OILMININGCOMMENTARYNEWSANDGAS MARAPE IS RE-ELECTED AS PNG PRIME MINISTER CONNECT PNG: THE ROAD TO TOKEOAGREEMENTPORGERADEVELOPMENT?SHAREHOLDERSSIGNEDDIVIDENDPAYMENTPDL7LANDOWNERS / page 10 / page 26 / page 52 / page 78
The Pasca A oil platform in the Gulf of Papua. PhotoTwinzacourtesyOil
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www.pngbusinessnews.com • Issue 3 2022 9 Looking for professional services for Contact our local team to discuss your • Contractor Recruitment • Manpower & Labour Hire • Payroll & • Visas & Work Permit • Welcome Support and In-Country Services • Meet & Greet & Services Tel: (+675) 321 9405 Email: recruitmentpng@brunel.net Need PNG Work Permit & Visa Services? Looking for professional services for Contact our local team to discuss your • Contractor Recruitment • Manpower & Labour Hire • Payroll & • Visas & Work Permit • Welcome Support and In-Country Services • Meet & Greet & Services Tel: (+675) 321 9405 Email: recruitmentpng@brunel.net ellence Need PNG Work Permit & Visa Services? Looking for professional services for Contact our local team to discuss your • Contractor Recruitment • Manpower & Labour Hire • Payroll & • Visas & Work Permit • Welcome Support and In-Country Services • Meet & Greet & Services Tel: (+675) 321 9405 Email: recruitmentpng@brunel.net access to exellence Need PNG Work Permit & Visa Services?Looking for professional services for Contact our local team to discuss your • Contractor Recruitment • Manpower & Labour Hire • Payroll & • Visas & Work Permit • Welcome Support and In-Country Services • Meet & Greet & Services Tel: (+675) 321 9405 Email: recruitmentpng@brunel.net access to exellence Need PNG Work Permit & Visa Services? CONTENTS COMPANIESAGRICULTURETOURISM BISHOP BROTHERS MARK 50 YEARS IN PAPUA NEW GUINEA / page 80 / page 74 MORE STORIES 12 MARAPE: PNG’S ECONOMY MAKING A RECOVERY 30 ADDRESSING FRAGILITY IN PAPUA NEW GUINEA 60 MORE MINING CAMPS FOR MODULAR SPECIALIST 62 PNG SHIPPING CO. INVESTS ON VESSEL, BARGE 64 BSP: LOANS TO SMES REACH 60% RATE 66 PACTOW EXPANDS ITS TUG FLEET AGAIN 68 SAVE TIME, SAVE MONEY... RE-DECK WITH NIUDECK 86 SIGNS OF FISCAL RECOVERY IN PAPUA NEW GUINEA? 98 AIR NIUGINI, PNG TPA BOOST LOCAL TOURISM TOURISM AUTHORITY URGES TRAVELLERS TO VISIT PNG FOUR GIVENMINISTRIESTOSECTOR / page 96
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J
ames Marape has been re-elected as the Prime Min ister of Papua New Guinea. Despite a general election that was scourged with moments of violence, death, destruction of infrastruc ture, and claims of election fraud, Marape is back in the office as the country’s leader.
One of them is Rufina Peter who is an economist and member of the main opposition party called Peo ple’s National Congress. Peter will serve as governor for winning the Central Province electorate. She is one of the two women elected.
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The election in some areas were almost declared as failed elections by the PNG police and electoral authorities due to some violent in stances where a school and build ings were set on fire at the Enga
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Marape is re-elected as PNG Prime Minister
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In the current election, Marape’s Pangu Party earned at least 36 of 118 seats and is on the way to lead a coalition government that is com posed of at least 17 different par ties.
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In a recent encounter with for eign media, the Australian Broad casting Corporation, PM Marape disagreed with their comment that PNG’s lack of female representa tion in Parliament is a slow progress despite having Peter elected as Central Province Governor. [2]
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Printed in Papua New Guinea by Biz Print • Commentaries and contributed articles published in this magazine are the views of their authors and do not necessarily reflect the views of Png business news – our main role is to provide our readers in PNG and the region with a digest of business news in various sectors of Papua New Guinea. Page 12 >
Another milestone for this elec tion is that for the first time in sev eral years, women candidates have been elected in Papua New Guin ea’s parliament government. [1]
Prime Minister James Marape of Papua New Guinea [Photo credit: Papua New Guinea Today]
PNG Business News is published independently in the Philippines for the PNG Business community.
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The Prime Minister replied that Australia’s first female in the Aus tralian Parliament only happened after 40 years. Australia’s federa tion started in 1901, but it was only in 1943 when there were females elected to Parliament. At that time,
“At the macro level, the story of our country is not bad we have been progressing well so far,” PM Marape said.“In 1975 our economy was a K5 billion economy, in 2011 it was K44 billion, in 2018 it was K79.6 billion.”
53.3 per cent down to 49.1 per cent, which is even lower than the 51.6 per cent in 2021.
“The story of our country is not as bad as many make it out to be,” said Marape.Insupport of this, the current MYEFO numbers have shown an in crease in the PNG economy by the largest Kina amount in history – from K82.6 billion in 2020 to K92.6 billion in 2021 and K110.3 billion in 2022.
Dame Enid Lyons was elected to the House of Representatives, while Dorothy Tangney was elected to theOnSenate.the other hand, in Papua New Guinea, it only took three years for women to be a part of the Parliament. Aside from Rufina Peter, Kessy Sawang for the Rai Coast open seat in Madang has been elected to Parliament in the 2022 National elections.
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From 2012 until 2017, Papua New Guinea also had three wom en who represented in Parliament. They were Julie Soso of the Eastern Highlands, Delilah Gore for Sohe Open and Loujaya Tony represent ing Lae PrimeOpen.Minister James Marape was born on 24 April 1971 and has been serving as the Prime Minister of Papua New Guinea since May
rime Minister James Marape stated that the country’s econ omy is recovering. This was highlighted in a media statement issued on the 30th of August when launching the Midyear Economic and Fiscal Outlook (MYEFO) presented by treasurer Ian Lin-Stuckey, which highlighted that the Papua New Guinea economy is gradually recov ering.PM Marape’s projections indi cated that by 2027 there would be a surplus in the budget, and during the year 2030 the country would have paid off its sovereign debt, giving way to PNG developing into a K20-billion economy.
Not only was the ambitious rev enue target of K16.19 billion sur passed, but it was also exceeded by K875.8 million; and PNG’s debt to GDP ratio in 2022 will not fall from
2019. Since July 2007, he has been a member of the National Parlia ment of Papua New Guinea where he represented the electorate of Tari-Pori Open in Hela Province in theInhighlands.thepast, he held cabinet po sitions as Minister of Education from 2008 until 2011 and as Minister of Finance from 2012 until 2019.
Marape was born in Tari, Hela Province. He studied in Minj Prima ry School and Kabiufa Adventist Secondary School in the PNG high lands. Marape earned his degree in Bachelor of Arts from the University of Papua New Guinea in 1993 and a postgraduate Honours Degree in En vironmental Science in 2000.
Outside of his political career, he was Officer in Charge at the PNG Institute of Medical Research, Tari Branch from 1994 until 1995. For two years (1996 - 1998), Marape was the Operations Manager of GDC at the
Reference: [1] (10 Aug. 2022). “James Mar ape returns as Papua New Guinea prime minister”. RNZ News website. Retrieved frommarape-slams-foreign-media.htmlpngfacts.com/2022/08/png-pm-uaMarapeprime-ministerreturns-as-papua-new-guinea-ic-news/472591/james-marape-rnz.co.nz/international/pacifhttps://www.[2](14Aug.2022).“PNGPMslamsForeignMedia”.PapNewGuineaToday.Retrievedfrom-https://news.
Photo credits: slams-foreign-media.htmlcom/2022/08/png-pm-marape-https://news.pngfacts.
NEWS/COMMENTARY
By Paul Oeka
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Over the last two years there has been a K27.6 billion increase in the economy, which is more than the K12.4-billion increase in the economy when the PNG LNG Project started in 2014 and Estimations2015.from Treasury show there will be an average 6.2 per cent in inflation in 2022 after cost reduc tions by the removal of fuel taxes, re duction price of main food products and the reduction of school project feeInflationsubsidy. rate will drop by 5.6 per
PM Marape commended Treasur er Ling-Stuckey for an outstanding job over the last three years.
Hides Gas project. After earning his honours degree, he became the Act ing Assistant Secretary of Policy with the Department of Personnel Man agement from 2001 until 2006.
P
Marape: PNG’s economy making a recovery
cent in 2023 and continue to do so according to figures shown by the MYEFO.Theoutlook forecasts an increase in revenue from K13.67 billion in 2021 to K17.07 billion in 2022, which is a 23.1 per cent increase on revenue outcomes in 2021.
NEWS/COMMENTARY
Marape said that during the sec ond year of his tenure as Prime Min ister, the country was just recovering from the peak of the COVID-19 pan demic. At that time, his government was at the stage of placing criti cal actions to restore the economy,
ernment to create new ministries that best reflect its key priorities –for International Trade and invest ment, Oil Palm, Livestock, Coffee, and“TheseAgriculture.ministries will ensure that more focus and attention is given to their mandate to strengthen their capabilities and production. This will allow these economic subsectors to grow and harness their potential for increased investment and reve nue generation by business houses and the rural population,” he said.
“The dependency on the boomand-bust of the petroleum and mineral sector must stop and the country must shift to the sustainable renewable sector of our economy.”
As this was the PM’s second business breakfast, Mr. Marape said: “Businesses are key drivers of the economy that I acknowledge, so conducive policy, and a regula tory business environment are key ingredients.”“Lastyear when I addressed the business council, I stated that the government will be responsive to create a conducive environment for business, trade, and investment. The consultation of the private sector is significant in putting together policies so that interventions can be estab lished to grow the private sector.”
“We would like to return our coun try to a place where it is safe for our investors to do business and I en courage the private sector to work with the government to grow the economy through effective partner ship arrangements,” Marape said.
growing it as well as dealing with the aftermath of the pandemic.
P
rime Minister James Marape recently addressed the impor tance of the partnership the government and businesses can foster to discuss policy, financial barriers, technology, and innova tion so that growth in business can be Heaccelerated.highlighted this during the Business Council of PNG’s Back to Business Breakfast held on the 30th of August at the Stanley Hotel and attended by ministers of state, executives of the business council, and members of the private sector.
By Paul Oeka
“OverLing-Stuckey.thelastthree years, we have climbed from a K79.6 billion economy of 2018, to an Internation al Monetary Fund (IMF) forecast of K110 billion by the end of this year.”
PM Marape said Porgera Mine, P’nyang LNG, Papua LNG, Pasca LNG, and Wafi-Golpu Mine should be progressed as a matter of ur gency. “Short term measures include bringing back Porgera at the earli est,” he said.
PM Marape stressed there was a lot more work in the short, medium, and long terms to be done by every one in the country.
“P’nyang LNG will run at the back of Papua LNG construction, so instead of just a four-year construc tion period like the PNG LNG from 2011-2013, P’nyang and Papua will be constructed over an eight-year period. That will mean a windfall economy as a result of construction from 2023 right up to possibly 2031.
“I am very keen to work with the Morobe Provincial Government, and Governor Hon. Luther Wenge, on the much talked about Wafi-Golpu Project.“These five projects will be pro gressed over the next 10 years and give us the window for a K200 billion economy as I have been targeting.
The Prime Minister concluded his statement by saying: “To achieve this I am confident that the restruc turing of my Cabinet and its refocus will derive the desired outcome that is beneficial to our socio-economic development aspirations in the next five years.” Page 12
The PM also took the time to show his gratitude and appreci ation to the many investors and business houses who continued to operate and provide vital servic es and employment opportunities for the people during those trying times. The government has pledged to do its best and plans to build con fidence in the business environment to support them in growing and sustaining their Furthermore,businesses.Marape added that his Government remains ful ly focused on implementing Mi cro Small and Medium Enterprises (MSMEs) that will empower the people to become productive and self-sustaining.Thenumber of MSME’s has con tinued to expand and business and investors have a major role to assist this sector grow through provision of credit and business literacy skills, the PM noted. A thriving SME sector em powers the small business owners to be self-sustaining and contributes to economicMarapedevelopment.continuedby highlight ing that to create and increase business opportunities, key min isters have been retained in their portfolios for continuity and sta bility while some portfolios have been merged to free up ministerial positions.Thishas now allowed the gov
“The thermometer, in as far as our economic expansion is concerned, is rising while similar countries as ours may have regressed.”
The Prime Minister’s address was followed by a panel discussion and a question-and-answer session with key economic ministers.
“Despite so many criticisms, he has ensured our short-term meas ures to keep MV PNG floating, in tough waters, are paying off,” he said of
“We must start mobilising our people to get into agriculture, for estry, fisheries, and other small busi nesses. Our people own land and bringing markets to them will ensure all of them participate in the sustain able part of our economy.”
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< From
PM addresses importance of gov’tand business partnership
PM Marape said everyone should work hard over the short, medium, and long term.
“We will make a concerted ef fort to consult all landowners and all provincial governments in Gulf, Western and Enga provinces for these projects. The smaller Pasca Project, the easiest, lowest-hang ing fruit, will be reactivated and that will hopefully by concluded at the very earliest.
The government is also focused on unlocking customary land for business and commercial purposes. That is why it is placing great em phasis on sustaining agriculture for over 82 percent of the population. The restructure of the ministries and separation of Livestock, Coffee and Oil Palm is important in making this a successful process, Marape said.
“The hard work starts today,” he said. “Everyone must contribute to the growth of our country, and when you contribute, you receive services.
Despite these challenges the economy showed stability, as the country adapted through well-man aged investments from that period of great uncertainty to a period of more hope, Marape said.
“We want to grow our economy and create more opportunities for our people. The road ahead re quires a concerted and collective effort to fully realize our economic potential,” he said.
PM Marape warned the country of the “lazy man expectations” that money from oil gas and mining would have a permanent solution to our economy.“Farfrom it, and I liken that mind set to those on steroid drugs, need ing boosts all time,” he said.
he Autonomous Bougainville Government has rejected Prime Minister James Marape’s state ment calling for a nationwide con sultation on Bougainville’s 2019 Ref erendum for Independence results.
The ABG’s response is to Prime Minister James Marape’s inaugural statement delivered in the National Parliament following his election as Prime Minister on August 9.
ABG Attorney General and Min ister for Bougainville Independence Mission Implementation Ezekiel Ma satt delivered this statement in a press conference yesterday in Buka.
ments can consult on independence being the referendum outcome however the national government has been using such terms as po litical status and political solution to an extent where they have mis conceived the original definition,” Masatt
“The BPA was to promote peace by peaceful means and address the issue of Bougainville’s political future, with independence being a constitutionally guaranteed option,” Masatt said.
The Era Kone Covenant is the document that provides for the path way in which the referendum results will be brought into the National Par liament for final ratification. “It has been agreed that independence will be no earlier than 2025 and no later than 2027. Let me make it absolutely clear, that Bougainville will be inde pendent,” Masatt stated.
NEWS/COMMENTARY
Masattsaid.said it has become clear that the National Government lacks the institutional memory to fully un derstand the intentions of the 2001 Bougainville Peace Agreement and urged the national government to stick to the agreements reached by both Governments in the joint con sultations.TheJoint Government Consulta tions on the Bougainville Referen dum Result which started in May 2021, culminated in the Era Kone Covenant which was signed by the two governments in May this year.
Minister Masatt clarified that there is no legal basis for the pro posed nationwide consultation that the Prime Minister has alluded to. The provisions of the Organic Law on Peace Building and the 2001 Bougainville Peace Agreement re quired the people of Bougainville hold a constitutionally guaranteed
ABG rejects national government call for nationwide consultation
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referendum where in 2019, 97.7 percent of Bougainvilleans voted for“Perindependence.therequirements of the same laws, the ABG and the National Gov ernment are the only two parties that will consult on the overwhelming 97.7 percent outcome of the referendum, there is no mention of a nationwide consultation on the matter” Minister MasattMinisterstated.Masatt further reminded the Prime Minister Marape that the 2001 Bougainville Peace Agreement was signed to end the Bougainville Civil War which was the bloodiest conflict in the pacific region since the World War II.
“The definition of independence was defined and agreed to by PNG, as a separate and independent na tion from PNG. Independence was overwhelmingly voted for by 97.7 percent of Bougainvilleans.” Masatt said.“That is the referendum result and by law, only the two govern
The Autonomous Bougainville Government maintains that ratifi cation of the 2019 Bougainville Ref erendum on Independence will be done by the National Parliament to play and does not require the citizens of Papua New Guinea to be consult ed on the matter.
T
NEWS/COMMENTARY
apua New Guinea’s new For eign Minister Justin Tkatchen ko has revealed his country is moving to negotiate a security treaty with Australia — and poten tially New Zealand — in a move that could have far-reaching strategic implications for the region, ABC re ported in August.
Mr Tkatchenko did not say whether the treaty could be bind ing, or whether it would be a broad er informal agreement, stressing that discussions were at a very ear ly stage.“[This] has yet to be confirmed and finalised, it still has to go through the appropriate proce dures and departments like De fence, like the Prime Ministers’ [de partment] and others to come to a complete understanding of that arrangement,” he said.
She played down the prospect of any security treaty being struck soon, saying she had only had “very, very early discussions” with Mr Tkatchenko and didn’t want to get “ahead” of talks with the newly elected government under James Marape.“Weobviously … discussed some of the items contemplated under [our partnership], which include discussions about security, but we have a long way to go. It’s a new government, and we want a list of what Papua New Guinea’s priorities are,” she told the ABC.
The ABC asked Senator Wong about the proposed treaty during an interview on Tuesday afternoon in Port Moresby.
P
“It’s all not in black and white yet. But it was put on the table and it’s something that will be consid ered and taken forward into the future.”Hesaid both countries would have more detailed discussions about the proposal at the PNG-Aus tralia Ministerial Forum due to be held in Canberra in November.
“Those are matters that will be discussed by Australia and Papua New Guinea. But you wouldn’t be surprised at both countries wanting to continue to work together on se curity cooperation, we have a long standing defence relationship,” she said.In a statement, New Zealand’s Ministry of Foreign Affairs and Trade said it “has not been ap proached by the government of Papua New Guinea with regard to a formal security arrangement.”
She suggested the move might have been triggered by increasing anxiety in Port Moresby about the implications of the security agree ment that China struck with Solo mon Islands, saying it “likely reflects Prime Minister Marape’s concerns about the Solomon Islands-China security deal on his doorstep”.
“Australia has sought to estab lish a hubs and spokes system of bilateral security treaties in the Pacific, and a security treaty of this nature with PNG would be an obvious extension of that,” she told theButABC.the prospect of Australia, New Zealand and PNG all signing a new military agreement is likely to have strategic reverberations across the region.
The fact it is being contemplated seems to signal that both Canber ra and Port Moresby are willing to build a deeper defence relationship as China entrenches its power in theMrregion.Tkatchenko told the ABC he discussed the idea with Foreign Minister Penny Wong during her visit to Port Moresby this week, and both countries were keen to press ahead with negotiations.
China is also likely to be hostile to the proposed treaty, although Mr Tkatchenko brushed off sug gestions that a new defence agree ment might stir anger in Beijing, or in PNG’s neighbour Solomon Is lands.“That’s our sovereign right to work with treaties with anybody that we feel is appropriate and we feel is right and for the good of the country,” he told the ABC.
“A treaty between our tradition al partners in the region will just help give security to all countries.”
ForeignTkatchenkoHon.MinisterJustin
“We look forward to engaging with the new government in Papua New Guinea and identifying areas for cooperation,” a ministry spokes person said.
Mr Tkatchenko’s announcement comes as Australia pours more re sources into its military ties with Papua New Guinea.
“Aotearoa New Zealand and Papua New Guinea are close part ners with a long record of close co operation across a range of sectors.
Plans for PNG security pact with Australia, NZ revealed
“And it will also make us con nected in all aspects of anything that might arise now or into the fu ture.”Mr Tkatchenko said the treaty “would cover all security aspects in the region” and could well take in New Zealand as well – although he did not say whether he had had any discussions with the Kiwis on the“Isubject.wouldsay New Zealand would be a major part of it as well, in our region. It would be a joint treaty to work on security,” he told the ABC.
Naval Base on PNG’s Manus Island with the United States.
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The federal government is al ready pressing ahead with a $175 million upgrade of the Lombrum
In addition, Australia recently signed an agreement to help re build the Papua New Guinea De fence Force air wing.
Dr Powles said while a few Pa cific countries already had strong defence ties with Australia, many would still monitor negotiations be tween Canberra and Port Moresby very“Itcarefully.istimely that Pacific countries consider what their red line is on se curity, however, it is unclear what this proposed treaty entails or how it fits into both the existing architecture, or the review of the regional architec ture called for in the 2050 Strategy for the Blue Pacific,” she said.
Defence Minister Richard Marles said he wants to rapidly expand de fence ties with Papua New Guinea, suggesting that the expanded Lom brum base would be a key asset for military forces in both countries.
She also would not be drawn on whether New Zealand might also be invited to join, or what shape the treaty might take.
“We are committed to working with our partners in the region to support our collective security ob jectives.”Still,Dr Anna Powles from Massy University said Mr Tkatchenko’s declaration about the treaty was “a surprising development”, par ticularly given Papua New Guinea’s new government had only just tak en shape after national elections.
“The increase in lending to the ‘P & LLGs’ of K224.5 million reflects a reclassification of a loan during the quarter,” he Accordingsaid.to Mr. Popoitai, the
Mr. Popotai said loans to the public and private non-financial firms fell by K205.1 million and K53.5 million, respectively, to K15.6 billion and K1.8 billion.
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SHIPPING INDUSTRY REVIEW POSTPONED TO 2023
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he Independent Consumer and Competition Commission has postponed the review of the coastal shipping industry until 2023.In a statement, ICCC Commis sioner Paulus Ain said the review, which was started earlier this year to address issues with the mar ket structure and efficiency of the coastal shipping industry, has been postponed until next year af ter several problems were found in the submissions the watchdog re ceived.Hesaid that on April 25, 2022, a discussion paper was published to get feedback or opinions from all stakeholders.Accordingto Mr. Ain, the ICCC has received several submissions that highlight important indus try challenges that also apply to PNG’s domestic maritime sector.
improve market competition condi tions,” Mr Ain said.
“Some of the concerns raised relate to matters such as insti tutional bench-mark practices, cabotage, labour-supply needs, subsidies and oversight of freights, infrastructure demand, competi tion and Accordingcosts.”to Mr. Ain, the re view included, among other things, the lowest economic mar ket price possible prices, Qual ity shipping services provided, promote incentives available to shipping service providers to in novate practises and products and increase or promote oppor tunities for shipping service pro viders to maximise their profits.
The present outstanding debt is made up of K25.2 billion from lo cal sources and K22.9 billion from external sources, according to the acting governor of the Bank of PNG Benny Popoitai.
y the end of December 2021, the total public (government) debt still due was K48.1 billion, or 51.6% of the nation’s GDP (gross domestic product).
Government debt sits at K48.1b, says Popotai
NEWS/COMMENTARY
“As a result of these develop ments in revenue and expenditure, the budget deficit was K6.2 billion which was financed from domestic and external sources totaling K2.6 billion and K3.6 billion, respective ly.”
Total expenditure in 2021 was K20.1bn, 3.8 per cent higher than the 2020 outcome, and 0.8 per cent lower than the Supplementary Budget appropriation,” he said.
This amounts to 6.7% of the nom inalAccordingGDP. to him, overall reve nue and grants in 2021 were K13.8 billion, a 14.6% increase over 2020 and 101.4% of the 2021 Supplemen tal Budget amount.
“The purpose of this review is to understand the current market dy namics and development that have
lower collections in Other Revenues (Dividends, Statutory Transfers, and Fees & Charges).
Total government deposits at depository firms rose by K1.3 billion to K5.2 billion, according to Mr. Po poitai, mostly during November and December of 2021.
“This increase reflected draw downs of external budget support as well as financing from domestic sources,” he Accordingsaid.tohim, the total do mestic credit provided by finan cial institutions to the public sec tor, non-profit organisations, and “province and local level govern ments (P & LLGs)” declined by 0.2% to K17.7 billion from the previous quarter’s gain of 0.9%.
taken place since the last review by the ICCC in 2006.
“Since then, market dynamics within the shipping industry have changed, in terms of market ef ficiency, structure, legislative and regulatory requirements, policy directives, processes and proce dures of operations in the coastal shipping
“Ultimately,industry.the goal is to iden tify opportunities to promote and
“The outcome reflected higher than projected grants from devel opment partners and tax revenue collections, which more than offset
“The ICCC thanks those stake holders that have provided their written submissions on the Discus sion Paper and further advise that consultations on these concerns will not continue until the review commences in early 2023.”
ICCC Commissioner Paulus Ain
National Government’s budgetary operations in 2021 indicated a defi cit of K6.2 billion, down from K6.6 billion in the same time of 2020.
BMINING
South Paci c International Container Terminal has redeveloped the Port of Lae to support the country’s ourishing trade and the Province of Morobe’s industrial base. In 2022, SPICT will deploy two state-of-the-art quay cranes–a rst in PNG. The QCs will handle bigger vessels and signi cantly improve terminal productivity with faster and safer movement of cargo, which will bene t PNG’s supply chain.
South Pacific International Container Terminal P.O Box 3549, Lae Tidal Basin, Bumbu Road, 411 Lae, Papua New Guinea
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Inadequate
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Yet it seems unlikely that this ambition will be fully realised, even in the immediate future. Instead of the K1.24 billion implied
by the 5.6% rate, budget documents suggest that the government has put aside just K522 million for Connect PNG in 2022 (Volume 1, page 83). The same documents also refer to a minimum of K500 million annual budget support (Volume 1, page 13) instead of the legislated 5.6% of the total budget.
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Should Connect PNG’s plans come to fruition, roads would receive a far more consistent flow of funds than has occurred previously. This is particularly promising for road maintenance, given its relatively low visibility and high economic returns relative to road construction.
Connect PNG is a step in the right di rection for PNG’s development, in that it pledges greater and more consistent fund ing for road construction and maintenance. But the program faces clear limits from the outset, with significantly less funding to be provided by the government than legislat ed.There is no doubt that Connect PNG is aiming high. The PNG government has committed a significant 5.6% of the annual national budget towards the program, as outlined in section 3(1) of the Connect PNG (Implementation and Funding Arrange ments) Act 2021. Using forward projections for budget expenditure, this commitment would amount to over K1.1 billion in 2022 prices each year until 2027.
Further over the horizon, Public Investment Program forward estimates suggest that spending on Connect PNG and related projects by the Department of Works & Implementation will not surpass K625 million in nom inal terms annually between 2022 and 2026 (Volume 3A, pages 566-672). Importantly, this reduction in funding relative to the legislated amount comes be
The Connect PNG Economic Road Transport Development Program (Connect PNG), announced in 2020, aims to address these issues. More than 16,000 km of road will be worked on over several phases un der the 20-year program, at an estimated cost of K20 billion. Phase 1 aims to finish the Trans-Island Highway and consequent ly link Port Moresby and Lae, followed by Goroka, Madang, Mount Hagen, and Men di. It includes several road projects that be gan under the previous government. Phase 2 primarily seeks to link isolated provinces to the rest of the country, and Phase 3 fo cuses on completing north–south access along the border with Indonesia.
It is difficult to compare this level of spending to how much the PNG govern ment has spent on roads historically, due to lack of data. But in 2022, the legislated budget allocation for Connect PNG comes close to both the budget allocation for the entire law and justice sector, as well as the 6.4% of this year’s budget given to the edu cation sector (Volume 1, Table 19).
funding has meant roads are few, far between and in poor condition across Papua New Guinea. Port Moresby is not connected by road to either the industrial hub of Lae or the agricultural and population centre of the Highlands region, even though all three locations are on the same landmass. With 17% of PNG’s population having no access to roads at all – as noted in this year’s budget documents (Volume 1, page 13) – many people lack access to markets and services, including health and education, posing a seri ous impediment to development.
NEWS/COMMENTARY
By Alyssa Leng
Connect PNG: The Road to Development?
A
At a meeting of the department audit committee in Port Moresby, he stated that the medium-term de velopment strategy required agriculture to perform.
The meeting, which was presided over by Sam Penias, deputy secre tary of the Department of Finance, was held to make sure funds were used properly and in accordance withEarlier,procedures.Simbiken urged commodities boards to spend cash to support government programs in their initiatives.Simbiken said that the audit meeting was held by the Department of Finance to assist them.
Disclosure: This research was undertaken with the support of the ANU-UPNG Partnership, an initia tive of the PNG-Australia Partner ship, funded by the Department of Foreign Affairs and Trade. The views are those of the authors only. This article appeared first on Devpolicy Blog (devpolicy.org), from the Development Policy Centre at The Australian National University.
Therefore, the audit committee should guarantee openness in the use of public monies.
nors and partners have pledged an “additional USD6.9 billion” to “achieve 90% of the [Connect PNG] program in the next ten years”, it is unclear how much each partner will individually contribute or when such assistance would be disbursed.
This reduced level of funding will clearly make it substantially more difficult to achieve Connect PNG’s goals in full and on time. A smaller pool of available funds may see maintenance continue to be crowded out by construction, even though maintenance costs will only increase as PNG’s road network ex pands. Funding constraints will also make it crucial that the right roads are prioritised for work.
Dr. Nelson Simbiken
SIMBIKEN: GOVT NEEDS TO SEE HOW AGRICULTURE CONTRIBUTES TO GDP
The Department of Agriculture and Livestock’s acting secretary, Dr. Nelson Simbiken, said: “We want to see in a coordinated manner capital investment programmes that have been invested in the agriculture sector.
n official claims that it’s impor tant to gauge how much agricul ture contributes to the country’s economic development, particularly its Gross Domestic Product.
He claimed that the agency, which had budget codes, oversaw several boards.
Roadworks on JOHNTownMalahang-ChinatheRoadinLae,August2022(LAEOPENElectorate-ROSSODpsMP/Facebook)
“And we want to see government ex penditure (in the) agriculture sector be ing delivered on government policies.”
External financing, to make up for the shortfall in PNG government funding, will consequently be key to Connect PNG. Section 3(2) of the Connect PNG (Implementation and Funding Arrangements) Act 2021 expressly authorises borrowing for the program. But while program documents (page 17) suggest do
Alyssa Leng is a Research Officer at the Development Policy Centre, working on the Papua New Guinea economy.
supporting long-term road con struction and maintenance. It is en couraging that a minimum of K500 million seems to have been allocat ed to Connect PNG until at least 2026 – but this figure is much low er than the 5.6% of the annual na tional budget promised by the PNG government. How the program’s ambitions translate into reality and development in PNG therefore re mains to be seen.
For Australia in particular, there is room to go further in supplement ing the PNG government’s efforts. The Australian Infrastructure Fi nancing Facility for the Pacific has provided just AUD72.2 million of grants and loans, largely for road maintenance, despite broad sup port for the initiative. Australia’s traditional focus on maintenance may prove to be a good comple ment to Connect PNG’s focus on construction, but care will need to be taken to prevent moral hazard and the prospect of loan repay ments crowding out maintenance spending in Altogether,future.the Connect PNG program is a positive signal of in tent from the PNG government in
fore the persistent underspend and corruption allegations which have plagued efforts around road infra structure in PNG.
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The Department of Finance organ ized the conference to discuss meas ures to strengthen and enhance sys tems and Simbikenprocedures.advised conducting an audit of the department to make sure funds allotted for labor programs were properly used.
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He claimed that the government invested money in the department and desired to see a profit.
PNG is strategically relevant to the United States and its allies, Australia in particular. Its status as Australia’s closest neighbor and its history as a former colony and site of Allied cooperation against Jap anese forces during World War II means that it holds a place in both the strategic and nostalgic imag inations of many Australians and Americans who served in the Pa cific theater. Australia is the single largest donor working in PNG and has been regarded by many U.S. administrations as key to engage ment in Melanesia and the Pacific
• Fostering the right enabling environment; and
• Cultivating a deliberate and adaptive planning process;
The key challenge facing policymakers is to generate clarity and consensus on what fac tors of fragility the United States will address, how the United States will develop a bespoke operating model in PNG, and who will be critical to these efforts.
PNG has shown remarkable re silience despite much international analysis and discourse (including in this brief) focusing on the fac tors contributing to its fragility. For example, although the 1988–98 Bougainville civil war resulted in an estimated 20,000 deaths, PNG navigated a predominately peace ful independence referendum for the autonomous region of Bougain ville in November 2019 (see text box). Despite extremely high levels of corruption and violence, its civil society discusses, reports on, and circulates instances of corruption and violence with significant en ergy and freedom—particularly through social media.
Addressing Fragility in Papua New Guinea
While PNG does not have an extensive breadth or depth of civil society organizations (CSOs), those that exist provide avenues for en gagement with the government and, if appropriately empowered, can generate better governance outcomes. Dialogues such as the 2021 forum on gender and human rights bring together government, civil society, and advocacy groups to assess the successes, failures, and opportunities for advancing human development in PNG. Civ il society groups also fill in critical gaps in service delivery. Churches, for example, provide around 50 percent of healthcare services and independently operate two uni versities. Additionally, while PNG’s growing youth population brings significant employment and edu cation challenges, it is also a great opportunity for a new generation to lead the country.
he landmark Global Fragili ty Act (GFA) was signed into U.S. law in 2019. In April 2022, the Biden administration identi fied Papua New Guinea (PNG) as a partner country in a prologue it added to the 2020 U.S. Strategy to Prevent Conflict and Promote Stability, or “Global Fragility Strat egy” (GFS). Under the strategy, the United States has committed to at least 10 years of programmatic efforts aimed at lowering violence levels and enhancing conflict-pre vention efforts in PNG. U.S. offi cials have indicated they intend to benefit from “lessons learned from decades of U.S. involvement overseas, to enhance the way the U.S. Government engages in chal lenging environments and to joint ly build resilience against political, economic, and natural shocks.” The distinguishing feature of the GFS is its express intention to expand U.S. focus on preventing fragility, vio lence, and conflict.
Islands, especially given the rel atively light U.S. footprint in the region. While it was resoundingly rejected by many Australians and regional leaders at the time, the mid-2000s image of Australian prime minister Howard as “Wash ington’s deputy sheriff” in the Pa cific was a prevailing notion for years. Even now, there is a sense in some Australian foreign policy cir cles that signs of increased fragili ty in places like PNG do not reflect well on Australia’s role in the coun try or region. It is easy to imagine that Australia would welcome in creased U.S. focus on PNG and opportunities to collaborate on, among other things, violent conflict prevention programming.
By Anastasia Strouboulis, Erol Yayboke, Bridi Rice and Catherine Nzuki, CSIS
T
PNG is also a destination for Australian and U.S. businesses and is increasingly a place where rival geostrategic interests meet. Chi nese communities have long been present in PNG, but recent fear of Chinese Communist Party (CCP) expansionism in the region has put it on the radar of U.S. and Australi an officials, especially after the re cent Solomon Islands–CCP securi ty pact sent shockwaves through Washington and Canberra alike. Meanwhile, the ongoing process of Bougainvillean independence and the possibility of similar movements from other provinces suggest sig nificant potential for fragmentation withinThePNG.prospect of a PNG that is increasingly poor, susceptible to foreign interference, and fragile is a stark reality for Australia. Tak en to its most extreme, fragility in PNG might precipitate external intervention—just as Australia in
THE ISSUE
Papua New Guinea (PNG) is one of five pri ority countries under the U.S. Global Fragility Strategy. The U.S. government has made a 10-year commitment to addressing fragility in PNG and is cur rently planning its approach.
PNG presents unique operating challenges for the U.S. government’s implementation teams due to the complex factors driving fragility in the country and limited U.S. government presence on the ground.
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Strategic Importance of Papua New Guinea
• Leveraging U.S. compara tive advantages.
PNG is one of the most biodi verse countries on earth. It is as diverse geographically—consisting of mountains, jungles, and valleys— as it is ethnically and linguistically. PNG is rich in gold, copper, silver, natural gas, timber, oil, and fisher ies, bringing distinct economic op
This brief provides policymakers with ideas on how to deploy U.S. conflict-prevention and peace building capabilities in PNG. It outlines the strategic importance of PNG in the broader region, then canvasses four fragility trends to watch before discussing how to leverage U.S. strengths and avoid the pitfalls of those who have long operated in PNG. The brief con cludes with recommendations on how to create a bespoke GFA op erating model for addressing fra gility focused on:
portunities not always available to the other Pacific Island states.
• Embracing a localized and partnership-based implementa tion approach;
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1. WEAK GOVERNANCE
Given the proximity of the Pa cific Island nations to vital trade routes and relevance to U.S. and allied security assets, PNG’s stra tegic profile is only growing. This is evident in the recent shift in rheto ric, funding commitments, high-lev el visits, and partnership-led tone of engagement by Australia’s new Albanese government, which is echoed by a significant uptick in the attention Washington has paid to the Pacific Islands since the end of World War II.
Weak governance in PNG is a barrier to meaningful participation in civic life.
Over the past several decades, the tenets of personal and collec tive wellbeing envisioned by the CPC report—and engrained in the Melanesian concept of gutpela sindaun2—have been replaced by a political-economic system that has proven corrupt and whereby citi zens, especially women and youth, cannot fully engage in sociopoliti cal affairs. A 2019 survey across six provinces of PNG revealed few citizens felt that they had “a lot of influence” over government de cisionmaking at the national and local levels. Disempowerment was especially acute among women, who felt that patriarchal views and systemic gender inequality pre clude their representation in lead ership positions and engagement with political representatives.
Four Fragility Trends in Papua New Guinea
This brief focuses on four phe nomena that are simultaneously the cause and result of shortcom ings in PNG’s development and
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the current dynamics of fragility. These include: (1) weak govern ance, (2) economic inequality, (3) vulnerability to climate change and limited adaptive capacity, and (4) intercommunal and gender-based violence.
The structure of the Papua New Guinean state makes it difficult for citizens to interact with national, provincial, and local-level govern ments. The diverse physical and hu man geography of PNG makes the functions of a central government uniquely difficult. PNG consists of the main island and 600 offshore islands, with a population of about nine million people who speak more than 800 languages and make up about 600 distinct tribes. The 1995 Organic Law on Provincial Govern ment and Local Level Government and its amendments instituted a
PNG gained its independence from Australia in September 1975 after roughly seven decades of colonial rule. In the years leading up to independence, a Constitu tional Planning Committee (CPC) was tasked with recommending priorities and mechanisms of im plementation for an eventual PNG constitution. Following comprehen sive, countrywide consultations, in August 1974 the CPC released its report, which recommended an endogenous state- and na tion-building process, prioritizing human development over econom ic growth.1 The 350-page report specified rights and freedoms and established five national goals and directive principles to achieve a free and just society in PNG. However, the constitution that was adopted in August 1975 was a wa tered-down version of the unique, autochthonous features of govern ance the CPC proposed. Instead, the new government approved a “conventional Westminster-type constitution,” choosing to avoid contentious issues of citizenship and decentralization. Perhaps un surprisingly, this did not translate into the nation-building process that many envisioned. This history contributes to the modern state of PNG not enjoying a high degree of legitimacy with its citizens—who, in turn, have only limited access to in clusive channels for engaging with the state. Democratic governance principles are not institutionalized, and legacies of colonialism linger, contributing to a general down ward trend of instability and inse curity in PNG.
tervened in the Solomon Islands Regional Assistance Mission for a decade following civil unrest—and could also shift the balance of power in Melanesia against U.S. and allied interests.
model of decentralization whereby provincial and local-level govern ments were allocated budgets to fund and deliver public services. In principle, such a decentralized state facilitates citizen empower ment and development from the bottom up—especially considering the strong Melanesian traditions of consensus, reciprocity, and the harmonization of diversity. How ever, this technical and largely top-down process has failed to es tablish mechanisms for accounta bility and community participation, particularly ones that leverage the country’s latent dynamism. As a result, local governments have lim ited capacity, weak accountability mechanisms, funding gaps, and unqualified staff, making public administration primed for corrup tion and capturable by political elites.
Women face additional barriers to participation. Women are historically underrep resented in Papua New Guinean politics and public administration. Since independence in 1975, only seven women have been elected to PNG’s National Parliament. Al though 167 female candidates are running in the 2022 elections, as of publication in August 2022, two female representatives have been confirmed in office. Additionally, women hold only 24 percent of administrative positions in national public service; that portion further decreases to 7 percent at the ex ecutive-appointment level. At the provincial and subnational levels, women’s representation in public service is marginal, accounting for zero executive-level appointments, 6 percent of senior management, and only 10 percent of middle man agement.There are both institutional and
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zenship. Without these opportuni ties, citizens often look to tradition al systems over the formal state for governance functions and public services. These conditions also create a permissive environment for corrupt elites to act against the public good in pursuit of their inter ests, at times cynically perpetuat ing narratives that young and poor populations and the country’s po litical immaturity, rather than their corruption, contribute to gaps in state governance.
cultural barriers to women’s par ticipation in government. There is no quota to ensure women are elected to the national legislature. Each one of several attempts to institutionalize women holding po litical office failed, most recently in March 2022, when a propos al to have 5 parliamentary seats out of 111 reserved for women was shelved until after the August gen eral elections. PNG’s patriarchal society and gender norms, which colonial administrations reinforced, also limit women’s political partici pation and institutional seniority.3 Threats of divorce, public shame, harassment, and physical violence prevent women from exercising political agency. Elections are also highly localized and personalized; political candidates must bargain for support among those who con trol voting blocs through patronage networks. Since women are mostly excluded from leadership hierar chies in the first place, they often lack the resources and networks to negotiate support among local leaders. Political and public admin istration systems favor so-called “big men” who cultivate patronage networks, reinforcing citizens’ as sociation of political authority with men and view of leadership as a masculine trait.4 The disparity in women’s engagement in sociopo litical systems and processes rein forces the conditions under which gender equality and gender-based violence (discussed in more detail below) persist.
Weak governance and limited capacity hinder the state’s provision of security and broader services. Govern ance limitations have increasingly manifested in the inability of the state to provide safety in the face of growing intercommunal violence nationwide. In Hela Province in the highlands, for example, a land dis pute in January 2021 between two relatives led to the deaths of 21 people. At the time, there were only about 60 permanent police officers in the province, which has a pop ulation of approximately 250,000 people. The July 2022 death tolls from election-related assaults sug gest intercommunal violence trends continue. This comes at a time when law enforcement is chron ically underfunded, inadequate ly resourced, and understaffed across the country. Nationally, the police force has only grown by 30 percent to about 7,400 staff since PNG’s independence in 1975 while its population has more than tri pled. Limited institutional capacity, combined with the absence of com
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Overall,forces.government effective ness is unequal and limited across PNG, with the reach of the state being practically undetectable in some rural areas and highland regions, despite 87 percent of the total population living in such communities. The country’s fragile health systems, limited access to and quality of education, and low literacy levels are barriers to de veloping local capacity to deliver and monitor service provision. Yet another colonial legacy is uneven and underdeveloped access to educational opportunities in PNG, with girls being highly underrepre sented and several districts having very low participation rates. This reinforces the conditions under which citizens cannot cultivate hu man capital, achieve upward social mobility, and practice active citi
munity-based policing capabilities, undermines public trust in the gov ernment and lessens the visibility of the state in many parts of the country.With police forces being over stretched, private security actors are an increasingly ubiquitous part of efforts to maintain stability in certain regions. These companies are often employed by businesses, community leaders, and politicians. Some government officials have significant interests in this industry, including as a source of personal revenue and employment for con stituents. The official number of private security personnel is over three times that of police officers and surpasses the sum of all securi ty sector
Systemic corruption lim its inclusive and sustainable development, fuels distrust and frustration with political leadership, and generates apathy toward political participation. The Papua New Guin ean state is marred by endemic corruption, lack of accountability, and the privatization of security, all of which benefit the elite to the exclusion of the general public. Al though the constitution provides a legal framework for government structures at all levels, de facto national authority revolves around clientelism. Across the archipelago, most Papua New Guineans identify closely with their local communities and use the wantok (“one talk”) system of reciprocal obligations among people who share a common language, ethnicity, or community. While this system can be a resilient safety net that compensates for insufficient governance and inad equate state services, politicians have also exploited it to serve their interests. Elected officials routinely use their power to capture
PNG’s 2019 Human Development Index score was 0.555, ranking it 155 out of 189 countries and territo ries. Relatedly, PNG’s 2019 Gender Inequality Index score was 0.725, ranking it 161 out of 162 countries. As detailed in the governance-fo cused section above, Papua New Guinean women are marginalized and excluded from the formal economy because of cultural cus toms and colonial legacies, which
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perse state resources toward their narrow constituencies in exchange for political support.
2. ECONOMIC Resource-basedINEQUALITYwealth is not widely distributed, and poor human development outcomes stunt the potential for women and youth to boost economic growth. At a macroeconomic level, PNG’s pos itive economic trajectory and re source-rich environment suggest strong potential for international investment and engagement. In 2022, PNG’s economy is expected to grow by 4 percent, driven large ly by the industries sector, which accounts for about 43 percent of gross domestic product (GDP). However, wealth and economic opportunities are concentrated among the country’s elites, who habitually engage in rent-seeking behavior by facilitating grants and contracts for foreign companies, particularly in the extractive indus triesPNGsector.has one of the highest lev els of economic inequality in Asia and the Pacific. In the wake of the initial stages of the Covid-19 pan demic, recovery in employment has been slower for the bottom 40 per cent of households, and those with jobs have seen a significant share of their incomes fall. Profits from mining deposits and natural-gas re serves maintain the country’s mid dle-income status but are unevenly distributed and rarely enjoyed by average citizens. Foreign-owned businesses and corrupt officials are significant benefactors of the profits of these sectors.
textbox above. Land disputes and environmental degradation caused by the Panguna copper and gold mine and uneven distribution of the mine’s profits significantly con tributed to the outbreak of the 10year civil war. Tensions still simmer in Bougainville, and its connections to the central government in Port Moresby remain tenuous at best. Mines throughout PNG continue to fuel disputes over land rights and profit distribution, environmental damage wrought by their activ ities, extractive profiteering of international companies, and the limited economic benefits reaped by local communities.
These extractive industries have long caused friction and contribut ed to fragility in PNG. One of the most notable examples is the con flict between PNG and the Bou gainville region described in the
are reinforced by weak institutions, poor public service delivery, and the lack of gender-sensitive policy implementation. These conditions perpetuate health, education, and employment disparities that lead to unequal opportunities for men and women and limit overall economic growth potential.
Institutional economic challenges are significant, especially for women and youth. These include low domes tic resource mobilization, subpar human development outcomes, and limited economic growth out side the extractive resource sector.
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The 2021 Global Corruption Barometer found that 54 percent of Papua New Guineans paid a bribe to receive a public service in the previous 12 months and that 57 percent were offered bribes for their votes. Frequent turnover among politicians and government officials compounds the highly per sonalized, “short-termism” nature of PNG politics, making what many consider to be bribery a highly normalized part of cultivating a voter base. Systemic, increasingly sophisticated, and entrenched cor ruption at all levels of government reinforces the conditions under which citizens are excluded from providing input and oversight on essential state functions.
Poor economic conditions are particularly acute for women in ag riculture and for urban youth. Pap ua New Guinean women are over represented in the informal and agricultural sectors, which have both been significantly affected by the pandemic; this will undoubtedly deepen economic gender inequal ities. Globally, only 4 in 10 women in fragile settings are formally em ployed, leaving the majority more vulnerable to economic shocks. Women engaged in unpaid labor are consistently excluded from so cial protection measures targeted at the formal workforce, and with limited avenues for skills develop ment, they are left with few op tions.The proportion of youth in the population of PNG is large and growing: 31 percent of the popula tion is between the ages of 10 and 24, and 62 percent is between 15 and 64. In urban areas, 60 percent of youth are unemployed, and less than 7 percent are employed in formal jobs. Young people, espe
However,strike.women have strong knowledge in sustainable resource management and disaster mitiga tion within their communities. Inte grating climate considerations into gender programming—and gender considerations into climate-adap tation work—is critical to identi fying and addressing the specific vulnerabilities women face in PNG. Ensuring women’s equal access to assets, information, and services can also increase the coping ca pacity and decisionmaking powers necessary for climate resilience.
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3. VULNERABILITY TO CLIMATE CHANGE AND LIMITED ADAPTIVE CAPACITY
22 out of 191 coun tries on the 2022 European Un ion’s INFORM Risk index; in other words, it is high on the list of coun tries at risk of humanitarian crises and disasters that could over whelm national response capacity. PNG’s resilience to potential cli mate change–related disruptions is low. With highly dispersed pop ulations that are often remote, ac cessing communities and assessing damage in the event of a natural disaster is extremely challenging. Moreover, the prevalence of pov erty, poor infrastructure, corrup tion, and insecurity—among other factors of fragility—heighten local populations’ vulnerability to climate change.
4. INTERCOMMUNAL AND GENDER-BASED
ofbothder-basedIntercommunalVIOLENCEandgen-violence(GBV)aresymptomsandcausesstatefragility.
PNG
PNG’s agriculture-based economy is highly vulnerable to climate change, and wom en are likely to be dispropor tionately affected. Two sectors dominate the Papua New Guinean economy: (1) subsistence agricul ture, forestry, and fishing, which account for the majority of infor mal employment; and (2) the min erals and energy extraction sector, which accounts for most export earnings and GDP. These sectors are highly vulnerable to natural hazards and climate-related dis asters, including floods, droughts, andPNGlandslides.ranks
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As with most places, climate change disproportionately affects women. Female labor participation in PNG is con centrated in rural work, mainly in subsistence agriculture rather than commercial farming. More than 50 percent of the female labor force is engaged in unpaid agricultural work. In addition to ensuring their families’ nutritional needs are met, women are involved in growing, harvesting, and selling crops. While selling this food in local or urban markets generates some income, women lack opportunities to en gage in the more lucrative produc
tion and export of cash crops (such as coffee and cocoa) and intensive forms of agriculture because of the familial and community roles they are expected to fulfill. Because of women’s reliance on informal ag ricultural production, their means of food and economic security are increasingly vulnerable to climate shocks.Inaddition, women’s coping capacity is limited because of gen der-specific barriers to accessing fixed and financial assets. Al though women traditionally have access to customary land—which comprises 97 percent of PNG’s land area—this does not always extend to having ownership and decision making power over the use of that land: Only 1 percent of women in PNG report being the main deci sionmaker at home. Additionally, PNG has the highest gender gap in financial inclusion in the Pacific re gion, with women being 29 percent less likely to access formal financial services. The gap in control over land and finance means that wom en are more dependent on natu ral resources even as they have limited agency to adapt to climate change–related threats to those resources and cope when natural disasters
cially young women, transitioning from childhood to adulthood have less personal agency because they rarely participate in community de cision-making processes and have limited access to educational and vocation opportunities, yet are still expected to find formal work in the modern economy. In the absence of formal social safety nets and the informal protections wantoks provide, the growing urban youth population could be an indicator— though not a precondition—of civil unrest and political violence. Disen gagement and discontent can lead to increased youth involvement in criminal activity, especially if social protections, educational pathways, and economic opportunities remain limited.Significant international re search shows that youth and wom en’s empowerment can be drivers of overall economic development, so these challenges—and PNG’s ability to overcome them—are foundational to the country’s de velopment and resilience. Mini mizing gaps in human-capital de velopment, including expanding health services and continuing education, could cultivate a skilled workforce that is less vulnerable to economic shocks. Additionally, improving access to production inputs and financial services could shift imbalances in decision-mak ing and create new business op portunities. In particular, a young, educated, and empowered work force could bring new investment opportunities, creating a virtuous cycle of formal employment. With 67 percent of businesses in PNG identifying crime as a constraint for further investment and expan sion in 2014, there are both public and private incentives to improve livelihoods and opportunities for women and youth.
The PNG government aims to address some of these institution al issues by transitioning to a ful ly industrialized economy, using evocative slogans such as “Take Back PNG.” At the same time, for eign actors are seeking regional influence through political and eco nomic investments. In June 2022, Papua New Guinean prime minister James Marape and Chinese for eign minister Wang Yi announced a potential free trade agreement. This development follows PNG be coming the second Pacific Island country to sign onto China’s Belt and Road Initiative in 2018. In 2019, China imported seafood, wood, and mineral products from the re gion (including PNG), amounting to about $3.3 billion in trade flows.
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dreds of ethnolinguistic groups, and research shows a long history of conflicts among them, typically over land ownership since 97 per cent of the land in PNG is custom arily owned.5 These conflicts have typically been managed and re solved through traditional mecha nisms, such as village courts, which were seen as legitimate channels to address perceived wrongdoing in many communities. However, as PNG modernizes, traditional rules and customs surrounding conflict and violence are eroding; elders and authorities who once held power in their communities have seen their influence diminish over time. This has, in turn, reduced the capacity of traditional means to resolve contemporary conflicts in PNG. Rather than invoking culture as a legitimate and often singular explanation for violence in PNG (as is often the case), the authors of this brief suggest that the struc tural and institutional shortcomings discussed above are more signifi cant drivers of fragility and conflict in theThecountry.deterioration of tradition al conflict-resolution systems co incides with other trends such as shifting gender roles, increased foreign involvement, the influx of smuggled modern firearms, and climate variability. The interaction between these dynamics has led to increased violence and the dis placement of tens of thousands of people. Approximately 30,000 people were displaced in 2021 alone due to communal violence, triggering further conflict between resettled populations and host communities despite strong cultural norms of shared land use.
has resulted in an increase in cases of gender-based and domestic vi olence.There are movements within PNG to address GBV, including the government’s National Strategy to Prevent and Respond to Gender Based Violence 2016–2025, which aims to coordinate anti-GBV ef forts across the country, and the 2002 Sexual Offences and Crimes Against Children Act. These ef forts, while important, have had limited impact due to weak state capacity to enforce them. Even when cases of domestic violence are reported, very few are investi gated. As of 2020, there were only 150 staff in the police force’s Fami ly and Sexual Violence Unit across the whole country. Meanwhile, of 15,444 cases of domestic violence reported in 2020, only 250 peo ple were prosecuted and fewer than 100 were convicted. The po lice force, lacking the resources to properly support survivors of GBV, relies on partnerships with non-governmental organizations to fill this gap in service provision.
As the previous section indi cates, there is significant potential for the United States to address a broad range of fragility factors over the medium-to-long term via the Global Fragility Strategy (GFS). To do this effectively, the United States should be clear-eyed on the challenges ahead, six of which are presented below. It should be de liberate in deciding how to address them and cognizant of its unique capability to deliver on its GFS mis
Leveraging Strengths and Avoiding Pitfalls in a Challenging Environment
In ideal circumstances, the Unit ed States could deploy the GFS’s whole-of-government strategy and trust that its execution stays true to the mission. But lessons from Iraq and Afghanistan, com bined with the complex operat ing environment in PNG, suggest that whole-of-government efforts, while attractive for their poten tial, are challenging to implement in practice. These challenges will manifest in at least six broad ways for the United States in PNG:
sion in PNG.
1. The drivers of fragility discussed above are complex. PNG is distinct from fragile places in which the United States generally operates. It is also un like the other three GFS partner countries (Haiti, Libya, and Mo zambique) and partner subregion (coastal West Africa). PNG is not in a state of civil conflict, terrorism has not taken root, and a signifi cant cause for concern is personal safety (e.g., GBV). U.S. operations in the region will unfold against a backdrop of such PNG provinces as Bougainville seeking various forms of autonomy and independence, as well as analyst predictions that fragility indicators are trending in the wrong direction. This means the United States cannot bring a tem plated stabilization mission to PNG, nor can it rely on experience from other places. It will need to take a deliberate and iterative approach to address proximate triggers of fragility, structural causes, or a combination of both.
SIX CHALLENGES IN FOCUS
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Intercommunal conflict in PNG coincides with interpersonal vio lence, particularly gender-based, sexual, and family violence. Here culture and changing traditions do play a role. Intercommunal conflicts, once fought primarily between men, now increasingly target women and children. More than two-thirds of women in PNG are victims of domestic violence, and one woman is beaten every 30 seconds. Additionally, violence related to sorcery accusations against men and women is increas ingly prevalent. Domestic violence has also increased during the Cov id-19 pandemic: Between March 2020 and April 2021, the national helpline for those experiencing family violence or sexual violence, “1-Tok Kaunselin Lain,” saw a 75 percent increase in demand. This aligns with global trends, where emerging data shows that Covid-19
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2. The United States has
Phase I LPG and gas liquids production at over 20,000 barrels per day Phase II LNG project at 0.75 million tonnes per annum PNG’s first development ready offshore energy project A fully tested and evaluated field with independently verified reserves A compact, remote resource made economic via an innovative and cost effective development plan Two phase project: WHAT IS THE PASCA PROJECT? Gas Agreement has been thoroughly negotiated and is ready for signing. The Petroleum Developm Licence (PDL) is pending approval Twinza is ready to proceed with Front End Engineering and Design (FEED) and project finance arrangements Next Steps 8.6 Billion8.6 Billion Kina revenueKina revenue to PNGto PNG O V E R T H E L I F E O OF V E R T H E L I F E O F T H E P R O J E C TT H P R O E T >18 Billion Kina>18 Billion Kina contribution to GDPcontribution to GDP O V E R T H E L I F E O F T H OE E T E L I F O H E P R O J E C PT R J C T 500 Million500 Million Kina per yearKina per year to the Stateto the State T A X L E V I E TS X L V I E S R O Y A L T I E RS O Y A L T I E S 400 Million Kina per400 Million Kina year spent in PNGyear spent in PNG A N N U A L O P E R A T I N G C O S AT N N U A L O P E R A T I N O S T READY TO GO!READY TO GO! A D V A N C E D P R E F E E D C O M P L E T AE D V A N E D P R E F E E D C O M P L E T E 300 construction300 construction and 500 permanentand 500 permanent jobs in PNGjobs PNG D I R E C T A N D I N D I R E C DT R T N I D R C T F O R F U R T H E R T I O N R E G A R D I N G T H I S P R L E A S E C O N T A C T : WWW TWINZAOIL COM UYASSI, LEAD COUNTRY MANAGER OPPEUYASSI@TWINZAOIL COM TOBERTGARD@TWINZAOIL.COM GARD, CHIEF EXECUTIVE OFFICER F O R F U R T H E R I N F O R M A T I O N R E G A R D I N G T H I S P R O J E C T , P L E A S E C O N T A C T : ROBERT GARD Chief Executive Officer RobertGard@twinzaoil.com WhatsApp QR code: ROPPE UYASSI Lead Country Manager RoppeUyassi@twinzaoil com WhatsApp QR code: STEPHEN QUANTRILL Executive Chairman Stephen Quantrill@twinzaoil com WhatsApp QR code:
PNG
PASCA DEVELOPMENT PROJECT Energy from the Gulf of
Based
About Twinza
Largest
Opens
on the terms agreed in July 2021, Pasca A Project provides:
Papua
Gulf of Papua to other project developments
BENEFITS TO
PNG Government share of value of any Resource Project Largest domestic product allocation of any PNG Resource Project PNG Government participation in project available on identical terms to Twinza
Twinza is an Australian upstream energy company developing the Pasca A liquids rich gas field in the Gulf of Papua. Twinza has operated in PNG since 2011 and has invested over 350 million Kina to fully evaluate the field Its innovative and economically efficient development plan and design is now ready to be developed. Twinza has an experienced team of professionals and offices in Port Moresby, Perth and Singapore and is backed by financially strong and supportive investors
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limited experience, presence, and networks in PNG. Melanesian expertise within U.S. government, security, and devel opment circles is scant, and the United States has little presence on the ground in PNG. Papua New Guineans place great value on relationships and build trust slowly over time, often outside of formal interactions or business dealings. The initial budget allo cated to this work will partially dictate the scale of relationships and impact the United States can generate, but the temptation in new contexts is to rush in with money, ideas, and projects without carefully setting goals and understanding the operating environ ment. Both implementing partners and U.S. government officials will need to invest significant time in building the community and individual connections that will be critical to any conflict-preven tion and resilience-building efforts. Failing to invest in relationships at the start of the process could have longer-term consequences.
5. The United States will not be the most significant donor to PNG. Australia is by far the largest contributor of development assistance to PNG, accounting for 49.6 percent of all aid spent in 2019. Aus tralia’s fiscal year 2021–22 budget reflects the prioritization of gender equality, com mitting $120 million to its flagship program Pacific Women Lead. Funding and resources for PNG’s development agenda have con centrated on women’s empowerment. This means the United States will need to deter mine how to complement existing PNG lead ership priorities, when to lead versus sup port initiatives, whether to finance efforts through existing Australian mechanisms or fund projects separately, and how to foster effective working relationships with other donors.
4. GFS implementation in PNG involves diverse stakeholders. These stakeholders will be found in countless time zones and include local Papua New Guinean communities, public leaders, private-sector actors, and government officials; bilateral partners such as Australia, New Zealand, and the European Union; and multilateral en tities such as the United Nations and World Bank Group. GFS implementation will also require coordination among U.S. agencies, as well as between Port Moresby and Wash ington, presenting the risk that U.S. activities do not achieve coherence and effectiveness. This means that stakeholder management and engagement will be a critical feature of U.S. implementation and should be consid ered central to the strategy.
In anticipation of the challenges discussed and to avoid the pit falls of previous efforts to prevent conflict and violence in PNG,
3. The whole-of-government ambition of the GFS will produce a unique set of operational challenges in the field. The GFS asks the Departments of Defense and State and the U.S. Agency for International Development (USAID) to identify areas of common interest and collaborate, so their work adds up to more than the sum of its parts. Interagency collaboration is hard enough in environments where there is a need to respond to easily identifiable threats (e.g., violent extremism); it is always easier to address known threats rather than ones on the horizon. However, coordination is more complicated when, as is likely to be the case for GFS implementation in PNG, the goal is to address elements of fragility so they prevent the expansion of conflict and violence. This means the United States will need to be clear in setting out the challenges it seeks to ad dress, how agencies will be accountable for aligning their work, and how individual and collective efforts demonstrate impact.
6. Engagement with PNG also relates to the broader geostrategic context of competition between the United States and the People’s Republic of China (PRC) and Australia-PRC relations. China has historically taken an ac tive role in the Pacific and will likely continue to do so in the future. Increased regional engagement by the PRC may also shape the nature of fragility in PNG in the coming years. The United States should respect PNG sovereignty and policy but be attuned to the dynamics of PRC operations there and be respectful of the Chi nese community’s long history in the country but ready to calibrate its interagency response according to emerging dynamics. This means the United States needs to avoid its penchant for prioritiz ing short-term security gains at the expense of sustainable peace. The United States should also be self-aware of its own (uninten tional) contributions to fragility in PNG, including through the pres ence of multinational corporations and their operations, as well as the reverberations of its domestic and international politics.
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Prioritize diplomatic boots on the ground as a first-order mission, even over program ming if necessary. Building and sustaining the local knowledge net
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Expect the unexpected from the outset. Change does not occur in linear ways in any country; given the complexity of PNG, this non-linearity is a cer tainty. Challenges and opportuni ties will arise, often at unexpected moments. The United States should place a high value on being in formed through church, communi ty, and people-to-people networks, finding ways to adapt quickly as contexts shift. Adaptation and flexibility should be embedded into all planning and management ap proaches.
Coordinate and co-fi nance rather than co-deliv er with like-minded donors. Co-delivery of projects is good in principle but often challeng ing in practice. Issues of procure ment, embassy coordination, and branding requirements can chal lenge otherwise well-intentioned co-leadership of projects between donors. While interoperability and coordination with other key donor
the United States should consider developing a bespoke operating model centered around deliberate and adaptive planning and im plementation efforts that cre ates an enabling environment for violent-conflict prevention and builds on U.S. comparative adCULTIVATEvantages.
Lead from behind when appropriate. Under the GFS, the U.S. approach to conflict pre vention and stability in PNG should bolster Papua New Guinean lead ership and complement work by other donors and partners. Doing so is not only practical, it aligns with the U.S. government’s commit ment to localization and effective fragility practice, which empower women and youth in particular.
Mainstream gender and youth inclusion in every pro gram activity. Violence against women is often a leading indicator of insecurity and instability within a state, acting as an early warning for potential widespread conflict. Increasing gender equality gen erally has a positive effect on pre venting and countering corruption and rebuilding institutions and le gal frameworks. The United States should look to mainstream gender and youth inclusion in its work to address factors of fragility in PNG within informal and formal process es, systems, and institutions.
PROCESSLearnfirst, program second. Time spent learning about the context during the establishment phase of U.S. presence in PNG will be time saved in the longer term. Extensive lessons learned from Australia, New Zealand, and oth er partners in PNG will be a rich source of guidance for the United States. Still, the most valuable les sons will be drawn from extensive engagement with PNG stakehold ers, particularly at the local level.
U.S. officials should identify and cultivate relationships with church, civil-society, and pub lic service leaders in order to work within and strengthen functioning policy architectures. They should seek out and help accelerate pos itive momentum in local commu nities. This effort should include aligning efforts with existing Pap ua New Guinean strategies such as the National Strategy to Prevent and Respond to Gender-Based Violence, the National Anti-Cor ruption Strategy, and anti-money laundering frameworks.
Consult widely but prioritize PNG stakeholders, es pecially those outside Port Moresby. Operating in PNG will necessitate close cooperation with like-minded donors, including Aus tralia, New Zealand, South Korea, Japan, the European Union, and multilateral agencies. But there is a risk that consultation with these stakeholders becomes a proxy for consultation with PNG stake holders. This should be avoided to ensure the United States builds ro bust and legitimate stakeholder re lationships that are complementary to—but independent of—other do nors. Care should be taken to look beneath the surface and recognize that usual “interlocutors” for the U.S. government, such as key pri vate-sector entities or donors, may be critical to some solutions but at times also contributors to corrup tion or broader fragility.
Do not avoid structural is sues. With a limited budget and presence, it will be necessary to make clear choices about what the United States supports and what it does not. However, this risks focusing on proximate trig gers to the exclusion of address ing structural drivers of fragility. U.S. officials should be receptive to opportunities that intersect and extend beyond whatever core areas of focus it identifies.
FOSTER THE RIGHT ENABLING ENVIRONMENT FOR ADDRESSING FRAGILITY
Develop integrated anal ysis and leadership among the United States, PNG, and like-minded allies. For U.S. en gagement to be effective, it needs to be grounded in a shared under standing of the factors of fragility in PNG and connected to political and community leadership at all levels. Investments in trilateral fragility assessments, Track 1.5 di alogues, and U.S.-based research institutes’ increased engagement with those in the Pacific Islands and broader Oceania will improve the enabling environment for pro gram implementation and ensure PNG analysts are connected to de cisionmakers in Washington, Can berra, and other capitals
through To Page 46 > < From Page 42 NEWS/COMMENTARY
works needed to operate in PNG requires an on-the-ground pres ence. This should be a first-order priority and will enable better USG coordination, decision-making, and engagement. Program funding and operation in the absence of signif icant diplomatic engagement are likely to be ineffective or even po tentially counterproductive.
EMBRACE A LOCALIZED AND mentum.APPROACHBASEDPARTNERSHIP-IMPLEMENTATIONWorkwithexistingmo-
partners should be a high priority, in the shorter term, co-financing rather than co-delivering will like ly be an easier means of operating in-country. That said, the United States should not overlook the pos sibility of working in co-leadership structures with Papua New Guin ean stakeholders in areas of com parative strength over the medi um-to-long term, including in areas of private-security sector reform, civil-society support, anti-corrup tion efforts, anti-money launder ing measures, digital development, and peacebuilding.
A DELIBERATE AND ADAPTIVE PLANNING
The U.S. mobi lization of development, diplomacy, and defense capabilities should be aligned with, complementary to, and increasingly integrated into its operations and leadership. There is some risk that GFS engagement in PNG is only seen through a devel opment prism; this would miss an op portunity to leverage U.S. security and diplomatic capabilities in sup port of conflict prevention in PNG in ways that other countries have not been able to do. With an increasing appetite for whole-of-government engagement emerging in the Unit ed Kingdom and Australia, this is an opportunity for the United States to set an international precedent for whole-of-government approaches, especially in contexts experiencing fragility.
communities of practice.
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LEVERAGE COMPARATIVEU.S. ADVANTAGES
Invest heavily in wholeof- government coordination efforts to ensure coherent U.S. engagement in PNG, as well as buy-in from key U.S. stakeholders in the agencies involved in implementation.
Anastasia Strouboulis is a research assistant with the Project on Fragility and Mobility (PFM) at the Center for Strategic and Inter national Studies (CSIS) in Wash ington, D.C. Erol Yayboke is the director of the PFM and senior fellow with the CSIS International Security Program. Bridi Rice is a Fulbright visiting scholar with the CSIS Project on Prosperity and De velopment. Catherine Nzuki is a research associate with the CSIS Africa Program.
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U.S. officials across the interagen cy should be incentivized to partic ipate meaningfully in these efforts under the auspices of the chief of mission. These efforts should be tracked, assessed, and adjusted as needed.
Institute a clear monitoring and performance frame work that tracks the impact of work done under the GFS and the country’s eventual implementation plans. Prior ity feedback on program impact should be sought first and foremost from PNG communities.
Codify and communicate strategies for implementing the GFS to key stakeholders in PNG. Local events, newspa per articles, radio interviews, and other efforts to communicate the mechanisms through which the United States intends to achieve its goals will go a long way toward ensuring broad-based buy-in from geographically and linguistically diverse stakeholders.
This brief is made possible by generous support from the embas sy of Australia in Washington, D.C. This article first appeared on the CSIS website at withty-papua-new-guineaorg/analysis/addressing-fragilihttps://www.csis.andisusedpermission.
Sport the brand. The United States has strong diplomatic, de velopment, and security brands. It should use these to call interna tional attention to issues, convene a diverse range of stakeholders, and engage in policy dialogue with PNG-based politicians and civ il society leaders. The sheer fact that there will be a sustained U.S. presence—beyond a programming footprint managed by a regional USAID mission—will be a signifi cant asset.
Work the international system. While much of the focus under the GFS will naturally be at the community level, U.S. engage ment with the government of PNG will be integral—as will interna tional collaboration with other do nors such as Australia, the United Nations, the Asian Development Bank, and the World Bank. The wording of this recommendation is deliberate; while the United States should work within the internation al system, it should also work the system to achieve its GFS-related goals.
The authors would like to thank the many contributors and review ers of drafts of this brief in Papua New Guinea, Australia, and the United States.
Take important stances that others might not. While care should be taken that the U.S. approach to democracy, corrup tion, and human rights is not re garded as an “ill-fitting” imposition in the context of Papua New Guin ean society and state, the United States has a stronger appetite for work in areas of anti-corruption, civic space, human rights, and prin ciples of democratic accountability than most other donors operating in PNG. This may benefit its efforts to address drivers of fragility and offer unique opportunities for it to achieve impact in areas where oth er donors have not.
Establish internation al precedent for ventiongagementwhole-of-governmenteffectiveen-inaconflict-pre-setting.
Emphasize the length and seriousness of commitment.
Papua New Guineans prioritize re lationships built over time and may be sensitive to the perception that the United States is only engaging because of its regional geopoliti cal or geostrategic interests. The longer-term horizon of the GFS and whole-of-government approach to implementation are assets the United States should communicate clearly—alongside core GFS tenets that speak to a broad set of Papua New Guinean interests in security, economic development, and inter national engagement.
Lead in areas of comparative advantage. The United States has significant experience in development, security, and fra gility that will complement the predominately economic develop ment-focused footprints of other donors. Injecting this expertise, for example, in private security sector reform, civil society support, com bating corruption, and anti-money laundering efforts may be a re freshing and welcomed approach in the donor community in the Pacific Islands. USAID’s recent ly released 2022–2027 Strategic
Framework for the Pacific Islands sets out the agency’s comparative advantages as an “innovator and convener” working through “peo ple-to-people programming” and “building institutional and human capacity,” all efforts that align well with an eventual GFS country strategy for PNG. Other agencies involved in PNG should consider reaching similar levels of clarity; however, more important than this is the overall coherency of the U.S. comparative advantage, including the need to avoid individual or un coordinated agency activity.
“I am appealing to the Prime Minister that the first agenda we must discuss during the development fo rum is the resettlement of the people because the mine is located in a village and we must discuss on how we can move the landowners out of the mine area,” Mr Mangape said.
“The long-overdue reo pening of the Porgera Gold Mine is finally in sight fol lowing yesterday’s milestone achievement,” Mr Mar ape“Isaid.thank Enga Provincial Government, particularly Governor Sir Peter Ipatas, and Porgera landowners, led by their leader Nixon Mangape for making this possible.Theagreement paves the way for the Development Forum and progression towards mine reopening at the earliest.”TheShareholders Agreement was signed by Min eral Resource Enga (MRE), which was welcomed by Barrick Niugini Limited. In the upcoming days, Barrick Niugini Limited will issue a media statement with more information about the Porgera Mine restart.
date, and security deed deadlines, which weren’t included in the agree ment until recently, were the three main issues, ac cording to Mr. Mangape, that contributed to the de lay in signing the shareholder’s agreement. However, they have now reached an agreement and done so in response to the national interest.
In a statement, the Enga Provincial Govern
Mineral Resources Enga signs Porgera Shareholders Agreement
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Porgera MangapeleaderlandownerNixon(left)andEngaGovernorHon.SirPeterIpatassigningtheshareholderagreement.
T
ment-owned Mineral Re sources Enga (MRE) and landowners signed a shareholder agreement for the Porgera Gold Mine, which was applauded by Prime Minister James Mar ape.According to Mr. Mar ape, it represents a sig nificant development to ward the reopening of the Porgera mine, which has been shut down since 2019.
he dateedcertainmonthser’stoMRE(MRE),ofMineownerssourcesMoresbybeenAgreementShareholdershasfinallyapprovedinPortbyMineralReEngaandtheLandofthePorgeraGoldinEngaProvince.NixonMangape,directorMineralResourcesEngastatedthatalthoughhadbeenexpectedapprovetheshareholdagreementfourtofiveprior,therewerestillconcernsthatneedtoberesolved.Theequity,resettlementdeadline,commencement
John Lewins, K92 Chief Execu tive Officer and Director, stated, “It is with a tremendous sense of pride that we provide our various stake holders K92’s 2021 Sustainability Report.“The report demonstrates the far-reaching positive impact that the Kainantu Gold Mine continues to have on our local communities and Papua New Guinea, providing an update on our ESG practices, per formance, and accomplishments.
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K92 Mining 3rd annual sustainability report outlines achievements in ESG
• ~50% lower carbon intensity per gold equivalent ounce produced compared to the global average (1).
Environment, Social and Governance Highlights:
• Beginning alignment with TCFD recommendations by conducting a climate risk and opportunity assess ment to support a low carbon tran sition and to build climate resilience, developing a road map for improved climate management practices.
“It is important to highlight that these accomplishments were achieved during a particularly chal lenging period due to the COVID-19 pandemic.Ourworkforce rose to the occa sion, showing a strong commitment and dedication to the community, through continuity of many com munity projects, maintaining envi ronmental commitments, while also increasing the economic benefit through expanding operations.
• Establishment of Diversity and Inclusion Policy to formalize our stance on embracing individuality and differences, and expectations of our people.
“The support of the Government of Papua New Guinea and the Gov ernment of Australia was also a ma jor factor in our success.”
• 14% year-over-year increase in corporate tax and second-larg est taxpayer in the mining industry in Papua New Guinea ($13.0 million paid in corporate tax).
K
• Human Rights Policy estab lished to confirm our commitment to respecting the human rights and dignity of all individuals within our operations, supply chain, and com munities in which we operate.
“The 2021 report continued the trend of increasing our disclosure to global frameworks, through com mencing our alignment to the Task Force on Climate-related Financial Disclosures (TCFD) recommenda tions and developing a road map to further enhance our climate risk and opportunity management.
new trees per year until 2030 and delivered 10,000 tree seedlings to schools around the Kainantu mine in 2021.•63% of total expenditures locally procured since start of operations, supporting the long-term develop ment of locally-owned businesses, which earned $15.5 million in 2021.
Based on S&P Global Market Intel ligence 2020 data on a gold pro duced basis.
92 Mining Inc is pleased to an nounce that it has published its 2021 Sustainability Report. This is K92’s third annual sustainabil ity report, outlining the environmen tal, social and governance (“ESG”) practices and performance of the Company.Thereport builds on the progress of our reporting and disclosures in cluding key metrics in accordance with the Sustainability Accounting Standards Board (“SASB”) Metals and Mining Standard and marks the start of K92’s alignment with the Task Force on Climate-related Financial Disclosures (“TCFD”) rec ommendations.Aclimaterisk and opportunity assessment was completed, as well as a road map to further enhance K92’s climate management practic es. The 2021 Sustainability Report is available on the K92 website at the following link: com/responsible-mining/https://k92mining.
• 95% of workforce and 98% of contractors are PNG Nationals with priority hiring from local communi ties.• $0.9 million in total community investment.•14%year-over-year Lost Time Incident (LTI) frequency reduction and once again operating with one of the best safety records in the Australasian region.
• Environment, Health, Safety, Social and Sustainability Committee of the Board (the “ESG Committee”) was established to provide oversight with respect to environment, climate change, health, safety, social, sus tainability, and other public policy matters relevant to K92.
• Sustainable Agriculture Liveli hoods program expanded, employ ing ~80% women to provide them with active income and business skills, and committing $300,000 to establish a new market complex in the town of Kainantu to encourage commerce.•Strong commitment to edu cation and training, including a 160,074 PGK ($46,000) contribution to post-secondary scholarships for 48 qualifying students, a $13,600 investment in business training for 489 impacted landowners and com munity members, and 96 students graduating from our Adult Literacy Program in 2021. Three additional scholarships were awarded to the top 3rd year students in Mining En gineering, Metallurgy and Mineral processing, and in 2022, addition of a Women in Mining Scholarship.
• Community access to clean wa ter increased through an investment of $37,500 (materials, excludes la bour cost) and commitment to pro viding impacted communities with fresh water by improving water lines and installing new water supply sys tems.
All amounts are in U.S. dollars unless otherwise indicated. Note (1):
“We also completed a green house gas emissions inventory, and I am pleased to report that the Kain antu Gold Mine is a low carbon mine, with an emissions intensity approxi mately 50% below peers per ounce produced. The emissions inventory also highlighted opportunities to ma terially reduce our emissions nearterm. Work on this in conjunction with PNG Power is well underway.
• 10 million tree program partici pant supporting Papua New Guin ea’s goal of planting one million
• 1.5 million PGK ($450,000) from the COVID-19 Assistance Fund sup porting Papua New Guinea National Government, Eastern Highlands and Morobe Provincial Governments and local communities’ efforts in re sponse to the COVID-19 pandemic.
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he re-opening of Papua New Guinea’s Porgera Mine must be accelerated as it is a key contribu tor to the foreign exchange, says BSP Financial Group (BSP) CEO Robin Fleming.
Managers of Minerals Resources.
“The total financial contribution relative to non-min ing GDP was 1.8% in 2019, the same as the average for the period from 2006 to 2019. Employment for PNG na tionals and locals at the mine averaged 2,578 over the 30 year period and was 3,527 in 2019.”
This total comprised taxes paid to the national gov ernment, royalties, compensation and donations, infra structure expenditure, local and national operations contracts and local and national wages (excluding ex patriates). The royalties were paid to the Enga Provin cial government, Porgera Development Authority, local landowners, a children’s trust and young adults.
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“Taxes were the next most important category. Note that the remaining 59.1% of the share of export revenue is not profit but rather the residual sales value that must cover all the capital and business expenses of the mine not provided by PNG businesses and employees plus provide revenue to cover a return on investment and a return of the capital, in the form of depreciation expenses, that was invested.
MINING
Foreign exchange dynamics and the Gross Domes tic Product (GDP) will alter with the reopening of the mine, according to Mr. Fleming, who spoke to FM100/ Hot97FM News.
The expansion of the Papua LNG Project and the development of the P’nyang Gas Project are two more significant extractive sector initiatives that Mr. Fleming says would help the economy.
The mine has been closed since 2019, but a re opening is imminent after representatives of Mineral Resources Enga and landowners recently signed the shareholder agreement.
The average total financial contribution of the mine
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According to him, the economy would be stimulated by these projects alone when they become a financial investment programme in the third or fourth quarter of the fiscal year 2023.
According to a report by Dr. John Fallon in Decem ber 2020, prepared for the Institute of National Af fairs, PNG, the total financial contribution of the mine for the period 1990 to 2019 was 13.2 billion kina which is equivalent to 26.6 billion kina in 2019 prices.
to the PNG economy relative to export values was 40.9% over the 30 years and also 40.9% in 2019, Fal lon’s report added.
Regulators of Exploration and Mining in Papua New Guinea.
The single most important category was national and local operations contracts constituting 17.3% of ex port value revenue over the 1991-2019 period and 15.8% for the most recent year 2019.
Fleming: Reopening Porgera mine will boost PNG economy
In time, Rumbia aims to increase ers all throughout the province to
According to him, in the early going in Porgera and Lihir, they were able to secure preferential financing from EXIM banks thanks to a um,ernmentprojects.theytotheplace,landownerspaidconnection,government-to-governmentandthat’showtheyfortheequityforPorgeraandLihirlandowners.AsthereispresentlynoplaninDrTemuquestionedhowgovernmentisgettingreadyfundtheadditionalstockthatmustpurchaseforthenewHeemphasisedthatthegovdoeshaveKumulPetrolewhichownstheownershipin
The processing and roasting of or ganic coffee will eventually be done in the province of production rather than in other countries. The result will be the export of high-quality finished product straight to the buyers in oth
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According to him, a commercial firm receives funds from another entity to help it conduct its busi ness.“I’m of the view that the conces
sional funding either from bilateral or multilateral is still a good way to fund the equity for resource pro ject,” Dr Temu said.
“I think we should explore that a bit more, this is something to live with the new Members of Parlia ment.”Afinance mechanism that may support the purchase of equity for the state, the government, or the landowners must be put in place, according to him, and this requires government policies and actions.
prompting, other coffee buyers and
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TT307_Suspension_127x181_v3.indd 1 17/3/22 1:04 pm COMPANIES
fee export. The former plantations owned and managed by expatri ates were returned to customary landowners during the 1970s and 1980s.Rumbia’s General Manager Mr. Baragu said: “In the coming year we plan to successfully operate these plantations to produce premi um quality coffee, as there is an in ternational market that sought-af ter PNG coffee but currently the quantity of supply that is exported is muchRumbialess”.Coffee exports have the support of the Governor, the Prime Minister, and all stakeholders such as the Department of Agriculture and Livestock and Coffee Industry Corporation to manage and oper ate these plantations.
LNG, and that Kumul is organising the money for the equity when it occurs for the Papua LNG project.
er of Rumbia Coffee, stated: “We are also in the preliminary stag es of exporting to India and the Philippines as well. Our main ob jective is to help our hardworking coffee farmers in remote locations throughout EHP where it has very good quality organic coffee and are willing to export quality green beans to the overseas market”. Rumbia Coffee also aims to re habilitate coffee plantations in the province as they are accessing more markets for large-scale cof
Dr. Ila Temu, country executive director of Barrick Niugini Limited
been the main income generation avenues for his people and prov ince. While coffee farmers’ income in Eastern Highlands have fallen in recent years, coffee industry sales in the country has been increasing; this is one of the main reasons why Governor Numu wants to make the coffee trade fairer in order to keep money in the pockets of his local farmers.Most organic coffee producers in Eastern Highlands Province are subsistence farmers that live in re mote areas, which is why exporta tion of quality organic coffee is a market which Rumbia Coffee is ad amant to explore. But at times. most organic coffee produce have not made it to buyers in Goroka town due to road conditions.
Since the establishment of Rum bia Coffee in 2019, Governor Numu has subsidized airfreight to these remote areas in order for them to sell their coffee as well as fresh produce. Rumbia Coffee buys their coffee at a higher price; previously, parchment coffee was bought at a price of K2.50 per kilogram, but since Rumbia coffee’s inception, they have started buying at K4.50 per kilogram, which was eventually increased to the current price of K7
Rumbia Coffee Exports initially exported green coffee beans with a first shipment of 300 bags at the value of K250,000 to South Korea. Rumbia coffee has also exported to
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(Photo left) Rumbia Coffee Exports Launching, beansRoastedNationalGorokaPark.(Photoright)coffeefromRumbiaCoffee.
he government must now think about creating a strat egy to facilitate the raising of equity capital for fresh resource projects.DrIla Temu, country executive director for Barrick Niugini Lim ited, stated that one of the major challenges that must be resolved is the financing of equity for re source projects in the nation.
SUSPENSION
According to Dr. Temu, the mining and petroleum industries have done very well over the past 30 to 40 years in arranging both the ownership debate and the benefit distribution in a way that permits rights to everyone who is “Movingtouched.forward, there is plen ty of room for change and that includes to finding the right path way on how the government can acquire equity funds for new pro jects that are in place,” he said.
Government must raise resource equity, says Barrick official
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To learn more about these solutions visit terraintamer.com
To learn more about Ark Pacific, including its diverse range of fit for purpose buildings and advantages of its unique building systems: www. arkpacific.net
www.pngbusinessnews.com • Issue 3 202260 MINING
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Ruka says the unrivalled suita bility of Ark’s product for remote
refab modular camp specialist, Ark Pacific, is working with one of PNG’s largest mines to final ise the design stage of a 700-room camp. Ark has provided the same mine with numerous modular build ings over a five-year period and is currently in the last stages of fully re placing another of its camps, a pro ject encompassing 800 rooms. The company is also designing an entire camp complex further afield for the reopening of an Australian mine.
Thousands of Ark’s modular building units can be found all over PNG. The durability of the units, in combination with the speed with which they can be assembled into a multitude of building configu rations, and their extremely low freight footprint (up to 75 percent less than other prefabricated alter natives) are key factors in the pop ularity of Ark’s building systems.
resource sector projects is evident in the long-term relationship he has built with one of PNG’s biggest mines, and the diverse array of buildings he has delivered for them. Having almost completed the 800 new rooms for the mine’s ‘Camp 1’, Ark is working with the client to finalise the design of the 700 room ‘Camp 2’. Like the original project, the second camp is a ‘replacement’ camp whereby aging accommo dation blocks will be demolished and then replaced by Ark in a mul ti-staged process stretching over a 3-to-4-year period.
Ark’s design team expertise is not constrained to buildings. They are currently designing an entire camp complex for the reopening of an Aus tralian mine. The complex will encom pass administration, mess, dining, laundry, and recreation buildings, as well as accommodation for 300 people. Ruka says one of the design requirements for the accommodation buildings is that post-construction phase, when worker numbers de
More mining campsfor modular specialist
Ark designs and builds to a range of international standards in addition to those pertaining to PNG, Australia, and New Zea land. The adaptability to different nations’ building codes is evident in the classrooms Ark are design ing for international construction company, McConnell Dowell, in American Samoa. Ruka notes that a key design requirement for the two-storey classroom building and its accompanying ablution facilities, is wheelchair accessibility, which to date has not been a common re quirement in buildings Ark provides elsewhere but one which he antici pates increasing, in a similar fash ion to the growing requirement for more ‘green’ buildings.
General Manager and long-term PNG operator, Cass Ruka, says that “building with Ark units can be lik ened to building with Lego because the units literally ‘click’ together. This means that unskilled workers in remote footprint communities can assemble Ark buildings, which is of course beneficial to these workers and their families, and therefore to resource clients wanting to achieve their local content objectives.”
crease, shared accommodation units can be transformed into more gener ous living spaces through the remov al of internal Modificationwalls.and repurposeability are highly valued features of Ark’s building systems. “Particularly sig nificant when building in PNG” says Ruka “is the fact that our buildings can easily be reconfigured and re located to benefit footprint commu nities as schools, clinics, or libraries once clients no longer require them.”
Local workforce installing Ark Pacific building units for a replacement camp at a one of PNG’s biggest mines. The camp encompasses 800 rooms in 16 two-storey accommodation blocks.
In addition to providing its client with what will be a total of 1,500 camp rooms, Ark has also delivered an array of other fit-for-purpose buildings (e.g., office complexes, mess facilities, ablution blocks, tech nical buildings, laboratories, training facilities). Additional building types, including a field maintenance work shop, are also in the pipeline.
In short, having one of our vessels solely dedicated to the route ena bles Consort to provide a more reli able and efficient service.”
PNG Shipping Co. Invests: New Vessel, New Barge, New Containers
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impact of any unanticipated main tenance issues within Consort’s broader fleet. “We’re now more fa vourably positioned to not only pro vide an enhanced service between Lae and Kimbe, but better servic es across all routes. Furthermore, the expanded fleet has increased our charter project capabilities,
Bellamy acknowledges that the Kimbe Chief ‘s purchase has the added benefit of freeing up other vessels that previously serviced the route, as well as minimising the
apua New Guinea’s leading coastal shipping provider, Consort Express Lines (‘Con sort’), recently welcomed the arriv al of its latest cargo vessel ‘Kimbe Chief’. Consort’s purchase of the nearly 90-metre-long vessel, to gether with another barge, as well as 1,000 new shipping containers, represents a considerable invest ment and an ongoing commitment to provide Papua New Guinea with the best possible shipping service.
www.pngbusinessnews.com • Issue 3 202262 Rondon Ridge Lodge Mount Hagen The location for your next meeting or conference service@pngtours com 7198 9397 To Page 64 > COMPANIES
Consort’s newest addition to its fleet, general cargo vessel ‘Kimbe Chief’, is dedicated to providing a reliable, efficient, and safe service between PNG’s busiest port of Lae and West New Britain’s capital, Kimbe.
Thomas Bellamy, Chief Oper ating Officer of the logistics di vision of Steamships Limited, to which Consort belongs, reports that “wanting to better service our import and export customers and communities who rely on the LaeKimbe-Lae route was the primary reason for Kimbe Chief’s purchase.
Kimbe Chief is the newest of 12 vessels in Consort’s fleet. More im portantly, she has her own crane, enabling efficient and cost-effec tive cargo loading and unloading, and generous capacity. As her name suggests, she will be dedi cated to servicing the weekly LaeKimbe-Lae Niugini Islands route.
Like all Consort vessels, ‘Kimbe Chief’ is crewed by a Papua New Guinean workforce. Captain Ila Ila, who holds a Master Class 1 (Unlimited) License has been employed by Consort for 15 years and is the new vessel’s first Captain.
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comment on how the National Development Bank (NDB) is dealing with the K80 million it received, but the intent, when discussions were initiated, was that BSP would be lending to more mature SMEs and NDB to startup ventures.
“At this stage, BSP has not re ceived the funding planned for this year, but that is not prevent ing BSP from giving loans under the facility”, Fleming said.
ank South Pacific’s Financial Group Ltd Chief executive officer Mr. Robin Fleming recently announced that the bank has granted more than K200 million as loans to small to medi um enterprises under its credit scheme facility.
Consort transports cargo in a lin
By Paul Oeka
which is particularly important for some of our biggest customers, in cluding those in mining, as well as oil and gas.”
In addition to enabling SMEs to access lower cost of funds through the facility with BSP, the bank has also made it a respon sibility to ensure that Government funding is preserved by not ap proving loans that have a higher risk of default.
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The Marape government had released the funds to the bank to support Small to Medium Enter prise (SME) and local businesses during the peak of the COVID-19 pandemic.Mr.Fleming said about 1,523 customer loans have been ap proved, or about 60% of loan ap proval rates since 2019.
andBSPIndustry.couldnot
Fleming stated that even though they have exhausted and rolled out the bulk of the government’s relief funds for SME’s they will still be running the loan program under its credit facility scheme.
The previous limit was K3 mil lion when the Government first released K100 million as security to the bank under its K200 million SME allocation for BSP to rollout the loan facility last year.
“The agreement with the Gov ernment did provide for mo mentum in the SME facility to be maintained while allowing for the Government budget and funding process to be adhered to”.
BSP: Loans to SMEs reach 60% rate
The company’s additional invest ment in another barge and 1,000 new containers, including highcube reefers and 20FT and 40FT dry containers, is also significant in terms of increased service ca pacity and reliability. According to Bellamy, so too is it important in terms of safety. “Aging logistics in frastructure and equipment poses all sorts of potential risks when it comes to workplace safety, as well as environmental safety. At Con sort our primary goal is to provide a 100 percent safe service which in cludes proactively replacing assets prior to them having any capacity to compromise safety.”
er and project charter capacity for a diverse range of businesses, from domestic manufacturers and whole salers to local farming, transport, and construction companies, as well as in ternational energy and mining opera tors. Not only are Consort’s services vital to these organisations’ business operations but they are also critical to the health and development of com munities all over Papua New Guin ea. Consort has been transporting essential goods – including food, medicine, building materials and ag ricultural supplies – to communities for more than 40 years.
sort is a division of a larger, inter modal logistics group solely owned by Steamships Limited. To learn more about Consort: www.consort. com.pg
Prior to this announcement, BSP and the Department of Com merce and Industry (DCI) had agreed to increase the maximum loan under the small-to-medium enterprise (SME) credit enhance ment facility to K5 million.
As part of the government SME relief funding, Commercial Banks were allocated K200 million, with BSP Financial Group receiving K100 million, NDB K80 million, and another K20 million allocated to the Department of Commerce
www.pngbusinessnews.com • Issue 3 202264 COMPANIES
“There remains significant ca pacity for BSP to continue to as sess, approve and funds loans under the facility”.
Consort extensively invests in its fleet and infrastructure to better service its customers with a com plete and reliable shipping service. As the largest coastal shipping company in Papua New Guinea, Consort provides greater capacity and more frequent services than any other coastal operator. Con
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Part of a 21-vessel fleet, Pacific Towing’s latest tug acquired as part of its fleet expansion program will be dedicated to harbour towage and permanently stationed at the company’s dedicated tug base in Port Moresby.
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fabrication workshops.
The new Fincorp facilities in Lae Top town will cater for a
PacTow delivers excellent, re liable, and safe marine services through PNG and the broader Pacific. A well-maintained fleet, as well as a dedicated and ex ceptionally trained team underpin PacTow’s ongoing expansion and success. PacTow is part of a larger sea and land logistics group wholly owned by Steamships Limited.
PacTow expands its Tug Fleet again
Tavurvur (originally ‘Nimble’) was purchased out of Singapore, where she was also reflagged. The tug shares many similarities to Ko ranga, another ASD tug PacTow purchased in the first half of 2022 for permanent deployment in Lae. Tavurvur is in class with Lloyd’s Register, 30 metres long, and with a bollard pull of 60 tonnes.
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“As our customer needs con tinue to evolve, it’s important that the FinCorp brand reflects our commitment to grow with our customers. Our new facilities offer a more convenient and ac cessible location to our customers and easier access to our friendly customer service staff,” CEO Fin corp, Brett Tayler, said.
FinCorp first opened its Lae branch doors in 1998, where the Milfordhaven Road branch, was positioned to service the Lae cli entele. Since then, Lae has ex
The roll out commences with the relocation of the Lae branch, to the Nambawan Super Build ing, Section: 49, Allotment: 3 – 7, Office 4, Lae, Morobe Province.
FINCORP TRANSFORMS LAE BRANCH
3rd Engineer Francis Ngihal (previously a cadet in Pacific Towing’s cadetship program) is one of 10 crew who will sail ASD harbour tug ‘Tavurvur’ nearly 3,000 nautical miles from Singapore to Port Moresby. The tug was named after the volcano that destroyed the town of Rabaul in 1994.
www.pngbusinessnews.com • Issue 3 202266
elanesian marine services company, Pacific Towing (PacTow), has added yet an other tug to its fleet. The Azimuth Stern Drive (ASD) tug ‘Tavurvur’ is a specialised harbour tug and will be permanently stationed at Pac Tow’s dedicated tug base in Port Moresby. Tavurvur is the second of two tugs purchased by PacTow this year as part of the company’s ongoing fleet expansion program.
To learn more about com.www.pacifictowingmarineservices.PacTow:
General Manager, Neil Papen fus, confirms that the last decade has been one of diversification and growth for PacTow and that re-fleeting is necessary for this to continue. “We’ve diversified our service offerings, especially when it comes to servicing the oil and gas sector, while simultaneously deliv ering our services further afield. For example, in the last few years we’ve had our tugs and crews in Indonesia, Micronesia, North ern Australia, and even in United States’ waters when conducting a tandem towage project for a client in Guam.”However, harbour towage is still PacTow’s core business. “The two specialised harbour tugs we’ve purchased this year ensure that we can easily and safely maintain our current levels of service in the two biggest and most important ports in the country – Lae and Port Mores by. Tavurvur and Koranga also help ‘free up’ other tugs in our 21-vessel fleet for unscheduled projects such as emergency response and salvage just about anywhere in the region, as well as for unexpected mainte nance” explains Papenfus.
inCorp embarks on a trans formation program as it com mences a nationwide branch upgrade that will incorporate the newly revitalized Fincorp brand.
COMPANIES
panded, the township has grown and so has FinCorp’s loyal cus tomer base.
larger customer service area and boasts greater space and priva cy.“Fincorp has been servicing the people of Morobe province for over twenty years, so It’s timely and fitting, that we launch the first FinCorp rebranded mod ernized facility, here in Lae. Our new facilities will offer our cus tomers and staff a professional and inclusive zone, where our customers’ needs can be dis cussed privately and in comfort,” Tayler added.
PacTow has operations through out Papua New Guinea, as well as in Solomon Islands and Fiji, but also services broader Oceania and Southeast Asia. The majority of PacTow’s 200+ staff (97 percent of whom are Melanesian) are also located at the Port Moresby facil ity where new tug Tavurvur will be stationed. Also, at PacTow’s Port Moresby tug base is a HAC CP certified camp, training facili ties, life raft station, as well as fully equipped marine engineering and
NiuDeck on New England Hwy Emu Creek, Qld
iuDeck from PNG Forest Products is a cost-effective heavy plywood decking sys tem, purpose designed and engi neered for re-decking traditional timber and steel bridges for road, wharf, and rail applications.
With a treatment warranty of 50+ years, NiuDeck requires lit tle maintenance due to PNGFP’s unique veneer preservation treat ment, which ensures complete pro tection from termites, fungal decay, andQuickrotting.and easy to install, the product’s durability and longevity are further enhanced with the ap plication of a bitumen surface.
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“Using prefabricated timber sys tems in bridges is gaining greater market recognition due to their in herent strength, light weight and low carbon emissions footprint compared to other construction materials”, said the CEO of Timber Queensland, Mick Stephens.
The peak body for the timber industry in Queensland has wel
COMPANIES
Save Time, Save Money… Re-deck with NiuDeck
comed these products as a demon stration of the versatility and inno vation of using Engineered Wood Products in bridge construction.
www.pngbusinessnews.com • Issue 3 202268
Another great advantage of Ni uDeck is its facility to widen existing bridges using cantilevers. This al lows for the provision of pedestrian walkways or wider lanes for vehicle safety.The product’s light weight and ease of installation adds to the cost savings with ease of trans
(Photo above) Bridge re-decking and widening with NiuDeck in Bulolo; (Left photo) Sydney railway transoms being replaced with NiuDeck.
port and shortened installation time, making NiuDeck a far more cost-effective solution than other building materials such as con crete and Developedsteel.by PNGFP as a re newable alternative to hardwood sawn timber, NiuDeck is manufac tured from 100% sustainable PNG plantationSuitablepine.fora range of load con ditions including Austroads T44 and AS 5100 Bridge Design, Niu Deck is used widely by local and state governments in Australia and New Zealand due to the product’s superior strength, light weight, du rability, flexibility, fast installation time and low cost.
(Photo above) NiuDeck installation on Todd Bridge, SE Qld; (Photo below) NZ’s Rakaia Gorge Bridge re-decked with PNGFP NiuDeck
Reform
National Electrification Trust Fund
• the retailing of electricity.
• The Electricity Code;
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• NEA assumes the economic reg ulatory functions of the Independent Consumer and Competition Commis sion (the ICCC);
Though PNG Power Limited was tasked to generation, transmission, and retail of electricity to Papua New Guineans juggling responsibilities as a regulator at the same time trying to make a profit was obviously a hand ful for the SOE.
The National Electrification Trust Fund is established for the implemen tation of the National Electrification Roll-Out Plan. The NEROP is the na tional plan approved by the National Executive Council to be implemented in order to meet the national objec tive of electricity access to 70% of Papua New Guinea households by 2030.
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To this day the same challenges of developing new power gener ations, transmission infrastructure and a robust retail market remain our challenge but already we are seeing promising investments and develop ment taking place, as PEP countries, friendly countries, development partners, multinationals beginning to help, invest and generally taking interest in investing in PNG’s rich en ergyThesector.next decades will be a testa ment of the sacrifice and leadership NEA and stakeholders put into today to develop the energy sector for our people, businesses today and the generation after.
Though becoming public in 1963 a meagre 15% of households in PNG accessed electricity. It is unfortunate electricity supply services of PPL never found its way outside urban and/or town peripheries. This vital service remained somewhat stag nant, and something of a luxury ser vice for only a handful of privileged public servants for over fifty years.
Levies and fees
www.pngbusinessnews.com • Issue 3 202272 ENERGY
Brief Background
The NEA was the Energy Wing of the former Department of Petrole um and Energy and confined to only policy matters on renewable energy sources.TheNEA was established as a result of the National Energy Policy 2017 – 2027, Harnessing Energy for Life- which highlights the GoPNG’s target of harnessing renewable en ergy sources and providing electric ity for 70% of households in PNG by 2030 and 100% by 2050.
• NEA National Content provi sions will apply to licensees; and
The Authority will have the ability to charge levies and fees on licenc es granted under the NEA Act, in cluding levies on generation licences granted under the NEA Act.
National content
of generation licences are:
• the generation of electricity;
By Miriam Mandibi
• The Third Party Access Code; and• The Grid Code.
Papua New Guinea’s Regulation for Small Power DevelopmentAuthoritypresentedSystemstotheNationalEnergy(NEA)bytheUnitedNationsProgramaimstofacilitatethepromotionofaccesstoaffordablecleanenergy.
The operations in the electricity supply industry for which a licence is requiredinclude:
The NEA is responsible for the drafting and implementing the codes or rules relating to the conduct or
Key takeaways for the energy industry
• NEA has the ability to charge levies and fees, including levies on generation licences;
• the operation of a transmission network;•the operation of a distribution network; and
The NEA is the regulator of the electricity industry in PNG and ap plications are made to it for the issu ance of any of the above licences.
Codes and rules
operations of a participant in a regu lated industry. To that end, the NEA has issued:
n 21 April 2021, the PNG Par liament passed the National Energy Authority Act 2020 (NEA Act) and the Electricity Indus try (Amendment) Act 2020 (Amend ing Act) (together the Acts).
• NEA has the power and respon sibility to obtain, and regulate the use of, gas provided by gas produc ers, in satisfaction of domestic mar ket obligations.
The Acts provide for the estab lishment of the National Energy Au thority (the NEA) and is responsible for the regulation of the electricity supply and gas downstream industry in PNG. These functions include both the technical and economic regula tion of the industry.
The effects of these Acts towards the activities of independent power producers, particularly the holders
• Licences issued under the Elec tricity Industry Act (Ch. 78) (EI Act) and the Independent Consumer and Competition Commission Act 2002 (ICCC Act) are preserved under the NEA Act;
• NEA has the power to ‘take over’ the operations of the power producers where there is a breach of licence conditions;
National content provisions will now apply to all new projects set to kick off under this new regime, with ‘project’ meaning projects licenced under the NEA Act for the genera tion, transmission, distribution or re tailing of electricity.
Licencing and regulation of the electricity supply industry for inde pendent power producers is expect ed to change, although the process for issuance of regulatory contracts will remain the same.
The National Energy Authority: Powering PNG
www.pngbusinessnews.com • Issue 3 202274 AGRICULTURE
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“The Oil Palm Industry Corpora tion (OPIC) only provides extension services to smallholder growers, whereas, the big players control the industry – that is the concern.
PM Marape said this when ex plaining the rationale for his allo cating four ministries to the agricul ture“Albertsector. Einstein once said, ‘in sanity is doing the same thing over and over again and expecting a different result’, which is exactly what has happened to the PNG ag riculture sector since 1975,” he said.
rime Minister Hon. James Mar ape says the allocation of four ministries to the agriculture sector is a complete paradigm shift to get agriculture moving again.
South Fly MP Hon. Seki Agisa (Pangu) is Minister for Livestock, an industry which thrived pre-In dependence, but has since been reduced to a skeleton of its for mer self. Western, Minister Agisa’s home province, has huge tracts of unused land which can be used for development of livestock; and Anglimp-South Wahgi MP Hon. Joe Kuli (United Resources Party) is Minister for Coffee, another crop which has seen better days, but no longer produces the same volume it once used to. The Wahgi Valley, Minister Kuli’s home, once housed some of the biggest coffee planta tions in PNG which grew the fledg ling industry in the 1960s. One of his major tasks will be to revive the legendary Wahgi Mek plantations of the “Wevalley.want to see import replace ment and more exports within the
agriculture sector, which is we have allocated four separate ministries to agriculture,” PM Marape said.
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“The Government has plains to develop the massive Sepik Plains into the biggest agriculture hub of thePMcountry.”Marape said the oil palm in dustry laws and regulations were outdated and needed to be changed
Marape targets agriculture growth with four ministriesgiven to sector
“Hon. Aiye Tambua brings in freshness, vigor and energy to this key sector that we want to ramp up for it to be a substantial, if not the major sustainable contributor to our economy, not just now but forever into the future.
PM Marape said PNG’s livestock industry must to revived urgently for import replacement as well as to be an “Onceexporter.upon a time, the High lands Highway from Mt Hagen to Lae, was filled with cattle on the roadsides,” he recalled.
“His home of Goroka and East ern Highlands has some of the best agriculture land in the country which must be utilised.
“Oil palm is the largest agricul ture commodity in PNG, contribut ing about 40 per cent – K1.2 billion annually – of PNG’s export revenue in the agriculture sector,” he said.
“However, the irony of it all is that the large multi-national com panies who dominate the industry, operate in an unregulated industry.
Nakanai MP Hon. Francis Maneke (Pangu) is Minister for Oil Palm, PNG’s biggest and most-valu able agriculture crop, which brings in over K1 billion a year. Minister Maneke is from Nakanai, West New Britain, one of the biggest oil palm districts in PNG and has been a strong advocate for the industry;
“Oil palm is a billion-kina agri culture industry, and under Minis ter Maneke, will be given specific targets – especially in increasing production.“Wehave so much land that is lying around idle and Minister Maneke will be tasked to use this to increase production, as well as help the existing industry to grow.”
The Marape Government’s fo cus on ‘Taking Back PNG’ is deeply embedded in the agriculture sector – which is the backbone of Papua New Guinea to drive the country andTheeconomy.PrimeMinister said it was no secret that agriculture had declined since Independence in 1975, and al location of the four ministries was to rekindle the sector, for it to be a major income-generator for PNG.
“My Government is committed to reviewing the OPIC Act to bring about long-overdue changes within the billion-kina industry.
“Papua New Guinea had a thriv ing cattle industry, started in the colonial days, by experienced Aus
“Copra, cocoa, vanilla and oth er spices, and rice will be the key focuses of Minister Tambua as Ag riculture Minister.
“This is not an impossibility, with Papua New Guinea – main ly through East Sepik – being one of the top vanilla producers in the world with the World Bank predict ing that PNG will soon become No. 2 after“EastMadagascar.Sepikisalso the top pro ducer of cocoa in PNG with the country’s cocoa being rated very highly in the world for quality.
to see more benefits to PNG.
“I have already said that I want East Sepik to become the vanilla capital of the world and an interna tional hub for the cocoa trade.
Goroka MP Hon. Aiye Tambua (Pangu Pati) is the Agriculture Min ister responsible for administration of the department and tree crops and horticulture (fresh produce). The Department of Agriculture and Livestock has been beset with on going controversies and manage ment issues over the years;
“Startingcattlemen.atCorn Farm outside Mt Hagen, to Six-Mile outside Lae, you could find thousands of cattle.
“The once-great PNG coffee in dustry has completely lost its focus since 1975. Minister Kuli’s focus will be coffee, coffee, coffee.
Plan 2022–27 outlines our objec tives, which are to:
Statutory easements fortransmission lines
PM Marape said coffee was an other industry that needed to be revived to bring in more export reve nue, and Minister Kuli knew this, be ing from the Wahgi Valley of Jiwaka.
“I want to drink coffee made in Goroka, Mt Hagen, Lae and other parts of the country. I want to see more coffee grown for export to the lucrative markets of the world.”
Corporate Policy 2022 –2027 and Policies
• promote and develop rural elec trification programs
“Settlers moved in on State land used for cattle and abattoirs.
Following commencement of the Amending Act, the list of functions of the ICCC, as well as parts of the EI Act relating to land access and own ership of transmission lines, safety and technical requirements and of fences have now been repealed.
The Authority may also, in consul tation with the State, regulate:
We are also in draft stages of developing separate policies for the different renewable sources of en ergy which will help mitigate climate change, build resilience to volatile prices and lower energy costs.
“Sadly, since Independence in 1975, PNG’s cattle numbers have dropped to an all-time low.
We are also responsible for the policy development in the energy sector including compliance, guide lines, codes and other energy sourc es development plans.
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We understand the lack of ac cess to finance under reasonable
We are committed to engaging with investors, development part ners and their representatives, and peak bodies, and other stakehold ers. We are in the process of creating several stakeholder forums to give us advice. These bodies include the Incorporated Consumer Competi tion Commission (ICCC), PNG Power Limited (PPL) and PEP countries for guidance and support.
Some of the sections of the EI Act which have now been repealed provided statutory easements for transmission lines of existing licence holders, as well as protections from removal or tampering with existing electricity infrastructure. These pro visions have been reproduced in the NEA Act and that Regulations may provide for existing licence holders to be classified as electricity undertak ers under the NEA Act for specific provisions of the NEA Act including relation to the statutory easements and land access provisions under the NEA Act.
“Minister Agisa will ensure that this is continued as well as ensure that areas like his own province of Western, which has so much grass land, can be used to raise cattle
• encourage investor confidence in the country’s renewable energy sources•promote and develop the nec essary regulatory framework for downstream gas
PNG’s declining coffee production has been largely due to the collapse of the 14 Wahgi Mek plantations.
“We are now targeting specific commodities through establishment of the four agriculture ministries,” he “Oversaid. the next two weeks, we will give specific production targets for coffee, oil palm and our major agriculture commodities.”
• deliver efficient regulation of monopoly infrastructure while in centivising networks to become plat forms for energy services
Our primary role into the future will become more regulatory as more households and businesses have ac cess to electricity and gas. Our job will be to enforce the energy market laws as stipulated under National Energy Act and Electricity Industry (Amendment) Act 2021, and as the availability of electricity and gas ex pansion become widespread so will the necessity of the NEA’s opera tions and necessity to enact a Retail Law to regulate and enforce the bur geoning energy market.
“Miles and miles of once-flour ishing coffee plantations are now covered by bush or taken over by settlers.“These are the sad remains of Wahgi Mek Plantations, which from 1973 to 1999, generated millions of kina in export revenue for the country. It goes without saying that
The proposed NEA Corporate
PM Marape said over the last three years, his Government has given million of kina support to ag riculture, through price and freight subsidies and SME support.
Domestic market obligations
• gas utilisation for power gen eration, including safety standards for off-take of gas from producers, transport of gas to electricity project sites, storage, usage and environ mental considerations for utilisation of gas; and
• effectively regulate competitive markets primarily through monitoring and reporting, and enforcement and compliance•useour expertise to inform de bate about PNG’s energy future and support the energy transition.
• protect vulnerable consumers, while enabling consumers to partic ipate in energy markets
terms makes the costly upfront in vestments in renewable energy un affordable. But we believe that by creating a conducive environment can attract investments and by fos tering understanding, respect, and trust with our friend countries much assistance in development aid and technology can be provided to de velop many of PNG’s renewable energy sources.
with Indonesia and Australia just next“Hedoor.will be given the necessary Budget support to unleash the full potential of the livestock industry in our country. The irony is that for a country with so much grassland for raising cattle and other livestock, we continue to import meat, some thing that must stop.”
< From Page 74 < From Page 72 AGRICULTURE
• the storage, distribution, and us age of liquefied petroleum gas (LPG).
The Authority now has the power and responsibility to obtain, and reg ulate the use of, gas provided by gas producers, in satisfaction of domes tic market obligations.
“It is the same sad situation not only in the Wahgi Valley, but right throughout PNG.
“The Livestock Development Corporation (LDC), following a di rection from my Government, is moving to take back all State land occupied by settlers and use to re build PNG’s cattle industry.
tralian
“As you drive along the great Wahgi Valley of Jiwaka, one of the agriculture hubs of PNG, you see a heart-breaking sight,” he said.
“The State Land Reclamation Project was launched by former Minister for Agriculture and Live stock, John Simon, at Corn Farm at the border of Western Highlands and Jiwaka last December.
“Today I am pleased to announce that Kumul Pe troleum can award this PDL 7 landowner group with a share certificate, recognising them and their nom inated company, and therefore a cheque for their accrued preferential dividends from 2017 to 2021, for K22.7 million, this is a significant amount.”
Kumul nominatedbeneficiariesPDLSonkDirectorManagingPetroleumWapupresentsto7landownerwhoestablishedandKrotonLaitepoEquityLimitedtoreceivetheKEObenefitsontheirbehalf.
“We issued a public notice in May this year notify ing all KEO beneficiaries to complete KEO eligibility criteria requirement. The PDL 7 landowner beneficiar ies are the first to complete this.”
OIL AND GAS
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Mr Sonk added, “It is important that Kumul Petro leum follows due process, including proper identifica tion verified by the Department of Petroleum.”
U-STREIT PNG joins hands with rural youth groups in Pap ua New Guinea to celebrate the International Youth Day with a message for young population to become proactive and take part in agri-food value chain businesses.
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The EU-STREIT PNG Programme in collaboration with rural youths and students in the Greater Sepik region marked the International Youth Day 2022 (IYD) with a mes sage for all to become innovative and take part in all nodes along the agri-food value chains, including areas supported under the Pro gramme.Ledby the Food and Agriculture Organization of the United Nations (FAO), the EU-STREIT Programme organised two events this year in East Sepik and Sandaun provinc es, bringing together 1,781 youths in total. These youths were briefed, sensitised, and made aware through engaging interactions, including mo tivational speeches, cocoa competi tions, student debates, contempo rary group dances, drama role plays, march pass and collective chanting, in a bid to promote this year’s theme of IYD: ‘Intergenerational solidarity, creating a world for all ages”.
“I thank these landowners for their patience over these past 5 years, we are all glad this moment has come.”The PDL7 landowner beneficiaries have estab lished and nominated Kroton Laitepo Equity Limited to
apua New Guinea’s national oil and gas com pany, Kumul Petroleum Holdings Limited has announced that all necessary eligibility process verifications had been completed with the PDL 7 land owners, so that they were able to receive accrued Kroton Equity Option (KEO) preferential dividends.
IYD is commemorated every year on 12 August, bringing youth issues to the attention of the internation
Explaining this year’s theme, Ms Patu Shang, the FAO International Gender and Youth Inclusion Spe cialist, on behalf of the Programme Coordinator, called on the elders and parents as well as authorities to provide an enabling environment for youths to excel and take over. “It means mainstreaming young peo ple’s perspectives and we have to come together as one from all ages. Therefore in everything we do, we must sit together and include youths in solidarity so they can tell us their perspectives.”MsShang also challenged the youths particularly those from ru ral areas to become innovative and
EU-STREIT PNG URGES YOUTH TO JOIN AGRI-FOOD VALUE CHAIN
Managing Director of Kumul Petroleum said, “working closely with the Department of Petro leum and MRDC, we have completed the landowner identification studies for this landowner group, ensur ing that they can receive their KEO entitlements.”
take part in agribusiness. “Don’t just sit back and observe because the world will pass you by.”
The 2009 PNG LNG Project Umbrella Benefit Shar ing Agreement between the Independent State and recognised provincial governments and landowners impacted by the project were entitled to exercise a commercial option to acquire shares in the State entity taking up shares in the project, known as the Kroton Equity
Mr Sonk took the opportunity to also encourage other beneficiary groups to complete their KEO eli gibility criteria compliance so that they could also re ceive their KEO related benefits.
E
receive the KEO benefits on their behalf.
al, national, and local communities, while celebrating their potential as partners in today’s global society.
Kumul Petroleum recognition means KEO dividend payment to PDL7 landowners
She added: “EU-STREIT PNG is supporting a holistic approach to develop cocoa, vanilla and fisheries activities so every young person can find his/her place in any node along the agri-food value chains and with the advantage of technology they can develop a particular value chain either as a farmer, or input supplier, or take part in processing and mar keting.”These overarching and inspira tional messages where shared in the two celebrations held in Yan goru-Saussia District of East Sepik Province, on Thursday 4 August and in Vanimo, Sandaun Province, on Wednesday 17 August.
WapuOption.Sonk,
After a birth based around en gineering and machining services,
The business continued to grow, and by 1977 the brothers had pur chased their property, which re mains the current site of the Port Moresby sales branch, Equipment Hire, and head office.
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Bishop Brothers mark 50 years in Papua New Guinea
The brothers established a joint venture (JV) in Tabubil in 1983 when the Ok Tedi mine commenced oper ations. The venture consisted of a sales office, hardware store, and machining, engineering, and fab rication workshops. The JV was responsible for the fabrication and construction of many of the original houses in Tabubil.
1991 saw a second JV estab lished, this time in the Porgera township. This outlet serviced the Porgera gold mine with a concen tration on hydraulic services. This association led to major contracts for the supply of consumables to be supplied from Lae.
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outlet. After some years, Bishops returned to the province, setting up an outlet in the now thriving Kokopo town.
As PNG developed and flour ished after independence, so did the Bishops. The Bishops played an integral part in projects across the country. Bougainville Copper real ized the first labor hire of trades men, and later a sales outlet at Kieta, followed by a workshop and sales office in Lae in 1985 to man age the maintenance requirements coming off the island, and to ser vice the new projects coming on line in the Misima and Porgera gold
or 50 years, Bishop Brothers have been an integral part of the ongoing development of Papua New Guinea through the supply and service of products to a multitude of projects in agriculture, mining, forestry, manufacturing, marine, industrial, and, over the last decade, the evolving oil and gasBishopsindustry.in many ways have grown and developed with the nation -- from humble beginnings in 1972 with two brothers working enthusiastically to get established with a handful of staff to numerous outlets and over 300 staff.
mines, and the oil fields of Gobe.
Bishops Today
Top photo: Bishop Brothers Port Moresby office in 1980. Above photo: PortofficeMoresbytoday.
In 1972 Mark and Wayne Bish op came to Papua New Guinea to work with their older brother Ross. The original business in Port Mores by focused on general engineering and mechanical and marine mainte nance. As the business developed, the Bishops took advantage of the opportunities PNG presented in this area, and invested in more and var ied machinery, leading to the young men working 14- to 20-hour days, 7 days a week to build their business service and brand.
In 1999, Bishops set up a sales outlet in Madang, as the promise of mining developments was a cat alyst for this operation. The final branch expansion came in 2006 when Bishops entered the Solo mon Islands with an outlet in Ho niara. Unfortunately, this branch was closed in 2022 due to ongoing internal tensions, which lead to nu merous security incursions on all business houses there.
In 1984, a sales branch was es tablished in Mt. Hagen to service the tea, coffee, general agricul ture, and extended mining and ex ploration activities in the Highlands. With the success of the Mt. Hagen branch in the agricultural area, a branch was opened in Kimbe in 1987 to provide sales and service to the developing oil palm industry in theInprovince.1990,a branch was opened in Rabaul, again to support the cocoa, copra, and balsa indus tries. The volcanic eruptions in 1994 witnessed the decimation of the Rabaul township and the Bishops
Top photo: Bishop Brothers Lae office in the 1980s. Above photo: Mt. officeHagentoday.
Bishops have developed an import program and introduced many currently well-known brands to the PNG market -- King Tony hand tools, Bulldog boots, Hard
Puma, Enerpac, Alfagomma, Mac naught, Steel Blue, Howler, CRC, Penrite, Loctite, and Wacker.
man clothing, PPE Select and Wir ra safety products, and Genpower generators. The business continues to develop this direct import pro gram to offer PNG a range of qual ity products at competitive prices.
The office in Rabaul before and after it was decimated by a volcanic eruption in 1994. (Photo below) Some of Bishops’ 300 staff.
Presently, Bishops operates six sales branches; Port Moresby, Lae, Mt. Hagen, Kimbe, Madang, Kokopo, and an Equipment Hire/ Crane Hire division. Industrial sales remain the spine of the business.
The brands include Bosch, Sti hl, Cigweld, Flexovit, Insectshield, Spanset, Warrior, Milwaukee,
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The future looks bright for Bishops and PNG with several major projects earmarked to continue to develop and enhance the nation. Bishops will continue to grow and develop through the continued custom and support of our communities.
the thriving Bishops business today is the leading supplier of engineer ing, industrial, and safety products to PNG.General Manager Len Pianta, who has been with the company for over 25 years of the journey, has continued to drive the business with a strategy based on customer service, competitive pricing, quality products, stock in the country, ex perienced staff, up-to-date tech nologies, and a substantial network of suppliers from around the globe.
Bishops stocks an extensive range of products and superior brands in PNG covering all indus tries. These product ranges include safety clothing and footwear, safe ty equipment, materials handling, workshop, machinery, and con struction equipment, power and pneumatic tools, lubricants, seal ants and chemicals, janitorial, gen eral industrial products, hand and cutting tools, welding and abra sives, hydraulics, valves and hoses, fasteners, bearings, and oil seals, power generation, and timber pro cessing equipment.
Bishops Future
Bishops will continue to support and grow our people, as we appre ciate that they play an integral part in continued business success.
Since its inception, Bishops has always re-invested profits back into PNG, through the land, build ings, redevelopments, stocks, and of course our people across the country. Bishops presently employ 300 staff across PNG and carry 50 million kina worth of products. Ma jor redevelopments of Port Mores by, Lae, Mt. Hagen, and Kimbe now reflect modern facilities with exponential storage capacities to service the major customers across theBishopscountry.are proud to be associ ated with and service old and new, large and small clients alike: Exxon Mobile PNG, OTML, NBPOL, Simberi Gold, Kainantu Holdings, Porgera JV, Wood Group, Ramu Agri, Innovative Agro, Hides Gas, Curtain Bros, As sociated Mills, Paradise Foods, Ela Motors, Monier, Anitua, Morobe Goldfields, PNG Motors, PNG Forest products, Total Energies, and Guard dog, to name a few.
• K8.6 billion revenue to PNG over the life of the project;
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“Indirect jobs include securi ty, airline operations, hotel and transport, meals and catering supplies, spares and materials supply, helicopter logistics, train ing and professional services.”
• K400 million per year spent in PNG annual operating costs; and,
Kumul Petroleum managing director Wapu Sonk
SONK: PAPUA LNG FEED GREEN LIGHT IS GOOD NEWS FOR PNG
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Gard, around 70 local businesses have already been named as service providers for the continuing project.
“Direct jobs include offshore, supply base and office workers such as operating, maintenance, onshore support, marine support, catering staff, management and office support,” he said.
“The likelihood of up to eight years of LNG related infrastructure construction means that many na tionally owned service industries have the opportunity to develop a firm financial, technical and human resource foundation that will en sure their future in a rapidly indus trialising Papua New Guinea.”
“We are ready to proceed with front-end engineering and design (Feed) and project financing ar rangements,” he said.
The Pasca A liquids-rich gas field in the Gulf of Papua is being developed by Twinza, an Austral ian upstream energy firm. The business has been operating in PNG since 2011 and has committed more than K350 million to thor oughly assess the market. Its creative development strat egy and design are now prepared for implementation.
• K500 million per year to the State (tax, levies, royalties);
As the national petroleum com
pany, Kumul Petroleum Holdings will be exercising its right to take up to 22.5% equity in the Papua LNG project, and join the other part ners TotalEnergies, ExxonMobil and Santos.MrSonk continued, “We have seen the many benefits that have come about as a result of the Exx onMobil led PNG LNG Project, and I foresee that the lessons learned from that project will enable all Papua New Guinea stakeholders to maximise their various benefits from the Papua LNG development. Papua LNG construction will have large mul
ommenting on the recent announcement by TotalEn ergies that the Papua LNG joint venture will launch the first phase of front-end engineering and design (FEED) studies for up stream production facilities on the 5.4 Mt/year LNG project that they are operator of, Kumul Petroleum managing director Wapu Sonk was congratulatory.Hesaid,“As a potential co-ven turer in this LNG project, we are really glad that this momentous de cision has been made by TotalEn ergies and its partners, it is a sign of their faith in the future of Papua NewMrGuinea.”Sonknoted that studies for the downstream liquefaction facil ities were also progressing in line with the overall project schedule, with the objective of launching the integrated FEED in the fourth quar ter of “The2022.project is targeting a final investment decision (FID) around the end of 2023, which will enable project construction to commence, leading to a projected project startup at the end of 2027. We have been waiting for this good news for a number of years now.”
The decision by Papua LNG to en ter FEED would benefit many stake holders since after the completion of an estimated four years of construc tion it was planned to then start the construction of the P’nyang LNG Pro ject, which would take another 3-4 years to construct.
densate in addition to 0.33 trillion cubic feet of recoverable dry gas. The project’s advantages include:
• K18 billion contributions to the gross domestic product over the life of the project;
tiplier effects in the economy.”
After conducting a rigor ous subsurface evaluation pro gramme, Twinza submitted for a PDL in Pasca2015.A possesses more than 70 mmbbl (million barrels) of liq uefied petroleum gas and con
Robert Gard, the chief execu tive officer of Twinza, made the statement while attending the re cent induction ceremony for the 11th National Parliament in Port Moresby.“Weare awaiting finalisation and signing of the gas agreement and approval of the petroleum de velopment licence.
Mr Sonk confirmed his belief that LNG developments would underpin the economy of PNG for at least the next two decades, assisting in the roll out of electrification across the country and be the catalyst for downstream processing of petrole um into products such as fertilisers and“Atpetrochemicals.KumulPetroleum we will be playing a continuing role in petro leum developments and also intend to play a greater role in related na tion-building projects to ensure that benefits from this sector are spread as widely as possible.”
• 300 construction and 500 permanent jobs in PNG both di rect and Accordingindirect.to
The Pasca A oil platform in the Gulf of Papua. Photo courtesy Twinza Oil
he Pasca A offshore gas project in Gulf will go ahead once the gas agreement is signed and the petroleum devel opment licence (PDL) is approved, says developer Twinza.
OIL AND GAS
The 95 km offshore Pasca A offshore gas project is located in 93 m of water. It was found in 1968, and Twinza bought it in 2011.
Pasca A project awaits signing
“The Papua LNG project is well positioned to contribute to growth in LNG supply worldwide, especially for customers in Asia seeking to decarbonize from coal to gas, in line with our strategy to lower global greenhouse gas emissions.”
otalEnergies, as operator, has announced the decision of the Papua LNG joint venture to launch the first phase of front-end engineering and design (FEED) studies for the Papua LNG project’s upstream production facilities.
TotalEnergies announces new milestone towards Papua LNG development
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“Our critical fuels not only play a key role in the energy security of Australia and Asia, but they also provide affordable and reliable alternatives to switch from higher emitting fuels.
The results reflect significantly higher oil and LNG prices compared to the corresponding period due to stronger global energy demand combined with a higher interest in PNG LNG following the Oil Search merger.Santos intends to return US$605 million to shareholders (equivalent to US18 cents per share) under the company’s capital management framework, comprising a 38 per cent increase in the interim dividend to US7.6 cents per share unfranked (US$255 million) and an increase in the previously announced on-mar ket share buyback from US$250 million to US$350 million.
“The results demonstrate the strength of Santos, with strong di versified cashflows and capacity
OIL AND GAS
The Papua LNG joint venture is committed to developing a landmark project in terms of sustainability, biodiversity, and low carbon emissions. Specifically, the project will incorporate a carbon capture and storage scheme for the fields’ native CO2, which will be reinjected into the reservoirs.
to provide sustainable shareholder returns, fund new developments and the transition to a lower carbon future.“Strong first half free cash flows mean we are in a position to deliver higher shareholder returns through an increase in the interim dividend and on-market buyback, consistent with our disciplined capital man agementSantosframework.”alsoannounced today a final investment decision has been taken to proceed with the Pikka Phase 1 oil project located on the North Slope of Alaska. Further de tail is available in Santos’ separate ASX announcement on the project dated 17 August 2022.
on-market share buybacks during the remainder of 2022.
“The2027.commencement of upstream FEED studies is another significant step towards developing the Papua LNG project, which will increase Papua New Guinea’s LNG export capacity and thus contribute to its further development,” said Julien Pouget, Senior Vice President Asia Pacific for Exploration & Production and Renewables at TotalEnergies.
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In parallel, studies for the downstream liquefaction facilities are progressing in line with the overall project schedule, and the objective is to launch the integrated FEED in the fourth quarter of 2022.
Santos Managing Director and Chief Executive Officer Kevin Gal lagher said Santos delivered record production, free cash flow and un derlying earnings in the first half 2022 as the company benefited from strong customer demand for our products and higher commodity prices.“Demand for our products has remained strong in both Austral ia and internationally, due to in creased demand and shortages of supply from producing nations due global underinvestment in new sup ply,” Mr Gallagher said.
“We are seeing these issues play out in the significant shift in global energy policy towards energy se curity as a key priority.
Santos is also in advanced dis cussions with shortlisted counter parties for the sale of a five per cent interest in the PNG LNG pro ject.Throughout this process, there has been strong interest from repu table counterparties with expected proceeds in-line with market con sensus valuation. Santos intends to retain a 37.5 per cent stake in PNG LNG.
The project is targeting a final investment decision (FID) around the end of 2023, and a start-up at the end of
The US$350 million on-market buyback is inclusive of the US$250 million initial on-market buyback announced in April 2022, of which US$174 million had been complet ed by the end of June 2022. San tos intends to return the remaining US$176 million to shareholders via
S
SANTOS: RECORD H1 FREE CASH FLOW, UNDERLYING EARNINGS, HIGHER SHAREHOLDER RETURNS
antos has announced its halfyear results for 2022, report ing record free cash flow of US$1.7 billion and underlying profit of US$1.3 billion.
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People you know you can count on.
Phone +675 300 8300 for your nearest Business Centre.
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For over 75 years our people have been helping develop PNG and keep it’s industry moving. With over 300 staff on the ground, we are partnering with our customers to support their operations.
While recovery from the COVID-19 downturn will take time, reforms are also needed. The worst revenue performer is dividends from state-owned enterprises (SOEs). Outside of mining and petroleum, the SOEs paid no dividends at all for the 2021 fiscal year. This is not a new issue. The 2019 and 2020 fiscal years also saw zero divi dends coming from SOEs.
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On the expenditure side, while, as mentioned earlier, the salary bill was under control
Signs of recoveryfiscal in Papua Guinea?New
2021, raising questions of trans parency and accountability.
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Third, the fiscal deficit fell from 8.6% of GDP in 2020 to 6.7% in 2021. This reflects the revenue growth noted above, as well as expenditure restraint. Expenditure grew in 2021 by slightly less than the rate of inflation. As a share of GDP, expenditure fell from 22.7% in 2020 to 21.6% in 2021.
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First, interest payments and the salary bill, both of which have increased rapidly since the boom ended in 2013, have been brought under control, at least for now. As the graph below shows, they have both started to fall relative to GDP.
However, despite these promising indications, PNG is far from achieving a fiscal re covery. The basic budget prob lem that PNG faces is a struc tural gap between expenditure and revenue. As the next graph
With their poor performance and estimated consolidated debt of 5.1 billion kina, it is per haps unrealistic to expect much more from the non-resource SOEs. But Ok Tedi Mining Lim ited (OTML) only contributed K81 million to the budget, down from K370 million the previous year. A note in the budget in dicates that most of OTML div idends went to Kumul Minerals Limited rather than the budget, another case of questionable diversion of funds.
The National Fishery Au thority also paid nothing to the budget against a target of K146 million, despite being flush with funds from the auctioning of fishing licences.
relative to earlier years, ex penditure on salaries still went over budget by K180 million. The salary bill for MPs’ salaries increased by K8 million from K71 million to K79 million. There was a spike in the unclassified or ‘other’ portion of the salary bill, which increased from K16 million in 2020 to K73 million in
Second, after two years of negative growth, revenue grew strongly, by 9.7% after inflation, or from 14.2% of GDP in 2020 to 14.9% in 2021. This is more than the target in the government’s ambitious plan to achieve a bal anced budget in 2027, which requires 7% annual revenue growth.Therevenue increase in 2021 was largely driven by mining and petroleum taxes, reflect ing higher commodity prices. Grants (foreign aid) also in creased by 47%, indicating strong support from foreign governments and multilaterals during COVID-19, including the first budget support grant after two decades from Australia.
By Kingtau Mambonand Stephen Howes
apua New Guinea has been facing fiscal prob lems since the end of its economic boom almost a dec ade ago, with large deficits, in creasing debt, falling revenue, and a rapidly growing salary bill. The COVID-19 pandem ic has made things worse by depressing revenue. But the recently released 2021 Final Budget Outcome contains some promising signs.
This is not only an issue for debt sustainability, but also for service delivery. PNG has a rapidly growing population. It is useful to divide revenue and expenditure by the popu lation, as the next graph does. Adjusting for inflation, expend iture per capita in 2021 was around its long-term average of K2,200 (in 2021 prices). But revenue per capita was about K1,500, around its lowest level for three decades. With falling revenue per capita, it will not be possible to support expanded education, health, and roads spending.Alotmore work needs to be done. Revenue is still below its pre-COVID level. Adjusting for inflation, revenue in 2019 was K14.9 billion (in 2021 prices); in 2021, it was only K13.9 billion.
In conclusion, the final budget outcome for the 2021 fiscal year shows strong growth performance in revenue col lection and constraint over spending with lower deficits compared to 2020 outcomes.
shows, expenditure now hovers above 20% of GDP, and reve nue around 15% of GDP.
SIR JOHN GUISE STADIUM PORT MORESBY,
PNG CHANGE OF DATES 26th & 27th OCTOBER 2022 REGISTER TO ATTEND ENTRY IS FREE www.pngexpo.com EXHIBITION & CONFERENCE
PNG’s Compulsor y Third Par ty Insurance Provider INDUSTRIAL & MINING RESOURCES
of the PNG-Australia Partnership, funded by the De partment of Foreign Affairs and Trade. The views are those of the authors only. This article appeared first on Devpolicy Blog (devpolicy.org), from the Development Policy Centre at The Australian National University.
Treasurer Ling-StuckeyIan
Robert Igara, chancellor of the University of Papua New Guinea, Sir Wilson Kamit, a former gover nor of the central bank, and Prof. Stephen Howes of the Australian
“This is an example of the major structural reforms underway by the Government to modernise the PNG economy and lift our economic growth rate.”
“The interest rate gap decreased from 8.51 per cent in 2018 down to 6.51 per cent in 2020, the best per formance since Ling-Stuckey1998.”said PNG’s finan cial sector lacked adequate compe tition which led to monopoly-style profit“Therelevels.is a serious problem of excess liquidity in which savings are not turned into investments,” he said.“There is a need to examine the use of technology and how it can improve access to finance and in surance for many more of our peo ple.“We also need to address inef ficiencies in our payments system which see too many people not
or many of the country’s main importers, the problem of lack of foreign exchange availabil ity continues to pose a danger to supply security in the nation.
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PUMA GM: LACK OF FOREIGN EXCHANGE CONTINUES TO POSE A THREAT
“It needs to serve the broader public interest as it helps mobilise savings into productive investment and support for SMEs (small to me diumTheenterprises).”Independent Advisory Group (IAG) is conducting a review, and the second phase has begun, according to the newly re-elected KaviengAccordingMP. to Ling-Stuckey, the first phase’s success prompted changes to the Central Banking Act, which were overwhelmingly ap proved by Parliament in December.
Kingtau Mambon is an economics tutor at the University of Papua New Guinea School of Business and Public Policy (SBPP).
“We must ensure that this part of our economy works efficiently.
Disclosure: This research was undertaken with the support of the ANU-UPNG Partnership, an initiative
ing levied through to businesses are value adding and can be recovered especially in a price-controlled mar ket,” he said.
Despite these promising signs, it’s too early to say PNG has turned the fiscal corner. The large structural gap between revenue and expenditure existed before COVID-19 and closing it will not be easy.
apua New Guinea’s financial sector accounts for K2.3 bil lion of its economy in 2022, Treasurer Ian Ling-Stuckey says. Ling-Stuckey said a healthy and modern financial sector was vital for“Thisdevelopment.isalarger contribution than the size of the manufactur ing sector (K1.705 billion), or even our transport and storage systems (K2.05 billion),” he said.
National University are leading the independent inquiry. “International comparisons suggest there is much that can be done to improve our fi nancial sector,” Ling-Stuckey said.
“We have some of the greatest differences in the world between interest deposit rates paid to savers and interest costs charged to bor rowers.“Fortunately, there are signs that this gap is narrowing as the Marape Government has been clear that changes are required.
Stephen Howes is the Director of the Develop ment Policy Centre and a Professor of Economics at the Crawford School.
The PNG Budget Database has been updated to reflect the 2021 Final Budget Outcome figures. (See devpolicy.org for hyperlinks to these).
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F
“This is to instill investor confi dence, that there are no surprises of increased fee structures and im portantly the charges that are be
The Treasurer has stated that there is a chance the government’s current gasoline subsidy might be prolonged.“It’spleasing to have the gov ernment committed to continuing the fuel subsidy as a lot of discus sions on making fuel cheaper for consumers continue to take place and it is important to keep on work ing with the government who are the policy/decision makers,” Mr. Tokome said.
According to Hulala Tokome, Country General Manager and Di rector of Puma Energy, they are hopeful that a strong framework in terms of government policies would be in place to address these con cerns with the creation of the new government and the Minister lead ing the industry moving ahead.
Public responses are being re quested by IAG and are due on AugustLing-Stuckey26. stated that the Terms of Reference had incorporat ed the significance of a thorough public engagement process and urged organisations and others to participate and share their opinions on how the financial system in PNG may be strengthened.
being able to deposit funds and too many cheques bouncing due to unnecessary and bureaucratic im positions from our financial sector.”
Ling-Stuckey: Healthy financial sector vital for development
“This is to ensure that we can be able to maintain fuel supply se curity and make sure we have the
required foreign currency in the market to bring in the much-needed fuel products into the country,” he said.He said that Puma has continued to collaborate effectively with the government, and they would do so in the future, with the relevant Min ister and AccordingBPNG.to Mr. Tokome, having a solid foundation will be beneficial for the government programmes al ready in place.
• Digital onboarding through Elec tronic Know Your Customer (E-KYC)
• Established a Corporate Advisory Services Unit
Performance snapshot:
• Expansion of Business Banking footprint to key provincial centres
Fees and Commissions increased by 34% against PCP due to the ongo ing expansion of Kina’s digital channel network.•Cost to income increased 2% com pared to PCP due to non-recurring expenditure in capability projects and initiatives targeted to drive sustained efficiency.•Kina’s Funds Administration busi ness recorded NPAT of PGK 4.4m, with revenue growth of 12%.
• Implemented Environment and Social Management System for com mercial loan origination (in partnership with Asian Development Bank)
Kina is on track to deliver against its 2025 strategic plan. The plan will continue to drive organic growth in the core banking business and a lead ing-edge digital customer experience, focused on organisational sustainabili ty and corporate responsibility.
Net interest income grew by 8% against PCP due to solid lending per formance in SME and home lending. In non-interest income, merchant facility fees and FX income contributed to the 34% increase against PCP.
• Digital channels income up by 92% and scheme card growth of 138%
FINANCE
Funds Administration - Revenue growth of 12%
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“Over the past 6 months we have continued to build out our organic growth strategy. Increasing market share in our targeted segments re mains the focus for 2022 supported by a robust balance sheet that ensures profitable“Underpinninggrowth. revenue momentum is a disciplined approach to deliver customer-led digital solutions. The Launch of our ‘Single View’ is a mar ket first in PNG. Single View enables customers to access their superannua tion balances via Kina’s online banking channel.”Other key achievements for the half were:
Kina’s purpose is to constantly im prove the prosperity of the people, communities, and markets it serves. The bank achieves this by being the most dynamic, progressive, and ac cessible financial services organiza tion in the Pan Pacific. To deliver on our purpose the bank developed a series of priorities.
Kina aims to continue its current trajectory of pursuing targeted market growth, customer service excellence, digital on-boarding and transactional processing, and strategic partner ships to extend our network coverage. These initiatives include:
In good news for shareholders, The Board has declared an unfranked half year dividend for the H122 of AUD 4.1 cents per share/ PGK 10.3 toea per share.Kina’s CEO and Managing Di rector, Greg Pawson said the result demonstrates top line growth momen tum, execution of our digital initiatives and a solid start to lending for the half.
• Foreign Exchange (FX) grew by 10%.•
Strategy and Outlook
Banking – Lending growth of 5%
• Home loan and SME growth in key target segments
over H2 2022
ina Bank PNG has announced an NPAT of PGK 45.6m an in crease of 15% compared to the prior corresponding period (PCP). Ki na’s 1H22 results reflect strong rev enue growth and ongoing progress against the key strategic priorities of theKinaGroup.remains committed to deliv ering improved returns by growing market share organically, disciplined expense management and a prudent approach to maintaining a resilient balance sheet. Revenue growth was evident across both net interest and non-interest income.
• Several Key payment partner ships such as Pei Beta and Xero,
Kina continues strong revenuemomentum supported by growth in core business
• Enhancing data capabilities to proactively manage risk
Mr Pawson said the growth agen da remains our key focus in the second half.“Our aspirations to be the most sustainable leader in PNG will drive our agenda. Our regional branch ex pansion and appointment of addition al business advisors will support our growth targets, efficiency initiatives will improve our expense base and creating a dynamic workforce with a digital mindset will set Kina up to deliv er prosperity for our communities.”
Kina’s Funds Administration busi ness recorded NPAT of PGK 4.4m, with revenue growth of 12% compared to PCP generated from improved val ue add services to superannuation clients.The Funds Management business grew by 5% in total funds under man
• Development of the ESG strate gy and objectives for implementation
• Building a workforce capability that reflects our strategic require ments.•Embedding our ESG strategy through our Environment and Social Management Systems.
• The Funds Management business grew by 5% in total funds under man agement (PGK 5m).
agement (PGK 5m), maintaining Kina’s market share in this sector.
K
Business lending experienced growth in Term and Asset Financing loans, Agriculture sector, with expec tations for higher growth in the sec ond half of the year – something is missingDepositshere.grew 12% over the past 6 months largely attributed to an in crease in fixed term deposits resulting in a lengthening of the balance sheet duration.NetInterest Margin reduced to 6.2% due to a lower yield in govern ment securities, strong growth in cor porate deposits supporting a strong lending pipeline and acquiring addi tional share of customer transactional banking including FX and a deliberate strategy of participating in corporate lending.
• Increase in NPAT by 15% to PGK 45.6m.•Loan book growth of 5%, to PGK 2.05b.•Net Interest Income increased by 8% to PGK 92.5m, compared to PGK 85.4m in the PCP.
• Implementation of customer an alytics and artificial intelligence for AML and transactions monitoring
The lending portfolio delivered sol id results across Home and Corporate Lending. Home lending grew by PG K84.3m, representing 10% growth on the PCP with housing loans contribut ing 41% of loan book growth.
DirectorManagingCEOKina’sandGregPawson.
• Expansion of MiBank financial in clusion partnership including the first co-branded branch in Alotau, Milne Bay province
• New customer segment proposi tions Kina PRIME PLUS (home loans), Kina Private (mass affluent), Kina Venture (SME)
revival in tourism is expected to boost economic growth in the Pacific in 2022 and 2023, but the COVID-19 pandemic, rising commodity prices, and climate change continue to pose risks, according to the Asian Development Bank.
“Thisdisasters.outlook for the Pacific is wel come after more than 2 years of neg ative growth caused by COVID-19, but significant risks to this recovery remain,” said ADB Director Gener al for the Pacific Leah Gutierrez. “It is vital that development partners, stakeholders, and policy makers work closely together to ensure the contin uedTherecovery.”latestPEM forecast represents an improvement on that seen in the Asian Development Outlook (ADO) 2022 released in April, which project ed the Pacific’s economic growth to be 3.9% in 2022.
A
www.pngbusinessnews.com • Issue 3 202294 TOURISM
After an average economic con traction of 0.6% in 2021, ADB’s Pacif ic Economic Monitor (PEM), released today, says the Pacific is expected to grow by 4.7% this year and 5.4% next year.The turnaround reflects rising vis itor arrivals in the tourism-dependent economies of the Cook Islands, Fiji, and Palau, as well as expectations for Papua New Guinea’s minerals sector to benefit from the higher internation al commodity prices being driven by the Russian invasion of Ukraine.
The PEM identifies Pacific econo mies as among the most vulnerable in the world to climate change and dis asters, and that the impact of these shocks—compounded by the fallout from COVID-19 and commodity price spikes—has been sizable. Ensuring sustainable growth will hinge on in vesting in climate and disaster resil ience, the cost of which can exceed the governments’ own resources.
Other risks to the Pacific’s recov ery include community transmission of COVID-19 and some challenges in vaccine rollouts, as well as the re gion’s vulnerability to climate change and
P. O. Box 5053 Boroko, 111 NCD. Papua New GuineaTelephone: (675) 308 4400 | Facsimile: (675) 3212818Email: ipa@ipa.gov.pg | Website: www.ipa.gov.pg www.ipa.gov.pg ADB:ECONOMICBOOSTSTOURISMPACIFICOUTLOOK
But the PEM says the Russia–Ukraine war also poses a risk to the subregion through rising import and transport costs, accelerating inflation, and increasing trade and fiscal defi cits across the Pacific.
The policy briefs in the issue of the PEM examine how the Pacific is pursu ing climate financing from innovative sources, and how ADB is helping to respond to climate change and better manage disaster risk.
Mr Skewes said: “It is important to start conversing with the travel trade partners and convince them that PNG is ready to receive tourists after the long delay caused by COVID-19 travel restrictions.“Ourtourism operators, hotels and airlines depend on business and leisure travellers to keep their business operating.”
Richard Skewes, the host event organiser, was pleased with how PNG was represented at the occasion and said that it was nice to see PNG participating in the road show with other Pacific Nations.“This is the first time in two years to showcase in person all of the South Pacific Products and its treasurers and is possibly the first time in a long time PNG actually came out with its representatives unlike others which is wonderful,”
he PNG Tourism Promotion Authority is still encouraging travellers from all around the world to come to PNG.
www.pngbusinessnews.com • Issue 3 202296 TOURISM LAE CHAMBER OF COMMERCE INC Tel: +675 472 2340 Fax +675 472 6038 Email:admin@Icci.org.pg www.Icci.org.pg LAE... PNG’s Central hub of: ● Industry ● Commerce ● Manufacturing ● Transport ● Shipping
This was made known at the beginning of this month at the weeklong roadshow, The Treasures of the Pacific, a tourism-focused event held in many Australian cities, including Brisbane, Gold Coast, Melbourne, and Sydney.
“It was short timing to show and tell the World about our beautiful country but they were all impressed,” Ms Kuaninigi said.
“Our primary objective is to come out here and inform our partners that our borders have opened up, we are now ready to receive tourists again.”
Tourism Authority encourages travellers to visit PNG
Alice Kuaningi, the marketing director for TPA in PNG, and Simon Dari Pih, the marketing officer, participated in the roadshow, which began in Brisbane and finished in Sydney a fortnight ago.
Mr Skewes Accordingsaid.to him, this is a yearly event that aims to enlighten and educate travel agents on travel and tourism in other nations.“More importantly to tell the people around the world that the Pacific Island countries are now open to receive tourists and people alike that needed time and break away from all that is happening around them,” MsTravelsaid. brokers were told by Ms Kuaningi that PNG is a fascinating nation that may make a vacation trip unforgettable.
T
T
Air Niugini, PNG TPA in joint effort to boost domestic tourism
he PNG Tourism Promotion Authority is still encouraging travellers from all around the world to come to PNG.
Travel brokers were told by Ms Kuaningi that PNG is a fascinating nation that may make a vacation trip
came out with its representatives unlike others which is wonderful,”
www.pngbusinessnews.com • Issue 3 202298 TOURISM
Mr Skewes Accordingsaid.tohim, this is a yearly event that aims to enlighten and educate travel agents on travel and tourism in other nations.
“More importantly to tell the people around the world that the Pacific Island countries are now open to receive tourists and people alike that needed time and break away from all that is happening around them,” Ms said.
“Our primary objective is to come out here and inform our partners that our borders have opened up, we are now ready to receive tourists again.”
This was made known at the beginning of this month at the week-long roadshow, The Treasures of the Pacific, a tourism-focused event held in many Australian cities, including Brisbane, Gold Coast, Melbourne, andAliceSydney.Kuaningi, the marketing director for TPA in PNG, and Simon Dari Pih, the marketing officer, participated in the roadshow, which began in Brisbane and finished in Sydney a fortnight ago.
Richard Skewes, the host event organiser, was pleased with how PNG was represented at the occasion and said that it was nice to see PNG participating in the road show with other Pacific Nations.“This is the first time in two years to showcase in person all of the South Pacific Products and its treasurers and is possibly the first time in a long time PNG actually
“Itunforgettable.wasshort timing to show and tell the World about our beautiful country but they were all impressed,” Ms Kuaninigi said.
Mr Skewes said: “It is important to start conversing with the travel trade partners and convince them that PNG is ready to receive tourists after the long delay caused by COVID-19 travel restrictions.
“Our tourism operators, hotels and airlines depend on business and leisure travellers to keep their business operating.”
“Our Kopi Haus Restaurant and Gekko Bar outlets cater to a wide range of guests both domestic and international, with a diverse food and beverage offering to suit all needs”
respective global category, hence the target guest type specific to each brand will vary. Holiday Inn & Suites is the ‘family friendly’ hotel, whilst the Holiday Inn Express targets the ‘smart traveller on-the-go’.
“As an investee company of Nambawan Super, Kumul Ho tels Ltd has been a key partner throughout the years in delivering returns for our members and now members have the added benefit of enjoying the product of their in vested
www.pngbusinessnews.com • Issue 3 2022100 TOURISM
ambawan Super and Kumul Hotels Ltd, trading as Hol iday Inn & Suites and Hol iday Inn Express, are pleased to announce the renewal of their Dis count Partnership which caters to all Nambawan Super members.
Area General Manager Mr Mau ro Leone when signing the agree ment expressed that Kumul Hotels Ltd, trading as Holiday Inn & Suites and Holiday Inn Express, has al ways maintained a strong relation ship with Nambawan Super.
The Discount Partnership pro vides an opportunity to connect with the Fund’s members through their excellent service offerings.
Nambawan Super members, with membership ID cards, can now enjoy a whopping 20% off Best Available Accommodation Rates at both the Holiday Inn & Suites and Holiday Inn Express and an exceptional 15% discount on the mouth-watering food and beverag es on offer at the Kopi Haus Res taurant and Gekko Bar.
“We hope that all Nambawan Super members, both Port Moresby based and travelling in from other provinces, can have a chance to experience the high standard of service on offer with us through this Partnership”, he added.
“Beingfunds”.the majority sharehold er of Kumul Hotels Ltd with a 55% shareholding, Nambawan Super is committed to growing this partner ship and exploring more opportuni ties to deliver returns for our over 214,000 members”, he added.
N
Mr Leone said, “Our brands are household names throughout Papua New Guinea connecting with differ ent need states’ of guests. Both ho tels are very strong brands in their
Kumul Hotels Ltd. renews discount partnership with Nambawan Super
Nambawan Super Limited CEO Mr Paul Sayer stated that through this renewed Partnership, Holiday Inn & Suites and Holiday Inn Ex press re-join over 160 participating businesses across the Country as a Nambawan Discount Provider.
Sayer remarked.
“We are very pleased to be re newing this partnership and up grading the discount rates with Kumul Hotels Ltd as it allows our members to access the world class dining and accommodation experi ence on offer at the Holiday Inn & Suites and Holiday Inn Express”, Mr
www.pngbusinessnews.com • Issue 3 2022 enjoy GATEWAY | ELA HARBOURSIDEBEACH Follow us @Enzo’s Pizza PNG
PNG Study Abroad: Helping students pursue success in schools overseas
NG Study Abroad has been guiding many students in PNG to pursue success in their study abroad journey for almost sevenManagingyears. Director of PNG Study Abroad, Ms Mitsuki Sato, originally from Japan established her education agency in 2015 shortly after moving to Port Moresby with her family.Mitsuki has since grown the business and in 2018 won the Queensland Government Agent Pitch Challenge promoting study in Australia to PNG students.
PNG Study Abroad partners with universities, VET providers and government schools in Australia, Japan, Fiji, and Grenada providing hands-on assistance to students in PNG and the Pacific who wish to study abroad, helping students choose the best study options to help achieve their long-term careerMitsukigoals.assists students and their families with the entire process which includes the admissions process, visa applications, arranging health insurance, sourcing accommodation, travel support and ongoing support to students during their study overseas.Therole of the Education Counselor is widely recognised in other countries; however, it is still quite new in PNG. Education counselling is not just about finding a program
Romney(above)MitsukiSatoandDegena
A few months into 2021, and the vaccines arrived, so we devised more brilliant ways to explain and promote vaccine uptake.
We delivered COVID and TB lessons to 207 individual businesses in six industrial hubs in the National Capital District of PNG. At all workplaces the team’s sessions were very highly regarded and much appreciated. We also provided a public information booth at four of the hubs. However, public COVID and TB information booths were prevented when fighting between the members of the police and the defence broke out at one hub and marauding antivaxxers put us off!
They are also featured on our newly published on the WHO Community Engagement webpage onsponsorsburdenproject.supportfundingstrategiestheworldwide.positivewesternpacific/initiatives/community-engagement).(https://www.who.int/WeareproudtoshowoffourworkandPNGworkersinsuchaway.WeareexcitedtoknowoursuccessisbeingsharedDespitedifficulties,B4HhascontinuedtocontributetonationalTBeffort.In2022,B4HlooksforwardtobeingpartnewworldwidetorecoverfromsetbackstothenationalTBprogram.IwouldalsoliketoacknowledgeninemonthsofemergencyfromtheAustralianGovernmenttokeepmeworkingtotheBusinessesforHealthteamtodelivertheWHOCSOWehaverefocusedandarebackworkingtoreducetheofTBandHIVontheworkforceandeconomyofPNG.Welookforwardtoseeingyouatourtraining,assubscribersorofthisimportantwork.PleaseaskmetoupdateyourSMTtheTBsituationinPNG.
Please enjoy the beautiful CSO Initiative videos (https://www. youtube.com/c/whowpro/videos) and the PNG Businesses for Health video (https://www.youtube.com/watch?v=1ZvDUZ7WFsc). They are posted on the WHO-WPRO YouTube channel and are ready for sharing something good about B4H and PNG.
Romney added: “Mitsuki was very supportive and helped me understand the cultural and social norms as well as transition into life in Australia. This support was instrumental in my ability to navigate new surrounds, make new friends and be successful at study.”
www.pngbusinessnews.com • Issue 3 2022102
B4H team member Lorrie Tapora with the Small Business Team uniform shared with workplace leaders.
We took the win as recognition of B4H’s ability to quickly deliver high-quality health education to PNG workplaces about Tuberculosis – PNG’s, and the world’s, largest infectious disease killer in the years before the pandemic.
Team B4H was thrilled to win a small grant via the WHO’s Civil Society Initiative. We planned to take our infection prevention and control lessons to the back streets of Mosbi. (When we proposed the project, there was no such thing as a COVID vaccine.) We chose the smaller businesses because this is where many women work, and women are often responsible for health conversations and decisions in a family. The CSO funding enabled us to accurately inform workers while lockdowns and uncertainty generated
misinformation and fake news about everything!
for students, it’s much more dynamic and includes planning and counselling for each student.Mitsuki explains to her students and their families ‘When I sit down with students, I ask lots of questions like what is your passion? What kind of career do you want to pursue? Do you like to be physically active in your job?’ These conversations with students help them explore their interests and identifies potential future study and career paths.
A few good things did emerge from the wreckage of a Global Pandemic. One of them was WHO’s on-line “Health Cluster” meetings. Throughout 2020 and 21 these meeting updated team members of health-related projects sidelined by COVID. It was all new, and we met who was doing what. The meetings stimulated our ideas for how we could keep working when we could not hold group TB training for our sponsors and subscribers in person.
Romney Degena, who recently completed Associate degree in Civil Engineering at TAFE Queensland, said: “Mitsuki supported me from the start to finish of my academic journey. As a result, I was able to gain an entry to the program and successfully completed. I now have a dream job as a civil engineer on the SunshineImportantCoast.”tostudent’s successful transition into living and studying in another country.
P
< From Page 104 COMPANIES
With so many study options to consider it is important to provide the student with the confidence and resources to make the best decision for their future.
Don Kyatt Group 58
Kramer Ausenco 104
Proudly printed in PNG by
PNG Mining & Petroleum Hosp. 2
MRA 56
Resources & Investment Fin Ltd 65
Agmark Machinery 33
Hastings Deering 85
s the country’s smallest NGO, Businesses for Health Papua New Guinea (B4H) is proud to announce the worldwide sharing of its work on the World Health Organization’s MediaOurchannels.work promotes the “Niupela Pasin” (or in health-speak “infection prevention and control”) in small workplaces in the back streets of Port Moresby during the worst of the everythinglearnedyouteamofthinking,However,reduceto2020,slammedcausedWhenPandemic.COVID-19theborderstobeshutinMarchitthreatenedkilloffourworktotheburdenofTB.withcreativethebrillianceZoom,theawesomethatbrought#coveryourcoughtoteachworkersCOVID!
PNG Chamber of Mines 103
Datec 8
Twinza Oil 41 UMW Niugini IBC
Monier 57
Crowne Plaza Residences 21
Bishop Brothers 11
FinCorp 59
www.pngbusinessnews.com • Issue 3 2022104Advertisers’ Index
Mapai Transport 43 Maxitool 26
Pacific MMI Insurance 47
EagleXP 95
By Dr. Ann M. Clarke
National Energy Authority 50-51
Moni Plus 3
GFS Limited 6
Investment Promotion Authority 94
Government Printing Office 22-23
Pacific Palms Property 79
Ela Motors 31
Grand Papua Hotel 73
To Page 102 > COMPANIES
Crossroads Hotel IFC Crown Hotel 90-91
Lae Chamber of Commerce 96
Businesses for Health: On show to the world
Atlas Steel PNG 39
A
Total Workplace Supplies 80-81
Peddle Thorp 89
PNG Forest Products 42
Business Coalition for Women 7
Fly Engineering & Asset Mgt. 14-15
Kumul Petroleum 48-49
Digitec 45
ICTSI South Pacific 25
High Arctic Energy Services 29
Holiday Inn Express 53
Hornibrook NGI OBC
BizPrint & Scan 93
OilMin Field Services 4
PNG Eden Agri. Supplies 75 PNG EITI 41
QED 5
Industrial and Mining Expo 87
Enzo’s Pizza 101 Express Freight Mngt. 17
Business for Health 98
Hertz 55
Icon Medipharm 61
Sky Health & Medical Services 63 Solar Turbines 19 Steamships 99
Carpenters Air Logistics 35
Peuna PNG 18
EastWest Transport 37
P’Nyang Support Services 100
Capital Insurance 52
Stocks and Partners 67 TE PNG 69
Trans Niugini Tours 62
Westpac 1
Pacific Towing 83
Consort Express Lines 27
Total Waste Management 77
PNG CR 13
Brunel 9
