Photo: Bank of China Chairman Mr. Ge Haijiao, Chinese Ambassador to PNG H.E. Zeng Fanhua, PM Marape and Bank of China PNG Representative Audrey Zheng.

China-Papua New Guinea relations have reached new heights with the opening of a representative office of China's most globalised and integrated bank in PNG on Thursday 1st June, 2023, at the Stanley Hotel in Port Moresby.

Prime Minister James Marape was a guest speaker at the inaugural launch of the Bank of China's (BoC) representative office that was hosted by the Bank's Chairman Mr. Ge Haijiao and Chinese Ambassador to PNG H.E. Zeng Fanhua. along with other dignitaries from the bank and China.

While addressing the Bank of China's representative office inauguration, Mr Marape highlighted the need for a new bank to be established to cater to the country's unbanked population, as well as the introduction of new financial products into the country's banking space.

"PNG looks forward to the input and entry of the Chinese bank into the PNG market, which is an important contribution, as the country is moving forward and its volume of trade with China grows bigger," the Prime Minister said.

Mr Marape said the event was a momentous occasion for the Bank to establish ties with PNG, as it demonstrates confidence in the country's economy.

He added that the establishment of the Bank of China's representative office marks confidence in the stability of the government and the independence of the three arms of the State.

"Let me assure you that your entry into the country is right on the verge of the next phase of an important economic boom," the premier said.

"A boom that will catapult us into a middle income earning nation at the very earliest which all of us including the executive government, the parliament, our constitutional offices, independent organisations like the Central Bank and every one of us to work intently to make sure that we reach this important milestone," he said.

"In 1975, our economy was under K5 billion, today our economy is K113 billion, within the next seven years, we want to go into a K200 billion economy to sustain our population that is now past 10 million people" Mr Marape said.

He added that over half of the country's population remains unbanked, and there is a need for a new bank with a introduction of new financial products.

"Close to 60-70 percent of our people are unbanked, most of our people or small SMEs are yet to fully migrate into the formal economy, so imagine if 10 million-plus people in the next 10 or so years are all in the formal economy and are participating actively," he said.

"It will be a very significant boost to have such a high-profile and highly-respected global banking group enter the PNG market to not only serve PNG, but also the South Pacific Region with Port Moresby as its regional headquarters," PM Marape said.

"My Government is keen to see more new banks enter the PNG market to increase competition, to help reduce interest rates, banking fees, expand services to unreached areas using various e-banking platforms, and also to reduce the long queues in all our banks today".

“It will also create thousands of new jobs which our country badly needs," Mr Marape stressed.

The Prime Minister said the entry of Bank of China would also enhance the Government’s plans to strengthen and deepen the trade and investment relationship between China and PNG.

“Our Government will also set up a Trade Mission in Shanghai to be headed by a Trade Commissioner, whose focus will be to secure more foreign direct investments from China into PNG and secure more Chinese markets for our goods, including our LNG gas and agriculture, fisheries, marine, and forestry products.

"China, with a population of over a billion people, is a very big market that is ready to accept more PNG products. The Government is excited about the plans of the Bank of China as it is a big vote of confidence in PNG as an investment destination and also of my Government’s economic management of the country."

Mr Marape welcomed the Chinese bank and offered support to complete its operational licence and becoming a fully fledged bank. He hopes the Bank of China will facilitate transactions between the two countries, and that the business partnerships will sustain into the future.

Economic Impact: The launch of Bank of China's international branch in PNG is likely to have an impact on other commercial banks in the country.

As a well-established bank with a wide range of products and services, Bank of China's entry into the market could lead to increased competition for customers and market share.

The bank's emphasis on offering cashless services and products will benefit the Asian population including the Philippines, Bangladesh, Chinese, and other Asian nationals in the country to do their banking services and may also attract customers who prefer digital banking options.

With its current representation in the country, the Bank of China is likely to provide one-stop service solutions, which include policy consultation, foreign currency exchange, international settlement, letter of guarantee, financing, cash management, customs clearance assistance and other significant customized services

Bank of China's chairman Ge said the bank will continue to leverage its advantages in globalization and strengthen the construction of a collaborative service network in the South Pacific region.

The in-country group, he said, are proud to be one of the 300,000 employees of the Bank of China, and the launch in PNG marks a century of glory and globalisation.

Back in December of 2022, Prime Minister Marape met with the bank’s officials and welcomed their plans to extend their representative office license, which they obtained from the Bank of Papua New Guinea (BPNG).

The Bank of China operates in 60 countries around the world and is the world’s fourth biggest banking group with a diverse portfolio of investments.

As the most international and diversified bank in China, Bank of China provides a comprehensive range of financial services to customers across the Chinese mainland, Hong Kong, Macau, Taiwan and 31 overseas countries and regions with about 400,000 employees worldwide.

The Bank's presence in PNG may expand into retail banking later on, but for now their representative office is located in Port Moresby.

Furthermore, Bank of China's plans to expand to other provinces could further increase its reach and influence in the market. As a result, other commercial banks in PNG may need to reassess their strategies and offerings to remain competitive in the face of this new entrant.

Bank of PNG's Stance: Meanwhile, the Bank of China's decision to open a representative office instead of a fully-fledged bank is new to the country and the South Pacific region, according to the Bank of PNG (BPNG).

After the inaugural launch, BPNG's acting governor Elizabeth Genia said the approval term for a banking licence was for three years.

"BPNG looks forward to the Bank of China choosing to apply for a banking licence at the end of that approval term, but opening a representative office does not translate into conducting banking and financial transactions" she said.

However, BPNG recognizes that having a representative office would make a positive contribution towards our mutual trade, investments, cross-border banking services and other opportunities, such as correspondent banking relationships for domestic banks.

Genia said having another participant in the market would improve competition, increase efficiency and lower the cost of funds, particularly in the context of fees and charges.

The Central Bank is confident that expanding the financial services sector will contribute to employment and economic growth and the recent opening of the Bank of China’s representative office will certainly expand the financial services sector here in the country.

The new competitor in the banking sector is looking to raise the bar on customer expectations. Both individual and organizational customers now will seek a long list of attributes from their financial-service providers to compare with BoC's impact when it demonstrates its dominance within the market in coming years.

References:

1) Bank of China's Inaugural Launching of International Representative Office (PNG) Thursday 1st June, 2023 at the Stanley Hotel in Port Moresby [Paul Oeka/PNG Business News]

2) Bank of China launches representative office in PNG Xinhua. https://english.news.cn › asiapacific

3) Bank of Papua New Guinea https://www.bankpng.gov.pg › media Releases | Bank of Papua New Guinea (PNG) Port Moresby

Peuna’s Founders: Chantelle Brittain, Ken Vincin and Sean Vincin

While Peuna PNG Limited is only entering its 7^th year of operation, don’t mistaken this dynamic business as new players in the Papua New Guinea market. Peuna’s roots in the country stem way back to 1956.

Established in 2016, Peuna’s founders, Mr Ken Vincin and son Sean Vincin partnered with Ms Chantelle Brittain to set up a business consultancy specialising in providing innovative business, project, and facility management solutions solely for the Papua New Guinea market. 

But you could only specialise in PNG if you have lived it, and in 1956, Ken’s father, Mr Don Vincin, accepted a position as a Medical Patrol Officer accompanying the Australian Patrolling Administration Officers, commonly known as the “Kiaps”. Don was instrumental in the management of leprosy in PNG, particularly in the Karimui area of Chimbu Province.

Photo: Don Vincin at work while patrolling the highlands of Papua New Guinea, circa 1958.

Fittingly enough, Ken’s mother, Esma Joan Vincin, was a school teacher. She put her profession to good use in PNG and is renowned for establishing the first “Primary A” school in Minj, Waigi Valley of the present Jiwaka Province.

Ken and his siblings attended primary school in Wabag initially, before moving to Kainantu and then Minj before settling in Mount Hagen in the Western Highlands Province. 

Photo: Ken, sister Robyn, and younger brother Geoff, who attended school in the PNG Highlands.

For the next 50 years, the Western Highlands of Papua New Guinea became the Vincins’ family home. Ken became a prominent figure in Mount Hagen on all fronts -- business, social and sporting, in particular Rugby League.

Photo: Chamber of Commerce meeting - Ken Vincin with then Western Highlands Governor and former Prime Minister, Hon. Pias Whingti, in 1994

Peuna’s Country Manager, Sean Vincin, was born in Mount Hagen, Western Province. His late mother Sylvia is from the Trobriand Islands in Milne Bay, and moved to Mount Hagen on a placement with Westpac Bank in the early 1970s. Sean was raised in Papua New Guinea and came to call PNG home again after returning from Australia post completion of his secondary and tertiary education and some valued practical experience in the construction, mining and petroleum resource industries.

However, Peuna’s ingrained understanding of PNG extends beyond the Vincin family. The company’s fellow founder and Corporate Manager, Ms Chantelle Brittain, was raised in Bouganville. Her family moved to Arawa in 1969 and made it a home for the best part of 12 years.

Chantelle returned to PNG in 2015 and is now an integral part of Peuna, bringing a wealth of experience in procurement, project and program management, human resource management, adult education and training, and community development. 

Photo: Peuna’s co-founder, Chantelle Brittain, in Bouganville around 1978

Today, Peuna PNG has grown into a reputable business with proven ability to deliver business and project solutions in PNG, even during the most difficult and challenging times -- none more so than during the Covid-19 pandemic.

While many businesses scaled down, Peuna kept all resources in country and scaled up in capability to provide international standard quarantine services, as well as being specifically engaged to provide infrastructure and project management services to the Covid-19 vaccination program, along with airport testing prior to international departure.

In a short time, Peuna PNG has developed a reputation as a reliable, go-to partner to provide facility management solutions, agile project responses, and end-to-end project management solutions across diverse industries and contexts or regions.

To provide a taste or snapshot of some of Peuna’s recent achievements, the firm manages the Santos National Football Stadium, achieving accolades from local and international visitors and stakeholders for providing world-class facility and event management services.

It provides commercial and residential property management solutions, including managing a 110-man accommodation facility with commercial kitchen, training facilities and office space. Peuna’s Exploration Support Division offers a leading lightweight and swift-to-construct, soft-sheltered building system that is designed specifically for PNG’s harsh climatic conditions.

But while the nation looks forward to the beginning of some exciting major resource projects, it is the projects that provide meaningful and tangible outcomes to PNG and Papua New Guineans that Peuna enjoys delivering the most.

In 2022, Peuna partnered with Santos Foundation to deliver a work-readiness and life-skills program for a group of 13 young electrical trade trainees who had never experienced life outside of the remote village in the Southern Highlands.

Peuna delivered an eight-week program, accommodating the trainees and providing safety training, on-the-job practical training, as well as coaching the group to be able to look after themselves away from their families.

Under Peuna’s guidance the trainees learned about time management and how to use modern, electrical appliances such as electric stoves, washing machines, and microwaves. Proof of the success of the program is that the trainees have successfully completed a six-month work placement in Australia.

Similar capacity and community projects delivered include training and developing the catering department for the Tari Hospital, and The Hagara School pop-up shelters project, using Peuna’s exploration shelters for community outreach, and continuing to work with several local landowner groups to build their capacity and capability.

In 2023, Peuna will also work with Santos Foundation and local landowner company, KutMor Limited, to build the Pimaga Community Centre, which will be used for training locals in the remote Southern Highlands.

“Inspired by our family forefathers, at Peuna PNG, we don’t do things by halves. We do not ever use the challenge of operating in PNG as an excuse. Rather, we use it as a motivation to deliver to the highest of standards, despite obstacles,” the founder said.

Deeper trade and investment within the Commonwealth Group of Nations can happen through enhancing and driving the Commonwealth Connectivity Agenda, says the Minister for International Trade and Investment, Hon. Richard Maru who attended the Second Commonwealth Trade Ministers Meeting in London, United Kingdom last week. The Trade Ministers who attended the meeting discussed the agenda on deepening trade and investment within the group and they also discussed current issues facing the commonwealth group such as climate change and digital trade, and how they can work together to share experiences and technology to address these issues which are common amongst all members.

“The Commonwealth group is made up of a very diverse group. We have the most advanced economies to the least developed and most vulnerable economies. Further, we have membership that are spread across the globe from Europe, Africa, Asia the Caribbean, to the small atoll island states in the Pacific. Hence, deeper trade and investment within this group can happen through enhancing and driving the Commonwealth Connectivity Agenda. Through deeper cooperation amongst the Commonwealth group through sharing of experiences, best practices knowledge, skills, and technology, we will achieve deeper trade and investment within the Commonwealth,” said Minister Maru.

“For example, Papua New Guinea’s Prime Minister, Hon. James Marape visited Gabon recently to attend the One Forest Summit. Whilst in Gabon, Prime Minister Marape visited a Special Economic Zone (SEZ) particularly for downstream processing of forestry products.

Our Prime Minister was very impressed and has directed for increased cooperation with Gabon to begin to foster such technical cooperation to learn and share experiences in this sector with the view to set up similar processing facility in PNG as we intend to stop all round log exports by 2025, and process all our logs domestically and its timely for PNG to learn from Gabon on its experiences in the forestry sector,’ said Minister Maru.

“Similarly, PNG will be seeking assistance in technical know-how and investment from India in the production and processing of cotton, wheat and animal feed which PNG has huge potential for development,” said Minister Maru.

Minister Maru added that PNG Government was driving similar policies in the fisheries sector.

“Through a domestication policy, PNG wants all fish caught in PNG waters to be processed and value added before exporting. Hence, wish to seek further technical cooperation from member states who have experience in the fisheries sector,” said Minister Maru.

The Trade Ministers also discussed the issue on climate change and how trade can be used as a policy tool to mitigate climate change. Discussions on this included the ongoing negotiations on the WTO Fisheries Subsidies and how the Commonwealth can work together to achieve a better outcome that will address subsidies and illegal, unregulated, and unreported fishing.

“Climate change is real and has created a bigger challenge for PNG like many other countries. Many of our small islands and atolls are under threat from rising sea levels. Constant changes in weather patterns have affected agricultural production and natural disasters are becoming frequent. This calls for urgent climate change mitigation measures,” said Minister Maru.

Minister Maru updated the meeting on the climate change mitigation measures PNG is undertaking and called for the free movement of clean or green technologies so that the developing and least develop countries can achieve sustainable development as well as meet their economic development aspiration. Minister Maru further called on the Developing countries not to use the climate change issue to put up unnecessary trade barriers to trade.

Minister Maru whilst taking the opportunity, told the meeting that PNG exports 60% of its coffee to the European Union (EU).

“The EU parliament has now put up a legislation on traceability where it will be required for a coffee bag to be traced back to the famer to ensure that the coffee is not produced from a logging area. This alone will affect a lot of PNG coffee famers particularly small household producers who do not have the financial and technical capacity to meet this new requirement in the EU market,” said Minister Maru.

“I am therefore calling on the developing countries not to put in place this kind of trade distorting barriers in disguise of climate change mitigation policies and instead help developing, least developed and small island states with capacity building so that they are able to meet their development aspirations and also address climate change issues,” said Minister Maru.

There are untapped mutual gains and opportunities in strengthening the bilateral trade and investment relationship with the United Kingdom (UK), says the Minister for International Trade and Investment, Hon. Richard Maru. Minister Maru said this during his bilateral meeting with his UK counterpart, Hon. Nigel Huddleston at the margins of the recently concluded Commonwealth Trade Ministers meeting in London last week.

Both Ministers agreed on the importance of the bilateral trade relationship and building a two-way trade and investment.

“UK has very little investment in Papua New Guinea (PNG) compared to the post-independence era where there were a few notable businesses operating in PNG. We need to change that especially after the signing of the UK- Pacific Trade Agreement in 2019. This agreement must be put in operation and PNG has offered to host the first trade committee meeting before the end of this year,” said Minister Maru.

“PNG currently exports most of its oil palm to the UK with some coffee and other commodities in negligible volumes. We need to bring the UK back into PNG and expand the current trade and investment relationship to include new areas such as investments in energy, petroleum refining, and commercial agriculture,” said Minister Maru.

Minister Maru added that beside trade and investment, strengthening people to people links especially through partnerships between educational institutions was an area that PNG was keen on exploring.

“The UK education system is one of the best in the world with many foreign students flocking to UK. I hope for PNG to partner a UK institution to increase the number of spaces for students from PNG to gain a tertiary education,” said Minister Maru.

Prime Minister Hon. James Marape said recently (09.06.23) there was space for more commercial banks to operate in the country to tap into an increasing banking market in Papua New Guinea.

The Prime Minister said this as he was providing an update while answering questions raised by the Opposition on the banking situation in the country.

“There is a need for existing banks to come into our economy as it is getting bigger, meaning the volume of transactions are getting bigger,” said PM Marape.

“There are many of our people especially in the informal sector who are not yet linked to a commercial bank. We want to find commercial banks that are friendly to our little people.”

Prime Minister Marape said the Government was now working with Central Bank to look into the issues of commercial banks and their operations in the country, including the reformation of the National Development Bank.

“By the end of this year, there will be an announcement on where we are tracking. This is through the work we are doing with Central Bank.

“We are also asking Central Bank to open up the market and some of you would have noted the announcement by one of the oldest banks in China – the Bank of China which has been operating in China and the world for more than 100 years – opening an office here in PNG.

“Bank of China is now working to meet all the requirements to open a commercial bank in PNG.

“The Government has informed Central Bank that we need more commercial banks in the country to open up the market, instead of having just one or two dominant banks, as there is enough space for two or three more banks in the banking sector space.

“In its regulatory role, the Central Bank has also been informed to keep watch on the two major banks – BSP and Kina – to work with them so that the burden of customer service is not hugely passed onto the customers.

“One or two other PNG institutions, like Tisa Savings & Loan Society, that have indicated on moving into this space are encouraged to do so.”

On the issue of high bank fees being charged on the people, the Prime Minister said the Government was continually talking to the banks.

“I am aware of the fees being charged are extremely high but in the environment of their present operation, the banks have indicated high costs of doing business here. The Government has advised them to minimise their fees to make it conducive and comfortable for our everyday users,” PM Marape said.

“We have engaged with Central Bank to work with the commercial banks more closely and to ensure that the services are improved.

“In terms of the transactional issues that happened around the Easter Weekend, I want to inform Parliament that I was informed by BSP before the upgrade that it was making a systems changeover.

“We are yet to get a formal report from BSP on the magnitude of the ‘glitch’. BSP, being the responsible and dominant bank, wanted to update its financial system so it can have a system that carries both here and overseas in real time.”

The Prime Minister also indicated that reforms were taking place within the Central Bank to make it more receptive to the needs of the economy while it was operating under its fiscal and monetary policies.

Photo: PM Marape at the launching of the National Gold Bullion Policy 2023 last month. With him is Acting Minister for Commerce and Industry Hon. Soroi Eoe

Prime Minister Hon. James Marape has affirmed that the pertinent details concerning the proposed gold refinery will be made available to stakeholders and plaintiff Justin Parker of Golden Valley Enterprises Ltd.

In response to a successful Supreme Court stay that was secured by State lawyers following a National Court order sought by Parker, PM Marape addressed the issue (Tuesday, June 13, 2023).

“Despite a Supreme Court issuing a stay on the National Court order, we will still provide relevant information on the gold bullion project for public interest and transparency,” stated PM Marape.

“As a responsible government, we are committed to providing all stakeholders and Golden Valley Enterprises with the necessary information pertaining to the project and its scope. This commitment is not intended to question the National Executive Council process.

“We will ensure transparency by supplying sufficient information that outlines the project’s objectives and implications. There will be no secrecy surrounding this value-added project, which serves the national interest.”

PM Marape emphasised that the disclosure would encompass crucial aspects such as the genesis of the project, the identities of the project proponents, and the project’s scope. “It is essential to maintain decorum and respect for the Cabinet process throughout this disclosure,” he said.

Photo: PM Marape in Parliament.- PARLIAMENT MEDIA

Prime Minister Hon. James Marape emphasised the vital role of the recently signed Ship Rider Agreement between the United States of America and Papua New Guinea in fortifying the security of PNG’s maritime borders, addressing the country’s limited capacity and resources in this regard.

During his address in Parliament recently (Wednesday, June 14, 2023) while presenting the Ship Rider Agreement for ratification, Prime Minister Marape underlined the importance of this agreement. Following a productive debate, which received substantial support from most Members of Parliament, the session was adjourned to allow for further deliberations.

The Ship Rider Agreement, signed in Port Moresby last month by US Secretary of State H.E. Antony Blinken and Defence Minister Hon. Win Daki, alongside the Defence Cooperation Agreement (DCA) after extensive negotiations spanning seven years, does not necessitate amendments to the National Constitution or existing legislation for PNG’s participation.

“Our nation faces the challenge of effectively patrolling our land and maritime borders,” expressed PM Marape in Parliament.

“We are confronted with issues such as illegal and unreported fishing, transnational trade of illicit substances including drug trafficking, and various other border-related concerns.”

PM Marape outlined the key benefits of the Ship Rider Agreement, stating that it will:

• Enhance PNG’s security relationship with the US, particularly in the context of maritime border policing.
• Greatly strengthen the monitoring capabilities of the Naval Element of the PNG Defence Force in combating illegal fishing and other illicit activities within PNG’s maritime borders.
• Facilitate bilateral and multilateral exercises and engagements to support regional capacity-building priorities. Furthermore, it enables the US to provide prompt assistance in emergency situations, such as humanitarian aid and disaster relief efforts.
• Bolster PNG’s inherent enforcement capabilities, enhance overall awareness of the maritime domain, and safeguard national sovereignty.
• Establish an expedited mechanism for obtaining flag State consent to board and search vehicles reasonably suspected of engaging in illicit trafficking. Additionally, it promotes robust cooperation and information sharing between the US and PNG. The signing of this agreement reflects the commitment of both nations to collaborate in promoting sound maritime governance within the region.

The PNG Chamber of Mines and Petroleum is pleased to announce the appointment of Mr. Meriba Tulo as its Communications and Public Relations Manager.

President of the PNG Chamber of Mines and Petroleum, Mr. Anthony Smaré, said the Chamber is delighted to welcome Mr. Tulo as part of its leadership team. 

“Mr Tulo is well known in the media space with a national profile from his background as a business journalist, and he is well known in the business sector through his recent history as a Papua New Guinean communications leader in the business sector.  We are pleased that he is joining the team, particularly to help craft, design and implement the communications strategy of the Chamber to achieve the objectives of the Chamber to ensure sustainability of PNG’s the energy and minerals industry for the benefit of all stakeholders in PNG.”

“Mr. Tulo joins the Chamber team currently led by Chief Operating Officer Mrs. Pansy Taueni-Sialis and Policy & Research Manager Gretel Orake.  His addition to the team is part of the ongoing restructuring and resourcing of the Chamber team to better achieve its strategic objectives and helping ensure the sustainability of the industry, with a particular focus on attracting high quality Papua New Guinean leaders in key functions into the organisation. After Mr Tulo’s hire, the lone vacancy is the key role of the Executive Director of the Chamber, which will be filled imminently”

Prior to his appointment at the Chamber, Mr Tulo was Team Leader Communications with the National Superannuation Fund Ltd (Nasfund) from 2020, overseeing media engagement and advertising on both mainstream and social media platforms for the country’s leading Superannuation provider. During his time at Nasfund, Mr Tulo played a key leadership role in Nasfund’s rebranding, one of the most successful rebranding exercises in PNG’s recent history. The Chamber is a representative shareholder of Nasfund.

Mr Tulo is a seasoned Media Practitioner with experience across all channels of media & communication in Papua New Guinea. He began his career as a business reporter for Kalang Advertising Ltd (FM100) in 2009 and rose through the ranks, and eventually moved to PNGFM as Senior Reporter/Editor of the then newly established Legend FM in 2011.

In 2013, he joined Bank South Pacific as Media and Communications Officer, responsible for the bank’s mainstream media engagement, as well as BSP’s growing social media presence.

In a return to mainstream media at the end of 2014, Mr. Tulo joined Media Niugini Limited (EMTV) as a Senior Presenter, Producer & News Anchor, headlining National EMTV News, and steering coverage of the 2015 Pacific Games, as well as the 2017 National General Elections.

A recipient of the Media Council of PNG Rookie Reporter of the Year Award (2009), Mr. Tulo is a supporter of the PNG Media Council, the International Federation of Journalists, a member of the PNG-USA Alumni Association, and an alumnus of Divine Word University.

He holds a Diploma in Management from the Divine Word University.

Photo: Porgera Mine

New Porgera Limited (NPL) is pleased to announce that it recently filed an application with the Mineral Resources Authority (MRA) for a Special Mining Lease and supporting tenements for the Porgera gold mine.

Chairman of Kumul Minerals Holdings and Director of New Porgera Limited, Dr IIa Temu, hailed the lodgment of the application by NPL as a significant step towards the restart of the mine.

“The lodgment of the SML application is an important milestone for the reopening of the Porgera gold mine. This follows the approval and registration of the transfer of Exploration Licence No. 454 and SML 11 to New Porgera Limited and the subsequent surrender of SML11 and all ancillary tenements by NPL. The application will now be subject to the normal regulatory assessment process which will include the Minister for Mining convening a Development Forum in accordance with the requirements of the Mining Act to canvas the views of stakeholders. New Porgera Limited will work cooperatively with the MRA and other State agencies to enable them to complete the regulatory assessment process as soon as possible.” Dr Temu said.

Barrick Gold President and Chief Executive Officer, Dr Mark Bristow, congratulated NPL on reaching this key milestone towards the mine’s restart.

“The lodgment of the SML application is a big step forward on BNL’s journey with the State to reopen the mine as true partners. The parties are now focused on satisfying the remaining conditions under the New Porgera Commencement Agreement. In parallel, and in our role as operator of New Porgera, BNL is undertaking certain preparatory work on the processing plant with the support of the MRA and is building a committed team, the majority of whom will be Papua New Guineans,. We are moving ever closer to enabling the people of the Porgera Valley to finally see the ‘white smoke’ they have been waiting for”, Bristow said.

About NPL

The applicant for the new SML, New Porgera Limited, is a company owned jointly by Kumul Mineral Holdings Limited (which holds the equity on behalf of the State), Barrick Niugini Limited and Mineral Resources Enga Limited, with a further 10% of the equity reserved for PNG stakeholders. Over the life of mine, PNG shareholders will receive 53% of Porgera’s overall economic benefits. BNL will receive the remaining 47%. The proportion of equity and economic benefits that belong to the landowners is a first in PNG’s agreements with international investors.

The Pacific Islands Telecommunications Association 27th Annual General Meeting (PITA AGM), Business Forum and Expo, which was hosted on the 29th of May to the 2nd of June 2023, marked a significant milestone in Papua New Guinea’s journey towards digital transformation.

It was the first to be hosted in Papua New Guinea by the country's longest serving telecommunications provider, Telikom Limited.

PITA was formed to represent the interests of the small island states and countries in the Pacific in the field of telecommunications, with the focus to improve, promote, enhance, facilitate, and provide telecommunications services within Member and Associate Member countries.

The event kicked off on May 29 in PNG's capital and was hosted at the Hilton Hotel with the theme "Reimagining Service Excellence, Ubiquity and Resilience in a Post-Covid Pasifika."

The four-day expo focused on showcasing and discussing technologies related to consumer technology and sustainability. The event also featured a platform for emerging players in the industry to showcase their innovations.

The PITA 27 AGM Business Forum and Expo 2023 opening ceremony saw Acting Prime Minister of Papua New Guinea John Rosso and government officials, executives, and leaders from technology and finance industries gathering in Port Moresby, where they discussed the role of technology to empower various industries in the future.

Some key takeaways from event speakers

Hon. John Rosso -- According to Acting Prime Minister, the forum promoted collaborations and will drive development in the Pacific Region. Rosso underscored the significance of prioritizing cybersecurity and addressing regional competencies in managing, safeguarding, and protecting valuable information and communications (ICT) systems and infrastructures.

Mr Rosso also emphasized the need to examine the way people utilize social media, stressing the importance of holding individuals accountable for their statements.

"Our people must be shielded from those who propagate falsehoods and misinformation, and individuals spreading such information should be held accountable," Rosso said.

William Duma, PNG's Minister for State Enterprise -- In his opening address, Mr Duma highlighted that it was an honour for PNG to host the 27th PITA meeting for the very first time, because communications between people has always been important and in today’s technological era, telecommunications is vital and significant for governments, businesses and our respective populations.

"We have a large population but it is spread across a huge landmass and islands, and many of our telecoms issues and challenges are similar to those experienced by other Pacific nations. So, innovations and discussions within the event is crucial in overcoming these obstacles, "

"The government appreciates the ongoing support and partnerships with our various bilateral counterparts and stakeholders in improving the telecommunications sector for the livelihoods of the people of Papua New Guinea," Duma said.

Timothy Masiu, PNG's Minister for ICT -- During his address, Minister Masiu emphasized the importance of the event in driving digital progress in the nation.

He signified the remarkable strides Papua New Guinea has made in the process of digital transformation and stressed the need to seize the opportunities presented by the digital age to propel economic development and social progress in the region.

"PNG has emerged as a leader in digital advancement through the implementation of pivotal policies and initiatives. The PNG Digital Transformation Policy 2020, the Digital Government Act 2022, and the establishment of the National Cyber Security Centre have laid a solid foundation for the country to position itself as a digital hub in the Pacific," he said.

"The world is changing rapidly, and technology is reshaping the way we live, work, and connect with one another," Minister Masiu stated. "Papua New Guinea, with its unique cultural heritage and vibrant economy, is well-positioned to leverage these advancements and become a digital hub in the Pacific region."

Looking towards the future, Mr Masiu said the government, through the Department of Information and Communications Technology (DICT), aims to introduce its first-ever Digital ID Wallet within the next three months.

Built on a Federated Secure Data Exchange Platform, the Digital ID Wallet is expected to enhance citizen services and drive the digital transformation agenda across both public and private sectors.

Mr David Kapi, Manager for Strategic Planning, DICT -- In his speech, Mr. Kapi emphasized DICT's unwavering dedication to fostering collaboration and bolstering the sector through the implementation of progressive policy initiatives.

The department is eager to work alongside diverse stakeholders, seeking to propel the country forward as a united force, he added.

Mr. Kapi expressed genuine enthusiasm for events like the PITA Conference and Business Expo, recognizing their pivotal role in enhancing Papua New Guinea's telecommunications and ICT landscape. The DICT's active involvement in such gatherings reflects their commitment to driving continuous improvement in these critical areas.

Expo Outcomes

DICT, PNG DataCo Sign MOU to Improve Government's Digital Transformation: The PNG DICT officially signed a Memorandum of Understanding (MOU) with the PNG DataCo in a significant move towards digital advancement.

The agreement aims to solidify their partnership to drive the much-anticipated digital government transformation, utilizing their individual mandates and expertise.

This collaboration will focus on several key areas of cooperation, including wholesale connectivity, the establishment of a Government Private Network, integration of Government Technology Stack Components, and bolstering cybersecurity measures.

By joining forces, DICT and DataCo aim to accelerate the modernization of government services and operations, ushering in a new era of efficiency and accessibility and signaling a significant step forward in PNG’s digital transformation journey.

PITA Vice President Impressed with Host: Philip Henderson, Vice President of PITA, was quite impressed with host Telikom Limited for how it had organized the AGM, Business Forum and Expo.

He said more than 350 participants had registered to attend this forum from 30 countries around the Pacific region and Australia. Henderson also mentioned that more than 100 participants had joined virtually each day from the commencement of the conference right through till the end.

More than 100 different companies participated in the four-day conference, with booths set up showcasing their products and services. Henderson added that the event was the biggest conference to be hosted by PNG after 27 years.

Views from Pacific Island participants: Many representatives from different Pacific Island nations also highlighted during discussions that Papua New Guinea was different from the rest of the Pacific, was advanced in infrastructure, telecommunications, and employment, and was a progressive Pacific country in terms of development and attracting investors to its shores and markets.

The PITA Annual General Meeting and Business Forum Expo serves as a platform for them to engage in knowledge exchange, networking, and the establishment of strategic alliances.

Through these collaborations, the challenges they face can be collectively addressed, opportunities seized, and a path toward a digitally empowered future can be charted.

The inspiring event dived into the future of telecommunications, focusing on cybersecurity, networking, and more captivating sessions on empowering businesses in the telecom space to conquer challenges through sustainable outcomes.

Progress to Digital Resilience

The event hosted by Telikom Limited closed as a resounding success, bringing together key stakeholders in the ICT sector and propelling PNG and the wider Pacific region towards a future of limitless possibilities.

The Expo created a platform for exhibitors and participants to showcase, promote and sell their products/services, access new markets, learn new technologies, network, make new business contacts, and establish international partnerships.

The event showcased over 350 delegates from 35 countries with the gathering of distinguished guests, local and foreign telecom operators, ICT vendors, and esteemed members of the public and private sectors.

References:

1) PITA 27th AGM & Business Forum Expo 2023, Hilton Hotel, Port Moresby (Day 2&3/June 31st-June 1st 2023) [Paul Oeka/PNG Business News]

2) Pacific Islands Telecommunications Association. https://www.pita.org.fj › Events.

3) NICTA. National ICT Authority. https://www.nicta.gov.pg

4) Department of Information and Communications Technology. DICT I PNG. ict.gov.pg. https://www.ict.gov.pg

5) Telikom Ltd. telikom.com.pg  https://www.telikom.com.pg

Papua New Guinea has one of the lowest electrification rates in the Pacific, with only 13% of the population having access to electricity. In PNG, grid-connected power is still primarily restricted to the main urban areas.

One party driving investment in this area is the United States Agency for International Development's Papua New Guinea Electrification Partnership (USAID-PEP), as the United States is committed in contributing to the project that would connect 70 per cent of PNG’s population to electricity by the year 2030.

To help accomplish this goal, USAID-PEP is focused on facilitating at least 220,000 new on- and off grid household electricity connections, and a key part of this will be deploying renewable solutions, such as solar mini grids.

The USAID-PEP is a five-year (2020–2025) partnership with the Government of Papua New Guinea to advance the country’s journey to energy self-reliance. Their main aim is to strengthen PNG Power Limited’s a(PPL) capacity to expand connections, reduce system and commercial losses, and increase its revenues, as well as develop at least ten viable off grid electrification models in select remote communities.

US Investment Potential

According to the USAID PEP, the PNG energy sector is measured to have a K14 billion (about US$4 billion) investment potential.

USAID Chief of Party Bruce Corbet told the Port Moresby Chamber of Commerce and Industry in a meeting on 1st June 2023 that they are continuing to provide technical support to the energy sector.

Corbet said challenges in the sector were familiar in the country, but PNG is very well-suited to mini grids and micro grids, given the geography and the highly disparate populations, noting they exist already and there is a huge opportunity with the need to do a lot more.

“Challenging climate and environment, land access and cost-recovery tariffs, uncertain policy and regulatory environment, foreign currency exchange, insufficient public and private investment, and dispersed and isolated populations are some aspects that create setbacks,” he said.

Corbet said with the continuous work and studies, some of the electrification modes versus the investment potential (or capital expenditure) around the country included:

• Solar home systems (fewer than 100 households per site) – US$ 0.4 billion (about K1.4 billion);

• Small mini grids (100 to 320 households per site) – US$ 0.4 billion (K1.4 billion);

• Large mini grids (more than 320 households per site) – US$0.4 billion (K1.4 billion);

• Grid extension (PNG Power Limited’s franchise area of 1 to 10 kilometers from an existing grid) – US$2.2 billion (K7.9 billion);

• Grid densification (less than 1 km from existing grid) – US$0.3 billion (K1.07 billion); and,

• Grid connected generation capacity – more than US$0.5 billion (K1.8 billion).

Cobert added this development starts with an ‘anchor’ -- a large, financially sound company such as a telco or mining company to pledge its support with an existing pioneer company to take the majority of the power produced. Then come smaller businesses that need access to power and, lastly, a ‘community’ that is looking for reliable electricity.

Cobert said PNG should be looking to solar mini grids as part of the PEP. "We see mini grids within PNG as a way to advance access to energy, as well as energy security. The key is making these niche grids viable for investors," he said

Despite challenges, the off-grid market in PNG is at an exciting crossroads; advances are being made in solar lanterns, small solar systems, and mini grids. USAID-PEP is developing viable off-grid electrification models that will provide electricity to remote communities.

USAID-PEP Project Implementation

USAID-PEP’s project is implemented through RTI International, an independent, nonprofit research institute dedicated to improving human conditions.

As lead implementer, RTI International works with the PNG government and PNG Power Ltd to increase access to affordable and reliable electricity as an important part of advancing inclusive growth, development, and empowerment in communities throughout the country.

Currently, RTI's work has improved the financial viability and operational efficiency of PNG’s energy utility. Their goals are to enhance the regulator and regulatory environment, develop and advance off grid connections in remote communities, and promote private sector investment that will facilitate at least 200,000 new on- and off-grid household electricity connections, and institutionalize key reforms that will enable PNG to achieve its 70-percent target.

In particular, RTI is supporting PNG Power Ltd on end-to-end utility transformation of PPL by improving competitive procurement through group discussions with selected government and private sector representatives and supporting the conduct of transparency on the existing independent power producer pipeline as well as the development of measurable improvement in PNG’s energy regulator, the National Energy Authority (NEA).

RTI is currently assisting NEA with improving the national regulatory framework for off-grid electrification, and a process for stakeholder engagement to inform and implement enabling policies and regulation.

References:

1) POMCCI Business Breakfast, Lamana Hotel Port Moresby, 1st June 2023/ Presentation by Mr Bruce Cobert, Chief of Party at the US agency on International Development on the PNG Electrification Partnership (PEP) implemented by RTI international. [Paul Oeka/PNG Business News]

2) United States Agency for International Development (.gov) https://www.usaid.gov › papua-new... Papua New Guinea | Humanitarian Assistance

https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.usaid.gov/humanitarian-assistance/papua-new-guinea

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

Japan, the largest importer of liquefied natural gas (LNG) from Papua New Guinea (PNG), has further strengthened its position in the country's LNG sector. Japanese oil and gas exploration company JX Nippon has acquired a 2.58% stake in the Papua LNG project from TotalEnergies, marking a significant development for both JX Nippon and Japan's energy interests. The Japanese embassy in Port Moresby hailed this move as a "huge step" for JX Nippon, emphasising the potential for collaboration between PNG and Japan in various sectors.

"With the full support of the PNG Government, activities relating to front-end engineering design, LNG marketing, and financing are progressing well," stated Embassy economy councillor Isono Satoshi, highlighting the positive progress made in the Papua LNG project. "Papua LNG partners are targeting to achieve the final investment decision by the end of this year or early next year," Satoshi added, underscoring the importance of JX Nippon's involvement in the project.

The Papua LNG project is centred around the Petroleum Retention Licence 15 area (PRL15), which encompasses the ELK-Antelope fields in Gulf, the largest onshore fields in the region and the foundation of the project. In a statement, JX Nippon expressed their anticipation for the project, stating, "The Papua LNG project would have liquefaction capacity of 5.6 million metric tonnes of LNG per year with first production expected by the end of 2027 to early 2028. JX Nippon anticipates the demand for liquefied natural gas as a transition was expected to remain strong globally."

Satoshi commended JX Nippon's acquisition and its implications for both PNG and Japan. "Japan is PNG's biggest importer of LNG and this agreement between JX Nippon and TotalEnergies is a sign of the potential the country has for international investors," he affirmed. "This is a huge step for the firm and for Japan as we look to the future where PNG and Japan can continue working in collaboration, not only in the realm of politics but also in the economy and trade."

TotalEnergies, a French multinational and one of the leading LNG producers worldwide, has also been an active participant in the Papua LNG project. The company has agreed to sell a 2.8% stake in Papua LNG to JX Nippon, further solidifying the latter's presence in the project.

"Roughly half of LNG from PNG had been shipped to Japan consistently," Satoshi highlighted, emphasising the significance of Japanese companies' involvement in the country's LNG sector. "It is of mutual benefit for both PNG and Japan that a reliable Japanese company was fully involved in the new LNG project. In other words, participation by JX is an important step to a win-win situation for both PNG and Japan, where the former is seeking stable export destinations and the latter is seeking stable suppliers of energy."

Satoshi also emphasised that JX Nippon's acquisition of an operating stake in Papua LNG strengthens the PNG-Japan relations practically. "The Papua LNG project would be the firm's fourth LNG project," Satoshi mentioned, citing JX Nippon's experience and expertise in the industry.

Delnet is the leading land and maritime communication and navigation solutions provider in the Philippines. With 25 years of experience, our company has maintained its mission to provide only the best products and services through innovative and consistent quality solutions and Delnet strives to provide seamless and continuous connectivity in the most remote locations and extreme conditions, locally and internationally.

MINING

Performant and reliable data connectivity is an important requirement to maintain communications and coordination between various mining departments.

Delnet has:

Installed and implemented two-way IP connectivity to several companies. Included is the supply and installation of leaky feeder cable, which enables users to have in-tunnel communications.

Deployed hundreds of satellite phones in the Philippines for primary and back-up mobile communications.

Installed VSAT units in the biggest companies and telcos in the Philippines.  These VSAT links enable primary IP connectivity, supporting dozens of employees working on-site.

We have provided work for major companies such as Shell, Boskalis (which is now dredging for islands in Manila Bay), Meralco, Philex Mining, and Energy Development Corporation.

OIL & GAS

Delnet continues to play its role in maintaining equilibrium and appeasing the local oil and gas market. 

Delnet has supplied, installed, and commissioned GMDSS radio communications, fleet broadband, and radar systems onboard the Big Three’s fleet of tankers and bulk carriers.

MARITIME

With a growing number of both local and international customers relying on Delnet for their fleets’ survey requirements and upkeep, we have partnered with major industry brands and have acquired several certificates and accreditations.

Our service engineers come with licenses, certificates, and manufacturers’ training and accreditation to attend to vessel requirements for supply, installation, commissioning and maintenance of communications and navigational equipment.

Testifying to this is the commendation of a major shipping line of all its vessels to our care and maintenance, and the installation and commissioning of navigation and communications equipment for a Japanese shipbuilding company’s shipyards in Subic and Cebu.

COMPLETE MANAGED SERVICE

For major projects in demanding and unusual environments, Delnet offers complete managed service solutions, which cover all aspects of providing a total care package.

These unusual environments include complex mining projects involving mobile communications between vehicles and also establish wireless links in subterranean locations and tunnels.

Further, Delnet offers complete managed service for port and offshore-based vessels to port communications. We provide high bandwidth and economical service, thereby avoiding the high cost and low performance of VSAT links.

Delnet manages hybrid onshore and offshore projects whereby communications are provided to both vessel and land bound operations. We utilize the best technologies and guarantee highly reliable service levels.

As telecom and IT network designers and integrators, we seek to create customized solutions for each of our customers through specialized design, engineering, procurement, integration, installation, and maintenance for customer’s unique needs.

Marking yet another milestone for the Papua LNG project, six (6) of the required petroleum license applications licenses were submitted to the Department of Petroleum and Energy (DPE) on May 30th, 2023.

DPE Secretary Mr David Manau while addressing the key stakeholders present at the submission, stated that his department will continue the review and evaluation of each submission and as the Front End Engineering and Design phase progresses, they will work to complete the process.

Minister for Petroleum and Energy Hon. Kerenga Kua applauded TEP PNG for filing the application for a Petroleum Development License (PDL) in a timely manner which will now take the department several months to review.

TotalEnergies EP PNG (TEP PNG) Managing Director Jean-Marc Noiray noted that this positive step marked the continued streaming-up of the Project.

“Sticking to the highest principles of quality and compliance, are absolute requirements for this world class project to succeed,” he said.

He thanked Secretary Manau and the DPE team for their steady support to the progress of the whole project, including the very efficient way in which the LOBID (Landowner Beneficiary Identification) process was recently concluded for the upstream part of the Project area.

He acknowledged the support of joint venture partners ExxonMobil and Santos for their constructive involvement in the submission of the license applications. 

Having submitted the Environment Impact Report to fellow regulator, the Conservation Environment Protection Authority (CEPA) in 2020, a draft National Content Plan is the next essential piece of work, to be submitted imminently to DPE.

Parties to the K92 Mining project Memorandum of Agreement (MoA), successfully concluded a two-days consultative meeting in Goroka on May 31-June 1, creating a pathway towards finalizing the MoA that was initialed in 2020 in Kokopo, East New Britain Province. 

The parties are the State, the Eastern Highlands Provincial Government (EHPG), the Agarabi Rural Local Level Government (ARLLG), K92 Mine Limited, the Bilimoia Landowners Association (BLA), and the Associated Landowners.

The stakeholders identified key action items which must be completed in two months after which time, it is anticipated that a date for the finalization of the initialed 2020 MoA review will be set.

The action items are: 

1) The National Content (NC): 

• a) Business Development and procurement/supplies plan/guideline. This is developed by the Department of Commerce & Industry (DCI). The plan is a guide by which landowner companies like the BLA can potentially participate, in business spin-offs contracted out by mines. The DCI will engage with K92 Mine, to ensure that the company’s business development plan is aligned with the NC and relevant laws. The DCI will also engage with the BLA to discuss their business plans and aspirations. 
• b) Labour & Employment – This is a training plan developed by K92 Mine which the Department of Industrial Relations will engage with K92 Mine on, to ensure labour laws are complied with. The department will also engage with the BLA to discuss their plans in terms of employment and training.

2) Lands Commission (formally Land Titles Commission) – The LC will set a budget for a hearing and circulate to the parties for budgetary commitments and contributions.

3) MoA – The BLA will submit to all parties a list of additional benefits to include in MoA for parties’ consent.

All parties have been urged to work towards completing their tasks so that the initialed MoA can be signed and implemented.

Chairman of the meeting Andrew Gunua, thanked leaders of all parties for their commitment, respect and understanding during the meeting, despite challenges and the different dynamics experienced.

The leaders are the BLA Chairman Johnson Uringke, K92 Mine’s Vice President External Affairs & Sustainable Development, Philip Samar, Eastern Highlands Provincial Administrator Allen Los, Agarabi Rural Local Level Government President Honourable Pangu Edward, leaders of the Associated Landowners, and State Team leader Michael Wau.

The leaders expressed satisfaction on the outcome of the meeting adding that they would work together for the common good of all parties, especially the landowners of the project.

MOAs are benefits packages that parties negotiate. These include royalites, Tax Credit Schemes, Special Support Grants (SSG), business development and training & development amongst others.

The Inclusive Green Finance Policy was officially launched today at the Hilton Hotel in Port Moresby, Papua New Guinea. The ceremony was presided over by the Rt. Honorable Prime Minister of Papua New Guinea, James Marape, who expressed his honor in inaugurating this significant policy. The Prime Minister encouraged government departments, state-owned enterprises, financial institutions, and MSMEs to collaborate and utilize this policy as a foundation for building a green business economy.

In his address, the Prime Minister stated, “Today, we celebrate the establishment of the Green Finance Policy by the Bank of PNG, which I believe is the first of many steps toward transitioning Papua New Guinea from a high-carbon economy to a sustainable and blue economy.”

Mr. Marape emphasized the policy’s importance in addressing climate change and how it will benefit the people of Papua New Guinea. He stressed the need to develop the country’s economy in a smarter and climate-resilient manner, fostering low-carbon, inclusive green growth.

“While we are currently on a high-carbon development trajectory, which has proven beneficial for our economy and supporting our rapidly growing population, we must acknowledge that the detrimental effects of climate change are accelerating. This necessitates a shorter timeframe for us to enjoy the benefits of our current pathway,” said the Prime Minister.

The Prime Minister expressed gratitude to the Bank of Papua New Guinea, the Global Green Growth Institution (GGGI), the New Zealand Highland Commission, financial institutions, and other technical and development partners for their collaboration in designing and developing the Inclusive Green Finance Policy.

“I am delighted to announce that this policy is being unveiled alongside the Bank of PNG’s own Financial Inclusion Strategy, introduced in April this year. This visionary product represents a long-term commitment to Papua New Guinea,” he added.

The Prime Minister commended the Green Taxonomy, a unique feature of this policy, which is the first of its kind in the Pacific and Papua New Guinea. He congratulated the Acting Governor of the Bank of PNG and the development partners for their contribution to establishing this crucial tool and service for the benefit of the people.

“The Inclusive Green Finance Policy serves as a reminder for all of us to conduct our business in an environmentally conscious manner. By offsetting our global and PNG carbon footprints and participating in the conservation of PNG’s tropical rainforest and mangroves, we can mitigate the impacts of climate change,” emphasized the Prime Minister.

Ms. Elizabeth Genia, Acting Governor of the Bank of Papua New Guinea, underscored the significance of embracing green finance and adopting a proactive approach to address environmental risks and invest in projects that promote long-term sustainability.

The Acting Governor emphasized the responsibility of financial institutions to integrate environmental and social factors into their investment decision-making processes. She encouraged the development of innovative financial products, such as green bonds and sustainability-linked loans, to facilitate green investments.

“To support financial institutions in this important journey, the Bank of PNG, in collaboration with its partners, will establish a Green Finance Center at the CEFI office. The center will provide necessary support, including staff training, technical assistance, and the design of innovative green lending products,” stated Mrs. Genia.

Mr. George Awap, Assistant Governor of the Financial System Stability Group at the Bank of PNG and Chairman of the Inclusive Green Finance Steering Committee highlighted the policy’s development and the discussions surrounding the impact of climate change on economics.

Mr. Awap provided a brief overview of the journey toward implementing the Inclusive Green Finance Policy in Papua New Guinea. He mentioned that the Bank of PNG engaged the Global Green Growth Institution (GGGI) through a bidding process, and the Agriculture for Finance (AFC) was involved in developing the concept note, funded by the New Zealand Government.

He further explained that a steering committee, chaired by the Bank of PNG and consisting of representatives from the Office of Climate Change, Department of Treasury, Alliance for Financial Inclusion, NZHC, and GGGI as observers, worked collaboratively to develop the Inclusive Green Finance Taxonomy Policy.

“Inclusive Green Finance is a new concept in the region, requiring extensive collaboration between the Bank of PNG, domestic financial institutions, various ministries, and stakeholders,” concluded Mr. Awap.

The launch of the Inclusive Green Finance Policy marks a significant milestone for Papua New Guinea, demonstrating its commitment to building a sustainable and environmentally friendly economy and fulfilling the international commitments to the Alliance for Financial Inclusion under El Sheikh Accord. Through collective efforts, the government and financial institutions aim to steer the country towards a low-carbon, inclusive green growth pathway and address the challenges posed by climate change.

Photo: PM Marape with Indonesian Ambassador to PNG H.E. Andriana Supandi.-PM’S OFFICE MEDIA

Indonesian President H.E. Joko Widodo will be making a State Visit to Papua New Guinea next month, Prime Minister and Foreign Affairs Minister Hon. James Marape has announced.

Confirmation of the one-day visit on July 6, 2023, was made during a meeting between PM Marape and Indonesian Ambassador to PNG, H.E. Andriana Supandi, in Port Moresby on Friday, June 2, 2023. President Widodo’s State Visit to PNG follows PM Marape’s State Visit to Indonesia in March 2022.

Also present at the meeting were Indonesian Embassy officials and PNG Foreign Affairs Secretary Elias Wohengu.

“Papua New Guinea will be honored to host Indonesian President Widodo next month. He has graciously accepted my invitation to him to visit PNG, when I made a State visit to Indonesia in March 2022,” PM Marape said.

“President Widodo’s visit to PNG follows that of world leaders including Indian Prime Minister Hon. Narendra Modi, US Secretary of State Antony Blinken, New Zealand Prime Minister Hon. Chris Hipkins and all Pacific leaders last month.

“We will go out of our way to welcome the leader of our closest neighbour, Indonesia, a growing economic powerhouse in the world. Papua New Guinea sees Indonesia as a huge market right at our doorsteps – which we must tap into.

“Relations between our two countries must now move from talks on border issues to more on trade and economic relations, business-to-business relations and people-to-people relations.

“We have always had a good relationship since 1976 when Indonesia and PNG established formal relationships.

“Indonesia stood us with in many fronts, including being responsible for our admission to the Asia Pacific Economic Cooperation (APEC).

“They have always been there for us in some difficult times, including the recent COVID-19 crisis.

‘’I look forward to meeting President Widodo in Port Moresby next month.”

Photo: PM Marape and France President H.E. Emmanuel Macron in Gabon, Central Africa, in March this year.

Prime Minister and Foreign Affairs Minister, Hon. James Marape, extended an invitation today (Monday, June 5, 2023) to France President H.E. Emmanuel Macron, inviting him to visit Papua New Guinea.

The invitation was extended during a meeting between PM Marape and Mr. Walid Fouque, Special Advisor for Asia and the Pacific to President Macron, held in Port Moresby.

PM Marape and President Macron previously met in Gabon, Central Africa, in March of this year on the sidelines of the One Forest Summit.

While discussing the potential visit, PM Marape stated: “There is a possibility that President Macron may visit PNG, however, this is subject to continued dialogue between France and PNG,” expressing optimism about the potential visit.

Reflecting on his meeting with Mr. Fouque, PM Marape described it as “highly productive”, highlighting the ongoing efforts to strengthen bilateral relations between France and PNG.

“Under my leadership, France and PNG have been enhancing our bilateral relationship, just as we have been doing with other nations,” said PM Marape.

“The commitment of President Macron is evident through his decision to send his Special Advisor to engage with me and discuss matters of mutual interest between our countries.”

He further encouraged more French companies to follow the example set by TotalEnergies at Papua LNG and invest in PNG, particularly in downstream processing of natural resources such as forests.

Recognising the evolving geopolitical landscape in the region, PM Marape emphasised the significance of PNG as “neutral ground” and urged France to consider the country’s strategic position amidst the increasing regional dynamics.

The visit of President Macron to PNG would further solidify the growing cooperation and shared goals between the two nations, particularly in the realms of forest conservation, French investments in PNG like TotalEnergies, mobilising resources to support small Pacific Island countries and communities and other relevant matters.

Photo: The Menyamya-Bulolo Road, part of the Trans-Island Highway linking Lae to Port Moresby.-PM’s OFFICE MEDIA

Prime Minister Hon. James Marape has lauded the Government’s groundbreaking ‘Connect PNG’ programme, stating that it is transforming Papua New Guinea like never before. His remarks came after Works and Highways Minister Hon. Solan Mirisim presented a comprehensive report on the initiative in Parliament on Wednesday, June 7, 2023.

The ambitious ‘Connect PNG’ programme, spanning a 20-year period from 2020 to 2040, aims to construct and maintain 16,000km of roads, including national highways, ‘Missing Link’ roads, bridges, provincial roads, and district roads. The Government’s Medium-Term Plan sets the goal of completing 16 priority national highways, totaling over 4,200km, and 1,800km of ‘Missing Link’ roads by 2027. Notably, this includes the highly anticipated Trans-Island Highway connecting Lae to Port Moresby and the New Britain Highway linking Kimbe to Kokopo.

PM Marape expressed his happiness in the transformative impact of the ‘Connect PNG’ programme, stating, “I invite those self-proclaimed ‘Think Tanks’ who dedicate their time to social media criticism of me and my Government to witness the tangible progress of ‘Connect PNG’ in the rural areas of our nation.”

He further commended Minister Mirisim, former Minister Michael Nali, Works and Highways Secretary David Wereh, and the department’s staff for the successful implementation of the programme thus far.

Highlights from the ‘Connect PNG’ report presented by Minister Mirisim include:

• The commencement of work on upgrading and enhancing 4,200km of strategically important economic highways, with a projected investment of K3.5 billion by 2027. These highways, such as Hiritano, Magi, New Britain, Boluminski, Manus, Highlands, and Sepik Coastal, account for 85 percent of freight and passenger movements in their respective regions. Already, more than 50 percent (2,500km) has been completed between 2019 and 2022, amounting to a cost of K1.35 billion. Presently, there are ongoing contracts valued at over K3 billion for multi-year maintenance and capital works, with an additional K2 billion worth of projects in the design and tendering stages.

• Improvement of ‘Missing Link’ roads, encompassing 1,900km, with an annual investment of K200 million from 2023 onwards, and a target of K1 billion by 2027. These road enhancements will benefit areas such as Finschhafen, Karamui, Telefomin, and Menyamya, collectively supporting a population of over one million.

• The completion of the Trans-Island Highway, connecting Lae and Port Moresby, is expected by 2025 to coincide with the 50th anniversary of independence. This crucial route will also link Goroka, Madang, Mt Hagen, Wewak, Mendi, and Tari.

• Other ‘Missing Link’ roads to be upgraded include Southern Highlands-Gulf, Central-Milne Bay, New Britain, Madang-Baiyer, Gulf, Fisika, Madang-Gulf, Trans-Fly Border (Kiunga-Aiambak), Tabubil-Telefomin, and Trans-Fly Border (Oriomo-Wipim).

• Recognising the importance of provincial and district roads, which serve 85 per cent of the rural population, the Government has allocated K300 million annually between 2023 and 2027 to deliver 9,000km of such roads in partnership with sub-national authorities. This initiative includes the enhancement and improvement of major arterial roads in urban centres such as Mt Hagen, Port Moresby, Kokopo, and Lae. From 2019 to 2022, the Government has invested K1.29 billion to complete 1,066km of provincial and district roads out of a target of 3,000km.

• Under the ‘Connect PNG’ programme, the Government is committed to upgrading and replacing 3,000m of overdue bridge structures to meet design standards. This component also encompasses the development of 2,000m of rural standard bridges. The total cost for this endeavor will amount to K1 billion, with an annual budget of K200 million allocated from 2023 to 2027. Over the past four years, the Government has spent K195.57 million on 165 bridges, covering 3,000m of rural roads and 591.44m on national highways. Additionally, major bridge replacement and upgrading of 71 bridges on the Highlands Highway to a two-lane standard are underway, with an additional 2,000m of rural bridge development currently in progress.

Boeing and Air Niugini have announced an order for two fuel-efficient 787-8 Dreamliners to support the growth of the carrier's long-haul fleet. The jets will enable the national flag carrier of Papua New Guinea to fly new routes from the Pacific island nation and boost capacity for inbound tourism. 

"Signing this contract with Boeing for the purchase of two modern, widebody 787 Dreamliners will enable Air Niugini to grow its network across Asia, Australia, and New Zealand and fulfill its mission as the premier airline in Papua New Guinea, providing the best air service in the region," said Gary Seddon, acting CEO of Air Niugini.

More than 85 customers around the world have placed orders for more than 1,600 Dreamliners, making the 787 Dreamliner the fastest-selling widebody airplane in history. Since entering service in 2011, the 787 family's fuel efficiency, flexibility and range have enabled airlines to open more than 350 new nonstop routes.

"The excellent capability of the 787 allows Air Niugini to open Port Moresby to more destinations, increasing tourism and economic growth in the South Pacific region," said Erika Pearson, Boeing vice president, Commercial Sales and Marketing, Southeast Asia and Oceania. "The Dreamliner's flexibility, outstanding efficiency and unmatched passenger comfort will enable Air Niugini to provide improved long-haul connectivity to the islands."  

Built with lightweight composite materials and powered by advanced engines, the 787 Dreamliner can fly up to 20% more passengers while reducing fuel use and emissions by 25% compared to the airplanes it replaces. The 787-8's range reaches up to 13,530 km in a typical two-class configuration.

Boeing has worked with Air Niugini for more than 45 years. The airline operates a domestic network from Port Moresby across Papua New Guinea, as well as international flights across the Asia-Pacific region, including to Australia, Singapore, Solomon Islands and Fiji. The airline's fleet includes Boeing 737s and 767s.

Photo: Lae Facility

In the challenging business landscape of Papua New Guinea, Pacific Industries Ltd has risen to prominence as a leading food and beverage manufacturer and distributor. Throughout its 70 years and three-generation history, the company has demonstrated resilience and adaptability, with recent strategic investments and expansions illustrating an unwavering commitment to maintaining a market-leading position in the industry.

Pacific Industries traces its roots back to the pre-World War II era, when the company manufactured beverages for the Australian Army stationed in Rabaul and across the Pacific. Since then, the company has experienced significant growth, staying committed to its founding principles of quality and innovation.

Currently, Pacific Industries manufacture and/or distribute Pepsi, Mountain Dew, 7UP, Mirinda, Pepsi Max, Gold Spot, Gogo Cola, KIK Energy Drink, Pacific Choice Soda Water, Vita Juice, Vita Water, PNG Pure Water, Gold Spot Cordial, PureAzz, Nutrimilk, Bega products, and Scoops Ice Cream product range.

Recently, Pacific Industries made substantial investments to strengthen its operations and infrastructure. Notably, the company has begun construction of a modern greenfield bottling plant in Port Moresby, with a total investment of K60 million. This state-of-the-art facility reflects Pacific Industries' dedication to adopting the latest technology and delivering products of the highest standards. The company's association as the licensed bottler for PepsiCo in Papua New Guinea further solidifies Pacific Industries' reputation as a trusted partner for global brands.

Recognizing the increasing demand for their popular Scoops Ice Cream products, Pacific Industries expanded its ice cream plant and storage facilities with a K10-million investment. This expansion will enhance production capacity, availability of the Scoops range across the country,  and increase the variety of frozen product ranges that Pacific Industries offers through new product innovations. Pacific Industries current frozen product ranges include Scoops Ice Cream, Kool Shake, Gold Spot Ice Blocks, Lamington, Milk Pops, Summer Split and ChocTop, with further ranges to be released soon.

This expansion not only enhances production capacity but also ensures widespread availability of their popular frozen goods across the country.

In line with their vision for broader market reach, in December 2022 Pacific Industries opened a new distribution facility in Lae, representing an investment of K10 million. This strategic move has strengthened their distribution network, enabling efficient delivery of their diverse product portfolio to customers throughout the region. Furthermore, the development of a distribution centre in Mount Hagen has also commenced.

Pacific Industries has also embraced diversification by venturing into the fast-food dining sector. The recent launch of their first Baker Boy restaurant has proved very popular with its high-quality and affordable offerings. The company has plans to open four more Baker Boy outlets in Port Moresby and expand into other regions of Papua New Guinea to cater to a growing customer base.

With an extensive network and distribution channels spanning 11 branches in Papua New Guinea, Pacific Industries brands have established themselves as household names. Operating modern manufacturing plants in Rabaul and Port Moresby, the company is committed to ensuring a seamless production process and reliable supply to meet increasing demand.

Moreover, Pacific Industries demonstrates its commitment to product quality by providing cold storage facilities in all 11 branches, ensuring freshness and upholding the highest standards for their valued customers.

Furthermore, Pacific Industries portfolio includes four Duffy cafes, incorporating their own coffee roasting facilities, and Kokomo Bakery. These ventures complement their existing offerings, offering a diverse range of choices for their customer base.

With a rich history, strategic investments and calculated expansions, Pacific Industries remains dedicated to delivering high-quality products while actively contributing to the nation's economic growth. Pacific Industries embodies a blend of tradition, innovation, and a commitment to excellence as it embarks on new ventures.

The Port Moresby Chamber of Commerce and Industry (POMCCI) held its business breakfast meeting with the National Energy Authority and USAID PNG Electrification Partnership (PEP) on 1st of June 2023 at the Lamana Hotel.

The topic of discussion was on the "Update of the Energy Industry" with brief presentations given by Chief of Party, USAID-PEP Program Mr Bruce Corbet, and Chairman of National Energy Authority (NEA) Mr Joseph Gabut.

Mr Corbet, in his brief presentation, highlighted the current technical assistance provided in the country through the PEP program which includes the following:

• Amnesty Campaign giving technical assistance to PNG Power to connect household power users, with so far connecting 40,000 Papua New Guinean users.

• Pimaga Health Centre Solar Power Project 80kw, co-funded with Oil Search Foundation for the people of Kutubu in the Southern Highlands Province.

• Feasibility Study in Alotu for an 8MW Power Project using waste from palm oil under an MOU signed by Milne Bay Provincial Government, PNG Power, New Britain Palm Oil, Kumul Consolidation Holdings, Global Green Growth Institute (GGGI) and USAID PEP.

• Establishment of mini off-grid power set up in Bogia District Mandang Province.

"We focus on technical assistance and do not give big capital funding assistance. We try our best to provide technical expertise, engage the private sector, and provide regulatory advice and policy framework", said Mr. Corbet. 

He concluded that PNG energy policy had a lot of inconsistencies, lacked tariff cost measures, but are willing to work along with National Energy Authority in terms of energy development. 

The next presentation was given by Mr Gabut, who spoke on National Energy Authority's role in the country as the energy industry regulator, and gave the following challenges and efforts faced by the Authority;

• Tariff charges are gone through the roof and needs to be looked into, especially at PNG Power Ltd.

• Regulatory issues with ICCC, as they are, are not helping at all and being stagnant. 

• NEA is coordinating the Electrification Roll-Out Plan (NEROP) as expressed in the National Energy Policy, and an executive committee formed to specifically develop power project more efficiently within the given time-frame. 

• New bill currently tabled by National Energy Authority to go through Cabinet within this month for amendments in regards to issuance of license for power projects and regulation.

"Papua New Guinea is blessed with a lot of natural resources in terms of Energy and Power Generation, but we have little energy policy and are yet to develop more policies in place to strengthen NEA and build up its funding to operate more efficiently. 

"All Pacific Islands are doing better than PNG and we are yet to perform well. Once the new bill is passed power undertakers and Utilities will have to perform well to expectations or either recommendations will be made by NEA to cease operations", said Mr Gabut. 

He concluded that the NEA was recently formed and heard a lot of tasks ahead of them in terms of capacity building and formulation of its untapped energy policies.

Photo: Recent Visit by Fijian PM and Delegation to Ilimo Farm

Papua New Guinea has a warm and rainy climate, rich soil, and abundant water resources, and is blessed with naturally adaptable conditions for farming a wide variety of crops.

Despite these favourable factors, the country still relies on imports to feed its population. Among the top imported products are vehicles, fuel and heavy machinery, rice, flour, and meat, which are basic dietary staples which consumers pay inflated prices for due to a lack of domestic commercial production.

Ilimo Farm – PNG's largest vegetable greenhouse and dairy facility

In its commitment to making PNG a self-sustaining agricultural producer, Innovative Agro Industries (IAIs) Ltd has been visible in the country's agriculture sector since 2011, with projects involving farming, greenhouse, poultry, and dairy.

Since its inception IAI have introduced and have been applying Israeli technologies and expertise to PNG to help contribute to the country’s food security and agricultural productivity.

In an interview, President of Innovative Agro Industries, Ilan Weiss said: "By introducing advanced technology and best practices, productivity and quality are set to increase, resulting in better income and welfare for local residents".

In 2014, IAI established the Ilimo farm, which has been producing over 100,000 kilograms of high-quality vegetables and dairy products all year round. This compromises an entire value chain that includes seedlings production, vegetable cultivation, sorting, packaging, and even marketing.

Weiss has been leading IAI in PNG since 2011, and its goal is to address the challenges that will enable PNG to upscale its agricultural output. These include a lack of infrastructure and logistics outside of Port Moresby, financing, governance, and a commercial mindset among farmers.

“To be successful in PNG, one needs to ensure service and control of the full supply and value chain. There are no service providers or opportunities to outsource, and this is the reason that we have developed fully integrated agricultural projects.” Weiss said.

Indeed, Ilimo is one of many projects in action that are helping to transform the lives of local people. Combined, IAI’s developments have provided job opportunities to more than 1,000 Papua New Guineans from all walks of life, the empowerment spreading to hundreds of small-scale farmers and suppliers who can now rely on a steady, commercial income stream.

Such farmers include vegetable producers, in which Weiss highlighted the example of a frozen vegetable enterprise in the Highlands region that is helping to remove the reliance on imported goods.

Recent Visit by Fijian PM and Delegation to Ilimo Farm

On Saturday, 20th May 2023, Innovative Agro Industry was proud to host the Prime Minister of Fiji, Honorable Sitiveni Rabuka, his wife Madam Sulueti Rabuka, and the Fijian delegation at their state-of-the-art Ilimo dairy farm and 9-Mile vegetable farm.

The Honorable Prime Minister and delegation had an enriching experience as they explored the farms, witnessed the entire Grass-to-Glass and Field-to-Fork processes, gaining valuable insights into the farm's agricultural practices, and even had a taste of all 'PNG Made' produce from fresh milk and ice cream, fresh vegetables and fruits, as well as a variety of juices.

IAI were grateful to the Fijian PM and expressed their gratitude towards the delegation and thanked the Prime Minister for recognizing their commitment to food security, sustainability, and their aim in building strong partnerships across the Pacific.

Fijian PM Rabuka and his delegation said the Ilimo farm is one of Papua New Guinea and the Pacific Region's most advanced farms. His delegation will take home methods used at the dairy and fresh produce farms back to Fiji and have it utilised and incorporated into the agricultural space, he added.

Rabuka said: "It was so sad that we have not seen this, the possibility of opportunity in PNG over the last 50 years or so. This morning (Saturday) has been very useful, I’m sure the officials in the delegation will take a lot back with them and try and incorporate them into the agro industries at home (Fiji)."

As host to the visit, IAI’s Weiss said it was a chance “for them to showcase what we were doing in PNG, the progress and advancement we have done in the field of agriculture and food production.”

“We take a lot of pride in what we are doing, put in a lot of passion, agriculture is long-term investment,” he said, noting the Fijian delegation was impressed with what they saw.

Innovative Agro Industry is the only producer of milk, yoghurt, and ice cream in the country, and invests in vegetable production and the frozen potato chip brand Kuk, named after a heritage site in Western Highlands.

IAI Ltd Scope and Social Impacts in PNG

IAI Ltd is an affiliate of the LR Group, a leading global project development company which has been active since the 1980s.

All IAI projects integrate and implement Israeli knowledge and expertise which in turn leads to enhanced production capabilities and profitability.

The company initially set up its first fresh produce farm at Nine-Mile before expanding its footprint throughout the country. The Nine-Mile farm includes six hectares of modern greenhouses, as well as a central packaging and logistics centre.

Currently IAIs projects have generated over 1,000 new direct job opportunities employing Papua New Guineans of all walks of life, from university graduates, professionals to general staff.

The company's projects further engage hundreds of small-scale farmers that supply their Agro Industrial Centres (AICs) throughout the country, turning subsistence farmers into cash cropping farmers.

Each of the company's AICs is tailored for its location and the market demand to create a value and supply chain that will provide food security, import replacement and local capacity building. For example, in Hela Province, near the Southern Highlands, the organisation is formalising plans for a coffee industry rejuvenation development.

A memorandum of understanding was signed between IAI and partners ExxonMobil, Mineral Resources Development Company (MRDC) and local governing authorities in a public private partnership that will impact up to 5,000 people over the next five years through coffee production and marketing.

"This is key to revitalising the industry in PNG. We are looking to plant up to 15 million new coffee trees in the province, and our team has been working with partners including the Coffee Industry Corporation to develop a model that will empower the people of Hela", Weiss said.

"The project will diversify the economic base and further encourage the development of additional small enterprise. Running parallel to the coffee project will be other agriculture initiatives – as coffee takes a long time to grow, we have developed a maize programme to provide feed to our chicken farm in Hela", he added

It is this continued creation of employment and earning opportunities for staff and farmers that forms the central motivation for all of IAI’s future planning and delivery of projects.

Meanwhile, Weiss highlighted the aspect of local content when commenting on the success of building IAI’s training programmes which have resulted in PNG nationals holding key positions in all of its projects.

“The goal is to have a close to 100 percent Papua New Guinean workforce at all levels of our operations,” he says.

"A company is only as good as its workers. We are commercially oriented, obviously, and we are definitely not shy in employing innovation, but what I believe sets us apart is our staff at all levels and the passion they bring to their work notwithstanding the challenges".

References:

1) innovative-agro.com, https://www.innovative-agro.com. Innovative Agriculture (Agro) Industry Limited

2) Oxford Business Group https://oxfordbusinessgroup.com › t... Ilan Weiss, Chairman, Innovative Agro Industry: Interview

3) Loop PNG| Rabuka visits Ilimo Farm https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.looppng.com/png-news/rabuka-visits-ilimo-farm-

4) LR Group https://lr-group.com › project › ilim... Ilimo Dairy Farm, PNG - LR Group - Making Vision Reality