INVESTING IN PAPUA NEW GUINEA HAS ITS REWARDS We are Papua New Guinea’s pioneering business conglomerate. We have established partnerships in shipping, logistics, property, hotels and manufacturing that directly contribute to building our nation. Our investment, community engagement and sustainability has endured since 1918, laying the solid, secure foundations we need to sustain another 100 years of growth. We don’t just do business in PNG. It’s our home.
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HEAD OFFICE Level 5, Harbourside West, Stanley Esplanade Port Moresby, NCD 121, Papua New Guinea P: + 675 313 7400 www.steamships.com.pg
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CONTENTS
BUSINESS 28 32 34 38 40 45
WESTPAC SELLS ASSETS IN PNG TO KINA BANK PNGX WELCOMES REFORM OF SECURITIES COMM. LEADERSHIP TRAINING: ROI FOR BIZ, WOMEN WORKPLACE RESPONSES TO GENDER-BASED VIOLENCE PNG ENSURING EITI REPORTING CLAUSES NEW EMPLOYEE LOAN SOLUTION
COMPANIES 30 48 50
COMMENTARY
IMPACT OF COVID-19 ON MINING
TRANSPORT FREIGHT SUBSIDY SCHEME MELANESIAN MARINE SERVICES CAMP INCREASED CONNECTIVITY BETWEEN ASIA, PNG
Outlook on sector in PNG / page 10
EDUCATION
WESTERN SCHOOLS TRY E-LEARNING
/ page 72
“Women in Agriculture have a major role to play in our industry” T
raditionally the women of Papua New Guinea have used their gardens to ensure their families are fed & well-nourished. They play a crucial role in ensuring the health and success of their immediate family unit and in turn the wider community. That’s why since 2011 Trukai has invested its financial support in the Papua New Guinea Women in Agriculture Development Foundation (PNGWiADF). Being a founding member of PNGWiADF our support continues with the recent signing of our second 5 year support plan. ■ Through this funding Trukai is playing a crucial role in strengthening and evolving not just this organization, but the overall goal to ensure local PNG women can forge jobs and careers in farming and agricultural sector.
■ Trukai’s contribution also helps foster innovation and teaches practical skills that members can use in agriculture, fisheries, eco-tourism and horticulture. ■ Our long-term partnership with PNGWiADF has provided members with training and assistance in planting, nurturing and milling rice. Trukai provides seedlings for this project. Trukai Industries is not only about rice but “total agriculture.” One of the biggest challenges in PNG has been access to quality seeds, so Trukai facilitated a Memorandum of Understanding between our company, PNGWiADF, Terranova Seeds and Zenag Chicken to improve local access to quality seeds. This is a key ingredient in sustainable farming for the future.
■ We have donated a diverse selection of vegetable seeds to PNGWiADF that we imported from Terranova Seeds in Australia. ■ Trukai is also a major supporter of PNGWiADF in a number of farming and collaborative activities in the country, including investing in a national rice development regime in collaboration with landowner incorporated groups and farmer networks. We consider it a privilege to empower local women in agriculture today and truly believe women are key to the success of the agricultural industry moving forward. By encouraging and supporting the vital role they play, in the future we will not only see innovation and new ideas through their participation. We will see platform for equality and independence.
TRUKAI! EMPOWERING & SUPPORTING OUR LOCAL PNG WOMEN IN AGRICULTURE
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NATIONAL 28 30
SUPREME COURT NULLIFIES BUDGET ECONOMY WILL BE ‘WEAK’ IN 2021
CONTENTS
MINING 42 66
NEWCREST MINING SUPPORTS COMMUNITY PORGERA CONTRACTORS LOSE ESTIMATED K111 M
AGRICULTURE 62 70
RETIREMENT SAVINGS FOR NBPOL GROWERS BOUGAINVILLE COCOA FARMERS GET SUPPORT
COMPANIES
SWIRE SHIPPING ENHANCES SERVICES For both NAX, SEA lines / page 50
NATIONAL
BUSINESS
/ page 24
/ page 45
RESOLVING FINANCIAL STRESS
PM RESISTS CALLS TO RESIGN
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COMMENTARY
The Mining Industry in Papua New Guinea: The Impacts of Covid-19 on the Sector and its Outlook By Roger Kewa Avinaga
L
ike any other industries that have been impacted by COVID-19 in 2020, the mining industry has been impacted by the pandemic. The industry has been confronted with numerous challenges. The operations of the mines have shut down, some mines have suspended or scaled down operations, while others have gone into isolation mode. On the commodity markets, like it has been for many commodities around the world, the supply sources have been affected and the demand for this commodity has decreased. While some mines have resumed operations, they have done so under “new normal.” As a result, employees and dependents have been affected, as the sources of survival for many have been cut off because of the mine shutdowns, suspension, or scaled-down mine activities. COVID-19 clearly caught the world by surprise. No one predicted the pandemic of such a magnitude would impact the world. In any mine operation, identification of risks and risk management is part and parcel of operations, but who knows how many mining companies had COVID-19 in their risk profile and management. The real story is the pandemic caught everyone by surprise, no doubt about it. The fact remains – COVID-19 has left both short-term and long-term impacts on the mining industry. It will require new sets of measures to respond to the impacts left by the pandemic. It will require the efforts of the various parties, including the government, companies, investors, and other parties, to address the impacts left by the pandemic.
duced in Papua New Guinea include copper, gold and silver. Interestingly, some of the rare metals have been discovered and mined in PNG such as nickel, cobalt, chromium, iron, and platinum. Active exploration is going on in parts of the country which have potential for further discoveries of commercial quantities. However, many parts of the country are complicated by the rough and rugged terrain, which makes exploration for minerals difficult. The harsh environment complicates the setting up of mine sites as well as establishing infrastructure for developing the resources.
The Mining Industry in Papua New Guinea
Operating Mines in Papua New Guinea
The mining industry in PNG has been in existence for many years. It has become a pillar for the country’s economy as a source of revenues, infrastructure development, development of rural communities, employment opportunities, among others. The country extracts a wide variety of metals, which is developed and exported overseas. The most common metals pro-
PNG has a well-established mining industry on account of several world-class mines operating in the country, and mining dates to 1920s and 1930s. Certain mines such as Misima Mine has exhausted its production life span. The Panguna Mine in the Autonomous Region of Bougainville (AROB) has been closed down since the start of civil war more than two decades
Mining employees and dependents have been affected as the sources of survival for many have been cut off because of the mine shutdowns, suspension or scaleddown mine activities.
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PNG Business News is published independently in the Philippines for the PNG Business community.
PNG Business News Issue 3 2019
Publisher Beth Galura Editor Jimbo Owen Gulle pngbiznews@gmail.com Journalist Jason Kaut jsomkaut@gmail.com Ph 78025426
Sales and Marketing Greg Brimble greg@pngbusinessnews.com Phone +675 76810995 + 63 995117 5836 Administration Cec Pamular +63 917 308 1971
Head Office PNG Business News Inc. 2nd Floor, Suite 6, Corinthian Plaza Paseo De Roxas, Legaspi Village Makati City, Philippines +632 8251 5599 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.
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COMMENTARY
< From Page 10 ago. The mine is yet to be re-opened. Several operating mines in PNG includes the following: (a) Lihir Gold Mine Lihir Gold Mine is the country’s largest gold producer. The mine is in New Island Province and is operated by Australian miner Newcrest Mining Limited, having taken over in 2010 at the estimated cost of $9 billion. Employing approximately 5,000 employees, the mine is a source of employment, revenue, infrastructure development and community development, among others. The expected mine life is 20-plus years. In December 2019, the Lihir mine reported an estimated reserve containing 320Mt of combined proven and probable reserves grading at 2.3g/ of gold (Au), with in-situ gold of 23Moz. It has been reported that in June 2019 Lihir achieved the target of 15Mtpa. The mine had production of 933,000oz in 2019 and 187,245oz in the March 2020 quarter. The Lihir Gold Mine remains an important producing mine for Papua New Guinea. (b) Ramu Nickel-Cobalt Mine The Ramu NiCo mine produces a rare metal called nickel-cobalt. The project first commenced production in 2012 with a designed capacity of 32,000 tonnes per annum for nickel and 3,200 tonnes per annum for cobalt. The mine is operated by Chinese company MCC (Metallurgical Corporation of China). The project was developed with total investment cost of US$2 billion. The mine is a source of revenue and employment for the country. However, the mine has been subject of environmental concerns caused by dumping of mine waste into the river systems in the area. (c) Porgera Gold Mine The Porgera Mine is in Enga Province and produces gold and silver, extracting an estimated half a million ounces of gold annually. Before the takeover by the Government in 2019, the mine was owned 95% by Ca-
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nadian company Barrick and Chinese company Zijin. The 5% is owned by the Enga Provincial Government. However, on expiration of its Special Mining Lease in 2019, the Marape-led Government decided not to renew the license, which led to the ceasing of the mine’s operation. Currently, the mine is still closed, causing unemployment and halting revenue generation, among others. COVID-19 further prolonged the shutdown of the mine. In an unprecedent move, the Special Mining Lease was then awarded to the State-Owned Enterprise (SOE) Kumul Minerals Holdings Limited (KMHL) by the regulator, Mineral Resources Authority (MRA). This has caused further issues for Barrick and some factions of the landowners. Also, across the globe, the Government’s action has sent wrong signals that the Marape administration has taken over the mine. Investors will clearly think twice before they invest in the country. However, the Marape administration maintains that its actions are for the interests of greater public ownership of the mines, as well as oil and gas resources development. Disappointed by the Government’s decisions and actions, Barrick has taken the State to court over its actions. Whilst pending the outcome of the court decisions, and on recent note, meetings between Prime Minister James Marape and Barrick boss Mark Bristow have taken place, signalling a way forward for the mine. The details of getting the mine reopened will be finalised between various parties, including Barrick, Government, Kumul Minerals, Landowners/ Enga Provincial Government, etc. It will be interesting to see what transpires from this in relation to equity split, operatorship, etc. The Porgera Mine is a source of employment for many, and its closure has impacted the employees and their dependents. The sooner the parties resolve the issues and reopen the mine, the better it is for all parties and the country.
The Marape administration maintains that its actions are for the interests of greater public ownership of the mines as well as oil and gas resources development.
(d) OK Tedi Mine The OK Tedi Gold Mine was opened in 1982 by its previous owner, BHP of Australia. The mine produces copper, gold, and silver, and is in the Star Mountains
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COMMENTARY < From Page 12 of the Western Province. The mine is operated by OK Tedi Mining Limited and is owned 100% by the State, having taken over the mine in 2013 from the previous owner. The production life of the mine was estimated to end in 2025. However, further work is being carried out on resources upgrade, which could extend the mine’s life further. Due to the environment concerns over the Fly River systems, BHP Billiton left and handed over the mine to the State as a “compensation package”. BHP may have escaped a legal case that could have cost the company more for environmental damages and would have been subjected the mining giant to serious legal challenges. The company at the time channelled the mine waste directly into the river systems that run into OK Tedi and Fly River. Since the takeover by the Government, the mine is a source of infrastructure development, revenues, employment, community development and social development, especially in the project host Western Province. In 2002, BHP Billiton withdrew from the mine and established a fund for the benefit of the people of Papua New Guinea, called PNG Sustainable Development Program Limited. This fund has become subject of dispute between former Prime Minister Peter O’Neill and the Chairman of PNG Sustainable Mekere Morauta, especially over the ownership of the fund. The OK Tedi mine is currently placed under the State-Owned Enterprise Kumul Minerals Holdings Limited. (e) Hidden Valley Mine This mine is owned 100% and operated by the South African mining company Harmony Gold Mining Company Limited, which also owns 50% of the upcoming Wafi-Golpu mining project. The Hidden Valley gold project in Morobe Province started its first gold production in 2009 and has been producing gold and silver since. By comparison, this mine is small in relation to Porgera, Lihir and OK Tedi, but it is a source of revenue generation, employment, infrastructure development, and community development. (f) Kainantu Gold Mine The Kainantu mine is owned by K92 Mining and produces gold. This mine was previously owned by Highlands Pacific and Barrick Gold from 2006 to 2009. This project has been in operation since 2006 and is in Kainantu District of the Eastern Highlands Province. The new operator of the Kainantu Mine has been responsible for recruiting 800 employees and serves as a source of revenue and infrastructure development for the area. Reports say the mine is producing higher gold grades, resulting in strong financial results, including record net cash and throughput following commissioning of stage 2 plant expansion. It its quarterly report, the company reported quarterly revenue of US$35.6 million, a 70% increase from its Q3 2019. A record tonnage of 64,702 tonnes was treated, also a 102% increase from Q3 2019. The mine has put in place a proactive and focused management of COVID-19 and continues to operate. It also has strong preventive and response plans, says K92. (g) Simberi Mine The New Ireland Province not only hosts the Lihir Gold Mine, but also the Simberi Gold Mine. The mine
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is operated by St Barbara Limited through a Mining Lease (ML 136), which covers most of the eastern half of Simeri Island. Compared to Lihir, Simberi is not a large mine, but it is the source of revenues, employment opportunities, and rural development especially in the northernmost islands of New Ireland. The mine focuses on epithermal gold in oxide and sulphide deposits. It has been reported that the mine life of Simeri mine has been extended to 2035 and is an open pit mine.
The COVID-19 measures that were applied in the country during the height of the pandemic clearly impacted the mine operations and activities in Papua New Guinea.
Impacts of Covid-19 on Mining Operations and the Economy in Papua New Guinea The COVID-19 measures that were applied in the country during the height of the pandemic, including the State of Emergency (SOE), social distancing, limited movements, and other restrictions imposed to minimise the spread of pandemic, clearly impacted the operations of the mine operations and activities in Papua New Guinea. Given the country’s connectivity to the outside world, there is nowhere PNG would have avoided contracting COVID-19. In fact, the first recorded case in Papua New Guinea was a mine employee. The OK Tedi Mine closed down when it reported seven COVID-19 cases at the mine site. The Lihir Gold Mine also had one COVID-19 case. The OK Tedi mine operation was shut down because of its employees contracting the virus. Financially, the closure was anticipated to cost the mine an estimated K100 million. The mine employees were laid off consequently. However, the operation resumed following weeks of shutdown. OK Tedi Mining Limited announced a 14-day suspension of operations while contact tracing and isolation procedures were done to minimise any spread of the infection. Operations resumed after it had reached a satisfactory stage of de-infection. The Lihir Gold Mine did not shut down its operations, but necessary measures were employed by the mine to isolate the COVID-19 patient, with appropriate restrictions applied at the mine site. OK Tedi, Lihir, other mines, and the PNG Chamber of Mines and Petroleum maintained dialogue with the Government team on COVID-19 to ensure there were minimum disruptions to the mine operations and at the same time ensuring the health, well-being, and safety of the industry employees as of paramount importance. This included putting measures to manage and minimise the spread of the virus and the negative impact the pandemic would have on the mine operations, its employees, as well as surrounding communities. The Government also put in place a strategic
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COMMENTARY
< From Page 14 response plan, including making financing available to address the pandemic. The spread of COVID-19 may have been contained in Papua New Guinea, but this is not to say that the virus is not still capable of spreading. The Government through the Controller encourages everyone in the country to continue to observe the COVID-19 measures and live within the “new normal” limits. The operating mines have also adopted these measures and continue to observe and adhere to these restrictions. While the search for a cure is on, restrictions have become normal. COVID-19 has clearly left a lasting impact on the operations of the mines as well as on the exploration sector. The closure of the Porgera Gold Mine was not related to the pandemic, but it has not helped the mining industry in the country, causing employment issues and reduced revenues to the country, among others. The closure of the mine has also impacted on the mining sector in the country. As of press time, the government has reported a total of 720 cases, with 601 recoveries and 8 deaths. The Chamber of Mines and Petroleum is working closely with the Government to ensure the impact of COVID-19 does not prolong, as this will have devastative impacts on the mining sector in the country. It is a fact that the mining industry makes significant contributions to State revenues. The industry also contributes to infrastructure development, law and order, health, agriculture, etc. It is critical that the virus is minimised from spreading further. As reported by the World Bank, PNG’s economy has also been hard hit by the pandemic due to weaker demand and less favourable terms of trade. That is why the measures outlined and emphasised by the Government to contain the spread of the virus are strictly adhered to, especially at workplaces such as the mines. The country has been faced with a situation where the economy has been weakened and clearly affected commodity prices. Direct results of this would include economic contraction, wider financing gaps, higher unemployment, and cause for poverty increase. The mines play a significant role to the economy in that any shutdowns of mine operations due to the spread of the virus would have negative impacts. Hence, it is quite critical for the mines to adhere to the COVID-19 preventive measures until the country is pandemic free. Outlook Both COVID-19 and the closure of the Porgera mine have brought about negative impacts on the
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mine operations and activities of PNG mines. It has also impacted the health, safety, and well-being of the mine employees. As far as the outlook, is concerned the impacts of the pandemic have painted a gloomy picture. What measures could be considered to improve the mine industry and generally the country’s economy? There may be certain measures which may be considered to address the impacts of COVID-19 but discussed below is one measure that could bring respectability to the mining industry in Papua New Guinea. That is development of the upcoming mining projects:
Location of the Wapi-Golpu project
(A) Developing the Emerging Mines Several new world-class mining projects have been proposed for development for several years now, but these have yet to reach the actual development stage. Each of the proposals has been faced with specific challenges. The recent pandemic, however, cut across all the proposed mines. It is also important to note that PNG has not developed a world-class mine in the past 20 years or so. The current operating mines, such as OK Tedi’s production life span, may be less than ten years, which raises the need for new mines to be developed to ensure continuity of revenue generation, employment, and other benefits the mines would generate. This would balance off employment shortfalls, infrastructure development, revenue generation, and rural development, among other benefits the development of mines have brought to the country. To maintain these benefits, new mines need to be developed sooner than later. There are three emerging mines that come under this category: a) Wafi-Golpu The Wafi-Golpu Gold-Copper Project is situated 60km southwest of Lae and northeast of Hidden Valley. It is held under four contiguous licenses covering 996 sq km. The project is owned by Harmony Gold, a South African mining company, and Newcrest Limited, an Australia-based company, in a 50/50 Joint Venture. Exploration activity to date has shown that the Wafi-Golpu tenement hosts one of the highest-grade porphyry copper systems in southeast Asia (the Golpu deposit), comparable with other world-class systems such as Ok Tedi and Bougainville, located also in Papua New Guinea. The prospect comprises a complex hydrothermal system that contains two separate ore systems: the Wafi epithermal gold deposit and the Golpu porphyry copper/gold deposit, which are located adjacent to each other.
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COMMENTARY < From Page 16 In 2012, the project had Mineral Resources estimated to contain 28.5 million ounces of gold, 9.1 million tonnes of copper, and 50.6 million ounces of silver. This includes Ore Reserves for the Golpu deposit estimated at 12.4 million ounces of gold, 5.4 million tonnes of copper, and 19.7 million ounces of silver. Further work has been undertaken by the JV with the aim of increasing the resources. The Wafi-Golpu Joint Venture completed its pre-feasibility study in October 2007, which enabled technical feasibility and economical potential analysis. The Definitive Feasibility Study (DFS) has also been worked on to confirm the viability of the project. The JV is considering developing the mine, which includes upgrading existing ports, concentrates pumped in slurry to facilities in Lae and filtered for shipping, mine water being a major part of the slurry supply to minimise cost, power from Hidden Valley and building a new road from Wamit Village to the mine site. The Government of PNG and the Wafi-Golpu Joint Venture signed a Memorandum of Understanding (MOU) in 2018, which provides the basic terms that may constitute the negotiation of the Mining Agreement (Mining Contract) between the State and the developer for developing Wafi-Golpu resources. The State has said that it will participate in the project. Under the law, the State will acquire 30% equity in the project. The State interest in the mining project will be held by the newly resurrected State-Owned Enterprise (SOE) Kumul Minerals Holdings Limited. The Minister for Environment in November 2020 issued the most important permit -- the Environmental Permit to the developer, signalling the development of the project. The Marape Government has also committed to issue the Special Mining Lease (SML) to the developer so it will not be long before the SML will be awarded for development. As publicly stated in various sources, the estimated capital cost is approximately US$5 billion and State’s 30% share of the development cost would be approximately US$1.5 billion. b) Frieda River Copper/Gold Project Frieda River Copper/Gold project is being promoted by the current owner and operator PanAust with a view to having first production in the years ahead. This project is owned 80% by PanAust and 20% by Highlands Pacific. The project has an estimated reserve of 12.9 million tons of copper and 20 million ounces of gold. Frieda River is one of the three major world-class potential mining developments proposed for development in the country. The project is comprised of the Nena, Horse/Ival/ Trukai and Koki deposits with as estimated overall resources of 2,090 million tonnes of ore, at grades of 0.45% copper 0.22g/t gold and 0.7g/t silver, using cut-off grade of 0.2% copper. PanAust has estimated the cost of building the Frieda River project over US$5 billion. Once the project is developed, Frieda River is projected to produce 204,000 metric tons of copper and 305,000 ounces of gold over a 20-year mine life. The Frieda River project is a world class mine in Papua New Guinea and when developed it is anticipated to generate immense benefits to the country. However, there is a critical issue that must be addressed upfront by the developer and the Government before the project can reach any stage of development. There are already environmental concerns raised by various parties. The reason is that the mine development is likely to impact on the Sepik River system and the livelihood of the people, so how the
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The Government of PNG and the Wafi-Golpu Joint Venture signed a Memorandum of Understanding (MOU) in 2018.
environmental issue will be managed will be critical for the development of the mine. PanAust has submitted to CEPA environment impact assessment report and stated that the company is committed to dealing with the project’s impacted landowners. c) Yandera Copper Mining Project Yandera Copper project is another emerging mining project in the country. The developer of the Yandera resources is Canadian based miner Era Resource, which changed its name from Marengo Mining Limited. This company has been working toward a Mining Lease for the development of Yandera, a copper, molybdenum, and gold mining project in Madang Province, in an area regarded as mineral-rich in copper and gold belt prospects. Era Resource has in the past engaged industry consultants such as Minerals Industry Consultants, Ravengate to undertake JORC (Joint Ore Reserves Committee) work. It has been reported that the operator has already drilled holes resulting in 630 million tonnes of measured and undated resource and 117 million tonnes of inferred resources. The Technical Report (Updated Resource Estimate) of February 2017 shows that the measured and indicated minerals resources deposit is approximately 728 Mt at the grade of 0.39% CuEq. The resource is reported within a potentially mineable open pit configuration. Of the resources, approximately 8% of the tonnes reside in oxide, where Cu is potentially recoverable by flotation. Most of the resource is in sulphide, recoverable by conventional flotation to produce a concentrate. The proposed mine has faced a number of challenges. The first issue faced is the power supply to the project site as various options have been considered. In terms of the mine tailings, Era Resource previously planned to be managed by deep sea tailings placement, but since 2013 the plan has changed. The new plan is to develop its own dam for managing tailings released from the mine operation. Like Wafi-Golpu and Frieda River, Yandera is an important project for the country. The Government will provide similar support to this project if the Era Resource proceeds to a more definitive stage of developing the project. The development of Yandera can impact the country’s economy and generate immense benefits to the country.
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COMMENTARY
< From Page 18 (d) Solwara 1 Project The Solwara-1 Project was among the emerging projects that secured a Mining Lease and completed technical development work in 2012. This project has been operated by Nautilus Limited. Its partner Eda Kopa (Petromin PNG Holdings) raised K375 million ($121 million) on the back of State Guarantees for investment in the project, but the operator failed to secure its share of funding to proceed with the development of the first-ever undersea bed mining project. In 2007, Nautilus announced Canadian National Instrument 43-101 compliant resource estimate for the Solwara 1 Project. The resulting high-grade copper-gold resource was the world’s first Seafloor Massive Sulphide (SMS) resource statement. In 2010 to 11, further drilling was conducted at Solwara 1 resulting in an increase in the resource base. Results of the updated resource are as follows: • Indicated Mineral Resource: 1,030kt @ 7.2% Cu, 5.0 g/t Au, 23 g/t Ag, 0.4 % Zn; and • Inferred Mineral Resource: 1,540kt @ 8.1 % Cu, 6.4 g/t Au, 34 g/t Ag, 0.9% Zn The investment in the project has however, become a liability to the State since the project has been stalled largely due to the environmental, socio and economic risks associated with seabed mining, which necessitated the imposition of a moratorium. The project has been suspended and will not be developed in the next ten years or so. The Solwara 1 project has been planned to mine mineral rich hydrothermal vents, formed by plumes of hot acid and mineral rich water on the floor of the Bismarck Sea. However, the project has been confronted with fierce community resistance, legal challenges, and continued funding difficulties. Deep seabed mining has been proven contentious wherever it has been proposed and trailed across the world, and Solwara 1 faced the same reaction from different stakeholders. The technology proposed for development is also untested, posing more risks to the marine life and environment. (d) Other Emerging Mines Apart from the major emerging projects, several small mines have been proposed for development in Papua New Guinea. The proposed mines, which are at various stages of exploration/development include the following: • Woodlark Island Gold Project - Kula Gold
20 www.pngbusinessnews.com • Issue 4 2020
Limited is focused on the strategic development of its 100%-owned Woodlark Island Gold Project, located 600 kilometres east of Port Moresby in Papua New Guinea. • Crater Gold Mining Limited has two projects in Papua New Guinea, Crater Mountains and Fergusson Island. The flagship Crater Mountain Project is a potential multimillion-ounce gold deposit located in the Eastern Highlands. Significant gold mineralization has been discovered on the surface and at depth through drilling. The granting of the Mining Lease is a watershed milestone for the Company as it transitions from developer to gold producer. • Mt Kare Mining Project is 100% owned and operated by Indochine Mining Limited which is ASX and POMSoX listed company. The company is focused on near-term, high margin, gold production of c.200, 000 oz p.a. at 10 grams/tonne with cash costs expected to be among the lowest in the industry. Indochine is initially targeting high grade zones with +1 million ounces of 10 grams/tonne in 2014, expanding the 2.1-million-ounce resource. (B) Mining Agreements/Contracts Beginning with the Wafi-Golpu project, the State must initiate discussions and negotiate mining agreements with the respective developers of the mines. Central to this would be fiscal terms the parties need to negotiate for each project. The mining sector as discussed above has already been impacted by the pandemic, and the companies now need acceptable fiscal terms to develop the projects. (C) Mining Legislation New Mining Legislation has been around for some time. However, in June 2020 the Government introduced a set of amendments to the mining law (Mining Act 1992), which lacked consultation with the industry. The industry representative, PNG Chamber of Mines and Petroleum, expressed these amendments as a “surprise,” meaning the industry was not consulted by the Government. To move the mining industry forward, it requires cooperation from all the parties, including companies, investors, government, and landowners. When there is lack of consultations some parties would express disappointments. Considering the global efforts to address the COVID-19 and its impacts on the mining sector, every stakeholder’s input in the legislative changes is essential not only for the mining sector but also for the country.
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NATIONAL
Marape resists calls to resign But PM welcomes no-confidence vote as opposition calls for him to step down
P
rime Minister James Marape said he will not resign but welcomes any motion for a vote-of-no-confidence against him on the floor of Parliament when it resumes December 14 as directed by the Supreme Court. This was after opposition leader Belden Namah and People’s National Congress party leader Peter O’Neill, Mr Marape’s predecessor, have called on the Prime Minister to resign, claiming they had the numbers to change the government. Mr Namah called on Mr Marape to recognise that he has lost the support of the Parliament, and to “now act with dignity and resign if he cannot demonstrate that he has the majority of Members behind him.” Before this, the Supreme Court ordered the Speaker, Job Pomat MP, and the Clerk of Parliament to do everything necessary and convene Parliament on December 14. Messrs Namah and O’Neill have called on Mr Marape to resign by that date. As of press time, the Prime Minister has not done so. This follows the high court’s declaration that the sitting of Parliament on November 13 and the decisions made during that sitting, including the decision to adjourn to December 1, are constitutional, valid, and effective, while the sitting on November 17 and its subsequent decisions were unconstitutional and invalid. The Prime Minister said it was not an easy road for him over the past 18 months since his elevation
to the top government post on May 30 last year. He said he was managing politics since O’Neill rescinded the nomination, which led to the associated court cases that have run until the recent political upheaval. Mr Marape said the prime ministership “is not his by birthright and any leader and political party had the right to bid for it,” a report by the Post-Courier said. He said the current powerplay in Parliament was nothing but a bid for someone to be prime minister. However, despite the unsettling political climate, he said there is no vacancy in the office of the prime minister. Mr Marape said the executive government in place is doing its work until proper parliamentary processes affirms or denounces his election as Prime Minister. “| appreciate the Opposition MPs’ right to be in government; when the time is set, we will test the numbers on the floor of Parliament,” he said. “l am not going to resign as one or two Opposition MPs have been advocating for - there are no grounds for that. You claim you have the majority; please - produce that majority on the floor of Parliament, where it matters most, and not in locked up hotels. In the meantime, I am blessed in my life to have 55 MPs, who continue to give me their personal and people’s support,” Marape said. He added: “These 55 MPs - and other leaders I know - are leaders
24 www.pngbusinessnews.com • Issue 4 2020
whose soul cannot be bought or sold and I am proud to associate myself with this class of leaders. So, bring your vote-of-no-confidence motion on - name our country’s alternate prime minister and let’s deal with this matter. At least the country deserves to know who the alternate prime minister is. Why keep it a secret even from your own 55 MPs?” In response to the Supreme Court ruling, Mr Marape said the high court has made its ruling in favour of Mr O’Neill’s reference, and it was time all issues raised should be concluded. Meanwhile, Mr O’Neill and Mr Namah refused to name an alternate prime minister from their ranks. Mr Namah claimed the opposition camp at the Crown Hotel in Port Moresby had 55 MPs, or the required majority of the 111 Parliament seats. “So far as team Crown is concerned, we are ready to deliver the government to the people of PNG, and that we have the majority of 55 MPs already,” he said. “The Speaker himself wanted the court to order him what to do, and now the court has made the order that Parliament be recalled on December 14 at 10am, and I am happy for the judiciary to have made the ruling unanimously in favour of PNC party leader Peter O’Neill,” Mr Namah said. Mr O’Neill agreed with Mr Namah’s statement saying “a democratic way would be for Marape to admit that he does not have
Prime Minister James Marape (center) has rebuffed calls from opposition leader Belden Namah (left) and his predecessor Peter O’Neill (right) to resign before December 14, when the Supreme Court ordered Parliament to reconvene.
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NATIONAL < From Page 24 the numbers to conduct himself in government” because he the PM currently ran a minority government. “In May 2019, when we lost government, we had the minority government at the time, and he asked me to resign and I did so,” he said. “He (Marape) has to do the reasonable thing, and that is to resign, before Parliament resumes on December 14.” Mr O’Neill also claimed that Marape did not have the confidence of Parliament to continue to govern the country. Mr Namah said: “In October Mr Marape declared that he would accept his fate if he lost support of Parliament, so unless he can prove he has the support of the majority, he must tender his resignation or admit this was just another Marape sweet talk lie.” He compared the opposition camp at Crown Hotel to the government’s at Loloata, saying: “The alternate government has demonstrated our number of confirmed members with a photograph of our committed members taken this week (with 55), but what about Marape?” “At the last legitimate sitting of Parliament on November 13, Marape only had 39 MPs supporting him and the Opposition had 57 MPs. Then in the illegal sitting of November 17 that Mr Marape and the Speaker arranged, he could only find 49 MPs plus himself,” Mr Namah said. He drew to the current situation where several ministers are performing in acting capacities, having more than one ministry. “The collapse of the Marape Government is already evident in the fact that he does not even have enough MPs to appoint a new Cabinet. Marape has made acting ministerial appointments, which means that a very few ministers are in charge of multiple portfolios. This is not good enough because departments must have direct ministerial leadership” Mr Namah said. On the issue of who the Crown camp will nominate to be their pick for the alternate prime minister, Mr Namah said: “It is not relevant right now who will nominate for the position. What matters right now is that the Parliament has already demonstrated through numbers on the floor that Marape no longer has the support of the majority of Members of Parliament.” “When it became clear to former Prime Minister Peter O’Neill that he had lost majority support in Parliament, he acted with honor
and dignity and tendered his resignation to the Governor-General. So now the only option available is to be dignified, to act in a mature and dignified way and resign,” he said. The five-man Supreme Court bench, led by the Chief Justice Sir Gibbs Salika and Justices David Cannings, George Manuhu, Derek Hartshorn and Ere Kariko, unanimously upheld Mr O’Neill’s application of a section 18(1) provision of the Constitution that invokes the powers of the high court to look in to any questions relating to the interpretation or application of a constitutional law. Four of the five judges were present in court to deliver their judgment, while Justice Manuhu, who was sick, had his judgment relayed by the Chief Justice. Mr O’Neill, in his application, had asked the Supreme Court to determine and declare that Parliament’s decision of November 13 to adjourn to December 1 was constitutional, while the Speaker’s overruling of the decision to adjourn to December 1 was unconstitutional. He submitted that the business of the Parliament meeting on November 17, during which it decided to pass the 2021 National Budget and to adjourn to April 20, 2021, was unconstitutional. The PNC party leader sought orders that Parliament should reconvene as soon as practicable. The interveners, Speaker Job Pomat and the Attorney General Pila Ninigi, opposed the application and asked the court to rule that the decision to adjourn to December 1 was unconstitutional as it was the result of a motion moved by the leader of the Opposition, contrary to the Organic Law on the Calling of Meetings of Parliament required such a motion to be moved by a minister. They said the Speaker’s decision of November 16, which had the effect of the Parliament being recalled to sit on November 17, was a proper exercise of the Speaker’s mandate under the Constitution. They maintained that the sitting of Parliament of November 17, which decided to pass the 2021 National Budget and to adjourn to next April 20, was constitutional. The five-man bench, which had six days to deliberate the arguments and come up with a decision, held that: * Parliament’s decision of November 13 involved no breach of any procedure prescribed by any constitutional law, and involved no breach of the Organic Law on the Calling of Meetings of the Parliament. The decision of the Parlia-
26 www.pngbusinessnews.com • Issue 4 2020
ment was to adjourn the sitting of the House to December 1 and could be made on a motion by the leader of the Opposition. The decision was not to call a new meeting of the Parliament. * The Speaker’s decision of November 16 to overrule the Deputy Speaker’s decisions of November 13 was made in excess of his powers, functions, duties and responsibilities and was unauthorised by any other law and was unconstitutional, invalid, and ineffective * The sitting of Parliament on November 17 was unconstitutional as it took place only because of the unconstitutional decision by the Speaker of November 16 to overrule the Deputy Speaker’s decisions of November 13, which had the effect of overruling a constitutional decision of Parliament to adjourn its sittings to December 1. * Declarations were made accordingly, and it was ordered that the Speaker should forthwith give notice to all MPs that the next sitting of Parliament would be on December 14 at 10am. The National Parliament of Papua New Guinea is the unicameral national legislature in Papua New Guinea. It was created in 1964 as the House of Assembly of Papua and New Guinea, but gained its current name after the nation was granted independence in 1975. The 111 members of parliament serve five-year terms, 89 of whom are chosen from single-member “open” electorates, which are sometimes referred to as “seats” but are officially known as constituencies. The remaining 22 are chosen from single-member provincial electorates: the 20 provinces, the autonomous province of Bougainville (North Solomons), and the National Capital District. Each provincial member becomes governor of their province unless they take a ministerial position, in which case the governorship passes to an open member of the province.
Supreme Court Chief Justice Sir Gibuna Gibbs Salika.
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NATIONAL
Supreme Court nullifies 2021 Budget passed on Nov. 17
T
HE 2021 National Budget supposedly passed by Parliament on November 17 is invalid and ineffective, the Supreme Court ruled in December, as it nullified the decisions and Parliament business conducted on that day. The Supreme Court, in its final orders, said the decisions of Parliament made on November 17 are null and void because of an invalid and unconstitutional calling of Parliament on that date by the Speaker, Job Pomat MP. The Speaker was in breach of his obligation to “act fairly and in principle to be seen to act fairly,” the court said in a Post-Courier report. “The Speaker’s actions had the effect of denying a large number of members their rights, as MPs, under section 50 of the Constitution, and that is to take part in the affairs of the Parliament and to exercise their functions as parliamentar-
ians,” the court ruled. “The infringement of their rights by the Speaker was especially serious in this case, as it denied those MPs the right to participate in the debate on the 2021 National Budget, which was voted on and passed at the sitting of November 17. This is one of the most important functions of the Parliament and of MPs in any parliamentary year,” the ruling stated Advised of the court’s ruling, Treasurer lan Ling-Stuckey said: “The 2021 budget will need to be passed again by the government.” “We must respect the rule of law. While I have not yet been briefed on the entire court ruling, but if, as a consequence of its ruling, the Government’s 2021 Budget is deemed null-and-void, then the 2021 Budget will need to be passed again by the government,” Mr Ling-Stuckey said.
Treasurer lan Ling-Stuckey
Baker: Availability of foreign currency in PNG still a challenge
T
he availability of foreign currency in Papua New Guinea is still very challenging, according to ANZ PNG managing director Mark Baker, who said this was because the market was still imbalanced. He added that this demand for foreign exchange was outrunning supply which came mainly from the commodity exporters of Papua New Guinea. “This is a structural imbalance and will only correct itself in the near term with an influx of foreign direct investment (FDI),” Mr Baker said. “The main source of FDI would be
from the major resource projects which are still under negotiation between the government and the project sponsors. Other sectors of the economy that generate foreign exchange, such as agriculture, are currently still too small to bridge the foreign exchange gap,” he said. “In the longer term, the solution is the development of a broader-based economy where the sources of foreign currency are more varied. The development of a broader-based economy requires infrastructure investment, in particular roads to facilitate an effective supply chain and power to facilitate a cost-
effective local manufacturing sector.” On the suggested increase by banks of taxes, Mr Baker said that it is important to have wide and detailed consultations -- including with the banks themselves. 0 He said that banks in PNG have the most diligent taxpayers and their operations are funded by public and private sectors. “As with any such measures, there is the potential for unforeseen outcomes and proposed changes like these needs to be very carefully thought through,” Mr Baker said.
Westpac announces sale of PNG assets to Kina Bank
W
estpac Group has announced the sale of its businesses to Kina Securities Limited (Kina Bank) for up to $420 million. These are Westpac Fiji and Westpac’s 89.91% stake in Westpac Bank PNG Limited. According to Westpac Group Chief Executive, Specialist Businesses and Group Strategy Jason Yetton, the sale follows the decision of the group to focus on business, consumer, and institutional banking in New Zealand and Australia. “We are taking another step in becoming a simpler, stronger bank while ensuring a high standard of bank-ing services is maintained for our Pacific
customers, as well as providing new opportunities for our peo-ple,” he said. “Choosing the right purchaser for our businesses is important to us, our people and the communities we serve. We are pleased our Pacific businesses are being acquired by Kina Bank. Kina is a strong brand in the region and is well-positioned with deep local knowledge to continue to help our consumer and business customers succeed.” The sale price consists of $315 million payable at completion and $60 million paid six-monthly over the fol-lowing 18 months for Westpac PNG. The sale price is also composed of
28 www.pngbusinessnews.com • Issue 4 2020
earn-out payments of up to $45 million scheduled to happen yearly over 24 months after completion and are subject to the business performance of Westpac Fiji. It is also expected that an accounting loss on the sale of an estimate of $230 million will happen - which includes a foreign currency translation reserve (FCTR) loss based on exchange rate on completion. Completion is expected to happen in the Second Half of FY 2021 and is also subject to regulatory approval in PNG and Fiji and Kina Bank shareholder approval.
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NATIONAL
Economy ‘will be weak’ in 2021, but Marape confident of growth
A
n economist said that in light of the pandemic, the economy will come off as weak next year. “We expect that there will be weak economic growth in 2021 following the after-shock and recovery of the Covid-19 on businesses and the economy with mining output also expected to be low,” Westpac senior economist Justin Smirk said. “The medium-term recovery will be driven by non-resource sectors such as agriculture, fisheries and for-estry, dependent on the return to production of Porgera mine.” However, Prime Minister James Marape said recently that a budget analysis done by an accounting firm said that the economy is set to rebound at 3.5 per cent next year. This is due to the
recovery across most industries and improved global demand and consumption. “This will see growth rise to an estimated 10.6 per cent in nominal terms (which is an increase from an ini-tial 7.4 per cent forecast in the 2021 Budget strategy paper) totalling K90.3 billion and is expected to in-crease in 2022 to reach an estimated growth at K99.4 billion,” Marape said. “The forecasted increase of 10 per cent per annum in both 2021 and 2022 is the highest in PNG’s history and is larger than the growth from 2013 to 2015 when the PNG LNG project commenced production. Eco-nomic growth is projected to grow at a steady annual growth rate of 3.1 per cent over the medium term, in line with an estimated 3.7 per cent growth in the non-mining sector.”
Westpac senior economist Justin Smirk
Marape said these figures represent a vote of confidence for the policies and programmes of the government.
Transport freight subsidy scheme to continue
T
he initiative of the government in subsidising freight services for fresh produce through the transport freight subsidy scheme is continuing. According to Secretary for National planning and monitoring Koney Samuel, the program is still running. He added that they worked on the first phase with the Bismarck Maritime Limited which was done around July and was 100 per cent
subsidised by the government. “We concluded that phase and we are in the second phase where we presented another K3 million to the same company that we had service level arrangement with and they are still continuing with the second phase of the program,” Mr Samuel said. “The government will decide as to whether we continue with the same arrangement going forward into 2021.”
T
He said at this phase, their team has finished an assessment on the impact and they appreciate that a lot of SMEs and farmers have benefited from this specific measure. “Now the second scheme, we are looking at 75 per cent to 25 per cent. That means 75 per cent will be subsidised by the national government whilst the other 25 per cent will be put up by the farmers and business houses,” added Mr Samuel.
Noble Centre to finish next year
he K400-million 23-storey Noble Centre building in downtown Port Moresby is set to finish early next year. According to China Railway Construction Engineering Group (PNG) Real Estate Company Ltd marketing manager Maksim Neil, the work was delayed because of the ongoing pandemic. “We have obtained the occupancy certificate from the National Capital District Commission, fire certificate from PNG Fire Services and power acceptance certificates from PNG Power Ltd,” Neil said. “We plan to open the building in early 2021. Our office has been allocated in the building since October.” The delay of the work was also due to 70 per cent of the workers and managers returning to China for the Chinese New Year when the COVID crisis hit. They could not return for a couple of months.
30 www.pngbusinessnews.com • Issue 4 2020
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BUSINESS
PNGX welcomes reform of Securities Commission
P
NGX, Papua New Guinea’s national stock exchange, welcomed the announcement by the Hon. William Duma, Minister for Commerce and Industry, of the reform of the PNG Securities Commission and the international search for a new Chairman. Over the last 2 years PNGX has been working to modernize and upgrade the stock exchange to better meet the needs of PNG. The previous uncertainty about the Chairmanship of the Securities Commission has been a barrier to both development of the market and the ability of companies, large and small, to access capital. “PNGX welcomes Minister Duma’s reform of the Securities Commission. Resolving the existing uncertainties will allow PNGX to develop new markets to assist large and small companies and to develop new products for investment by all PNG citizens,” said PNGX Chairman, Mr David Lawrence. PNGX has a world class trading system provided by NASDAQ. PNGX majority shareholder, Pacific Capital Markets Development (“PCMD”), has brought a broad depth of experience in the operation of stock exchanges and capital markets internationally. PCMD, the PNGX Board and management are guiding PNGX to become a solid platform for raising business capital for both established companies and SMEs, government and corporate debt issuance, financial literacy and inclusion programs, secondary market trading, world’s best practice corporate governance and a portal for critical foreign capital inflows. In the last 2 years, PNGX has: • become the national numbering
K
agency for PNG, improving the ability of international institutional investors to invest in PNG companies and government debt securities which in turn helps develop the PNG economy; • been working closely with the Bank of Papua New Guinea (“BPNG”) and Department of Treasury on the establishment of a secondary market for PNG Government debt instruments; • publicly consulted on the implementation of a new market for wholesale corporate debt to improve access by companies to new sources of debt finance, an initiative which has been on hold pending resolution of the Securities Commission issues; and • entered into an MOU with the South Pacific Stock Exchange in Fiji to open new avenues for investment and access to capital. The appointment of a Chairman and reform of the Securities Commission will remove uncertainty and allow PNGX to progress the government and corporate debt markets and the following proposed modernisation and upgrade initiatives: • new Listing Rules to best suit the needs of PNG. PNGX hopes to release new rules for public consultation later this year; • new post-trade settlement and registration technology and processes to improve efficiencies and reduce risk in the market; • increasing the number of dual listings with other markets, especially for companies with commercial activities in PNG, to provide Papua New Guineans with more opportunities to have an ownership interest in the country’s wealth; • new funds management prod-
ucts for domestic and international investors; and • new MSME specific markets. PNGX has recently been in discussions with the SME sector to develop new mechanisms for access to capital. These will be supported by new investor education programs. PNGX is hopeful that reform of the Commission will also encourage new suitably qualified stockbroking firms into the market to promote competition and growth. “An energetic and progressive Securities Commission guided by a Board with the highest standards of ethics and performance is essential to developing capital markets which can make PNG the financial centre of the Pacific” said Mr Lawrence. “We look forwards to working with the new Securities Commissioner in due course.” PNGX is also proposing to raise additional capital in the new year to support the ongoing development of the market. This will present an opportunity for Papua New Guineans to have greater ownership of the stock exchange, which is a key element of the national financial system. The capital raising will be managed by Kina Securities.
Kina Petroleum submits application for delistment
ina Petroleum Corporation has submitted an application to delist from the Australian Securities Exchange (ASX). This follows a delist from Papua New Guinea’s stock exchange (PNGX) and ASX, but subject to receiving approval from ASX to continue with the ASX delisting. Kina Petroleum added that the notice of meeting for the shareholders of the company would be convened to think about, and if thought fit, to work on the delisting with accompanying materials expected to be released to share-
holders in December. The firm said that the board of directors are leaning towards delisting because: * Small trading volumes are having a disproportionate impact on the cost of shares – in the 18 months since relisting, the fully paid ordinary shares traded on only 36 days and the cost of the share decreased from US$1.80 (K6.22) to US$0.38 (K1.21) based on the trading of 232,710 shares. * The low liquidity worked on the important volatility in the cost shares from limited trading with a dispro-portionate impact on the
32 www.pngbusinessnews.com • Issue 4 2020
share price. The board believed that this occurrence came out with a share price not reflective of the true value of the company. * Inability to increase capital at costs reflective of underlying asset value, Kina Petroleum said. The board thought that with the shares listed on ASX and PNGX, the prospects of increasing funds on PNG and ASX foreign exchange at a cost commensurate with underlying value were poor and any future capital raising would have a very dilutionary impact on shareholders.
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BUSINESS
Leadership Training: ROI for Business and Female Staff
F
or five years, the Business Coalition for Women’s leadership training program has been getting results for PNG women and the businesses that employ them. Nearly 200 women from 60 organisations representing a diversity of industries all over the country have graduated from the Coalition’s Certificate IV in Leadership & Management, with many of them being promoted as a direct result. Numerous organisations are repeat customers of the program and readily acknowledge its business benefits. BSP, Dentons Lawyers, Digicel, Eda Ranu, NCS and Pacific Towing have been the most frequent repeat customers of the Cert IV in Leadership Program. Acting Managing Director of Eda Ranu, Raka Taviri Jnr, reports that “female staff performance has improved significantly, and we’ve received an obvious return on our training investment. Eda Ranu will continue to send female employees on the course to improve their customer service skills internally and externally, as well as to enhance their overall professionalism in the workplace.” It is not just businesses that are benefiting from the Coalition’s Cert IV program. All graduates report having acquired new skills and capabilities. Eda Ranu’s Vagi Kala (Snr Executive Assistant to MD) credits her new assertiveness, time management and work prioritisation skills, as well as improved working relationships with colleagues and clients, to having undertaken the training. She also reports that the Cert IV has enhanced her leadership and management skills, better positioning her for more challenging roles and future promotions. The Certificate IV in Leadership and Management was developed in direct response to the business community’s demand for best practice and culturally nuanced leadership training for high potential female staff. Executive Director of the Coalition, Evonne Kennedy, believes that one of the reasons the Cert IV training has been so successful for both trainees and their employing businesses is that although it is Australian certified, it was developed in PNG for PNG. “This is not an off-the-shelf training
Nearly 200 women like Eva Ronald (Assistant Accounts Manager, TE PNG) and the 60 organisations that employ them have benefited from the Coalition’s Certificate IV in Leadership & Management.
package from Australia, New Zealand or some other country. We worked extremely closely with training specialists, PNG business leaders and PNG women to craft a program that 100 per cent meets the requirements of PNG’s businesses.” The Coalition has conducted the Cert IV training for 15 cohorts of trainees since 2015 and has plans for another four cohorts in 2021. To date the training has predominantly taken place in Port Moresby although it has also been run in the Autonomous Region of Bougainville and will potentially be run in Lae next year. “COVID impacted our plans to diversify our delivery geographically in 2020 but in accord with the ‘new normal’ and government health protocols we now have the necessary measures in place to continue our training in a COVIDsafe way. As long as travel restrictions don’t prohibit us from getting trainers safely around the country then we will be able to service more of our non-Moresby customers in 2021 and beyond.” Originally developed to provide leadership and management training to women employed in the corporate sector, the Cert IV has become extremely popular with the public sector and aid organ-
34 www.pngbusinessnews.com • Issue 4 2020
isations. Abt Associates for example, has assisted several government departments to enrol 41 staff in the program and 32 law enforcement personnel have been enrolled via JSS4D. “There is a huge appetite for high quality leadership and management training for female staff” acknowledges Kennedy. “We realised that we needed to open up our program to career women in other sectors. We also realised that we needed to offer courses for not just lowerlevel managers, some of whom had already done the Cert IV with us, had been promoted, and were looking for additional professional development.” Therefore in 2019 the Coalition launched its Senior Executive Women Program in partnership with the Asian Development Bank, as well as its PNG Directorship Course (open to both women and men) in partnership with the Australian Institute
“We want to be able to promote our most talented female staff in to leadership positions and the Coalition’s Cert IV helps us do exactly that. Very importantly, it sends the message to our junior female staff that there is a real opportunity for significant career advancement here at Dentons,” says Stephen Massa (Partner and Head of PNG Office, Dentons).
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TO ALL WINNERS IN THE NASFUND ANNUAL EMPLOYER AWARDS 2020 The National Superannuation Fund Limited congratulates all award winners in the Annual Employer Awards 2020. The Awards acknowledge the best performing employers who have complied with the Superannuation (General Provisional) ACT 2000, especially section (85) and (90, that governs the contributions and benefit payments which the Fund as the trustee is mandated to perform. "Nasfund is glad to host this event, an occasion that gives credit and recognition to employers who are the key stakeholders during a member's active working life.
1. Most Compliant in Mandatory Contributions - Category A: TELIKOM (PNG) LTD
1. Most Compliant in Mandatory Contributions - Category B: DATEC (PNG) LTD
1. Most Compliant in Mandatory Contributions - Category C: SUNRISE BETHEL CHRISTIAN SCHOOL
2. Best Voluntary Contributions Category A: NATIONAL AGRICULTURAL RESEARCH INSTITUTE
3. Most Compliant in Account Maintenance - Category A: HIDES GAS DEVELOPMENT COMPANY
3. Most Compliant in Account Maintenance - Category B: GARAMUT ENTERPRISES LTD
We acknowledge the cooperation and support of our employers', numbering over 2500, without whom our job of compliance and member services would be difficult. We praise the resilience of our employers in these challenging times. This year's award winners exemplify compliance and adherence to law and play a larger role in promoting savings for a better future for our people, the workers of this country.The heart of a good corporate citizen is not only how you govern your business, strategize for growth, or mitigate risks; it is how you look after your biggest asset, your people. Members do not forget this. Show appreciation to your employer, work hard, be productive, and help your employer grow their business. When they prosper, you prosper.
2. Best Voluntary Contributions 2. Best Voluntary Contributions Category B: Category C: PNG READY MIXED THE NATIONAL POLYTECHNIC CONCRETE PTY LTD INSTITUTE OF PNG
As the leading superannuation provider in Papua New Guinea, we want to acknowledge the efforts put in by employers to ensure that retirement savings for employees are paid. You are all worthy winners.” Ian A Tarutia, OBE CEO
Ready for tomorrow
3. Most Compliant in Account Maintenance - Category C: COURTS FURNITURE (PNG) LTD
4. Most Compliant in Benefit Payments - Category A: BANK SOUTH PACIFIC
4. Most Compliant in Benefit Payments - Category B: NEW BRITAIN PALM OIL LTD - ADMIN
4. Most Compliant in Benefit Payments - Category C: HEVILIFT LTD
5. Best Voluntary Contributing Employer - Category A: HARGY OIL PALMS LTD
Employer of the Year Category A: HIDES GAS DEVELOPMENT COMPANY
Employer of the Year Category B: NEW BRITAIN PALM OIL – ADMIN
Employer of the Year Category C: SUNRISE BETHEL CHRISTIAN SCHOOL
NASFUND ACKNOWLEDGES THE AWARD WINNERS FOR 2020
Nasfund Annual Employer Awards 2020 was proudly supported by:
www.pngbusinessnews.com â&#x20AC;¢ Issue 4 2020 37
BUSINESS
Groundbreaking study examines cost-benefit of workplace responses to gender-based violence
P
ioneering research being undertaken in Papua New Guinea by IFC and the Business Coalition for Women will for the first time measure the costs, and crucially, also the benefits to businesses of workplace responses to gender-based violence. The groundbreaking project, launched this month, aims to build evidence demonstrating the benefits to business of providing coordinated and comprehensive responses for employees affected by family and sexual violence. There has been a jump in the number of gender-based violence cases globally, with initiatives to prevent violence and protect people cut back, while in jurisdictions where lockdowns have been enforced, it has become more difficult for those in need to access help. In Papua New Guinea (PNG), a nation where more than two thirds of women experience rape or assault in their lifetime, there was a 31 percent decrease in the number of those accessing gender-based violence services in the period in which authorities there enforced a COVID-19-related state of emergency, according to the United Nations Population Fund. “There are many types of gender-based violence that impact the workplace, such as client aggression, workplace bullying and sexual harassment and violence experienced by employees at work, home and in their communities,” said Business Coalition for Women (BCFW) Executive Director Evonne Kennedy. “When many companies are downsizing, employees may
not raise issues of violence with their employer as they may fear an increased risk of retaliation, including being fired,” she said, noting the impact from COVID-19. While this research, to be collected over two years, is focused on PNG, the results are expected to inform policy responses to gender-based violence in other countries. It also aims to motivate private-sector interest in responding to family and sexual violence in workplaces and seeks to encourage more businesses in PNG to adopt workplace support for staff affected by family and sexual violence. “We know from our work with companies in the Pacific that they are well aware addressing all forms of violence affecting the workplace is an integral part of ensuring employees and busi-
38 www.pngbusinessnews.com • Issue 4 2020
nesses can operate in a safe and resilient environment,” said Thomas J. Jacobs, IFC Country Manager for Australia, New Zealand, Papua New Guinea, and the Pacific Islands. “Businesses working with IFC have demonstrated that employees who receive training on domestic and sexual violence at work behave more respectfully towards each other and feel safer at work and it’s good for companies’ bottom lines.” The research, supported by the governments of Australia and New Zealand under the PNG Partnership, and in collaboration with Femili PNG and Oil Search Foundation, will leverage the links between BCFW, its business members and Bel isi PNG, an organization helping those who experience family and sexual violence. The project will analyze data from major PNG companies including Bank South Pacific Limited, Nambawan Super Limited, and Steamships Trading Company Limited, and from Bel isi PNG. IFC continues to advise firms around the world on approaches to addressing gender-based violence, including through this guidance note to firms specific to the COVID 19 pandemic. This project will build on IFC’s research in Fiji, prior to the pandemic, which showed high rates of domestic and sexual violence led to lost staff time and reduced productivity equivalent to almost 10 days of work per employee each year.
Evonne Kennedy, Business Coalition For Women Executive Director, launches the Family and Sexual Violence Workplace Survey.
Pioneering research being undertaken in PNG by IFC and the Business Coalition For Women.
BUSINESS
Deputy Head of PNGEITI National Secretariat Christopher Tabel (in front) stressed on the importance of ensuring contract transparency and systematic reporting is built into transparency mechanisms in contracts and MoAs.
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PNGEITI ensures EITI reporting clauses included in project agreement reviews
NGEITI’s (PNG Extractive Industries Transparency Initiative) participation in the recent Project agreement reviews has paved an opportunity to advance the current scope of EITI mainstreaming from policy to practice. The PNGEITI National Secretariat participated in the week-long review of Woodlark Mining Project MoA (Memorandum of Agreement) held in Alotau, Milne Bay, from October 12 to the 17, 2020. Head of National Secretariat Mr. Lucas Alkan said the purpose of PNGEITI’s participation in the review of the Woodlark MoA was to ensure that the EITI provisions were included in the project agreement for contract transparency or disclosure of contracts that has now become mandatory for all EITI implementing countries including PNG. “As part of its efforts to mainstream the EITI Standard and requirements on National and Subnational payments, including Beneficial Ownership, and Contract Transparency reporting, the Secretariat has been undertaking joint workshops, presentations and information sessions together with its Multi-Stakeholder Group (MSG) that comprises representatives from the Government, Extractive Industry and the Civil Society
groups. “On the last day of the forum, the State team included EITI reporting clause into the agreement. This is actually the second project MoA after K92 project to have an EITI Reporting clause included,” Mr. Alkan said. “The PNGEITI envisage to cover all mining projects in the country to capture national and subnational reporting requirements,” Mr. Alkan added. The forum discussed various undertakings by the MoA parties, of which some of the issues raised were relevant to EITI such as the need to; 1. Create EITI awareness at the project impacted areas, especially the communities; 2. Report royalty distribution in monetary value; 3. Disclose in monetary value the Developer and State’s share of the total aggregate profit/return on the mine project; 4. Disclose production volumes and values for gold extracted; 5. Inform landowners well on the ownership of the infrastructure/services during operation of the mine before its closure; 6. Disclose data on special support grant – this is in relation to custodians of mining trust accounts in terms of disclosure of
trust account information relating to payments and recipients/expenditures; and. 7. Create greater awareness on information relating to economic and social impact assessment report by the people of the impacted area. The PNG Extractive Industries Transparency Initiative (PNGEITI) is an independent body established by the PNG Government to promote transparency and accountability of revenue it receives from the mining, oil and gas sectors and how it spends these funds. PNGEITI is part of a global best practice standard known as the Extractive Industries Transparency Initiative (EITI) that promotes good governance in the extractive sector. In EITI implementing countries, companies involved in the extractive natural wealth (oil, gas and minerals) industries are required to report on what they pay to the governments and governments are required to publish what they receive from these companies in a given financial year. These financial data are then reconciled by an independent administrator and are published in the annual EITI Reports for public information.
< From Page 34
able through the Coalition. The organisation is at the forefront of trainings that maximise workplace safety for women, reduce sexual harassment and support staff impacted by family and sexual violence. Member businesses also have access to bespoke consultancy services to assist them meet
their gender equality objectives. The Business Coalition for Women has firmly established itself as PNG’s ‘go to’ resource for gender equality – helping businesses recruit, train, develop and promote PNG women. To learn more about the Coalition and its training programs: www.pngbcfw.org.
of Company Directors. Although both programs were interrupted in 2020 due to COVID they have been rescheduled to run in 2021. Numerous other trainings in addition to those focusing on leadership and management are avail-
40 www.pngbusinessnews.com • Issue 4 2020
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MINING
Newcrest Mining’s Community Support Fund: The power of partnerships in PNG
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ewcrest Mining Limited recognizes the critical role that partnerships play in delivering sustainable outcomes in Papua New Guinea. Since the establishment of its K20 million Community Support Fund (CSF), Newcrest has assisted host communities in their response to the COVID-19 pandemic through partnerships with all levels of Government and major donors. Our relationships with national, provincial and community partners have supported the delivery of much needed assistance to our communities and frontline workers on the ground. To date, approximately K7 million has been disbursed under the Community Support Fund. Newcrest recognises that the impact of COVID-19 is likely to be long term. We are making sure we pace the funding for initiatives to address emerging needs as the pandemic evolves. “Partnerships are essential for our K20 million Community Support Fund, through which we
I
are seeking to do our bit to help Papua New Guinea in this time of need,” said Newcrest Chief Operating Officer (PNG) Craig Jones. Since the Fund was established earlier this year, Newcrest has strengthened relationships with UNICEF, Australian Doctors International (ADI), St John Ambulance and the Provincial Health Authorities. Through these collaborations, essential medical supplies, equipment, and personal protective equipment (PPE) have been distributed to frontline health workers and communities in New Ireland, East New Britain, Morobe and the National Capital District. At the national level, Newcrest has contributed K1.2 million to UNICEF to provide frontline workers with essential PPE across all 22 provinces. An additional K1.1 million will fund life-saving ventilator equipment for the country’s two largest hospitals in Port Moresby General Hospital and ANGAU General hospital in Lae, Morobe Province.
The Company recently committed K460,000 to St John Ambulance to provide critical training for ambulance officers to meet the high demand for first responder services in NCD, Morobe and East New Britain. This means St John can recruit and train 10 professional ambulance officers for Morobe. This complements the commitment made by Lae Open Member Hon. John Rosso MP, the Lae City Authority, Morobe Provincial Health Authority and the PNGAustralia Partnership towards the establishment of St John services in Morobe Province. On Lihir, Newcrest is working in close partnership with the Nimamar Local level Government (NLLG). Through a co-funding agreement, Newcrest and NLLG are renovating and upgrading nine local aid posts and two community health centers and providing essential medical supplies and equipment to these facilities. This will ensure that the local communities of Lihir have ongoing access to quality health care services.
Newcrest working with partners to deliver essential medical services and supplies to frontline workers and communities
‘International Friendships Help Government’
n the past 18 months, strong international friendships have helped the government in its continuing economic reform policies. According to Treasurer Ian Ling-Stuckey, this included the chance to meet with the Australian High Commission last December 3 - which included a conference call with Australian Treasury officials - to discuss the robust strategic relationship and PNG’s multi-year budget economic program. “We are now exploring other options, including making direct contact again with the Australian Treasurer Josh Frydenberg. As
another Treasurer having to deal with the COVID-19 challenges, he will be putting out the Australian MYEFO later this month,” said Ling-Stuckey. “This will highlight once again the massive budget hole that the pandemic has been creating around the world,” he added. He continued, “Australia one year ago estimated its 2020/21 Australian Budget deficit would be 0.3 per cent of GDP. Because of the bushfires and COVID-19, Australia’s budget deficit estimate increased to 11 per cent of GDP – a massive increase of 10.7 per cent of GDP (PNG’s deficit in 2020
42 www.pngbusinessnews.com • Issue 4 2020
increased by 3.1 per cent of GDP – less than one-third as much).” Australian debt levels as a share of GDP are expected to increase because of COVID-19 from 34.5 per cent in 2019/20 to 44.8 per cent in 2020/21 to 55 per cent in the medium-term, Ling-Stuckey added. “Sharing our experiences with friends, even across vastly different economies, makes it easier to understand the impacts of the global pandemic and stay true to the reform course. We cannot slow down the process of PNG’s budget repair by the Marape Government in these most difficult of COVID-19 times,” he added.
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BUSINESS
Gold BCR (GBCR): Building an empire of enduring wealth based on innovative blockchain tech with junior mining firms
I
n this new era, modern science and innovation technologies are changing rapidly everyday. Innovative new disruptive technologies ideas in mining are now meeting together with blockchain. These new disruptive technologies such as blockchain, Internet of Things (IoT), artificial intelligence, new online retail, big data, social media, sharing economy, financial technology, convenience applications have all begun to come in succession, bringing a trend of dynastic change. Driven by innovation these new economic development models have shaped the way we are living life today which has been dominated by the internet industry. Every time a disruptive technology emerges, there will be markets that will shake as the change occurs and new economic models will supersede old economic models. As the saying goes “the fittest shall survive”. no matter big, small and medium-sized enterprises, they must stay innovative and face the
harsh test of economic changes and adapt, and only then “survive and thrive.” The great inventor, Thomas Edison once said: “science needs imagination, and innovation is the key to invention. ” Planes and high-speed trains have realized the exaggerated imagination of our ancestors that “a thousand miles will be travelled to and fro in one day “. The invention of video communication that seems like travel through time and space, so that people can be”as close
as neighbours”even if they are thousands of miles apart. In this modern era, if we can combine centuries old traditional industries with science and technology, and add innovative ideas, everything may become a reality. Gold BCR - (GBCR) is the world’s first blockchain mining project to be backed by real gold from mining companies in Australia and is looking for other miners who maybe interested in collaborating in PNG and the Philippines. For more information, go to www.goldbcr.io.
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44 www.pngbusinessnews.com • Issue 4 2020
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BUSINESS
Businesses benefit from new employee loan solution and financial literacy resources Financial Stress in PNG
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he 2020 Price Waterhouse Financial Wellness survey revealed “money worries” to be the biggest cause of employee stress and that stress is a major distraction at work (and therefore, a considerable impediment to productivity). It is estimated that 80 per cent of employees in PNG suffer from financial stress. This figure is potentially higher given an ongoing economic downturn which has been compounded by COVID-19, resulting in increased business closures, job losses and job insecurity. Additional cultural factors, many of which are not recognised or understood by new expatriate managers, can further exacerbate the financial stress of PNG employees. For example, the expectations and pressures around bride price and haus krai ceremonies, as well as the common requirement to financially support often large extended families. Another factor contributing to financial stress in PNG is a lack of financial literacy. Many people, irrespective of education level or job status will admit to living from pay cheque to pay cheque, having no savings, not knowing how to budget, relying on short term credit to make ends meet, having multiple personal loans (including those at extremely high interest rates and often through pay day street lenders who operate as “loan sharks”) and being in a “cycle of debt” that they do not know how to break free from.
A new employee loan solution, complete with financial literacy resources to benefit employees and employers alike, has been launched in Papua New Guinea. Savi Moni, an online personal loan service provides employers with ethical, responsible, convenient, and low-cost loan solutions for their employees. A basic premise underpinning the Savi Moni responsible lending model is that financial literacy helps alleviate employee financial stress which in turn enhances worker productivity and therefore helps drive business success.
Businesses Benefit by Reducing Financial Stress Recent studies by PWC, Salary Finance, AMP and Metlife have shown that a real business case exists for businesses to help reduce the financial stress of their employees. Employee productivity, attendance, engagement, and retention are all impacted by financial stress. • Research shows financially stressed individuals take an extra 4 days of sick leave a year and lose upwards of 7 work hours a week in productivity. This is not specific to a person’s job or demographic status and is proven to transcend class or economic background. • Current estimates indicate 13-18 per cent of a company’s payroll costs are WASTED each year due to the financial stress being suffered by their employees. The diagram below demonstrates the business benefits of reducing employee financial stress and helping them (via responsible personal To Page 46 > www.pngbusinessnews.com • Issue 4 2020 45
BUSINESS < From Page 45
lending solutions and financial literacy) to enjoy financial wellness. A responsible approach that delivers a win-win to employers and employees alike The Savi Moni employee loan is a responsible personal loan product offered at a competitive rate, delivered through a customer friendly, convenient, and transparent digital platform with repayments made direct via client companies’ payrolls. For employees to access a Savi Moni personal loan and financial literacy resources, the employing business must first sign up as a Loan Partner. Using a streamlined and state of the art Loan Management System, Employer Representatives can easily upload loan applications and download loan offers – with no need for employees to ever take time off work to visit a shop front. Using technology to keep overheads low, means that savings can be passed on in the form of lower interest rates. Savi Moni personal loans are “FEE FREE”. There are no “hidden” charges or fees which act to inflate the interest rate. Savi Moni sets minimum “preserved” amounts of an employee’s pay packet (or can work with employers to set a “company” minimum) ensuring they do not knowingly overlend, thus helping to minimise financial stress. Loan repayments are deducted each pay cycle by the employer and remitted to Savi Moni on behalf of their employees. Employees can also take advantage of a refinancing solution to help them consolidate existing high-cost debts with a single,
more affordable loan. Automated loan information notifications are regularly sent to employees and prompt customer service is available via multiple channels. Financial Literacy Education The Savi Moni personal loan solution was developed to help people save time and money, take control of their finances, and enjoy financial wellbeing. “We want to give employers and employees a beneficial staff lending solution that incorporates financial literacy to help avoid future financial stress” says Founder, Nick Keane. Having been born and bred in PNG, and with several in-country business experiences, Nick understands the problems that staff loans cause for businesses, the financial stress generated for many PNG households and is passionate about creating an improved sustainable solution. Financial literacy education is a central component of the Savi Moni loan product, with formal “family money management” workplace training available to interested employers. In addition, it offers a range of free resources and tools for both employers and employees to help improve financial literacy and reduce financial stress. Savi Moni have partnered with Australian Business Volunteers to deliver custom designed money management training to Savi Moni Loan Partners. The training has been developed specifically to suit the PNG context and to help families strengthen skills in planning and saving for the future, as well as seeking advice about money and finance. The program offers a gender inclusive approach, encouraging men and
46 www.pngbusinessnews.com • Issue 4 2020
women from family groups to participate collaboratively. In neighbouring Solomon Islands, food manufacturing company SolTuna significantly cut staff absenteeism and consequently improved productivity, increased revenue, and cut costs largely via a financial literacy program. Prior to the training many staff were taking days off work because they could not adequately manage their pay to last them from one pay cycle to the next. Absentee staff were raising additional money in other ways such as selling produce at local markets. On fortnightly paydays, many workers would head to the bank or the market instead of the workplace when their pay checks are deposited to do some much-needed shopping or pay off creditors. Employer of Choice A Salary Finance survey of US workers conducted in 2019 found that access to affordable credit is one of the most desired benefits not currently being offered by employers. Given the high rates of financial stress experienced in PNG it makes sense that employees here would also greatly desire this particular benefit.
The PNG workforce is a competitive environment for well-educated and skilled workers. Even in the current economic environment of business closures and job losses “the war on talent” persists and it can be difficult to secure and retain good employees. Hence, access to affordable credit has a role to play in business achieving “employer of choice” status. Financial literacy training is also a key benefit that can be offered in employee benefit packages to assist staff and thus help differentiate employers. Financial literacy is a relatively new concept in PNG; it is rarely taught at home and is not included in the education curriculum.
Savi Moni is passionate about tackling employee financial stress. Cheaper loans and financial literacy training can also help employees break the cycle of debt and eliminate financial stress. It is a low cost but life changing gift any business can give its employees.
To Page 48 >
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COMPANIES
P
Melanesian Marine Services Camp at HACCP Standard
acific Towing (PacTow) has launched its new commercial kitchen and dining facilities at their dedicated tug base in Port Moresby, Papua New Guinea. Managed to international standards and HACCP compliant the facilities complement the base’s new accommodation blocks and training venue. Staff, contractors and clients from both within and outside the maritime industry utilise PacTow’s various camp facilities. Currently producing around 250 meals per day, its new kitchen is capable of producing up to 1,000 meals. Safe and secure accommodation options (including rooms with ensuites) are available for 30 people. “Outsourcing the camp to an experienced and professional operation was important to us because we wanted it to be run to a high standard” says PacTow GM, Neil Papenfus. HACCP (Hazard Analysis Critical Control
Point) is a highly regarded international food safety standard. Operating at a HACCP level not only ensures safe and high quality food but it is also attractive to future business partners in the market for camp facilities. Also critical to PacTow in the outsourcing decision making process was the desire to provide diners with healthier food options as well as education around healthy eating, diet and nutrition. It is well known that PNG has an increasing problem of lifestyle related diseases many of which can be avoided through a healthy diet and regular exercise. Although the majority of PacTow staff are located at its Port Moresby tug base others work out of several different ports around the country. Papenfus reports that the new commercial cooking facilities will be used to train cooks from the company’s other operations so that all staff,
no matter where they are located, can benefit from a healthier diet and food education. He also acknowledges the scope to provide training to third parties, utilising the large and well equipped kitchen for technical and practical instruction while utilising the base’s training rooms for theoretical instruction. In accord with the company’s desire to provide healthier food options, as well as its policy to maximise local content in supply chains, the vast majority of fresh produce for PacTow’s kitchen is sourced locally. “The food is fresher and therefore nutritionally better” says Papenfus. “Equally important though, buying from PNG farmers helps us drive development in our local communities.” To learn more about Pacific Towing’s dedicated tug base, its camp facilities and services: www.pacifictowingmarineservices.com.
Melanesia’s first dedicated tug base incorporates a new commercial kitchen and dining facility, safe and secure accommodation, as well as training venues. It services clients within and external to the maritime industry.
< From Page 46 Access to affordable credit in combination with financial literacy training will be increasingly critical to attract the best talent when companies look to staff up again post COVID-19 and when major resource projects inevitably take off. Innovative and ethical personal lending being introduced by Savi Moni has much to offer PNG’s employers and their employees. Salary linked loans with in-built financial literacy training, responsible lending, low rates, and no fees combine to combat employee financial stress, which in turn rewards employers with greater productivity, reduced absenteeism, and increased employee retention. New models of financial offerings such as these are welcome additions to employee benefits packages and are all part of being a socially responsible employer as well as an employer of choice. Find out more at www.savimonipng.com
48 www.pngbusinessnews.com • Issue 4 2020
Access to affordable credit coupled with financial education is fundamental to reducing money worries, building long term financial confidence and financial wellbeing. It can also drive employee productivity and loyalty.
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COMPANIES
Increased connectivity between Asia, PNG to benefit local businesses and community Swire Shipping enhances both its North Asia Express (NAX), Southeast Asia (SEA) services
S
wire Shipping operates 13 liner services connecting over 400 ports via an extensive network of services in the Asia-Pacific and globally. Dedicated to facilitating and growing trade in regions where it operates, the company operates a fleet of owned and chartered vessels to provide a wide range of specialist customer solutions for containerized, project, heavy lift, breakbulk and mini-bulk cargoes. A fixed-day fortnightly service from North Asia to PNG In November, Swire Shipping launched its fixed-day fortnightly North Asia Express (NAX) service with the deployment of its newest 2,750teu vessel, MV Lae Chief. The newly upgraded service will connect North Asia with Papua New Guinea and Australia with a market-leading frequency of 14 days and offers market-leading transit times to and from major ports in the region. Under this enhancement, customers can look forward to a nine-day transit time from Hong Kong SAR to Lae. Making its first PNG port call at Port Moresby on 27 November 2020, MV Lae Chief, at 2,750teu nominal capacity, is Swire Shipping’s largest container vessel calling in PNG. The vessel subsequently called at Lae on 22 November 2020 and was warmly received by a small contingent from PNG Ports, International Container Terminal Services, Inc. (ICTSI), local press and Swire Shipping staff. To commemorate this occasion, a contactless plaque presentation ceremony was held at the port of Lae. In his opening address, Alistair Skingley, Country Manager for Swire Shipping in PNG, said, “Swire Shipping has a proudassociation and legacy with PNG, and the Pacific region for more than 80
years. We aim to enrich lives by connecting customers with communities in the Pacific. To be able to welcome Lae Chief in Lae itself is very meaningful indeed.” Increased frequency from Southeast Asia to PNG Shortly after launching its upgraded NAX service, Swire Shipping announced that it will enhance its Southeast Asia (SEA) service from December 2020 to connect Southeast Asia, Middle East, Indian Subcontinent, Europe, Africa and USA with Papua New Guinea and the Solomon Islands on an 11-day frequency using two loops. The service enhancement will increase the number of port calls into Port Moresby and improve the interval times between vessels arriving in Lae. Port Moresby will be served with a market leading frequency of 11 days, a significant upgrade from a 22-day frequency. Customers shipping from Singapore and Malaysia to Motukea Port in Port Moresby on the SEA service can
50 www.pngbusinessnews.com • Issue 4 2020
look forward to a transit time of only nine days. The new rotations for the SEA service’s two loops will be as follows:
The M/V Changsha (SEA)
Loop 1 (Challenger loop) Port Klang - Singapore Motukea - Lae - Honiara - Lihir - Kimbe - Port Klang *Oro Bay and Alotau will be serviced as ad-hoc calls. Loop 2 (New Guinea Shuttle loop) Port Klang - Singapore Jakarta - Motukea - Lae - Lihir Rabaul - Madang - Port Klang Following the changes to the two loops on the SEA service, customers can expect better spacing between arrivals into Lae. The initial three and 19-day interval time between voyages into Lae will now be improved to a 13 and 15-day interval. Mr Jeremy Sutton, General Manager of Swire Shipping, said, “We are excited to announce the upgrade of our Southeast Asia service which will boost our services to Papua
To Page 52 >
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COMPANIES < From Page 50 New Guinea and Solomon Islands. These enhancements will benefit our customers and their supply chains on the Papua New Guinea-Southeast Asia trade.” New, modern vessels deployed to support growth in the region Swire Shipping will deploy three 2,750teu and four 2,400teu newbuild vessels, on the upgraded NAX and SEA services respectively, offering its customers and the communities it serves reliable products that will support continued growth in the region. Both the 2,400teu and 2,750teu newbuild vessels are fitted with three 45mt cranes capable of dual lifts, ensuring that they are well-equipped to carry all cargo types, including breakbulk, out of gauge and reefers. Equipped with 75T SWL stoppers, lashing eyes and strengthened tank tops to 20t/m, the vessels are well-suited to handle both containerised and non-containerised cargo including breakbulk such as steel and forest products, as well as vehicles up to 70t. Commenting on the deployment of Swire Shipping’s newly built vessels, Mr Jeremy Sutton, General Manager of Swire Shipping, said, “Communities in the Pacific rely heavily on seaborne trade to supply essential goods such as food, fuel, equipment, industrial materials and manufactured products, and to export commodities vital to global growth. Despite the challenges brought about by the COVID-19 pandemic, we continue to look to the future as we phase in our newbuild vessels, improve our network coverage and launch new digital products.” “By deploying these new ships on our upgraded service, customers will enjoy a more frequent product, delivered on fixeddays and with the ability for future growth,” added Mr Sutton.
To Page 54 >
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52 www.pngbusinessnews.com • Issue 4 2020
COMPANIES < From Page 52 Committed to the PNG community Swire Shipping has a long history operating in the Pacific and PNG remains a key market for the company. The company has made significant investments in modern vessels and improving schedule reliability, which underpins its commitment to enriching lives by connecting its customers with the communities in the Pacific. To highlight its commitment to the region, Swire Shipping named its first 2,750teu newbuild, MV Lae Chief. In addition to offering reliable services connecting PNG to the world, Swire Shipping is also committed to supporting the local community. Mr Jeremy Sutton, General Manager of Swire Shipping, said, “We have invested significantly in Project Cerulean and the Moana Taka Partnership to benefit the local communities, and we are confident that the fixed-day fortnightly service and the deployment of new, modern vessels to the Pacific
will also enable our customers and communities to thrive in the long term.” In October 2020, Swire Shipping donated K30,000 to Port Moresby Nature Park to help the park overcome its struggle to survive during the COVID-19 pandemic. The company also teamed up with Australian charity HEAPS International Foundation Ltd in 2019 to support educational needs for remote village children in the Sepik River region.
Said Alistair Skingley, Country Manager for Swire Shipping in PNG, “We feel part of the community and support environmentally sustainable projects that provide educational opportunities in that community wherever possible.” Swire Shipping is the brand name for all liner shipping services operated by The China Navigation Company Pte Ltd (CNCo), the oldest operating entity of John Swire and Sons Limited.
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AGRICULTURE
T
CEFI implements Market for Village Farmers Project
he Centre for Excellence in Financial Inclusion (CEFI) is implementing subcomponent 2.2 of the Market for Village Farmers Project, which is focused on providing a livelihood and financial literacy training and provision of innovative financial products and services to improve the lives of farming households in six selected provinces in the Highlands region and Morobe and East New Britain Provinces. The Fresh Produce Development Agency (FPDA) and the CEFI have signed a 5-year Sub Project Agreement (SPA) in June 2020 to improve access to financial inclusion services and products. CEFI has already engaged CARE International to develop training material for the project while it is recruiting an international consulting firm with experience in product development and agriculture finance to conduct a due diligence study and develop a business plan, including putting together a three-year training
plan to build internal capacities of partner financial institutions. Through this intervention, CEFI is confident partner financial institutions will provide affordable and diversified financial services to
25,000 farming households. CEFI has already secured interest from nine financial institutions, ranging from commercial banks and microfinance institutions to savings and loans societies.
To Page 60 >
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SAVI MONI A responsible, convenient & low cost personal loan solution for your employees. Benefiting employers' bottom lines & helping employees become financially healthier & happier. WWW.SAVIMONIPNG.COM 56 www.pngbusinessnews.com â&#x20AC;˘ Issue 4 2020
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Situated in the heart of Port Moresby is Crown Hotel Port Moresby with stunning panoramic views of the Coral seas and the Fairfax harbour. Crown Hotel is perfect for either business or leisure with 151 rooms, 2 restaurants, 2 bars and conference facility that caters up to 300. The fragrance of fresh flowers breezes through our modern Lobby, where you can browse artefacts drawn from Papua New Guinea’s diverse cultures. Our Front Desk staffs are waiting to take your bags to your room or suite while you gaze at the ocean from Heritage bar or soak in the outdoor pool. Rapala restaurant’s French fusion organic restaurant is complemented by a fine wine list while our casual Pondo Tavern serves comfort food on its deck. Exercise when you want in our 24-hour Fitness Centre or get to work using wireless Internet in our Business Centre. We’ll help you dive the reefs off Loloata Island and our sumptuous beds are a wellearned reward after hiking the Kokoda Trail. Stay at Crown Hotel Port Moresby and, whether you’re with us for 2 nights or 2 months, you’ll feel safe, secure and right at home.
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AGRICULTURE < From Page 56 CEFI Executive Director Saliya Ranasinghe says CEFI has begun the groundwork after signing the agreement with FPDA. “CEFI has recruited full time staff and has established an office in Goroka, Eastern Highlands to administer the financial inclusion activities,” he said. “We will also work with financial institutions to develop suitable agriculture lending products for the sector as well as digitising payment for farmers,” Ranasinghe said. “CEFI with its training partners and financial institutions will educate fresh produce farmers on money management skills, develop community-level savings and innovative lending schemes that will pave the way to support farmers to build a strong savings culture and grow their businesses into viable commercial businesses,” he added. From October 12 to 27, CEFI participated in four roadshow events hosted by Fresh Produce Development Agency through its Market for Village Farmers Project Management Unit across the highlands and Morobe prov-
ince, to promote the project and to seek partnership support from provincial administration to deliver the project in the selected provinces. During the roadshow, Memoranda of Agreements (MOA) were signed between International Fund for Agriculture Development (IFAD), Department of Agriculture and Livestock (DAL), Fresh Produce Development Agency (FPDA) and the respective provinces to improve market access to farmers by facilitating their transition from semi-subsistence to agro farming businesses. CEFI’s Special Projects Manager Busa Jeremiah Wenogo said CEFI will work strategically to deliver the Financial Inclusion Component. “Important thing to achieve in this project is for the banks to work with the farmers,” Wenogo told the participants at Banz. “We will focus on two areas, training for farmers in financial literacy, community mobilization and
nutrition with the training to target the family unit, primarily the father and mother. We will also work with financial institutions to offer innovative financial products and services to the households” The Roadshow and Workshop concluded in Lae, Morobe province on October 27, with a Memorandum of Agreement signed between the Provincial Administration and Project Management Unit. Market for Village Farmers (MVF) is valued at USD38 million and is executed by the Government of Papua New Guinea through the DAL and implemented by FPDA, with funding from IFAD.
CEFI Executive Director Saliya Ranasinghe says CEFI has begun the ground works after the signing of the agreement with FPDA.
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60 www.pngbusinessnews.com • Issue 4 2020
AGRICULTURE
Securing retirement savings for NBPOL smallholder growers
S
mallholder growers who supply Oil Palm to New Britain Palm Oil Limited, now can save for retirement with Papua New Guinea’s leading superannuation provider, Nasfund. Through the Fund’s Eda Supa product, an initial 700 smallholders have already signed up to begin superannuation contributions under this arrangement, facilitated by NBPOL. A ceremony to launch this initiative was held on Friday November 13, 2020 in Kimbe West New Britain, where representatives of Nasfund, NBPOL, smallholder growers and the provincial government witnessed the first payment of smallholder superannuation contributions. This initial member contribution of K100,000 was presented to Nasfund, by NBPOPL on behalf of its first batch of smallholder growers who registered for the Fund’s Eda Supa product. Addressing the occasion, Nasfund Chief Officer Member Services, Anne Wilson, thanked NBPOL for its support in assisting to facilitate superannuation contributions for its smallholder growers, and acknowledged the important role of smallholders in the oil palm
industry, whilst welcoming them to the Fund’s membership. “This strategic partnership with NBPOL now enables our smallholder growers to have peace of mind that their hard work will reap rewards when they retire, with superannuation savings now being contributed to Papua New Guinea’s leading superannuation provider, Nasfund. This occasion is even more special, as it is Nasfund’s first engagement with smallholder growers under NBPOL in this industry
62 www.pngbusinessnews.com • Issue 4 2020
that is essential to the economy, not only in the WNB province, but nationally as well. Growers now join the fund’s more than 500,000 members from across Papua New Guinea in saving for retirement who also save with Nasfund. With the smallholders now a part of the Nasfund family, they can also receive the benefits that come with saving with Nasfund: • Annual interest paid on savings • Access to the Housing Advance Scheme • Discounts at our Membership Discount Program partners • Access to our Member Online Portal • Access to our branch facilities here in WNB, and our Call Centre • Access to our Savings & Loan Society, NCSL — who are the leading Savings & Loan Society in the country. This is only the beginning of a long-term partnership to provide leading superannuation services to our people, wherever they are, in whatever industry they are in.”
OIL AND GAS
PNG LNG is a world-class asset, says Santos Ltd.
A
ustralian natural gas developer Santos Ltd said that the PNG LNG is a worldclass low-cost asset delivering above nameplate productivity. According to chief operations officer David Banks, opportunities for expansion can come in the future. “One core asset that is operated by others is the PNG LNG,” he said. “Exxon Mobil, the operator, does a great job in terms of filling the plant. “The plant has been tracking at 30 per cent better than nameplate capacity through very low-cost operational improvement and bottlenecking that has been completed. “The production cost of US$4.85 (K17)/boe (per burial of oil equivalent) demonstrates that it is a world-class asset and within that US$4.85/boe is something approaching a dollar of earthquake impact which we are in the process to recover through insurance and the like.” He added, “In terms of backfill options, we have a number, one of
them P’Nyang which is subject to framing agreements and we are working with partners in the Government on that Muruk and Hides are also exciting backyard opportunities that will enjoy extreme capital-efficient development costs and make the most of very well run the infrastructure that we have in place there.” Meanwhile, Santos Ltd has lowered its production cost guidance at US$8.00 (K28)-$8.50 (K29.80)/ boe (barrels of oil equivalent) and has upgraded its 2020 production guidance to 87 and 89 million barrels. According to the firm, the upgrade was due to a strong operating performance across its base businesses and represents more than 50 per cent growth since 2015 and 15-18 per cent production growth for the year. Its asset of PNG LNG has produced 30 per cent above nameplate capacity without extra capital. In spite of the pandemic, the firm is still on track to deliver the cost reductions it has announced in
64 www.pngbusinessnews.com • Issue 4 2020
March - which sees 2020 guidance decreased to US$8.00 to US$8.50/ boe. Other developments include capital expenditure expected to be approximately US$900 million (K3.15b), steady with the 38 per cent reduction for the year announced in March; the integration of the ConocoPhillips acquisition finished in May with guidance on acquisition synergies heightened from US$90 million (K315m) to US$105 (K368mil) million per annum. Managing director and chief executive officer Kevin Gallagher said that with these developments right on track, the firm is positioned for sustainable shareholder returns and disciplined growth. “Our strategy has been to establish a disciplined low-cost operating model that delivers strong free cash flows through the oil price cycle,” he said. “Our 2020 forecast free cash flow breakeven oil price is less than US$25 (K87.70) per barrel before hedging and around US$20 (K70) per barrel after hedging.”
We invite you to attend the 36th Australia Papua New Guinea Business Forum & Trade Expo Brisbane, Australia & Port Moresby, Papua New Guinea from 24th - 26th May 2021
Australia Papua New Guinea Business Council - w: www.apngbc.org.au | e: info@apngc.org.au | p: +617 3348 5142 Business Council of Papua New Guinea - w: www.bcpng.org.pg | e: executive@bcpng.org.pg | p: +675 3238465
Delegate registration re-opens January 2021
MINING
Porgera contractors lose estimated K111 million
L
ocal contractors in Porgera have lost an estimated K111 million since the mine shut down. This was disclosed by the Porgera Chamber of Commerce and Industry (PCCI) president Nickson Pakea, who said there were around 136 local contractors who provide servicing, support and heavy equipment parts to the gold mine leased by Barrick Gold from the government. He added that businesses in the area have felt the sting of the lockdown, saying that the government needs to look at other ways to open the mine. “The mine shutdown has affected these businesses in a very big way and we are actually feeling the pinch,” he said. “We have 136 local contractors, that’s a composition of contractors supplying heavy equipment. We also have other micro-small to medium enterprises that benefit from the mine and local contractors apart from the national contractors. We have lost about K111 million
over the last eight months. “In Porgera, we only have mining as our lifeline so when the mine shut down, everything went down. We have been depending on the mine in terms of power, roads other basic services.” Pakea welcomed the idea that the government will open the mine next year but urged them to open it sooner. He also asked them to look and find ways to work out the landowner issues. The chamber also acknowledged the assistance of the government of K10mil for the trucking industry. Barrick Gold president Mark Bristow reportedly held discussions on royalty arrangements with landowners in Port Moresby. The latest move comes as the company seeks to ‘negotiate a reopening’ of the Porgera gold mine, Reuters reported citing landowners. The Porgera gold mine is in Enga Province, 600km north-west of Port Moresby.
Barrick’s lease over the gold mine, which it operated alongside Zijin Mining, expired when PNG Prime Minister James Marape refused to extend it in April this year. The extension was denied citing environmental concerns and said the PNG Government will take control of the gold mine. This had led Barrick Niugini to mount legal challenges.
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BUSINESS
T
New Chamber executives to build 100-day work plan
he Papua New Guinea Chamber of Commerce and Industry (PNGCCI) said that it will build a 100-day work plan for its profile after an election of its new executives led by President Ian Taruita. Aside from Taruita, elected are the following: John Byrne (vice-president Momase and Highlands), Jeff Abel (vice-president Southern), David Stein (vice-president Islands), Zanie Theron (treasurer), Phil Franklin (secretary), Michael Henao (board appointment coordinator), Peter Del Monte (regional coordinator) and Chey Scovell (international affiliations). Tarutia said that the new executives were a mix of youth and experience. “An immediate 100-day plan for the new team would be to focus on building the profile of the chamber, engaging more with key peak bodies and stakeholders on matters of mutual interest, advocating for its provincial members and adequately resourcing its secretariat,” he said.
In welcoming the new leaders, Taruita thanked the outgoing president and listed his role and his achievements. The election was preceded by a meeting in which amendments were passed to let new positions of
regional vice presidents to be part of the executive structure. Meanwhile, the president of the Papua New Guinea Women’s Chamber of Commerce and Industry, Zanie Theron, becomes part of the executive board.
PREVENT KILLER COUGHS IN YOUR BUSINESS WTH A CALL TO 7676 2482 Last year 4,700 Papua New Guineas died of Tuberculosis. All these deaths were preventable. Business for Health (B4H) trains non-health-staff in simple and effective TB and HIV workplace programs which also identify people with TB so impacts on your business’ success are minimised. To find out about the course and how we can also help you with health advocacy and developing your own TB policy, and provide all the information, advice and support to ensure your business is best placed to look after your employees. And your enterprise’s long-term viability. Call us now, toll-free on bmobile 7676 2482 www.businesses4health.com @B4HTB
68 www.pngbusinessnews.com • Issue 4 2020
AGRICULTURE
M
Bougainville cocoa farmers get extended support
ore cocoa farming families will have the opportunity to access support to allow them to make the most of sustained global demand for cocoa, after a project in the Autonomous Region of Bougainville was extended. The Bougainville Cocoa Families Support Project (BECOMES) project – which aims to support the economic and social wellbeing of cocoa farmers and assist women, young people, and men to better manage their cocoa plots has been extended for two years. This will allow BECOMES to reach smallholder farming families and other targeted groups in Buka, Selau/Suir, Tinputz and Wakunai districts. The project is supported by the Autonomous Bougainville Government and the governments of Papua New Guinea, Australia and New Zealand through the Bougainville Partnership and delivered by Care. First Secretary from the Australian High Commission’s Buka office, Clayton Harrington, said cocoa farming is a growing industry with the potential to create a sustainable livelihood for many Bougainvilleans. “Over the past four years we have seen individual smallholders improve their farming practices and management,” Mr Harrington said. “BECOMES works closely with model farming families and groups to improve their technical skills, managerial capabilities and community cooperation to boost cocoa production.”
< From Page 72 including English and Math teaching strategies aligned to the Standards-Based Curriculum (SBC). We will also improve the capacity of school inspectors to support teachers in the province. Save the Children’s Pacific Regional Director, Gerry Dyer, said that an important aspect of Save the Children’s work in education is ensuring that children show improvement in their learning outcomes. This comes with having a strong education system (skilled teachers, access
The families are then tasked with the responsibility to share their expertise with neighbouring farmers and nearby communities. BECOMES is increasingly focused on promoting inclusive opportunities for innovative women and young people to participate directly in cocoa farming or provide sector support services. This includes targeting entrepreneurs looking to establish nurseries or bud wood gardens, run communal drying systems, sell packaging materials for cocoa, or raise poultry for food or fertiliser. First Secretary at the New Zealand High Commission, Alicia Kotsapas, said there are signs of a shift towards more inclusive cooperatives and business groups. “This means that more people – including women and youths –
are empowered to participate in and benefit from farming, which is good for individuals, families and communities,” Ms Kotsapas said. BECOMES encourages more women to participate in cocoa farming by improving their access to extension services and other resources. It also promotes greater equality in household decision-making and labour and provides access to technical training and agricultural tools specific to the needs of women. In the four years since it began, BECOMES has reached more than 2,000 Bougainvillean cocoa farmers and will continue to support a range of activities to boost output, improve quality and gain better market access.
to quality teaching and learning materials), and good practices such as reading every day. “Being able to implement the eLearning project in Western province means, we’re building an enabling environment for children to learn.” Western Province Administrator, Robert Kaiyun, thanked SDP and Save the Children for this partnership. He emphasized that this would mean a lot to the students enrolled in the 21 primary schools participating in the phase 3 trial. The idea is to roll the project out to other schools after the
proof-of-concept trial has become a demonstrated success. “The New Way Forward in education calls for a wider stakeholder approach to tackling these ongoing problems. The eLearning Project will add value to implementing the four priorities areas for the education sector in terms of (i) Quality Education, (ii) Accessibility, (iii) Systems Strengthening, and (iv) Integration. The project will give opportunities for the children to improve their learning abilities and perform better to achieve better academic results,” said Mr. Kaiyun.
70 www.pngbusinessnews.com • Issue 4 2020
Mark Lamur of the PNG Cocoa Board, Nikki Wright of the Australian High Commission, Christopher Hershey of CARE International in PNG, and Stanford Komena of the ABG Department of Economic Development cut the ribbon to officially launch the new communal cocoa dryer for Siriepa AgriBusiness Group in the Wakunai District of Bougainville.
MINING
I
Investments in exploration drop, Chamber of Mines’ Aopi notes
nvestments on exploration in the extractive sector, especially the mining industry, have decreased in the past decade, Chamber of Mines and Petroleum president Gerea Aopi said at the Deloitte and Port Moresby Chamber of Commerce and Industry business budget breakfast. During the outlining of the significance of having policy statements in the national budget, Aopi said investments were reduced from a billion kina to just K200 million in 2020. He added that without such policies, the government will find it difficult to drive growth, especially at a time when investors are looking for assurance and confidence. “Without sensible policies on the resource sector, I think it’s going to be extremely difficult for the government to drive economic growth,” he said. “There has to be certainty also stability in terms of policies whether its fiscal poli-
cies, legal and what the investors really look at is certainty and we don’t want investors coming in not knowing what the rules are going to be.” Mr Aopi said that the policy statements offer no word on matters such as changes to legislation -- whether that be the Gas Act, the Mining Act, or in the Organic Law on resource ownership. “That creates a lot of uncertainty in terms of whether they are going to see capital developed into the economy,” he said. Exploration is the future for the industry resource sector because we need to replace our existing assets. Without having explorations this will not happen. Exploration can take up to 30 years before we see anything coming up. These are the investments we need to make. Because of the uncertainties makes it difficult.” Furthermore, Mr Aopi said that the fiscal stability agreement expected to be finished by the end
of the year will offer some clarity to the fiscal terms agreed and signed last April 2019. He added that hopefully, this will help move Papua LNG forward towards progress. He said: “Industry does not object to the changes in policies as long as there is a dialogue and there is more consultation in terms of trying to point out what are the challenges and what can we do, we want growth and make a return for shareholders.”
Chamber of Mines and Petroleum president Gerea Aopi
www.pngbusinessnews.com • Issue 4 2020 71
EDUCATION / TRAINING
21 Western schools to benefit from eLearning project
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Brunel 9 Business Coalition for Women
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Businesses for Health
68
Credit Corp. Crossroads Hotel Crown Hotel
17 IFC 58-59
Crowne Plaza Residences
61
Don Kyatt Group
60
Express Freight Management
13
Exxon Mobil
21
Ferrum Engineering
52
GFS Limited
6
Heli Niugini
33
Holiday Inn
51
Holiday Inn Express
63
Hornibrook NGI iPi Group
OBC 25
KPMG 45 Lae Chamber of Commerce
66
Mapai Transport
31
Markham Culverts Moni Plus
53 2-3
MRA 54 Nasfund 36-37 NISIT 43 Pacific Palms Property
19
Pacific Towing
69
PNG Air
8
PNG Business News
67
PNG Mining-Industrial Expo
49
PNG Motors
35
PNG Study Abroad
71
QED 5 Savi Moni
56
Southern Queensland Steel
44
Steamships 4 Swire Shipping
IBC
Total Waste Management
57
Tower Insurance
41
Trukai Industries
7
Westpac PNG
1
Kwiroknae Primary School students in the eLearning Lab trying out the new tablets.
A
bout 7,800 students in 21 schools will be using tablets to access eBooks and learning resources through an eLearning project, which is being sponsored by PNG Sustainable Development Program Limited (SDP) in partnership with Save the Children PNG. The third phase of the project was launched in December at Kwiroknae Primary School in North Fly, Western province. The project will be leveraging technology to support teachers and inspectors; improve their access to high quality teaching and learning resources and increase the access of the schools in the remote areas of Western province. The basic idea is to improve student literacy and numeracy. The project will provide primary schools with tablets loaded with Offline Apps containing graded digital reading libraries with hundreds of books from the National Department of Education (NDoE) and globally available opensource books. Each school will be supported by a Learning Lab room where teachers will be provided with tablets, projectors and speakers powered by solar energy. This will enhance classroom teaching. We have learned from the phase 1 and phase 2 efforts so that phase 3 will operate with a significantly refined strategy. Save the Children’s social enterprise Inclusive Education is supporting the project with education technology solutions.
72 www.pngbusinessnews.com • Issue 4 2020
SDP Corporate Affairs Manager, Juddy Aoae said this project is aimed at delivering a big turnaround in teacher and student performance. “Students in Western Province are capable. Unfortunately, a lack of resources and exposure to knowledge and information over many years, has meant our students have not been able to perform to their full potential. Teachers have also struggled to deliver with minimal resources.” She said SDP’s education initiatives are delivered through partnerships in consultation with the Provincial Department of Education. “We complement and supplement existing services that fill the gaps to ensure that these students get the best possible education. Our approach also supports the teachers, so they develop new skills along with providing the resources to deliver lessons effectively.” “| urge the parents, citizens, students and the teachers in the schools and the communities to fully commit to taking care of these valuable eLearning materials provided through this wonderful opportunity. “ In line with the Western Province Education Strategy, this project is expected to improve students’ access to quality teaching and learning materials through online and offline eLearning resources, provide professional development for teachers,
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