on why Papua New Guinea stands as an appealing investment destination for Asian investors. He also plans to emphasise the country’s pivotal role in the global energy and mineral landscape, offering substantial returns to investors, especially those from China and other Asian nations.

“The PNG-Asia Investment Conference in October will serve as a targeted platform for engaging our Asian investors and complement the ongoing efforts of my government and the PNG Chamber of Mines and Petroleum in promoting investments in PNG’s minerals and energy sector, following the successful PNG Mining and Petroleum Investment Conference in December 2022 in Sydney,” stated Prime Minister Marape.

Acknowledging the instrumental role of Minister for International Trade and Investment, Hon. Richard Maru, in pursuing opportunities within Asia, Prime Minister Marape commended his efforts to explore investment prospects in the region.

“We extend our gratitude to Chamber President Anthony Smare, the council, and the Chamber Secretariat for accepting our government’s request to organise this event,” added Prime Minister Marape.

“The Chamber has already commenced preparations, deploying a dedicated team to ensure Papua New Guinea’s prominence on the global stage this October.”

Prime Minister Marape concluded, “Papua New Guinea eagerly anticipates engaging with Asia and warmly welcomes esteemed Asian investors into our country.”

Prime Minister Hon. James Marape expressed his utmost satisfaction with the State Visit of Indonesian President H.E. Joko Widodo to Papua New Guinea on Wednesday, July 5, 2023, describing it as a “resounding success.”

Prime Minister Marape recently (Thursday, July 6, 2023) highlighted the significant achievements resulting from President Widodo’s visit.

The major outcomes of President Widodo’s visit are as follows:

• Signing of a Grant Assistance Agreement worth K55 million for the enhancement of the Intensive Care Unit and the Mortuary at Port Moresby General Hospital.
• Signing of a Grant Assistance Agreement worth K5 million for the West Sepik Integrated Development Project.
• Key Announcement of Mutual Visa Waiver Exemption for Diplomatic and Official Passport Holders by PNG.
• Announcement of the ratification and review of the Basic Border Agreement.
• Announcement of the signing of the Memorandum-of-Understanding (MOU) on Mutual Administrative Assistance in Customs Matters.
• Announcement of the signing of the MOU on Combating Transnational Crimes.
• Launching of Indonesia’s Citilink flights between Port Moresby and Denpasar.
• Conclusion of the MOU on Higher Education between the two countries.

Prime Minister Marape also announced that Indonesia is opening up its market to agriculture produce, particularly oil palm and livestock, and urged commodity boards and farmers to increase production to meet the huge demand from there.

He expressed particular gratitude for the MOU on Higher Education, which entails Indonesia offering scholarships to up to 2, 000 Papua New Guineans at its universities and colleges.

“Education played a crucial role in fostering this significant achievement, as President Widodo committed to providing opportunities for Papua New Guinea students at Indonesian tertiary and technical vocational institutions,” said Prime Minister Marape.

“In return, Papua New Guinea has pledged to reciprocate this generous support by offering scholarships to PNG students to study in Indonesia on a one-to-one basis.”

Prime Minister Marape also outlined the areas that will be further advanced in the bilateral relations between Indonesia and Papua New Guinea, including:

• Ratification of the PNG-Indonesia Defense Cooperation Agreement during the upcoming Parliament sitting.
• Consultation on Visa on Arrival for PNG and Indonesia travellers with ordinary passports.
• Conclusion and signing of an MOU on Cross-Border Land Transportation.
• Conclusion and signing of an MOU on Education.
• Mutual Power Purchase Agreement between Indonesia PLN and PNG Power Ltd to facilitate the supply of electricity from Jayapura to Vanimo.
• Conclusion and signing of an MOU on Intelligence Sharing.
• Conclusion of a Joint Feasibility Study on the PNG-Indonesia Preferential Trade Agreement.
• Conclusion and signing of an MOU on Women Empowerment and Child Protection.

“I am delighted to report that President Widodo’s State Visit has been an overwhelming success. We have addressed a wide range of existing and outstanding issues, achieving consensus on various matters,” stated Prime Minister Marape.

“At the onset of our discussions, I emphasised the longstanding partnership between our nations, rooted in our shared land border. As the only nations sharing a land border, it is our responsibility to build the necessary relationships that yield mutually beneficial outcomes. This entails not only focusing on border security but also capitalising on business, trade, investment, cultural and social issues, supporting economic infrastructure, energy sharing, and agriculture, which are the cornerstones of our economies.

“Papua New Guinea intends to draw inspiration from Indonesia’s economic model as we transition into an industrialised economy through manufacturing, downstream processing, and value-adding. The Inaugural Papua New Guinea-Indonesian Investment Forum serves as a vital mechanism for private sector cooperation, complementing the Government’s development plans and initiatives.

“With the ratification of the Basic Border Agreement by Papua New Guinea, we can now proceed to review it to address new and emerging issues, such as trade and economic development along our common border.

“The formalisation of MoUs on Prevention and Combating Transnational Crime and Capacity Building creates certainty for our safety and well-being. The MoU on Mutual Administrative Assistance in Customs matters supports our shared endeavor for expanded trade, investment, and procurement of goods and services.

“People-to-people relations have also been further enhanced through visa exemptions for diplomatic and official passport holders, with the potential for expansion to private citizens and investors in the near future.

“On behalf of the Government and people of Papua New Guinea, I extend heartfelt gratitude to the Government and people of Indonesia for the grant assistance valued at K60 million, which will be allocated to integrated projects in West Sepik Provinces, especially in Vanimo and Wutung, as well as the upgrading of the Port Moresby General Hospital Intensive Care Unit and Mortuary.

“The inaugural flight from Denpasar to Port Moresby on July 2, 2023, has provided a major boost to trade and tourism, opening an alternate route to the Asian region and beyond through the successful Air Services Agreement.

“Although the construction of the Jayapura to Merauke Highway falls on the Indonesian side, it presents an avenue for border provinces in PNG to interconnect for business, trade, cultural exchanges, and energy cooperation, such as power purchasing.

“In conclusion, I am deeply satisfied with the outcomes of my consultations with President Widodo, and I encourage our ministers, officials, and business community to diligently implement the discussed initiatives and report on their progress accordingly.”

Minister for International Trade and Investment, Hon. Richard Maru announced the launching of a new Capital Market product, a Debt Security or local bonds. This Capital Market product will be available on the Debt Market immediately. The companies who want to issue bonds must contact Papua New Guinea National Stock Exchange (PNGX).

“I have the powers under Section 153 of the Capital Market Act 2015 to approve the launching of the local bonds and I am satisfied that all the work has been done. It has taken us over 5 years (since 2017) to prepare PNGX and the Securities Commission of Papua New Guinea (SCPNG) for the issuance of the local bonds. The project was funded by the Australian Government, Marape-Rosso Government, the International Financial Corporation, the Asian Development Bank and all other stakeholders,” said Minister Maru.

“Only companies who have a net asset of K10 million and those who are rated by independent credit rating agencies will be considered by PNGX to issue bonds. In the coming weeks, we will announce the first company who will issue local bonds as we expand our capital market products to include debt security (like bonds). The target of the Marape-Rosso Government is to increase the size of our capital market in terms of equities from the current market capitalization of K135 billion to over K500 billion in the remaining four years of our term. This target will be reached if more companies are listed on PNGX. We want to introduce more capital raising platforms like Debt Securities, peer to peer, crowd funding, and small offers regime (SMEs) so we create more avenues for local investors to raise capital locally to fund the local capital needs,” said Minister Maru.

“We also want to support the development of a major real estate trust fund to mobilize funds for major real estate developments especially in Port Moresby and the Nadzab Airport City development,” added Minister Maru.

Pacific Capital Markets Development has announced that it has acquired a 12.5 percent interest in the South Pacific Stock Exchange (SPX).

SPX is the national stock exchange of Fiji, based in Suva.

PCMD is the majority shareholder in PNGX Group Limited, operator of PNGX Markets, Papua New Guinea’s national stock exchange.

SPX and PNGX have an existing Memorandum of Understanding to explore matters of mutual interest and benefit. PCMD will seek to build upon that MoU working with both exchanges to develop an integrated regional network of markets supporting access to capital for listed and unlisted companies (including the SME sector), to introduce new exchange-traded products into the region, and to expand PCMD’s role in financial education and capital markets training.

The shareholding in SPX adds to PCMD’s growing portfolio of investments in regional stock exchanges and related activities.

About Pacific Capital Markets Development

Pacific Capital Markets Development is an Australian company committed to the development of capital markets in the Pacific region. Pacific Capital Markets Development is the majority shareholder of PNGX Group Limited, operator of Papua New Guinea’s national stock exchange.

The Principals of Pacific Capital Markets Development are David Lawrence and Frank Dunphy. Each has over 35 years of experience in the operation of regional markets, stockbroking, funds management and financial services compliance.

Photo: Patrick Pouyanné, CEO TotalEnergies, and Toshiya Nakahara, CEO of JX Nippon (Credit: JX Nippon)

JX Nippon oil and gas exploration has received approval to acquire a 2.58 percent stake in the Papua LNG project from TotalEnergies EP PNG Ltd.

According to Paulus Ain, commissioner and CEO of the Independent Consumer and Competition Commission (ICCC), TotalEnergies will continue to operate the project, and the positions of both parties in the oil and gas industry in PNG will remain unchanged. He stated, "It will remain the same, either pre or post-acquisition."

Ain further explained the details of the proposed acquisition, saying, "The proposed acquisition involves TotalEnergies selling to the acquirer a minority interest of 2.58 percent (pre-state back-in right) in the Papua LNG project." He emphasized that the 2 percent participating interest being sold is too small to have any decision-making power or significant control over the Papua LNG project or any markets in PNG. Therefore, it is unlikely to raise any concerns regarding completion.

After carefully reviewing the applicant's submissions, market information, and feedback from relevant industry stakeholders, the ICCC concluded that the proposed acquisition would not result in a substantial lessening of competition in any markets in PNG. Ain stated, "The ICCC was satisfied that the proposed acquisition will not have, or will not be likely to have, the effect of substantial lessening of competition in any markets in PNG."

Air Niugini, has recently signed an agreement with Rolls Royce in the United Kingdom (UK) for its Trent 1000 engine, chosen for the airline's Boeing 787 Dreamliner order. According to Air Niugini's acting chief executive officer Gary Seddon, this decision showcases the airline's dedication to operational efficiency, reliability, and environmental sustainability. Seddon stated, "By signing the Rolls Royce TotalCare agreement, Air Niugini also reinforces its commitment to investing in cutting-edge technologies that enhance operational capabilities and elevate the travel experience for our valued customers."

The Trent 1000 engine, manufactured by Rolls Royce, is renowned for its outstanding performance, efficiency, and low emissions. Seddon further highlighted its advanced features, stating, "Its enhanced fuel efficiency and improved maintenance program enable the optimization of operations and cost reduction, ensuring long-term sustainability, profitability, and better value airfares."

The Minister for State Owned Enterprises, William Duma, expressed his support for Air Niugini's decision, emphasizing the importance of aligning with reputable suppliers and global brands to ensure the safe and competent operation of the fleet. Duma commended Air Niugini, stating, "This strategic selection aligns perfectly with Air Niugini's vision to provide world-class air travel services while minimizing environmental impact. By selecting Rolls Royce Trent engine for Boeing aircraft order, Air Niugini is showing a commendable example in the aviation industry."

Duma also emphasized the significance of the partnership between Air Niugini and Rolls Royce, stating, "This partnership highlights the government's focus on fostering strategic alliances that drive economic growth, environmental stewardship, and customer satisfaction." He further acknowledged Air Niugini's position as a leading provider of air travel services in the Pacific region, affirming their commitment to safety, reliability, and customer satisfaction as they continue to expand their fleet and improve operational efficiencies.

Transparency International PNG (TIPNG) held its Annual General Meeting last Friday (30 June 2023) at the Holiday Inn, Port Moresby to present its annual report for the year 2022 to its members.

The 2022 Financial Statements for TIPNG were presented to the members at the AGM. Once again, the organization returned an unqualified audit which was conducted by DFK Mayberry and represented fairly the Association’s financial position and of its financial performance in accordance with accepted accounting practices in Papua New Guinea and the Associations Incorporation Act 1966.

The financial members of TIPNG at the AGM elected Peter Aitsi as chair, and Belinda Kanau as secretary to serve for the coming year. Other directors re-appointed were Richard Kassman, Christopher Elphick, Michael McWalter, Bill Doa Neill, James Lunge, Stephanie Kirriwom-Sawong, Paul Barker, and Mary Udu. The two new directors to the Board of TIPNG were Jeffery Vagalia and William Koregai.

The role of the director of TIPNG is voluntary and the directors receive no payment for their leadership & service to the organization. The Board is responsible for the setting of the organization’s strategy, vision, reinforcing its purpose, and oversighting its financial performance. As well as ensuring statutory compliance and with management guiding the overall performance of TIPNG.

The Board will focus on implementing the objectives contained in its Strategic Plan 2019-2023 which is now in its final year. The strategic priorities remain strengthening its brand, continuing the building of stronger and more active partnerships, ensuring financial sustainability, and strengthening organizational capabilities.

“I believe TIPNG is a respected voice within our communities as well as our region and also on a global stage. Our work is driven by a sense of purpose and made more urgent by the depth and scale of corruption impacting our Country. We remain committed to being a voice on issues of corruption and working with our partners to strengthen the integrity of systems in Papua New Guinea,” said TIPNG Chair, Peter Aitsi.

In the coming months, TIPNG will continue to advance a number of key priorities including generating awareness of the PNG Independent Commission Against Corruption, closely working with stakeholders to drive the reforms to secure and improve the conduct of our national general elections. And importantly building and supporting the role of the Community Coalition Against Corruption as a united voice on major national issues. TIPNG remains committed to its primary role and that is to empower citizens to act against corruption and reduce the current level of public apathy.

The planned Fabrication Facility came one step closer today, when Kumul Petroleum Holdings signed a contract with China State Construction Engineering Corporation PNG Limited China to undertake Phase 1 of early works civil work.

The contract was signed by Wapu Sonk, managing director of Kumul Petroleum Holdings, and Wang Ounan, general manager of the construction contractor.

Mr. Sonk, said, “This contract, for a total of US$10 million, about K35 million, will result in construction of access roads, building foundations and necessary associated site work and services rights of way.”

“This is the first step in the establishment of the KPHL training and fabrication facility. Civil construction work under the contract will prepare the training facility pad, fabricating facility pad, construction lay down pad, ready for phase 2 activities.”

Mr Sonk outlined that the contractor would mobilise on the 15th of July, with planned completion in the mid-fourth quarter of the year. He noted that when complete the facility would fabricate large, high-value structural, mechanical and piping modules for land-based process and non-process facilities used in LNG liquefaction and regasification facilities, petrochemical and refinery plants.

He continued,”KPHL is establishing the Kumul Construction Industry Training College on this same site, since it will be necessary to train a cadre of Papua New Guineans with skills necessary to participate in industry construction activities between now and 2032.

Mr Sonk concluded,” Kumul Petroleum, as the national petroleum and energy company, is proactively establishing this Fabrication Facility to maximise national content in future petroleum, mining, renewable energy and general heavy industry projects, through local manufacturing of products that until now have all been imported from overseas.”

Prime Minister Hon. James Marape extends his heartfelt appreciation to Indonesian President H.E. Joko Widodo for his immensely successful one-day visit to Papua New Guinea on Wednesday, July 5, 2023. The visit resulted in several significant accomplishments and outcomes.

Reflecting on the visit as President Widodo departed Port Moresby, Prime Minister Marape expressed his jubilation and commendation for the fruitful discussions and achievements reached during the high-level engagement.

“We are deeply honored to host President Widodo, especially considering Indonesia’s remarkable position as the 16th-largest economy in the world with a nominal gross domestic product (GDP) of US$1.392 trillion and the 7th-largest by purchasing power parity (PPP) GDP of US$4.398 trillion. We are privileged to have such an economic giant as our neighbor,” Prime Minister Marape remarked.

He further emphasised the significance of President Widodo’s monumental visit, which focused not only on government-to-government matters but also on the core objectives of Marape’s Pangu Pati: fostering economic growth and enhancing commerce and trade relations.

“The business relations between Indonesia and Papua New Guinea have reached unprecedented levels,” Prime Minister Marape declared.

“We have opened the doors for increased business-to-business engagements between our two countries.”

To facilitate this collaboration at the highest level, Prime Minister Marape announced the establishment of a task force, led by Deputy Prime Minister Hon. John Rosso and International Trade and Investment Minister Hon. Richard Maru, in partnership with the Indonesian counterparts.

One of the notable achievements of the visit was the agreement for Indonesia to sponsor 2,000 Papua New Guinean students to pursue higher education in Indonesian colleges and universities. Prime Minister Marape highlighted the reciprocity of the arrangement, stating, “For every student Indonesia sponsors, we will match their support by sponsoring another student from Papua New Guinea. We aim to foster increased business-to-business and people-to-people relations between our nations.”

Recognising Indonesia’s standing as an economic powerhouse in terms of commerce and trade, Prime Minister Marape expressed the commitment of Papua New Guinea to work closely with Indonesia on trade protocols and border-related issues, with the shared goal of elevating their bilateral relationship to new heights.

Prime Minister Marape concluded by expressing his gratitude once again to President Widodo for his visit and the positive outcomes achieved, expressing optimism for a future characterised by robust cooperation and mutual prosperity.

The Government of Papua New Guinea, through the Mineral Resources Authority, has granted six exploration licenses to PanAust, the parent company of Frieda River Limited.

Mining Minister, Sir Ano Pala, stated, "The approval of these exploration licenses is a demonstration of the government's commitment to move the Frieda River Project forward."

PanAust has invested over $260 million US, equivalent to K870 million, in the Frieda River Project since 2014. Phil McCormack, PanAust General Manager Studies, emphasized, "This includes ongoing community support, government relations, and stakeholder engagements."

McCormack further expressed the company's dedication, saying, "We are willing and waiting to work with the government of PNG to ensure that we can deliver a world-class project that PNG can be proud of... in this great country of Papua New Guinea."

With a staff of 26 on-site, PanAust provides various forms of support, including medical emergency helicopter assistance and contributions to education, health, and local communities. This support has been ongoing since the company's establishment in 2014.

McCormack stated, "We are willing and waiting to work with the government of PNG to ensure that we can deliver [a] world-class project that PNG can be proud of... in this great country of Papua New Guinea."

Jerry Garry, Acting Managing Director of the Mineral Resource Authority (MRA), explained the resource constraints faced by the MRA's state team, stating, "The state team's manpower is stretched between the Wafi Goldpu Project and Porgera mine project, and thus has not progressed the assessment of the Frieda River Project at this stage."

However, Garry assured, "But as soon as we get one of the projects off the ground, we will seriously look into that, assessing and permitting Frieda River Project."

Garry added, "It is my pleasure to have the Minister sign off on the six supporting exploration tenements, those grounds will ultimately hold various infrastructures for Frieda River project. Such as airstrip, the dam, the power plant, processing plant, and the other supporting infrastructures."

Sir Ano Pala reaffirmed the government's commitment to advancing the Frieda River Project, stating, "The approval of these exploration licenses is a demonstration of the government's commitment to move the Frieda River Project forward."

The MRA emphasized that the Frieda River Project represents a significant untapped resource in Papua New Guinea. Garry stated, "The state is looking to ensure that all effort is given towards permitting the project after the Wafi Golpu and Porgera Mine projects are sorted."

Minister for International Trade and Investment, Hon. Richard Maru says there will be no merger between the Newcrest Mining Limited and the Newmont Corporation unless the National Interest Test requirements are met. Minister Maru said this recently in his meeting with the high-level Executives of Newcrest Mining and Newmont Corporation including the President and the CEO of the Newmont Corporation, Mr. Tom Palmer.

“We are excited for Newmont Corporation to come but according to Section 277 (6) of the Capital Market Act 2015 we cannot approve the merger unless the requirements of the National Interest Test are met,” said Minister Maru.

“As far as we are concerned, these requirements include building a township at Nadzab (no fly in and fly out), maintaining the listing in our Papua New Guinea National Stock Exchange (PNGX), provide Papua New Guinea investors an opportunity to invest in the Wafi-Golpu Mine or in Newmont to raise over a billion Kina under Initial Public Offering (IPO) only for our citizens and PNG institutions like the Nasfund. Another requirement is that company must be domiciled in Papua New Guinea with their Country Headquarters and PNG Management located in Port Moresby or anywhere in Papua New Guinea and not outside the country,” said Minister Maru.

Minister Maru offered them to use the land available within the Paga Hill Special Economic Zone to build their Country Headquarters and also to build accommodation for their staff.

Minister Maru said: “The Lihir Mine and the Wafi-Golpu Mine are our God-given resources and we as citizens and our country must maximize our benefits from our resources. Papua New Guinea is looking at how we can benefit under a win-win partnership because the gold belongs to Papua New Guinea and we must maximize our take so the whole country gets more value as part of our wealth creation drive under our Take Back PNG mantra, not just the landowners, the Provincial Governments, and the State, but for all our citizens.”

“What we are asking for is reasonable and sensible; they have been done before by the BCL, which is still one of the best mining companies that ever came into our country. This is something that the Marape-Rosso Government wants to bring back,” said Minister Maru.

“I am excited about this merger, and I am looking forward to the closing of the deal with Newmont Corporation. The world’s leading gold company that has been in the industry for over 100 years coming to PNG would promote our country and its image as an attractive investment destination,” said Minister Maru.

“I will be one of their greatest supporters if we can accommodate both their needs as an investor and our needs as the resource owners under a win-win long-term partnership,” added Minister Maru.

Minister for International Trade and Investment, Hon. Richard Maru, today called on all Papua New Guinea (PNG) companies who are listed in other countries to list on PNG National Stock Exchange (PNGX) to boost market credibility and improve investor confidence.

“The existing law of Capital Market Act 2015 under Section 116(3) requires an approval from the Securities Commission of PNG if public companies and corporations those are listed in our exchange wants to list or issue shares outside PNG. The Marape-Rosso Government through my Ministry have come up with a policy to compel public companies or companies funded by public monies to list in our local exchange. The idea is to support the Government’s reform agenda to diversify PNG economy beyond extractive industries by providing potential investors an alternative financial instrument to mobilize private sector financing,” said Minister Maru.

Minister Maru is also calling on the following international companies to immediately list on PNGX:

1. Origin Energy
2. Telstra (or Digicel)
3. Mayur Resources Limited
4. GeoPacific Resources Limited
5. Kingston Resources Limited
6. St. Barbara Limited
7. Westpac
8. ANZ
9. Amalgamated Telcom Holdings Limited (or Vodafone)
10. Sime Darby (or West New Britain Palm Oil)
11. Rimbunan Hijau Group (or RH)
12. Total Energies
13. Exxon Mobil
14. News Corporation
15. Coca-Cola
16. Heineken
17. Galley Reach Holdings Limited

“These companies can list both their local and international operations or they can only list their PNG operations on PNGX,” said Minister Maru.

“We cannot let the public companies and international corporations to continue to make profits in Papua New Guinea while listing in other countries. These public companies and international corporations are socially obligated as responsible corporate citizens to list publicly so our citizens and public institutions alike can have the option to have a share in their profits,” said Minister Maru.

“Goal 5 of our National Constitution calls for the promotion of Papua New Guinean ways and the Constitutional Planning Committee intends for the Constitution to establish institutions and mechanisms that would promote the equitable distribution of wealth among all citizens of this country,” added Minister Maru.

Minister Maru said the Government is working on a policy and legislation to have all public companies and international corporations operating in PNG and listed outside the country to be listed on PNGX.

“It is good for you to list voluntarily on PNGX as a responsible corporate entity rather than being compelled by the law,” said Minister Maru.

Furthermore, Minister Maru stated that other companies operating in PNG who are not listed above should also consider listing in PNG to raise capital in PNG through the capital market rather than borrowing and to fund their capital expansion plans.

“The Marape-Rosso Government’s aspiration is to make our market to be robust and agile, in which it creates strong capital raising avenues locally by way of equities, bonds, notes, debentures, property trust and others. Our aim is to make investment options available for Government, state owned entities, listed and non-listed entities to raise capital locally instead of going aboard. This is part of Marape-Rosso Government’s Take Back PNG Policy,” said Minister Maru.

After a 4-year hiatus, the Extractive Industries Emergency Response Challenge (EIERC) will make a return in 2024.

This was announced by the PNG Chamber of Mines and Petroleum (“The Chamber”).

At a recent Health Safety & Environment networking event, organized by the Chamber, Councilor and Newcrest Mining Lihir Country Manager, Stanley Komunt officially announced the return of this important industry event.

“The EIERC, formerly known as the National Mining Emergency Response Challenge, was originally coordinated by Mines Inspectorate of Mineral Resources Authority.

As the popularity of this event increased over the years and given the increasing participation from teams in the oil and gas sectors, the Chamber assumed the role of organizer in 2017.

The last EIERC was held in 2019 in Port Moresby, which was well attended by participating teams from across all major Mining, Petroleum, and Energy projects. Ok Tedi Mining Limited were the overall winners of the 2019 Emergency Response Challenge, and by all accounts, they are ready to defend their title in 2024.

The Chamber is pleased to confirm that the 2024 EIERC will be hosted in Port Moresby in the first quarter of 2024 and will comprise of 8 activities which include a theory exam, and 7 various physical emergency rescue activities, on land, air, and sea, with the maritime challenge making a comeback after it was last included in 2017.

A working committee has been formed, and has commenced preparations for this event, which will be a highlight on the industry calendar. Details of the 2024 EIERC will be announced by the Chamber in the coming weeks.”

The current Government’s effort to reform the operations of State-Owned Enterprises (SOE) in the extractive sector is to enhance transparency and install good governance.

The intention is for the extractive sector SOEs to take a proactive approach to information disclosure and increase transparency.

The intention is also for SOEs to disclose to the public the total contribution they make to PNG’s social and economic development.

This is according to the Vice Minister for Public Enterprises and Member for Mendi Raphael Tonpi.

The Vice Minister made this statement at an international panelist at the 20th Global Conference of the Extractive Industries Transparency Initiative (EITI) held in Dakar, Senegal last month. The Vice Minister attended this conference on behalf of the Minister for Public Enterprises who was not able to attend due to the recent Parliament session.

He was informing the panelists that the PNG Government was in the process of reforming the operations of its State entities (SOE’s) that were in the businesses of providing essential services such as water, transport, ports etc including its SOEs involved in managing and investing revenues derived from extractive activities (oil, gas and minerals).

He said the intention of undertaking the reform was to enhance transparency in the operations of these SOEs and for better management and good governance of the extractive sector.

The Vice Minister informed that such reforms were supported by donor partners such as the Asian Development Bank (ADB) that saw the importance of improving the operations of all SOEs to enhance good governance and bring about efficiency in their performance.

“With the support of the ADB, the Government has recently instituted reforms in SOEs in the services sector to improve their governance and performance efficiency and cost effectiveness.

He pointed out that some of the critical reform areas included:

• Clearer definition of the roles and responsibilities of the SOEs Boards and Management;
• Improvement in the transparency of SOEs operations by requiring them to prepare and publicly disclosing or releasing statements of their corporate objectives, a 3-year work plan and their audited financial accounts; and
• Establishment of a transparent, merit-based process for selection and appointment of CEOs and Managing Directors and the Board Members of the SOEs, and in ensuring women were equally represented on the SOEs Boards.

The Vice Minister further stated that “the SOEs reforms were undertaken from 2020 to 2022 and these were necessary due to these organisations’ poor performance in the past.

He said the Marape-Rosso Government was confident that these reforms were necessary to improve their performance and efficiency going forward into the future.

“The extractive SOEs have been performing well to date and declaring annual dividends to the State. This is largely due to them being used as vehicles to receive and retain significant revenues and windfalls derived from oil, gas and mining activities based on the State’s equity stakes in these resource projects. However, the extractive SOEs have been operating in an opaque environment and needed to be reformed in order to bring about transparency into their activities through the EITI reporting process”, the Vice Minister said.  

“These SOEs are still subject to oversight and reforms as they are the entities set up by the Government. The recent reforms of the services SOEs set the platform for the Marape-Rosso Government to also consider wider reforms in the extractive SOEs”, the Vice Minister said.

Prime Minister Hon. James Marape is calling upon the people of Papua New Guinea to unite behind National Capital District Governor Hon. Powes Parkop in his endeavor to elevate Port Moresby to the status of ‘the best city in the Pacific’. Emphasising the importance of mutual respect and community engagement, the Prime Minister addressed the crowd gathered in Boroko, Port Moresby, on Wednesday, June 28, 2023, during the launch of the ‘Boroko Precinct Transformation Project’ conducted by the National Capital District Commission (NCDC).

PM Marape urged respect for the traditional Mori-Koita landowners of Port Moresby and the people of Central.

To support this ambitious project, the National Government has pledged a K20 million commitment to the NCDC. The funds will be utilised to implement city-wide security camera installations, with the aim of enhancing safety and security for all residents. Additionally, PM Marape urged the youth, particularly those found wandering the streets of Boroko and Port Moresby, to seize opportunities for second-chance education, fostering personal development and creating avenues for small business growth.

Joining PM Marape and Governor Parkop at the launch event were Moresby North-East MP Hon. John Kaupa, Moresby South MP Hon. Justin Tkatchenko, Moresby North-West MP Hon. Lohia Boe Samuel, and prominent business leaders from the Boroko area.

Once regarded as a vibrant and thriving hub of Port Moresby during the 1960s, 1970s, 1980s, and 1990s, Boroko has unfortunately experienced a decline, plagued by rising crime rates and an unsightly environment marred by littering and betelnut spitting. PM Marape fondly reminisced about the glory days of Boroko when he used to play rugby league at the Lloyd Robson Oval, now known as the National Football Stadium. His affinity for Boroko led him to refer to himself as a ‘Boroko Market Boy’.

The ‘Boroko Precinct Transformation Project’ sets out to revive Boroko’s former splendor, embracing a zero-tolerance policy toward crime, littering, and the sale and spitting of betelnut in the area. Subsequently, the project aims to extend these improvements to other parts of Port Moresby.

PM Marape expressed his support for Governor Parkop’s vision of establishing Port Moresby as the premier city in the Pacific by 2030, urging the nation to rally behind this shared objective and contribute to its realisation.

“I endorse his vision, and I urge you all to endorse it too. Let us unite in our efforts and make it a reality,” asserted PM Marape.

The Prime Minister stressed that the transformation of any location hinges on fostering respect among individuals and within communities.

“As Papua New Guineans residing in various regions across the country, we must all play our part,” he emphasised.

“The most significant contribution we can make is to honor and respect one another and the communities in which we reside.”

Reflecting on Boroko’s descent from a prominent precinct to its current state, PM Marape conveyed, “Boroko was once a thriving community, renowned as one of Port Moresby’s premier locations, but sadly, it has deteriorated over time.”

He further highlighted the contradiction of supporting the national rugby league team, the Kumuls, while tolerating a city marred by neglect and lack of consideration for others.

“Do not expect the Prime Minister to solely develop the country if you are not actively contributing in your own small way. It starts with respecting others and the communities in which we live,” PM Marape asserted.

“By respecting each other, our communities, neighborhoods, streets, and Boroko itself, we can contribute significantly to our nation. Let us strive to create a safer, better, and cleaner environment—an ‘Amazing Port Moresby’ that benefits us all.”

Prime Minister Hon. James Marape expressed his confidence that the Papua New Guinea economy is on the brink of an unprecedented surge, fueled by the advancement of major resource projects within the country. He emphasised that this remarkable economic expansion will inevitably foster the growth of the micro, small, and medium enterprises (MSME) sector.

During his address at the ‘5th SME Breakfast with The Prime Minister’ held at APEC Haus in Port Moresby on Tuesday, June 27, 2023, PM Marape highlighted the significance of five major resource projects—Papua LNG, P’nyang LNG, New Porgera mine, Wafi-Golpu mine, and Pasca LNG—as catalysts for this imminent economic leap.

“The economy is now positioned to soar like never before,” declared PM Marape before an audience comprising small business owners, corporate executives, senior public servants, and politicians.

“Currently, Papua LNG Front End Engineering and Design (FEED) is progressing as planned. By early next year, we anticipate reaching the Final Investment Decision (FID) stage. This project entails a construction worth approximately US$6 to US$7 billion. Additionally, the prospects of LNG production are promising,” elaborated PM Marape.

“We are committed to ensuring a seamless transition from Papua LNG construction to the commencement of the P’nyang project, guaranteeing a continuous inflow of construction investments into our economy even beyond 2027, when the Papua LNG construction concludes. The combined value of these two LNG undertakings alone will exceed US$10 billion, spanning from 2024 to 2032.

“Furthermore, we have successfully renegotiated improved terms for Wafi-Golpu, granting Papua New Guinea a 57 per cent share of the pie, including allocations for landowners, the Morobe Provincial Government, and the National Government.

“The New Porgera venture provides even better terms than Old Porgera, granting us a 51 per cent stake. These initiatives reflect our steadfast commitment to the ‘Take Back PNG’ initiative, ensuring greater benefits for our economy.”

PM Marape emphasised that a robust economy, driven by these five major resource projects, will directly contribute to the growth of MSMEs and bring his vision of a K200 billion economy by 2030 closer to realisation.

“We can effortlessly sustain this K200 billion target if all Papua New Guineans actively participate in the economy,” he stated.

Additionally, PM Marape announced that the Government has partnered with Women’s Micro Bank as a lending institution for SMEs, joining Bank South Pacific and National Development Bank. The Government is also exploring collaborations with other institutions, including TISA Savings and Loan Society, to provide a range of financing options for MSMEs.

“To ensure inclusivity, we encourage all Papua New Guineans to embark on small business ventures aligned with their skills and interests. Alternatively, they can explore opportunities in agriculture, sustainable forestry, and fisheries. I assure you that we are committed to addressing infrastructure needs and ongoing law-and-order challenges to facilitate the growth of businesses,” assured PM Marape.

Live cattle import is not the best option to develop the cattle industry in Papua New Guinea; It is a risk rather than good, says the Minister for International Trade and Investment, Hon. Richard Maru.

Minister Maru was making a reference to a news article published by Post Courier (Tuesday, June 27, 2023) on the Livestock Development Corporation’s (LDC’s) proposal to import live cattle from a cattle farm in Queensland.

“This proposal should be outlawed,” said Minister Maru.

Minister Maru questioned whose interest it was that LDC was acting for.

“It is definitely not in the best interest of PNG. Importation of live cattle poses huge biosecurity risks. Disease outbreaks could cause major production losses and seriously affect PNG's potential international livestock trade and have drastic economic and social impact on the whole country,” said Minister Maru.

Minister Maru said that imports of live cattle brought pests and diseases in the past.

“First in the 1970s importation of cattle and buffaloes from Queensland and Northern Territory respectively to Urimo in the Sepik Plains also imported cattle tick and brucellosis that had devasted the 10,000 cattle herds and beef industry in the Sepik. Feral buffaloes, remnants of that importation are still carrying the brucellosis disease in the Sepik Plains. The wild buffaloes are difficult to control which is preventing any new initiative for cattle raising in the Sepik Plains as the disease has the potential of infecting cattle. Second example is the outbreak of cattle tick in Markham valley in 1996. Ticks were imported along with live cattle from Queensland for breeding by a major cattle company. Thanks to NAQIA and the Cattle Industry for quick action to contain and stump out the pests from spread. These are the facts we must consider carefully when contemplating to import live animals into our country,” said Minister Maru.

“Alternative to live cattle import for breeding is artificial insemination or artificial breeding using semen imported from cattle genetic companies. Bull semen produced from biosecurity secured cattle genetic breeding stations are tested and guaranteed disease free. Ramu Beef major cattle producer in PNG had been breeding cattle by AI technique for many years and PNG have experienced AI technicians available. AI breeding is the fastest method of breeding and increasing national herd than natural breeding,” said Minster Maru.

Minister Maru applauded the Minister for Agriculture and Livestock, Hon. Aiye Tambua for taking the hard yard to ban importation of fresh, chilled, and frozen chicken meat from Australia and Asian countries.

“This is the first and important step for our country to protect our local poultry industry, native wild birds, and jobs. This ban is a significant victory for PNG poultry industry and food safety and biosecurity protection from incursion of transboundary avian diseases. With the ban in place, I welcome the PNG Poultry Industry Association (PIA) and the Departments of Agriculture and Livestock to work with my Ministry to develop a masterplan for poultry sector investment,” said Minister Maru.

“The masterplan must have a marketing policy that is robust in creating a successful poultry export market for PNG chicken meat that would bring material value to the entire value chain, from local producers and their shareholders to medium and small-scale farmers, exporters, processors, and consumers,” said Minister Maru.

“One of the strategies to succeed in global markets is to create export-oriented job. A thriving export market increases production capacity and employment across the board, not only for large-scale producers, but also for medium and small-scale farmers, many of whom are rural based, and that is an opportunity that must not be overlooked,” added Minister Maru.

Minister Maru said the Marape-Rosso Government was keen to see PNG invest more in downstream processing and value adding of agricultural commodities and food including livestock products.

“We must take advantage of our organic soils, clean environment, and disease-free status to increase our export share of agricultural products to overseas markets. We cannot continue to remain as import dependent nation, depending on imported floor, rice and canned fish and meat. We have some of the best nutritious food in the world which we can share with consumers in other countries who have preference for organic food.

Minister Maru said LDC’s plan to import live cattle from Australia must be stopped.

“Import of live cattle has the potential to wipe out and destroy the cattle industry of Papua New Guinea instead of growing it based on solid experience of the past which we have all learnt from,” said Minister Maru.

PNGX, Papua New Guinea’s national stock exchange, has adopted a new Corporate Governance Code for Listed Issuers following public consultation.

PNGX, the national stock exchange of Papua New Guinea, is proud to announce the adoption of its new comprehensive Corporate Governance Code. This groundbreaking initiative aims to provide guidance to the Boards of listed issuers and elevate corporate governance standards in the country.

Effective from July 3, 2023, alongside the implementation of the new Listing Rules, the Code sets the stage for companies to report its corporate governance practices for the financial year ending December 31, 2023. Market stakeholders can expect to find these reports included in the annual reports released in the second quarter of 2024.

Following an extensive period of public consultation that began in March 2023, the adopted Code consists of 17 Standards, each containing a set of Recommendations. While compliance with the Code is not mandatory, PNGX listed companies are encouraged to establish appropriate corporate governance policies tailored to their operations. Moreover, companies are required under the Listing Rules to address each Recommendation outlined in the Standards and include a corporate governance statement or the URL of the page containing the statement in their annual reports.

Developed with the unique characteristics of the PNG market in mind, the Code draws upon global standards and practices employed in other markets. It has been meticulously tailored to meet the specific needs of the country while aligning with international best practices. The Code promotes flexibility, allowing companies to adopt or adapt the Standards and Recommendations as they see fit. However, it is expected that directors disclose the extent to which their company adheres to the Code in their annual reports. In cases where nonadoption or partial adoption occurs, directors should provide reasons for their decisions, following the globally recognized "if not, why not" approach.

While the Code's immediate scope is limited to listed companies, its governance standards are poised to become a benchmark for corporate governance across the private sector in Papua New Guinea. These standards may also hold relevance for the governance of StateOwned Enterprises (SOEs).

The development of the draft Code has been made possible through collaboration with our contributing partners, the International Finance Corporation (IFC), a member of the World Bank Group, and the UN Sustainable Stock Exchanges Initiative. As a partner exchange of the Sustainable Stock Exchanges Initiative since April 2022, PNGX showcases its commitment to transparency and sustainability. IFC has provided expert awareness or training programs focusing on environmental, social, and governance (ESG) standards, as well as board gender diversity, aligning with international good practices, including the new revised OECD Principles of Corporate Governance.

Contributions from the Pacific Private Sector Development Initiative (PSDI), in partnership with the Governments of Australia and New Zealand, have also been integral to the development of the corporate governance standards. PSDI, as an Asian Development Bank (ADB) technical assistance program, actively works towards enhancing private sector development in the Pacific region.

Mr. David Lawrence, Chairman of PNGX, stated, “Recognizing the sustainability challenges faced by emerging economies like Papua New Guinea, PNGX acknowledges the importance of addressing factors such as corporate governance and transparency, climate change and environmental sustainability. Today, addressing these sustainability factors is crucial to securing access to finance, and PNGX remains steadfast in its commitment to driving progress in these areas.”

"Enhancing corporate governance standards in PNG is one way PNGX can contribute to elevating the international reputation of PNG’s capital markets and attracting local and foreign investment. Establishing a vision and standards for the future becomes particularly crucial for the Papua New Guinea capital market," he said.

Ms. Elizabeth Wamsa, General Manager of PNGX, added, "The Code includes Recommendations aimed at fostering a broader pool of directors for PNG companies, especially female directors. It also emphasizes the importance of disclosures relating to gender pay equality policies, 'return to work' practices, and policies addressing genderbased violence. In these areas, the new Code sets the standard for the world."

"Good corporate governance practices enhance company performance, and are vital for sustainable private sector development,” Markus Scheuermaier, IFC’s Resident Representative in Papua New Guinea, said. “The inclusion of standards addressing workplace responses to gender-based violence and childcare demonstrates innovation, and aligns with international good practices. We are proud to support PNGX in this groundbreaking initiative."

The new Corporate Governance Code for Listed Issuers is available from the PNGX website.

PNGX, Papua New Guinea’s national stock exchange, welcomes the capital market reforms announced by Minister for International Trade and Investment, Hon. Richard Maru OBE, MP on Friday, 23 June 2023.

The Minister announced 3 significant reforms to grow the Papua New Guinean capital market and others to make the existing market more robust.

The new corporate debt market will promote the development and diversification of the market. It will allow eligible listed entities, large private companies and State-Owned Enterprises (SOEs) to more easily raise debt capital from institutional investors. The new debt market will provide competition to bank lending in this sector of the market. It will also provide opportunities for SOE’s to raise funds domestically rather than sourcing funding overseas or from government.

Raising debt on the new PNGX debt market can also be a first step towards the subsequent raising of equity capital and listing by large private companies and SOEs.

PNGX acknowledges the assistance of the International Finance Corporation (IFC) in the development of this market.

PNGX also is pleased to note Ministerial focus upon development of a listed market for Real Estate Investment Trusts. REITs have developed as a key sector in many markets globally. Listed REITs have the potential to unlock significant capital by providing liquidity to an illiquid asset class. They can also attract significant investment into the real estate development sector, which has an employment and economic activity multiplier effect throughout the economy.

The Minister also announced that amendments to the exiting securities laws will be introduced to parliament in August 2023 compelling companies which are listed abroad and doing business in Papua New Guinea to also list on PNG. This has the potential to significantly grow the PNG capital market.

It will provide opportunities for investors to directly invest in those companies which have significant activities in the country and increase the level of local ownership.

“Both increased foreign listings and REITs are important initiatives to expand the market. They will provide the growing number of retail investors with a broader range of investments to buy and trade and to grow their wealth” said PNGX Chairman, Mr David Lawrence

PNGX also welcomes the initiatives to make the market more robust.

The introduction of the long-awaited Takeovers Code will provide greater certainty to the market and assist PNGX to ensure that its market is fair and orderly.

PNGX acknowledges the work of the ADB Private Sector Development Initiative and the Securities Commission of Papua New Guinea to develop and adopt the new Takeovers Code.

PNGX acknowledges the appointment of Mr Robin Fleming and Dr Solomon Awili as public interest directors of PNGX Markets. We look forward to their contributions to the operation and supervision of PNGX’s regulated license obligations that underpin its market integrity.