Photo: Chief Censor of the Office of Censorship, Mr Jim Abani
Papua New Guinea has been faced with cybersecurity issues and accessibility of indecent and harmful materials on the internet over the past couple of years.
In light of this, Chief Censor of the Office of Censorship, Mr Jim Abani, has called for a public private partnership to tackle cybersecurity issues in the country.
Speaking at the signing of an MOA between the Office of Censorship and PNG Dataco last week, Mr Abani said the partnership is vital in the fight for a safer and secure accessibility of information on the internet.
PNG Dataco Managing Director Paul Komboi reiterated similar sentiments.
Mr Abani admits the responsibility his office holds to monitor and control what's been disseminated through different media platforms has become very difficult, therefore he said a partnership is imminent to tackle this challenge and ensure that media platforms are monitored.
"The approach that we are taking now is to engage and maintain public private partnership. The government cannot work alone to ensure that its goals are achieved, we need to partner with the private sector to ensure that we deliver tangible results," Mr Abani said.
Mr Komboi said Dataco is the state-owned enterprise responsible for the supply of internet services in the country, and is quite concerned that there is no proper legislation to control and monitor what has been accessed on the internet.
However, he stated that partnering with government agencies and private companies in the ICT sector will be a way forward to control cybersecurity issues and most of the illicit content that are accessed on the internet.
"The people of Papua New Guinea need to have confidence now that government agencies are working together in partnership and collaboration with the companies in the private sector to be able to address issues relating to cybersecurity,” he said.
"These are indecent illicit materials that are coming through our network and we must put a stop to it in a way that will not deprive other useful information whilst we pursue our objective of digitalising the country," Komboi said.
The landowners of the Wafi-Golpu mine have issued a 14-day ultimatum to the government to respond to their grievances regarding the Infrastructure Development Grant (IDG) for this year, in which the state has allocated K100 million to the impact areas in the vicinity of the mine.
The landowners, who arrived from Lae, have been in Port Moresby for over two weeks and are requesting that the state release the full component of their money to their landowner associations instead of giving it to the Morobe provincial government.
Speaking to the media on Thursday (2nd March) in Port Moresby, the aggrieved Wafi-Golpu landowners said the ultimatum was issued because previous IDG allocations since 2020 have not been put to its intended purposes of developing the project impacted areas.
The landowners’ representative, Mr John Nema, said the Wafi-Golpu IDG was used by the Provincial government for other districts’ development and the rightful landowners themselves have not benefited from these funds.
"We as the principal landowners of this multibillion kina mine that will support this country have not been given our IDG," he said.
"Our people are suffering, they are missing out on the government’s services. This project is going to develop this nation, it's going to pump big money into the governments system and will boost our economy, so who are the landowners going to get support from? Our government should be helping us, the landowners. We need this IDG now!" Mr Nema said.
Nema further stated: "We don't want the money from the IDG to go to the provincial government. As of Tuesday (28th February), we have given the government 14 days notice. This notice has been signed by all principal landowner associations of the Wafi Golpu mine, and the letter has been addressed to the Finance and planning Minister and copied to the Prime Minister, his Deputy, the Morobe Governor, our local MPs and the Mineral Resources Authority (MRA)".
"We are giving them a time period of 14 days to give us a positive response before we head back to Lae. All our local villagers are supportive and behind us in this matter and they have urged us to see that the government gives us the allocated funds from the IDG," he said.
"If there is no proper response from the government and it's respective agencies, then it is going to be a different scenario and situation when we go back to our villages," Nema warned.
He called on the government to ensure that they get a share of the K100 million to improve services lacking in their respective areas.
Meanwhile, Bulolo MP Sam Basil Junior has indicated that he has received a copy of the notice stating the ultimatum, and he is willing to assist the landowners where he can in his capacity as their local member.
"I am willing to help the landowners in handing the petition over to the government of the day to address and look into," Basil Junior said.
Photo: NSL CEO and Deputy CEO in a recent radio interview. Credit: NSL
Nambawan Super Limited is expecting a negative outcome on its 2022 returns as some of its investments have come under pressure due to the combination of high inflation, supply chain disruption, and the rise in fuel and energy prices.
This also includes the introduction of the additional company tax on the BSP Financial Group, among other global economic issues that have slowed the growth of the world economy.
Nambawan Super Limited's Chief Executive Officer Paul Sayer said although the fund has tried to balance out its investment portfolio both offshore and locally, it has still experienced challenges on both sides.
"NSL employs an investment strategy that aims to diversify risks by running a balanced investment portfolio with about 20% of its investments deployed offshore and about 80% locally. This is done to de-risk the Fund when either the global or local markets perform poorly. However, last year NSL experienced challenges on both fronts, which we expect will negatively affect our returns for 2022," Sayer said.
Following the recent announcement of Bank South Pacific's (BSP) 2022 results, the largest superannuation fund in the country is expecting at least a reduction of K50 million in its 2022 returns.
Sayer outlined in a statement that this is also owing to the additional company tax that the government has imposed on the banking sector, and particularly BSP.
"Locally the Fund had been contending with the reduction of yields from State securities, which make up nearly 50% of the Fund’s Investment Portfolio. Most of the impact of the reduction in interest rates for State securities will be seen in 2023, but we are expecting at least K50m in reduced interest income for 2022 as a result," Sayer said.
Amidst the challenges, he said the fund has also managed to deliver some positive outcomes, such as the injection of over K700 million into the country through employee exits from the public sector, which included resignations, retirement and death benefit payments, and monthly unemployed benefit payments to over 12,000 members and beneficiaries of the superannuation fund.
In terms of how NSL has worked hard to ensure its members accounts were maintained and conveniently accessed for their retirement purposes, Sayer said the fund will continue to progress investments for a longer term.
“The Board aims to approve our financials and make a decision on the annual crediting rate by March 2023, which may be less than previous years but will help in continuing to grow our Members’ savings over the long term," Sayer ended.
Photo: Indian High Commissioner to PNG, Inbasaker Sundaramuthi
Papua New Guinea is one of the best and most ideal places on earth for tourists. White sandy beaches, beautiful people, and local traditions are among some experiences the country has to offer to its visitors.
Recently, Indian High Commissioner to PNG, Inbasaker Sundaramuthi, revealed that India is willing to send tourists to Papua New Guinea – however, PNG is yet to formally honor an agreement it signed with India to have visa on arrival for its nationals.
The agreement was signed in 2016, but nothing has come to fruition, as PNG mainly receives tourist from Australia, Sundaramuthi said.
He noted that India is the third largest economy in the world with a high population, and PNG can benefit immensely from India through tourism.
The Indian High Commissioner is of the view that this potential can bring in more monetary benefits to Papua New Guinea if only the government expands the tourism market to other countries in the eastern hemisphere, such as India.
In 2021, arts and cultural agencies from India and Papua New Guinea established ties in working towards signing an agreement on a cultural exchange program for 2022 – 2025.
The National Cultural Commission’s (NCC) Executive Director at that time, Mr Steven Enomb Kilnda, visited Sundaramuthi and made a presentation on the achievements, activities and plans of the commission, with a view to sealing an agreement on cultural and arts program between the two countries.
He received a positive response from the Indian envoy, who said his office will be working on a proposal to supply help to boost the efforts of NCC to deliver cultural services to the people of Papua New Guinea.
India is the second-most populous country in the world, after China, with an estimated population of 1.4 billion people, and is the seventh largest country in the world, Sundaramuthi explained.
An agreement with the Indian High Commission to grant visa on arrival would be ideal for PNG to understand and learn how India - which also has a diverse culture - promotes, develops, and preserves its largest collections of the intangible cultural heritage of humanity like songs, music, dance, theatre, folk traditions, performing arts, rites and rituals, paintings and writings.
India's high population offers the biggest market for Papua New Guinea in terms of tourist visitors annually apart from the country's traditional market Australia.
The reason for the delay is unknown, but according to the Indian High Commissioner it is important for PNG to honor such national agreements.
Sundaramuthi urged the government to work closely with his office to pave a way forward to enhance tourism in PNG and forge stronger ties between the two countries.
PNG’s visa on arrival arrangement currently in place is with Australia and other Pacific Island countries, especially those who are members of the Melanesian spearhead group.
Papua New Guinea's tourism potential is massive, and can be able to generate substantial internal revenue annually to the state coffers if only the market is expanded and much attention is given to address issues that are affecting the tourism industry’s potential, he added.
New Britain Palm Oil Limited has established and opened its new corporate office complex in the West New Britain Province.
The new NBPOL Group headquarters was officially opened in a ceremony witnessed by dignitaries including Oil Palm Minister Francis Manake and Minister for Trade and Investment Richard Maru.
The K20 million facility is situated at Mosa in the Nakanai district of West New Britain. NBPOL's chairman, Mohammed Abdul Wahab, stated that the new facility is a testimony to the company's commitment to the Agriculture sector in the province and Papua New Guinea.
NBPOL is the largest private sector employer in the country and is also the largest agribusiness operator in PNG.
Oil Palm Minister Manake, also MP for Nakanai district, in his keynote address at the opening ceremony commended NBPOL's contribution to the sector in the province and the country.
"I commend NBPOL for the standard that it has set, it has allowed us to enjoy the respected reputation on the international markets for oil palm,” he said.
"I also want to commend NBPOL for ensuring throughout the years in meeting its social obligations and maintaining high standards of environmental sound practices in the province and the agriculture sector.”
"So with this new office complex the company is now in a better position to manage its business portfolios that it is growing and expanding in the country," Minister Manake said.
Minister for Trade and Investment Maru said the government is ready to enhance a partnership with New Britain Palm Oil Limited to address development issues.
Mr. Maru highlighted that the partnership will focus on areas such as addressing law and order, power generation, and downstream processing of oil palm into finished product such as high quality cooking oil for the country's domestic market.
The minister said he wants a greater partnership between NBPOL and the government for a “win-win situation” for both entities.
He said the new headquarters in Kimbe signals to the government that NBPOL is here to stay in the long term and that it is honouring its commitment to the industry, the government and its people.
“The National Government is ready to commit resources into the tax credit scheme to address law and order issues in West New Britain Province. All we need is the province and the company to partner and work together with to reduce crime in the province,” said Mr. Maru.
He added that downstream processing was also a key priority of the Marape-Rosso Government.
"We cannot continue to import cheap and unhealthy cooking oil when we have the resources and technology here. I strongly appeal to the Board and Management of NBPOL to refine the palm oil further into high quality cooking oil in Kimbe or in Lae. Let us go down this path and Government is ready to assist to make this a reality," said the minister.
"We also do not want any more importation of sugar. The Government provided a twenty-year infant industry protection to sugar in the hope to replace all imports, but we are still importing sugar. This cannot go on. The industry should be expanded by increasing our growers or planting more sugar -- that is what the Government would like to see in our country," added Mr. Maru.
He emphasized that the new office should establish the start of a new era of enhanced relationship, one that is based on partnership between the national government and the provincial government that hosts all investments.
Meanwhile, Minister Maru said NBPOL must be thoughtful of the host province Kimbe as they have the customary right to benefit from oil palm by being involved and having shares in order to benefit from the industry.
Therefore NBPOL must anchor its future on the back of its social license to make certain that the landowners are benefiting as well as the host province.
Photo: Panguna Mine - Credit: Ilya Gridneff/AAP
The Department of Mineral and Energy Resources (DoMER) has set its strategic objectives for the next five years, according to Secretary Mr. Peter Kolotein.
These are being captured in the Bougainville Integrated Strategic Development Plan (BISDP) 2023-2027 and the DOMER Strategic Plan 2023-2027 to be launched this year.
Mr Kolotein said in 2022, the Department reviewed existing strategic directions around the departments three core functions which are; mineral resources development, energy resources development, and geohazards management.
The revised strategic directions include:
Mr Kolotein said the Department has redirected its focus towards delivering on the Toroama-Nisira government’s economic growth priorities.
“The strategies also show commitment to reviewing and developing our laws consistent with international best practice in the sector and there is commitment to enhancing the organizational capability of DOMER,” Secretary Kolotein said.
“The new strategies further provide the basis to improve on good governance, accountability and transparency and acknowledge the importance of local stakeholders and local content and revenue management considerations in fully realizing resource-sector derived social and economic development in Bougainville.”
“In 2019 we all voted 98% in favor of Independence, the economy needs to support this and a high impact economic development project is the required catalyst. Bougainville is blessed with natural resources including minerals, energy, agriculture, fisheries, to name a few. Each of the responsible ABG departments have been tasked with looking at their respective sectors for economic development opportunities to tap into for Bougainville’s benefit,” Kolotein added.
He said for the minerals sector, the most viable development potential lies in Panguna mine redevelopment. 2021 and 2022 have seen some positive progress on Panguna mine dialogue between the ABG and landowners. In 2023 there will be ongoing dialogue with landowners and other key stakeholders towards realizing this mineral sector development opportunity.
On small-scale mining, Mr Kolotein says the strategies are to enhance the economic benefits for those involved in the sector and to reduce the negative social and environmental impacts of small-scale mining.
He says ideally, it would be good to not have this activity in Bougainville at all, but the reality is that our people in those communities are involved in this activity, some depend on it even, so it an issue that needs to be addressed. The ABG is also pursuing strategies to ensure government is able to realize revenue from small-scale mining gold that leaves Bougainville.
Speaking on good governance, Secretary Kolotein appealed to mineral sector decision makers and stakeholders to respect the laws of Bougainville, especially Bougainville’s mining laws.
“Our laws set the standard and draw the line between what is acceptable and what is not acceptable in Bougainville. Investors who are not able to meet standards set by law will not be entertained.”
“I appeal to landowners and key local stakeholders to work with the Department to ensure Bougainville is established as a place with high standards so we can also attract credible investors and credible development,” he urged.
Photo: The Autonomous Bougainville Government has had a major cabinet reshuffle and appointment of new Ministers.
Three Ministers have been decommissioned with three new appointments to replace them and a reshuffle within cabinet saw several Ministers reassigned to new portfolios.
President Hon Ishmael Toroama in welcoming the new Ministers and announcing the reshuffle said this was the first major reshuffle made in his capacity as the President and chairman of the Bougainville Executive Council (BEC).
He reiterated that during past ministerial reshuffles he had stated that changes in cabinet were required to maintain the confidence and trust our people have in the government to effectively deliver services and to ensure our resolve for an independent Bougainville is not compromised.
“I have said so often that change enables progress and progress is a sign of growth, maturity and independence,” he said.
The new ministers that were sworn in today include Honorable Dennis Lokonai, Member for Bolave Constituency as Minister for Health, Honorable Junior Tumare, Member for Makis Constituency as Minister for Lands, Physical Planning, Environment Conservation and Climate Change and Honorable Robin Wilson, Member for Terra as Minister for Mineral and Energy Resources.
President Toroama welcomed the three new Ministers to the cabinet and called on them to fulfil their new responsibilities with commitment and pragmatic leadership.
He further congratulated the incumbent Ministers of the BEC through the reshuffle who have assumed new portfolios in the BEC and this included Hon. Amanda Masono as the appointed Minister for Public Service, Minister Joseph Mona as the appointed Minister for Technical Services, Minister Hon. Theonilla Matbob as the appointed Minister for Community Government and Minister Hon. Thomas Pata’aku as the appointed Minister for Education.
Toroama stressed that he expected the same commitment and energy that the incumbent Ministers had given to their former ministries in their new portfolios.
The Ministers were reminded that the Toroama/Nisira government has a focal point to introduce reforms and prepare Bougainville for independence and it required innovative and committed leadership at the political level by the respective Ministers of the cabinet to achieve that.
President Toroama reiterated that the six point strategy of his government were the guiding principles in achieving the ultimate goal of making Bougainville independent politically, socially and economically and called on the Ministers to utilize them.
“Every Minister in the Bougainville Executive Council (BEC) is expected to utilize the six point strategy to achieve your respective ministry and departments’ strategic plans and development goals,” he said.
The Six Point Strategy include:
The Ministers were reminded that the Six Point Strategy is the basis for Bougainville Government’s prerogative to achieve political independence and at the same time improve the lives of Bougainvilleans through the effective provision of basic services and generating revenue.
He called on the Ministers to work with their Heads of Department who are their foremost advisors in political matters and the collaboration must be based on mutual trust and commitment to serving this government and the people of Bougainville.
Meanwhile President Toroama extended his gratitude to the former Minister for Police and Correctional Services Hon. Thomas Tari Member for South Bougainville Veterans, former Minister for Technical Services Hon. Dr. Joe Kim Suamaru Member for Kopi and the former Minister for Mineral Energy Resources Hon. Rodney Osioco Member for Kokoda for their time and effort as ministers of the Bougainville Executive Council.
“You have served the government loyally in the last three years and I thank you for your service to the government and the people,” Toroama said.
The Cabinet Ministers have been called on to build the human resource capacity through education, improve health services through an effective Bougainville health system, provide infrastructure to improve transportation and the movement of services to create an environment that is conducive and able to sustain growth in Bougainville’s economy and prosperity in the communities.
“These are all very achievable goals if we collaborate effectively at the political and administrative levels of the Autonomous Bougainville Government.”
Photo: PM Marape and Ambassador Qian in Port Moresby
Prime Minister Hon. James Marape has reaffirmed Papua New Guinea’s relationship with the People’s Republic of China in the ‘Friends to All; Enemy to None’ diplomatic policy when he welcomed visiting Special Envoy, His Excellency Qian Bo recently (07.03.23) to PNG.
Ambassador Qian was appointed by the Chinese Government in February this year as the Special Envoy for Pacific Island Countries and starts a tour of the Pacific beginning in PNG.
At a high-level meeting at the Prime Minister’s Office, Sir Manasupe House in Waigani, Port Moresby, PM Marape and Ambassador Qian discussed various bi-lateral matters concerning their respective countries and the relationship both countries share.
“We are friend to all, enemy to none; we relate with East, West, North and South in the manner that do not compromise each other’s positions. We respect the sovereignty of nations,” said PM Marape.
“China has been a very important partner to PNG in all sense of a bilateral relationship – in politics, government-to-government, and business-to-business. We certainly welcome you to PNG. You are here in a country that is a very close friend of China.
“Your appointment as Special Envoy for the Pacific reflects your President’s commitment for a close rapport between your country and us in the Pacific. We appreciate this.”
The Prime Minister reiterated the Free Trade Agreement between the two countries and asked for the detailing of this to entail downstream processing and business operations in PNG, adding that this was the number one focus of his government.
“There is no relevance in government-to-government conversations if there is no security in my economy, and I would like China to embrace that line of thinking. We ask for a deep economic relationship that seals our people-to-people engagements, business-to-business, and on the basis of that, a good government-to-government relationship.”
PM Marape said with China’s capability in business and trade, PNG welcomed China, especially in the “upper industrial level in the economic zones”.
The Prime Minister also reiterated his earlier calls for China to consider opening up direct flights between Port Moresby and Shanghai in a co-sharing arrangement to tap into the Chinese tourism market.
“PNG will not compromise its relationship with China. Our Foreign Minister is working on our foreign policy that is coming out – key among them is the respect of the sovereignty of each nation,” he said.
PM Marape thanked Ambassador Qian for reaffirming China’s relationship with PNG.
Meanwhile, PM Marape has been invited to address the government of China in an important dialogue toward the end of this month, an offer the Prime Minister is yet to officially accept.
The invitation was delivered in person by visiting Chinese Special Envoy to the Pacific, Ambassador Qian Bo this morning in Port Moresby.
PM Marape in return thanked Ambassador Qian for the invitation as he paid special compliments on Chinese President Xi Jinping with whom he had a one-on-one dialogue during his visit to Bangkok for the Asia-Pacific Economic Cooperation meeting at the end of last year.
“I have great respect for President Xi Jinping. I appreciate the invitation to engage at the leadership dialogue. It is a high honour for PNG to be picked possibly among many other nations.
“I want to also offer my congratulations on his re-election for an historic third term.
“Chinese stability ensures global world economy has a stable outlook. That is the contribution his re-election has given to the world.
“All economies depend on the stability of certain parts of the world and China is the leader in trade and commerce in our region. Where there is stability in leadership, the rest of the economies that depend on China can focus, plan and work better together".
PNGX, Papua New Guinea’s national stock exchange, has today released a proposed new Corporate Governance Code for Listed Issuers for public consultation.
PNGX is proposing to introduce a new Corporate Governance Code for the guidance of Boards of listed issuers.
The proposed Code contains 17 Standards. Within each of the 17 Standards are a number of Recommendations.
Each PNGX listed company is required under the Listing Rules to have corporate governance policies which are appropriate having regard to the nature and scale of its operations. Each company should address each Recommendation set out in the Standards. It is also required to include in its annual report a corporate governance statement or the URL of the page on its website where a corporate governance statement is located.
While the proposed Code has been developed by reference to global standards and practices adopted in other markets, it has been adapted to have regard to the characteristics of the PNG market and to be fit for purpose for the country.
The Standards and Recommendations are not prescriptive. Each company is at liberty to either adopt the Standards and Recommendations or not. However, as they are standards of expectations established through a mechanism of industry and stakeholder consultation, it is expected that directors should disclose in the company’s annual report the extent to which the company has adhered to the Standards and Recommendations, and where there has been no or partial adoption, to give reasons. This “if not, why not” approach is common in markets globally.
Whilst the scope of the Code is limited to listed companies, it is hoped that the governance standards become a benchmark for corporate governance by the private sector in PNG generally. They may also have relevance to governance of SOEs.
The draft Code has been developed based upon the existing PNGX corporate governance standards and with the assistance of the International Finance Corporation (IFC) and the UN Sustainable Stock Exchanges Initiative, which PNGX joined in April 2022.
IFC has provided an expert education program relating to the development of environmental, social and governance (ESG) rules to help create appropriate disclosure standards for PNGX and its companies. Expert training on board gender diversity was also provided. This laid the foundations for a new corporate governance code that, importantly, factors in gender and other elements specific to PNGX. The IFC input has been integral to aligning the proposed standards with international best practice for developing markets and the revised OECD Principles of Corporate Governance to be issued in 2023.
PNGX has solidified its commitment to transparency and sustainability by becoming a partner exchange of the Sustainable Stock Exchanges Initiative which brings together over 110 stock exchanges around the world that are committed to promoting sustainable development. This supports PNGX to help develop the Papua New Guinea capital markets and support the sustainability of the PNG economy.
The Pacific Private Sector Development Initiative (PSDI) also contributed to the development of the corporate governance standards. PSDI is an Asian Development Bank (ADB) technical assistance program in partnership with the Governments of Australia and New Zealand.
PNGX recognizes the number of sustainability challenges that an emerging economy like Papua New Guinea face, which include access to capital for SMEs, corporate governance and transparency, climate change, gender equality, gender-based violence, and environmental sustainability. Addressing sustainability factors is of increasing importance to obtaining access to finance in today’s world and PNGX is committed to it.
The majority of the Recommendations are directed towards matters specific to internal governance and controls of listed companies consistent with international practices. In addition, they include a number of recommendations relating to social challenges within Papua New Guinea including policies supporting equality of gender representation and remuneration, return to work practices and gender-based violence.
PNGX Chairman, Mr David Lawrence, said “Efforts to enhance the corporate governance standards in PNG are one contribution PNGX can make, in partnership with like-minded stakeholders, to lift the reputation of PNG, improve its ability to attract investment and lower the cost of capital for the country. In a time of considerable global disruption arising from pandemics, war and inflation, establishing a vision and standards for the future become particularly important.”
PNGX General Manager, Ms Elizabeth Wamsa, said “The Code includes Recommendations to encourage a broader pool of directors for PNG companies, especially female directors. The Recommendations also include expected disclosures regarding gender pay equality policies, ‘return to work’ policies (for example, women returning to work after childbirth) and gender-based violence policies”.
“Good corporate governance enhances the performance of companies and increases their access to outside capital. It is great to see PNGX proposing these new, world class standards, which have been adapted for the local market,” said IFC Resident Representative for Papua New Guinea, Markus Scheuermaier. “These new measures are also innovative as they include standards around workplace response to gender-based violence, and on childcare. We are proud to support PNGX in this groundbreaking initiative.”
Mr Jeremy Cleaver, Senior Finance Sector Specialist, Pacific Private Sector Development Initiative (PSDI), Asian Development Bank said “the Standards in the Code are very robust and detailed and we are supportive of them. The positive results of PNGX working with IFC and the Sustainable Stock Exchanges Initiative come through clearly, particularly in terms of gender and climate related issues. We are happy with the Standards and fully support them.”
PNGX is releasing the proposed Corporate Governance Code for Listed Issuers for consultation and feedback from interested parties. The proposed Corporate Governance Code for Listed Companies is available on the PNGX website. The consultation period will be open for 2 months.
Santos recently announced the Papua LNG joint venture has launched fully-integrated front-end engineering and design (FEED) for the Papua LNG project in Papua New Guinea.
Papua LNG is expected to have liquefaction capacity of up to six million tonnes of LNG per annum with first production expected by the end of 2027 or early 2028.
Following pre-FEED studies, the Papua LNG partners have selected a concept using four electric LNG trains (e-trains) with a combined capacity of four million tonnes per annum to be developed within the existing PNG LNG project site. Papua LNG has also secured access to up to two million tonnes of existing liquefaction capacity from PNG LNG.
Integrating the Papua LNG midstream development within PNG LNG maximises the value of both projects and delivers increased capital efficiency by reducing upfront capital expenditure and maximising integration synergies. PNG LNG will receive an access fee, pro-rata opex sharing and ongoing processing toll revenue that compensates PNG LNG for making the capacity available.
Selecting e-trains and re-injection of reservoir CO2 will reduce the carbon intensity of the project.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said Papua LNG FEED entry was consistent with Santos’ strategy to backfill and sustain its core natural gas assets.
“The concept selected for Papua LNG maximises value through midstream integration with PNG LNG to deliver increased capital efficiency and lower operating costs, consistent with our disciplined operating model,” Mr Gallagher said.
“FEED entry for Papua LNG is a significant step for the project and we are working closely with our partners, the PNG government, communities and local companies to deliver new jobs and help support the local economy.”
The selected concept for Papua LNG is expected to have a lower capital expenditure outcome than the previous concept. Costs will be refined during the FEED phase and the project participants intend to explore project finance opportunities for a portion of the project cost.
Santos holds a 22.8 per cent interest in Papua LNG along with joint venture partners TotalEnergies (40.1 per cent and operator) and ExxonMobil (37.1 per cent). The State of Papua New Guinea may exercise a back-in right for up to a 22.5 per cent interest at the final investment decision, which is planned by the end of 2023 or early 2024. Should the State exercise its full back-in right, Santos’ interest in the project would reduce to 17.7 per cent.
Santos also has a 42.5 per cent interest in PNG LNG and in September 2022 announced a conditional agreement to sell a five per cent interest in PNG LNG to Kumul Petroleum Holdings Limited (Kumul) for asset value of US$1.4 billion. Completion is subject to customary conditions including necessary regulatory approvals and Kumul securing financing.
Photo: Petroleum Minister Hon. Kerenga Kua, PM Marape and TotalEnergies Senior VP Asia Pacific Exploration & Production Julien Pouget at the launching.-PM’s Office Media
TotalEnergies, operator of the project, announces the launch of the fully integrated Front-End Engineering and Design (FEED) for the Papua LNG project.
Following pre-FEED studies, in order to maximize synergies and minimize the costs, Papua LNG partners have selected a concept including four electrical LNG trains (e-trains) with a total capacity of 4 Mt/y. These trains will be built within the existing liquefaction plant of PNG LNG in Caution Bay. Papua LNG has also secured the use of 2 Mt/y of additional liquefaction capacity in the existing trains of PNG LNG. By selecting e-trains and re-injecting the native CO2 produced into the reservoirs, Papua LNG demonstrates its commitment to the reduction of the carbon intensity of the project. The construction and operation of the electrical liquefaction trains will be delegated to ExxonMobil, operator of the PNG LNG project since 2014.
In the framework of this integration between Papua LNG and PNG LNG, TotalEnergies is pleased to also announce the signature of a head of agreement with JX Nippon in the view to sell a 2% interest (post Kumul back-in right) in Papua LNG. JX Nippon is an affiliate of ENEOS and already holds a 4.7% interest in PNG LNG.
TotalEnergies holds 40.1% interest in Papua LNG, along with its joint venture partners ExxonMobil (37.1%) and Santos (22.8%). The State of Papua New Guinea may exercise a back-in right of up to 22.5% interest at the Final Investment Decision planned by end 2023- early 2024. Production start-up is scheduled four years later.
“The integrated FEED entry is a significant step in the development of the Papua LNG project. TotalEnergies and its partners are working closely with the Government, the communities, and the local economic network to ensure the Papua LNG Project serves as a landmark on the societal and environmental front for the LNG industry”, said Julien Pouget, Senior Vice President Asia Pacific for Exploration & Production and Renewables at TotalEnergies. “This project, strongly supported by the Papua New Guinea State, will contribute to the security of LNG supply, especially for customers in Asia, where LNG can substitute coal for power generation and participate in a substantial reduction of CO2 emissions in the region.”
“The Papua LNG Project is a project of national significance for Papua New Guinea and will stimulate business confidence and provide a significant impetus for our economy” said the Honorable Kerenga Kua, Minister of Petroleum and Energy of Papua New Guinea. The Marape-Rosso government places high priority on the delivery of Papua LNG project, we have an improved deal for our people, and improved contribution of our national contractors and work force. The government strongly supports the Papua LNG project and encourages all stakeholders including project partners to work diligently to deliver an “on time-on budget” project.”
Photo: PM Marape being shown around the Gabon SEZ (GSEZ) at Nkok.-Pictures by PM’s Office Media
Prime Minister Hon. James Marape says there is so much Papua New Guinea can learn from Gabon in Central Africa about Special Economic Zones (SEZs).
An impressed PM Marape said this today after visiting the Gabon SEZ (GSEZ) at Nkok, a multi-sectoral industrial park established in 2010, and located 27 km from capital Libreville. On 1126 hectares (ha), it includes an industrial zone, a commercial zone and a residential zone. The SEZ brings together 144 companies from 19 countries operating in 22 industrial sectors, including a cluster dedicated to wood processing which brings together 84 companies.
PM Marape was given a comprehensive briefing by Gabonese managers of GSEZ before a tour of the wood processing cluster.
The Gabon SEZ has: • Created 16,000 direct and indirect jobs; • Exported US$265 million worth of products exported annually; • Processed 820,000 cubic metres (m3) of timber in 2020; and • Generated US$1.7 billion in direct foreign investments.
“This is the path I have been envisaging since I took office and I now ask those in the forestry industry to switch to downstream . We will still stick to 2025 as cut off mark for round log exports,” PM Marape said.
“We will have four log ponds in our country – Port Moresby , Rabaul/Gazelle , Lae and Vanimo – and State will start off by exercising its rights to get 30 per cent of all round logs harvested to feed our downstream ambitions.
”I am aware the industry is feeling the pinch of extra taxation and there will be a meeting this month on the tax issue as well as the push for downstream and sustainable logging in PNG.
”Logging, fisheries , livestock and agriculture are sectors of the economy that can create more businesses opportunities and employment for our people.”
GSEZ started in 2010 as a joint venture between Olam International Ltd, the Republic of Gabon, and Africa Finance Corporation with a mandate to develop infrastructure, enhance industrial competitiveness and build a business-friendly ecosystem in Gabon.The SEZ offers a unique fiscal status which provides a stable and competitive economic climate for companies intending to settle. Presently, the zone is home to more than 144 investors coming from 19 different countries. GSEZ is rapidly emerging as West Central Africa’s manufacturing hub.
NKOK SEZ was ranked the best industrial zone of the world in wood sector by FDI Intelligence-Financial Times in 2020.
“There is so much that PNG can learn from Gabon about SEZs. PNG has so much forest resources in PNG, which is exported as round logs, rather than going into downstream processing as Gabon is doing,” PM Marape said.
“My visit to Gabon is very timely, given our vast forest resources, and that we are now venturing into establishment of SEZs.
“We will be looking to draw from the experience of Gabon in establishment of our own SEZs dedicated to downstream processing of our forest resources.”
Covered 85 per cent by forest, on 22 million hectares, Gabon has a stock of exploitable wood of 130 million cubic metres (m3) of Okoumé and 270 million m3 of other species. GSEZ has enabled the country to develop and modernise a wood sector that was previously not very promising by relying on specialisation, one-stop services and alignment with the national development strategy. With 3.4 million m3 produced each year, Gabon has become Africa’s leading producer and exporter of tropical plywood, and the world’s second largest exporter. The country intends to go further in adding value to its wood products by transforming GSEZ into a centre for the manufacture of “Made in Gabon” furniture by 2025.
Photo: PM Marape with France President H.E. Emmanuel Macron in Libreville, Gabon.
Prime Minister Hon. James Marape says his bilateral meeting with France President H.E. Emmanuel Macron is very good for relationships between France and Papua New Guinea.
He said this after the two leaders met in Libreville, Gabon, on the sidelines of the ‘One Forest Summit’ on Thursday, March 2, 2023.
It was President Macron, in fact, who invited PM Marape to attend the ‘One Forest Summit’ in Gabon – its former colony - during their last meeting at APEC 2022 in Bangkok, Thailand, last November
PM Marape said the meeting covered matters of sustainable logging, climate change and France assistance to PNG in other matters. This includes defence cooperation, especially in areas of training, between the two countries.
“I am hoping for a partnership with the France Government to see similar projects like what is being done in Gabon, including downstream processing of logs,” PM Marape said.
“The Government of France does not have any direct projects in PNG relating to forestry, conservation, biodiversity or carbon markets. France, however, is part of the European Union (EU), and there is an existing EU-Pacific Green-Blue Alliance.
“The EU is also preparing a new cooperation project on ‘Forest, Climate Change and Biodiversity (FCCB)’ in PNG that is in its consultation stage.
“The new initiative is a concrete implementation of a ‘Global Gateway’ in the Pacific Region, as it will offer sustainable partnership for a green and digital transition, focusing on the ‘Green Deal.
“It is fully in line with the EU strategy for cooperation in the Indo-Pacific, which identifies the ‘Green Transition’ as a priority area of work with partners in the Pacific. The new project aims to support PNG in the areas of forestry, climate change and biodiversity.”
Photo: PM Marape meeting with Frans Timmermans, Vice President of the European Commission, on the sidelines of the One Forest Summit in Libreville, Gabon, recently.
Prime Minister Hon. James Marape has welcomed a new cooperation project with the European Union on ‘Forest, Climate Change and Biodiversity’ in Papua New Guinea.
He welcomed the project during a meeting with Frans Timmermans, Vice President of the European Commission, on the sidelines of the One Forest Summit in Libreville, Gabon.
“This project comes at the right time to support us with the preservation of our forests and biodiversity and help us to fight climate change through carbon markets among other green growth initiatives,” PM Marape said.
“Papua New Guinea has extensive forests and biodiversity that we want to properly harness and develop to support sustainable livelihoods for our rural communities.
“The action supports our ambition to ensure sustainable management of our natural resources and our goal to move to a green, carbon neutral economy by 2050.”
On the occasion of the ‘One Forest Summit,” the EU and PNG invited other Team Europe members to join these efforts and work together to support PNG in protecting its forests and increase resilience against climate change.
The EU acknowledged PNG’s leadership at the global stage on climate change and biodiversity and expressed interest to partner bilaterally as part of efforts to raise ambition on climate action.
With approximately 78 per cent of its landmass covered by forest, PNG is one of the most biodiverse countries in the world. It is home to the third-largest tropical rainforest in the world and more than 7 per cent of the world’s biodiversity.
The new project aims to support Papua New Guinea in the area of forestry, climate change and biodiversity around these main axes:
The European Union and the Pacific region have a shared ambition of achieving a low-carbon and resilient global economy by 2050. The EU-Pacific Green-Blue Alliance, launched at COP26 in Glasgow in November 2021, focuses on climate action, resilience, and sustainable use of natural capital as the basis for inclusive and sustainable economic development, while respecting the rule of law, human rights and fundamental values.
As part of the EU-Pacific Green-Blue Alliance, the EU is preparing a new cooperation project on ‘Forest, Climate Change and Biodiversity’ in PNG. The new initiative is a concrete implementation of Global Gateway in the Pacific region, as it will offer sustainable partnership for a green and digital transition, focusing on the Green Deal. It is also fully in line with the EU strategy for cooperation in the Indo-Pacific, which identifies the Green Transition as a priority area of work with partners in the Pacific.
Photo credit: International Trade and Investment Ministry of Papua New Guinea
Minister for International Trade and Investment, Hon. Richard Maru wants greater partnership between New Britain Palm Oil Limited (NBPOL) and the Government. Minister Maru expressed this sentiment while giving the keynote address at the recent official opening of the new NBOPL headquarters in Kimbe, West New Britain Province on Thursday. Minister Maru encouraged NBPOL to keep the spirit of partnership with the Government to help the Government address development issues for mutual benefit. He encouraged partnership with NBOPL in the areas of addressing law and order, power generation, and further downstream processing of oil palm into finished high quality cooking oil for the domestic market.
“The National Government is ready to commit resources into the tax credit scheme to address law and order issues in West New Britain Province. All we need is the province and the company to partner and work together with to reduce crime in the province,” said Minister Maru.
Minister Maru added that downstream processing was also a key priority of the Marape-Rosso Government.
“We cannot continue to import cheap and unhealthy cooking oil when we have the resources and technology here. I strongly appeal to the Board and Management of NBPOL to refine the palm oil further into high quality cooking oil in Kimbe or in Lae. Let us go down this path and Government is ready to assist to make this a reality,” said Minister Maru.
“We also do not want any more importation of sugar. The Government provided a twenty-year infant industry protection to sugar in the hope to replace all imports, but we are still importing sugar. This cannot go on. The industry should be expanded by increasing out growers or planting more sugar- that is what the Government would like to see in our country,” added Minister Maru.
Minister Maru said he was grateful that NBPOL had developed a cattle industry.
“The Government is ready to partner NBPOL and locate savannah land for cattle industry. We cannot continue to import beef from Australia and New Zealand when we have the land to rear cattle and expand existing farms. The Government would also like to encourage NBPOL to look into the production of swine and chicken feed. We cannot continue to import feed for poultry and pig rearing,” said Minister Maru.
Minister Maru also encouraged the NBPOL Board and Chairman to be a lot more proactive as a responsible corporate citizen to find solutions on how they could assist with increasing their power to stop the frequent blackouts in Kimbe when the company has electricity supplied by its biogas plant.
“The country needs cheap and reliable power, and the Government is looking to partner with companies such as NBOPL. We have to find a way to solve this issue of constant power black outs for our mutual benefit. If it means to bring more private sector partners to invest in this space then let it be,” said Minister Maru.
“The world is in transition and biofuel will be the next big thing. Prices of palm oil will go up and countries like Indonesia are making decisions to go down that path in a big way. There is real opportunity for us to expand the industry here and look into biofuel,” said Minister Maru.
“We need to seriously look at partnership between NBPOL and the PNG Government. We need employment and technology; NBPOL have it all, they can be an important partner,” added Minister Maru.
Minister Maru thanked the Chairman and the Board of NBPOL for making the very important decision to bring its headquarters back to Kimbe.
“This signals to Government that NBPOL is here to stay and that it has a long-term commitment to the industry, the Government, and the people. Oil Palm is the most important industry in the agricultural sector and a K20 million investment is significant. On behalf of the National Government, I want to thank NBPOL for bringing back its headquarters to where it should be, in West New Britain Province,” said Minister Maru.
“The opening of this new office should signal the start of a new era of enhanced relationship with PNG, one that is based on partnership between both the National Government and the Provincial Government that host all the investments,” said Minister Maru.
Minister Maru added that NBPOL should think of the host provinces if it was planning to offload some of its shares.
“They (the host provinces) should be given equal rights to take up shares. They have the right to benefit from oil palm by being involved and having shares and benefiting from hosting the industry,” said Minister Maru.
“NBPOL must anchor its future on the back of a social license- make sure that the landowners are benefiting, and the hosting provinces are also benefiting,” added Minister Maru.
As part of continuously improving service to members, the National Superannuation Fund, Nasfund, recently undertook a review of its values.
These values were launched by Nasfund Board Chairwoman Tamzin Wardley on Saturday February 18, 2023.
Speaking at the occasion, Chairwoman Wardley encouraged each Nasfund staff to take ownership of each value, and put them into practice at all times.
“These are exciting times for Nasfund.
Each of us have a responsibility to ensure that our conduct reflect these values which we have launched.
When put into practice in our daily duties, upholding these values will ensure that we continue to foster a safe, healthy working environment, so that we continue to deliver positive results for our members.”
The values launch also provided an opportunity for staff to hear from outgoing CEO Ian Tarutia, and Incoming CEO Rajeev Sharma.
In his address, Mr. Sharma encouraged all Nasfund staff to remain committed to service to members, whilst upholding these values. “For many years, Nasfund has led the way in service delivery, and returns to members. But we will not rest on our laurels – we must continue to improve each day.
These values form the foundation of what we want to achieve, for our organization, but more particularly, for our members.
We will look to build on this, so that our members continue to benefit today, and be ready for tomorrow.”
Photo: Ramu Nickel project women landowners receiving funding assistance from MRA
Women landowners of mining projects in the country, will be given more recognition in terms of business opportunities from mine derived benefits going forward, said Acting Managing Director of the Mineral Resources Authority (MRA), Jerry Garry.
Mr Garry was speaking during the launching of the Ramu Nickel Project women landowners’ micro-credit scheme in Madang on February 23, 2023.
Mr Garry said that for far too long, women had been missing out on their share of benefits deriving from projects. He said in most cases, when menfolk receive benefits, they do not consider their women’s economic and development aspirations and needs resulting in poor quality of life for families. Mr Garry said women are the backbones of families, societies and that it is women who make us men, who we are and therefore must be given better opportunities.
The launching of the scheme coincided with the signing of the contract for the scheme, between the MRA, Mibank and the four women associations of Kurumbukari, Inland Pipeline, Maigari and the Basamuk. Another highlight of the event was the announcement of a seed capital funding of K490, 000.00. This fund will be parked with the Mibank Madang Branch where, the women will apply for small loans at affordable rates. The fund will be used as an equity support of 75% to each loan application, submitted by applicants, using the MiBank’s loan appraisal system.
The types of business activities these women may venture into will vary from project to project and can include street vending, trade stores, bakeries, small scale mining, fisheries, agribusinesses such as poultry and egg farms, piggery farms, growing of cash crops.
The scheme is a national government initiative under the Public Investment Program (PIP), aimed at economically empowering women landowners of selected mining projects, so that they can participate meaningfully in small business opportunities presented by their respective mining projects directly and indirectly. Given the current situation where many landowner women in mining communities are often overlooked by their menfolk in terms of wealth and resource distribution resulting in poor living standards, this project is intended to economically empower the women and strengthen their capacities to make sustainable improvements in their living qualities.
The women from Ramu project are the third group of mining project landowners in the country, to be involved in the scheme. The women associations of the Hidden Valley and Simberi projects, were the first and second associations respectively, to sign their contracts last year.
The women collectively expressed joy saying that this project would contribute immensely towards improving their livelihoods going forward. They thanked the National Government, MRA and other stakeholders involved.
Ramu Nickel Mine’s Community Affairs representative Albert Tombe, told the women that the scheme was a great sustainable project for them, as the mine would shut down one day, and that they had to rely on other means of supporting their families when that day comes.
MiBank’s Madang Branch Manager Solomon Singur told the women that they were lucky to have this opportunity which most small businesses in the country did not have when it came to applying for loans. He said small businesses did not normally have equity to put as collateral which in their case, the government had already made it available through the scheme.
Photo credit: World Bank / Denisa Maňásková, 2023
The World Bank has predicted that Pacific economies will return to growth this year after three years of economic contraction due to the COVID-19 pandemic. Stephen Ndegwa, the Country Director of Papua New Guinea and the Pacific, noted that "Pacific countries' economic prospects were clearly improving after three years of the Coronavirus (Covid-19) lockdown." Ndegwa further stated that "the Pacific is well placed to accelerate its post-Covid-19 economic recovery throughout this year." However, the report also cautioned that "fiscal balances, debt sustainability, and inflation will remain a concern."
The World Bank's Inaugural Pacific Economic Update report stated that "Pacific nations will have to consider reforms and policies to boost equitable growth and sustainable investments." The report predicted that "Palau and the Solomon Islands will see an 18 per cent and 2.3 per cent (slow growth) growth in Gross Domestic Product respectively on the back of a resurgent tourism industry." However, "the closure of borders from 2020 to 2022 during the Covid-19 pandemic has eased, but left a severe blow to the tourism-dependent economies of Fiji, Vanuatu, Samoa, Tonga, and Palau."
While "Pacific economies can expect growth this year," the region should prepare for shocks from inflation and global uncertainty. David Gould, the World Bank's lead economist for the Pacific, noted that "after being severely hit by the Covid-19 and tepid signs of recovery in 2022, Pacific economies can expect growth this year." Gould explained that "for example, in Fiji, after three years of economic contraction, growth in 2022 is estimated to have climbed to 15 per cent, yet output is expected to remain below the previous years until 2024."
Furthermore, the report highlighted that "Pacific Island countries have not been immune from the economic impacts of the war in Ukraine." The region has been dealt another shock as "rising global energy and food prices have strained Pacific budgets, added to inflation, and ultimately increased the cost of living for families across the region." Therefore, "Pacific nations will have to consider reforms and policies to boost equitable growth and sustainable investments," considering the challenges posed by the pandemic and other external factors.
As Stephen Ndegwa said, "Pacific countries' economic prospects are clearly improving, but we need to continue to take action to ensure that our economies can grow sustainably and equitably."
Photo credit: PNG Tourism Promotion Authority
Rodney Begley, the acting CEO of PNG Ports Corporation, has announced that Papua New Guinea will be receiving an exceptional number of cruise ships this year. Speaking at a business breakfast forum with the Port Moresby Chamber of Commerce and Industry, Mr Begley revealed that the country is expecting 100 cruise ships to visit, which is a significant number. The ships will primarily dock at three locations - Alotau, Conflict Island, and Rabaul.
Mr Begley explained that his team had been working tirelessly to ensure that the country is prepared for the influx of tourists, especially with regards to Covid-19 protocols. "Two to three months ago, we flew down a small delegation to Australia and they worked through all the Covid protocols," he said. "It's an ongoing process, generally, large cruise ships come to anchor and leave."
He also mentioned that PNG Ports does not invest directly in cruise ship terminals. However, they invest in facilities to ensure that the ships can dock safely at the ports. "It's exciting, 100 cruise ships, that's a lot of tourists spending money here in PNG," he said.
Mr Begley emphasised the importance of everyone's responsibility in ensuring that the tourists have a safe and enjoyable experience in Papua New Guinea. "It's everyone's responsibility, the people on the streets selling goods, the police providing a safe environment for our tourists to enter the country," he said.
Lastly, he mentioned that PNG Ports had been working closely with the tourism industry and the Department of Health to ensure that the cruise companies are complying with the health protocols to enter the country safely. "We have worked very closely with tourism, and we have worked with the Department of Health to ensure that they are working closely with the major cruise companies so that when passengers arrive, they are fully vaccinated and covered all the health protocols to enter the country safely," he said.
In conclusion, Papua New Guinea is expecting an unprecedented number of cruise ships this year. PNG Ports Corporation, together with the tourism industry and the Department of Health, is working tirelessly to ensure that the country is prepared for the influx of tourists and that they have a safe and enjoyable experience. As Mr Begley puts it, "It's everyone's responsibility."
Photo: Greg Pawson. Credit: Kina Bank Facebook Page
Kina Bank's CEO and Managing Director, Greg Pawson, has called for more competition in the banking sector in Papua New Guinea. According to Pawson, the recent 50% increase in corporate income tax to 45% will make it difficult for other banks to compete. He also stated that the decision to increase the tax was made without considering the true consequences of how it would impact the ability of a strong challenge brand to continue its growth agenda.
In a statement made while announcing Kina Bank's 2022 financial year results, Pawson expressed disappointment in the tax increase and described it as a hindrance to the remainder of the bank's 2025 strategic plan. He said:
“The announcement by the government in the December budget for a 50 per cent increase in Corporate Tax for Commercial Banks to 45 per cent is disappointing and a hindrance in the remainder of the 2025 strategic plan. Not only is this quite possibly one of the highest tax rates in the world, it targets a sector of the market that is critical for supporting PNG’s economic growth aspirations."
Pawson stressed that more banking competition was needed in the country, but the additional tax would make the one major bank stronger and weaken competition due to a lack of size and limited investment to expand and grow. He said:
“More banking competition is required in PNG, however, this additional tax impost will simply make the one major bank stronger and weaken competition due to a comparatively lack of size and therefore limited investment to expand and grow.”
Pawson further commented that many organizations in the country need to pay taxes, but they are not doing so. He urged the Internal Revenue Commission (IRC) to improve its underlying efficiency to ensure that those businesses pay taxes and bring more business from the informal sector into the formal sector. Currently, Kina Bank pays K32 million in taxes. He said:
“The IRC (Internal Revenue Commission) has the mandate to improve their underlying efficiency to ensure that those businesses are paying tax and bringing more business from the informal sector into the formal sector.”
Photo credit: PNG Office of the Prime Minister Facebook Page
Prime Minister Hon. James Marape met with officials of TotalEnergies and Compagnie des Bois du Gabon (CBG), in Libreville, Gabon, recently.
He was accompanied by Forests Minister Hon.Salio Waipo and Environment and Conservation Minister Hon. Simon Kilepa.
Compagnie des Bois du Gabon (CBG) has partnered with France-headed global oil, gas, and energy major TotalEnergies SE to develop a forward-looking model of sustainable and responsible forest management that combines sustainable harvesting, biodiversity conservation, and long-term carbon storage.
CBG is a key player in Gabonese forestry, recognized for its responsible and sustainable management of 600, 000 hectares (ha) of forest, certified to the highest international standards of the Forest Stewardship Council (FSC), and for its ongoing contribution to protecting biodiversity.
PM Marape wants such an arrangement in PNG.
“TotalEnergies and CBG have a very good partnership here in Gabon,” PM Marape said after the meeting.
“They are also in partnership with the government here on land use in regards to forest management.
“Such a partnership has already started in Papua New Guinea at Kuriva in Central Province.
“TotalEnergies is also looking at more such partnerships in PNG to offset their carbon footprint (through the Papua LNG Project).
“I also want major oil and gas companies in PNG, such as ExxonMobil and Santos, to get involved in such partnership.”
Meanwhile, the two-day ‘One Forest Summit’ in Libreville started today.
The Libreville meeting, on 1 and 2 March 2023, aims to lead to new commitments and concrete initiatives concerning the advancement of knowledge and the promotion of scientific cooperation on forest ecosystems, the promotion of sustainable value chains in the forest sector, the development of innovative sources of financing, notably by exploring market-based solutions for biodiversity conservation.
The One Forest Summit also expects to promote solidarity between the world’s three major tropical forest basins, the Congo Basin, the Amazon Forest and the forests of South East Asia including PNG.
Photo: OTML Acting Chief Executive Officer Mark Thompson (fourth-left), General Manager Mining Derrick Kelly (far- right) with H.E Supandy and MP James Donald (centre) after the mine tour.
The Ambassador of Indonesia to Papua New Guinea and Solomon Islands, His Excellency Andriana Supandy, recently visited the Ok Tedi mine on February 22.
Ambassador Supandy, together with his delegation was accompanied by Member for North Fly and Vice Minister for Mining and Border Development James Donald as part of the ambassador’s tour of the Western Province.
During the visit, OTML Acting Chief Executive Officer, Mark Thompson presented a brief overview of the Company’s operations.
Mr Donald said given that Western Province’s land mass shares a sizable portion of the PNGIndonesian border, it was only right that the province strengthens existing bi-lateral ties both countries have.
Ambassador Supandy was impressed with OTML’s strong operations despite numerous global challenges recently such as the COVID-19 pandemic, the high fuel costs, and the Russian-Ukraine conflict that has impacted world commodity prices.
“I am impressed with OTML’s efforts to have mitigated the impacts of these many challenges and your business outlook over the next decade,” H.E Ambassador Supandy said, adding Ok Tedi is a very important strategic project for Papua New Guinea.
Photo: Sir Kostas Constantinou
The BSP Financial Group has announced the retirement of group chairman, Sir Kostas Constantinou, effective February 28. Sir Kostas joined the Bank of South Pacific Limited (now BSP) in April 2009 as a director and was appointed chairman in February 2011. During his tenure, he led BSP through many significant milestones in Papua New Guinea and across the Pacific and South East Asia.
Group acting CEO, Ronesh Dayal, expressed appreciation for Sir Kostas’s leadership, stating that some of the key achievements during his tenure included expanding BSP’s banking operations through acquisitions in several Pacific countries, establishing asset finance businesses in Fiji, PNG, and the Solomon Islands, entering the finance markets in Cambodia and Laos via joint ventures, and establishing a new life insurance business in PNG. In May 2021, under Sir Kostas's leadership, BSP achieved a dual listing on the Australian Securities Exchange (ASX).
Sir Kostas expressed his gratitude for the support of his fellow directors and for the opportunity to drive BSP’s growth and expansion in the region. He wished the board and BSP continued success in the future.
Robert Bradshaw will replace Sir Kostas as BSP’s Board chairman. Mr Bradshaw joined the BSP board as a non-executive director in 2017 and served as chairman of BSP’s Remuneration and Nomination Committee. The BSP board and management expressed confidence in Mr Bradshaw’s ability to lead the company into the future.
Photo credit: PNG Forestry Authority
The PNG Forest Authority and the Australian Department of Agriculture, Fisheries and Forestry have signed a memorandum of understanding (MoU) aimed at transforming and reforming the forestry sector. The MoU outlines key platforms for collaboration, including the review of forestry legislation, the regulatory framework for forest carbon, technical advice to promote downstream processing and market access to Australia, building capacity for timber testing and new forest products, and increasing technical support to the Forest Research Institute.
Forestry Minister Salio Waipo praised the Forest Authority management and board for their successful negotiations and highlighted the significance of the MoU. "The MoU is a partnership understanding between PNG Forest Authority and the Australian Department of Agriculture, Fisheries and Forestry which will promote, strengthen and implement the joint decision of both partners to maintain close cooperation to support the advancement of the forestry sector and the forest industries of Australia and PNG," he said.
Mr. Waipo emphasized the importance of the MoU as the beginning of a greater reform for the forest sector in years to come, stating that the MoU reflects the common shared values of promoting economic development in the region.
"This MoU will enable our countries to work together towards sustainable forest management, protecting the environment, and advancing the livelihoods of our people," he added.
In light of the MoU, it is clear that the PNG Forest Authority and the Australian Department of Agriculture, Fisheries and Forestry are committed to working together to ensure a sustainable future for the forestry sector in both countries.
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