PNG Business News - Issue 3, 2023

AGRICULTURE PLAN TO PROVIDE STRATEGIC DIRECTION FOR SECTOR

US

PNG’S MEDIUM TERM DEVELOPMENT PLAN IV POINTS TO ECONOMIC INDEPENDENCE

PEUNA PNG: A YOUNG COMPANY WITH DEEP ROOTS IN PAPUA NEW GUINEA

DEFENSE SECRETARY’S VISIT SOLIDIFIES US-PNG TIES

Blue Water Shipping

COMMENTARY

Petroleum Sector Reform for Papua New Guinea > 10

Mining in PNG: Blessings, Curse and Lessons from the Porgera Goldmine > 22

BUSINESS

ADB Forecasts Continued Pandemic Recovery for Pacific Economies in 2023-2024 > 28

ADB Appoints Said Zaidansyah as Papua New Guinea Country Director > 30

PM Marape Welcomes

Establishment of Independent Commissions Against Corruption > 32

Minister Maru Happy with Visit to China > 34

PNG (Hong Kong, China) Chamber of Commerce to be Officially Recognised > 38

MRDC Becomes a K7-Billion Company > 40

PNG’s Medium Term Development Plan IV Points to Economic Independence> 42

PM Marape Hails Successful Outcomes of Indonesian President Joko Widodo’s Visit > 48

US Defense Secretary’s Visit Solidifies US-PNG Ties> 52

PNG, France Forge Cooperation in Forest Management, Conservation, Climate Change > 54

MINING

K92 Mining Announces Significant De-Risking Milestone > 56

Mayur Breaks Ground at its Central Cement & Lime Project > 58

US$40-Million Investment for Central Lime Project > 60

ICCC Greenlights Newmont’s Acquisition of Newcrest Mining Ltds > 62

PanAust Receives Exploration Licenses for Friend River Project > 64

ON THE COVER

PM Marape: First Step Towards Reopening of Porgera Mine Starts > 66

Barrick Readies Porgera for Restart > 68

OIL & GAS

PM Marape Commends ExxonMobil for Continuing its Exploration of Oil, Gas in PNG > 70

JX Nippon Transfer Official Signing Ceremony in Port Moresby > 72

K250-Million Interim Dividend from Kumul Petroleum > 74

Kumul Petroleum’s Fabrication Facility – First Construction Contract Signed > 74

ENERGY

Bapa Hydropower Project: Illuminating a 9MW Collaboration for Sustainable Energy > 76

Prime Minister Marape Applauds Upcoming Edevu Hydropower Project Operations > 78

AGRICULTURE

National Agriculture Sector Plan to Provide Strategic Direction for Sector > 80

NARI Starts Project to Safeguard

PNG Sweet Potato Diversity > 80

Marape Government Strives to Boost Oil Palm Production by 2027 > 82

FINANCE

Launch of the Inclusive Green Finance Policy in Papua New Guinea > 84

PM Marape Asserts PNG Economy Primed for Unprecedented Growth > 86

PNGX Welcomes Market Growth Targets, Corporate Debt Market, Listed Property Trusts to Develop Local Capital Markets > 86

PNGX Introduces New Corporate Governance Code to Enhance Standard for Listed Companies > 90

TOURISM

Citilink Airlines Opens Denpasar-Port Moresby Route > 92

Indonesian Ministry of Tourism and Creative Economy Revitalizes Papua-PNG Border > 94

COMPANY

Still the one for H2 > 96

PNG Workers Mentally Resilient -- Psychologist > 100

Workplace Counselling Keeps Workers on the Job –Psychologist > 100

Redback Drilling Tools Highlights Papua New Guinea Operations > 102

Peuna PNG: A Young Company with Deep Roots in Papua New Guinea > 104

Ok Tedi Focused on Delivering Maximum Return to PNG > 108

PacTow Involved in PNG Port Upgrades > 108

PNGFP - Investing in the Future > 110

Santos Delivers News Literacy Library for People of Pimaga, Southern Highlands > 112

Steamships, Gulf Provincial Government, GFS Form Joint Venture – Gulf Maritime Services > 114

Empowering Papua New Guinea’s Future: Wan PNG Prepares for Launch after Months of Preparation > 114

EVENTS

PM Marape Highlights Rugby League as a Powerful Uniting Force for PNG at NRL Bid Corporate Dinner > 118

Petroleum Sector Reform for Papua New Guinea

EDITOR’S NOTE: Michael McWalter, former Director, Petroleum Division and Adviser to the Government of Papua New Guinea, and erstwhile petroleum adviser to the Governments of Ghana, Liberia, Cambodia, Sao Tome, and South Sudan, comments on PNG’s oil and gas industry and changes to the petroleum regime made, muted, abandoned and planned.

Michael McWalter is a technical specialist in petroleum industry regulation, administration, and institutional development with over 42 years’ experience of the oil and gas industry, predominantly in the Ministries and Agencies of newly emerging oil and gas producing nations, particularly in PNG.

Project overview

OPTIMISING

BENEFITS FOR

PNGalleged that Papua New Guinea is not getting enough benefit from its petroleum resources and that the solution to such a problem might be for the Government to exact more demanding fiscal and commercial terms on sector investors. However, the same could be said about almost any source of Papua New Guinea’s revenue that we are not getting enough impact and outcome from the revenues that find their way into the Consolidated Revenue Fund of the Government.

One might deduce that either the quality of Government expenditure is poor and unfo cused, or there is gross misuse and misspending of Government funds, but in reality it is likely to be a mixture of both. Efforts to address this problem have include the creation of a National Procurement Commission and support for transparency by the Prime Minister of what has often been called a systemic problem.

But when it comes to petroleum resources, we must remember that it is after all the Government that sets the terms of investment when seeking to develop the Nation’s petroleum resources, and it is the Government that needs to police the regime thoroughly that it has established.

Aside from the poor quality of Government expenditure, the oil and gas companies that invest in Papua New Guinea do indeed need more scrutiny. Transparency of the terms of business and audit by the Government of the corporate

taxation returns of petroleum licensees are the normal means by which to ensure appropriate performance and compliance of the oil and gas companies.

NEED FOR COMMERCIALITY

In the petroleum sector, oil and gas production leads to substantial income streams from sales of produced oil and gas, but getting to the development stage is not automatic. Those revenue streams need to be large enough to recompense the investors, primarily for their exploration, appraisal, development and production costs, and yet be able to pay the various fiscal and commercial demands and requirements of the Government and other local stakeholders. And

Publisher Elizabeth Galura

Editor Jimbo Owen Gulle info@pngbusinessnews.com

Journalist Paul Oeka 70283999 pjoeka@gmail.com

The PNG LNG Project is an integrated development that includes gas production and processing facilities in the Southern Highlands, Hela, Western, Gulf, and Central Provinces of Papua New Guinea. It will provide a longterm supply of liquefied natural gas (LNG) to four major customers in the Asia region.

more than that, they hope that there will be a return on their investment for their shareholders, whilst they have to reserve enough funds for abandonment of fields, pipelines and facilities at the end of production.

The Government needs to understand that its does not share directly in the sales revenues, but rather that it shares mainly in the profit when a particular production project is commercially viable through the taxation of profits and by taking a share of the profits when it holds equity. Fiscal devices like royalty and levies may be charged at rates proportionate to production and its value, but they are not the main devices

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in the current regime.

If the Government exacts too much and a project thus becomes marginally economic and lacks commerciality, then it is unlikely that the project will proceed, especially if its economic viability is too diluted. This viability requirement extends to all manner of petroleum regimes and likely success has to be weighed carefully against the general and specific risks.

INVESTMENT OF REVENUES

When petroleum sector development takes place in the context of poor governance and poor financial management with a very leaky financial system which allows the results of petroleum development -- its revenues to be capriciously handled, misspent, or misappropriated -- the result of that enterprise will obviously be unrecognised, obscured, and unfortunately, all too often diminished.

In almost all cases of oil and gas production around the world, the share of the net value stream accruing to the Government from the development of an oil and/or gas field is greater than the share of the net value that the companies get. Generally, a Government should be realising significant revenue windfalls from petroleum development activity, once all costs are paid for.

Such revenues should be most carefully invested on public expenditure that is capital in nature for the good of the people, and not squandered on self-gratifying recurrent expenses. These resources are the treasures of the people, and their value should only be mobilised to enhance the capital-based welfare of the people.

NEED FOR BETTER SECTOR MANAGEMENT

If a Government has a general and systematic disregard for monitoring the actual returns and benefits to the State versus the system benefits as designed and devised by prior and current petroleum policy determination, and their corresponding laws, regulations, and agreements, how can the State reliably know what it should have earned as its share in the enterprise of petroleum resource development versus what it does actually earn and receive?

This seeming lack of care is often based on a lack of accountability, and a lack of an appropriate sector yardstick (based on good statistical data of the oil and gas industry) against which to measure the sector performance.

Pilfering and lassitude, of one kind or another, compound the problem. So a potent cocktail is created which prompts a demand for sector reform and change, when such is perhaps not fundamentally justified or needed.

Perhaps, more ardent and diligent work might rather be required along with firmer enforcement of the current petroleum regime, but this requires heightened professionalism prompted by better terms and conditions for all that are involved in Government administration of such National assets as the petroleum resources of the country.

These two problems: the lack of monitoring and accounting of the sector performance and disdain for proper sector management merge in the minds of political leaders to convince them that sector matters are not as good as they could be and therefore need intercession by way of reform. That reform may be beyond the proportions required, or even possible.

Making the current regime work effectively using the current provisions of laws, regulations and terms of agreements is paramount to achieving optimum resource sector outcomes. However, if full application of these provisions is neglected for more immediate needs, perhaps inevitably disorder with be propagated and sector performance will suffer in the eyes of the State.

Reform should only be embraced if it rationalises and simplifies the petroleum regime and makes it more transparent and accountable to all stakeholders. Any petroleum regime poorly applied and poorly managed will equally give suboptimal and questionable results.

THE CURRENT PETROLEUM REGIME

Indeed, it would seem that no-one in Government today can articulate with much clarity the current Papua New

Guinea petroleum policy that defines the applicable petroleum regime.

Over the last eight years, there have been many changes to the petroleum regime through amendments to legislation such as the introduction of dividend and interest withholding taxes, an increase in the rate of foreign contractor taxes, change to deductibility of royalty, a consolidation of oil and gas operations tax rates to a single uniform rate, and the changes to the Oil and Gas Act concerning the treatment of applications for petroleum development licences and the removal of the right to arbitration.

Oddly, within the negotiations of recent Gas Agreements, basic application of many of these new provisions has been waived and new devices introduced such as a production levy and a domestic market obligation. If the changes devised in 2015 had been dutifully applied, perhaps these inventions might not have been necessary.

Certainly, it is time to rewrite the Petroleum Policy Handbook published by the Department of Petroleum and Energy in 2005, and to state the current petroleum regime unequivocally. It is difficult to invest in a country if the rules of the game are not clearly articulated.

Incidentally, if contract-based Production Sharing Arrangements are to be used in the future as has been suggested, all the terms of exploration, appraisal, development, production, and abandonment will have to be most carefully spelt out and agreed to. Companies will not contract their services to Government unless they can clearly see a pathway to profitability if they successfully find hydrocarbon accumulations.

SOME NEW POLICY INITIATIVES

A few years ago, the PNG Government, led by its Gas Project Coordination

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Before its merger with Santos, Oil Search owned oil and gas interests in Papua New Guinea (pictured) and Alaska.

Office, devised a new Natural Gas Policy of which there were several editions during the period of 2016 to 2017, none of which were duly and properly issued, and which sought to introduce changes to the fiscal and commercial terms of gas development.

Some people in Government (and a few in the industry) have taken these to be official policy, despite there being no public record of their presentation to Parliament, formal Government approval, or public dissemination.

These variously included an increase in State equity from 22.5% to 30%; a production levy of 10%; royalty and development levy based on 2% of export value (instead of wellhead value); a 5% import duty on all goods and services; a 2% social levy; and 10% domestic market obligation to sell production into local markets at a discounted price; and a withdrawal of foreign exchange exemptions.

Such a clamour for more benefits, whilst admirable, was sadly not quantified in any of the gas policy drafts, and the manner in which the draft documents was handled smacked of stealth and the policy clearly lacked transparency in its formulation and enunciation.

It has to be emphasised that petroleum resource development is big business, and its success or failure is enumerated in very large amounts of money underlying it, for all stakeholders.

It is the numbers arising from the interaction of a variety of fiscal and commercial devices at different times in the petroleum development cycle that give rise to the overall effective split of the net value between the Host Government and the investing companies. This cannot be guess work and requires sensitive well-informed economic modelling.

OIL AND GAS AMENDMENT ACT 2020

In 2020, the Government introduced an amendment to the Oil and Gas Act that fundamentally changed the offering of the National petroleum prospectivity for exploration development and production to investors from that which was firmly established in the 1975 White Paper: Government Statement on Petroleum Policy and Legislation, an extract of which follows:

“But, before we can gain the benefits of oil and gas production, we must first find oil and gas in commercial quantities. At present, the best way to do this is by relying on foreign oil companies, who have both the technical expertise and the financial capability to mount a major exploration programme. And in order to

attract these companies for exploration, while at the same time increasing our own knowledge of our resources and our ultimate ability to control the petroleum industry, we need to offer terms and conditions that are fair and reasonable.

“This does not mean that we need to be evenly generous to foreign oil companies. There is enough potential profit in most oil discoveries so that a company can earn a generous return on its investment, while at the same time the government, as trustee for the people of the country as a whole, can secure significant revenue. The terms proposed in this policy statement are fair and just. They allow foreign companies to make reasonable and adequate profit, yet they ensure that the nation will benefit substantially from any oil or gas production, and that as the profitability of any oil venture increases Papua New Guinea will take an increasing share of these profits.”

The above is from the Forward of the White Paper on Petroleum Policy and Legislation 1975 laid before the National Parliament by M. T. Somare, M.P., Minister for Natural Resources and Julius Chan, M.P., Minister for Finance – two of PNG’s most esteemed leaders. It was a strong foundation.

Essentially, the 1975 policy sought experienced companies to invest in exploration at their own risk and to develop at their own risk any discovery to the extent that they were happy with the commerciality of the outcome of development and production, to which the regime would then be judiciously applied. If the commerciality was fragile, the State was not so concerned.

This has changed substantially with the Oil and Gas (Amendment) Act 2020 which has introduced new criteria in a new section - Section 56A. An application under Section 56 (1) of the Oil and Gas Act for a Petroleum Development Licence has to now pass a test as to “the benefit or otherwise to be derived by the State”, notwithstanding matters of project commerciality. This is reproduced below in full.

OIL AND GAS ACT SECTION 56A. MINISTER’S INSTRUMENT OF NOTIFICATION TO APPLICANT.

Where subject to Section 56(1), this section applies, the Minister must:

(a) by instrument served on the applicant, notify the applicant that this section applies; and

(b) seek the advice of the Board on whether the applicant’s proposals should reflect a minimum expected return to the State over the life of any recovery of petroleum from the blocks the subject of the application and, if so:

(i) what that minimum expected return should be (specifically or according to a conditional or sliding scale or calculation); and

(ii) the appropriate methodology for its assessment or calculation; and

(iii) the appropriate milestones for its achievement (and any compensation regime that should apply if those milestones are breached); and

(c) based on, but without being limited by that advice, the materials already furnished by the applicant in support of the application and any other information otherwise available to the Minister relevant to the application, form the Minister’s own view on the matters referred to in Paragraph (b) and, by further instrument served on the applicant, notify the applicant of that view; and

(d) where proposals already provided by the applicant:

(i) meet or exceed the minimum requirements contained in that farther instrument; and

(ii) contain binding undertakings to that effect enforceable on acceptance by the State as. an agreement pursuant to, or as an amendment to an existing agreement under, either of Sections 183 and 184, serve an instrument on the applicant under Section 56(l)(a), (b), or (c) as the Minister determines; and

(e) otherwise proceed under Section 56(l)(b) save that the Minister must as a minimum require proposals under Section 56(1 ){b) at least satisfying the minimum requirements referred to

In this image from Santos, a container ship docks at the PNG LNG terminal.

in Paragraph {d}, and the Minister may in any event, and notwithstanding any other provision of this Act to the contrary, impose conditions on the grant of any application to which this section applies that implement the Minister’s view referred to in Paragraph (c).

This is a paradigm shift in the petroleum regime, as investors who have risked their money in exploration, appraisal and development planning can now only pursue a recoupment of their investment by seeking a licence to develop the discovery, if it is not only necessarily commercially viable, but also meets “the minimum expected return to the State over the life of any recovery of petroleum” which criteria is only examined and assessed by the Petroleum Advisory Board and is subject to the Minister’s own view at the time of application. This is certainly putting the State in the lead and advancing control of the sector, hopefully for the better.

As brave as it attempts to be, such provisions dealing with the benefit arising from the development and production of oil and gas from a field, will likely be swamped by the key exogenous variable of the oil and gas industry, which is the crude oil price itself.

However, the fact that a planned petroleum development might be the subject of such scrutiny would in itself be a leap forward in sector management, and the minimum expected return to the State will need to be defined most careful and should consider the extremely volatile nature of the industry.

Moreover, such analysis will need to be professionally undertaken emphasising once again the need for better sector management institutions manned by skilled and experienced persons with appropriate technical and financial support.

REFUSAL OF DEVELOPMENT

Also, in the 2000 amendment, the hitherto unlikely outcome of a refusal of a willing application for a petroleum development licence has now become a defined option for the Minister who is now required to assess whether the proposals for development attached to an application will pass an approved threshold level of benefits for the State, and if they do not: to refuse the application.

On top of that, the right to take the Minister’s decision to refuse an application may no longer be referred to international arbitration by virtue of the Oil and Gas Act. That option is now closed.

AN AVALANCHE OF CHANGE

Our dilemma is to see through this avalanche of sought-after-changes and see what the PNG Government really wants. As the Governors of three Provinces (Gulf, Hela, and Western) said in a joint letter dated 30th August 2020 to

the Prime Minister: “What is the end game for the Government with these changes?” Do we want State control on (sic) Licences or increased State take?” One wonders whether or not, it is both, and one ponders how will such desires be fulfilled?

HOW INDUSTRY CAN HELP

If the oil and gas industry is to remain in business in PNG with credibility, it has an implicit, if not necessary, duty of care to guide the Government out of the problems into which it has fallen, by enlightening them as to the commercial limitations of seeking more and more benefits without due regard to good revenue management, good governance and high fiduciary standards, whilst understanding and allowing for the Government aspirations of heightened benefit and control of the sector.

Clearly, the concessional terms which highly galvanized the PNG LNG Project should not be allowed to persist, and one might regard it as indecent for the large corporates to try to cling to such incentives.

PNG has shown that it can host world class LNG development and can be home to world class companies such as ExxonMobil. The green-field fear factor is diminished, and future projects will encounter fewer hurdles in seeking the support of shareholders and financial institutions. If the oil and gas industry of PNG wishes to be part of that future, it might be wise of it to provide the Government the benefit of its global knowledge, so it may share in that future.

PSCS CAN AND DO WORK

The Government has expressed its intention to move to a Production Sharing Contract (PSC) system in 2025 and has already introduced enabling Constitutional and Organic Law legislation. Whether such a move gives the Government what is wants, we shall see. There is nothing intrinsically wrong with a PSC system.

The author has worked in many countries with such petroleum regimes: putting some together, pulling others apart, whilst repairing some. The one thing that a PSC gives the Government, if the industry is well-managed, is much better control of that industry for planning purposes and an ability to resolve intra-company wrangles, which often delay project development.

One could say that some of the most infamous despots of the world and their oligarch associates in countries with substantial oil and gas reserves know that to milk the system handsomely, one needs to have a well-run petroleum industry, else there might be nothing to plunder!

But it goes without question that that if we wish PNG to gain optimal benefits from our petroleum industry for the people at large for their development or indeed even for personal enrichment of a political elite, one needs to have efficiency in the business of conducting petroleum exploration, development, and production, and that means good governance and proper understanding and accountability.

COMPETENT PETROLEUM MANAGEMENT AGENCY REQUIRED

Normally, good governance is achieved through the Nation having a strong and competent petroleum sector management entity: call it a Department of Petroleum, Ministry of Petroleum, National Petroleum Agency, Commission or Authority, or whatever. It should have very well-educated staff, who are knowledgeable and experienced.

Some 37 years after the first major oil discovery, there are plenty of experienced Papua New Guinean people within the petroleum industry either working in PNG or in the diaspora, whom if properly remunerated can become the core of the proposed new National Petroleum Authority.

Back in the 1970s and 1980s, there was little understanding about petroleum matters within PNG; that is not the case today, and many of PNG’s

petroleum technocrats and businessmen are first class. Indeed, some of the very best of them are leading lives as highly competent international oil and gas men and women around the globe. They need to be seduced to come home and build PNG’s petroleum industry to greater heights.

GOOD RECORD KEEPING REQUIRED

One of the basic tasks of managing the sector is understanding the range of fiscal and commercial outcomes that may stem from the business. And like all business, whether a simple trade store or a multi-billion-dollar oil and gas company, we can only determine the condition and health of the enterprise if we maintain accurate records.

The same too applies to the Government’s management of the petroleum sector. It is not sufficient just to cry and shout without a basis, especially when the main determinant of the sector’s outcomes is the price of crude oil, and consequently due to referencing against crude oil prices, the price of natural gas and LNG. Volumes and prices need to be carefully monitored with respect to all of PNG’s petroleum operations both upstream and downstream, as well as global industry statistics and prices.

ECONOMIC MODELLING REQUIRED

If one has good sector statistics, one can monitor actual performance against anticipated performance. That anticipated performance will normally be presented by the licensee as an open-book economic model at the time of submission of their proposals for development accompanying the application for a petroleum development licence.

The model should be agreed between the State and the licensees to be as accurate as possible model encompassing all of the costs and benefits to the State and to the licensees. The model should show all scenarios and reflect the implications of crude oil prices and modes of project financing.

Even better, the State should have a model of its own, developed in-house using its own petroleum economists, so that they are totally familiar with the contained algorithms and able to vary and adjust the fiscal and commercial terms as needed to assess different policy scenarios and options for the Government.

The results of the modelling combined with different projections of the crude oil price should guide decision

making about all and any petroleum projects. The ongoing use of the model to reflect real costs and calculated real benefits based on produced actual volumes should be a tool for ensuring that the system benefits are being realised. No number of National Oil Companies, Government Petroleum Authorities or other entities will be adequate unless this fundamental work is done.

We do not navigate the oceans or skies without charts and careful guidance; the same too, applies for a Government wrestling with the development of its petroleum resources: it should not expose such valuable patrimony to reckless unaccountable development, and it must take all necessary actions to ensure measurable account of petroleum operations. The time for the industry dictating development terms for their corporate satisfaction and to their own agenda and timetables has gone.

Reform therefore should encompass excellence in all aspects of the business whether it is overhaul and more ardent application of the current petroleum regime, or indeed a move to the use of PSCs. No single regime brings about greater fiscal or commercial benefit than the other, and any regime has to recognise the fundamental requirement that the development of discoveries of petroleum accumulations, either oil and/ or gas needs to be made commercially viable in order for them to be developed.

PSCs do indeed bring about more control by Government, but only marginally more than the current regime, were it to be fully enforced and complimented with more comprehensive regulations to give effect to some of the provisions of the Oil and Gas Act. PSCs require considerable responsibility on the part of the Government petroleum management agency to lead the sector well for the benefit of the country and its people.

One has no doubt that there is enough adequate qualified and experienced PNG people in the sector to accomplish this, but they will need absolute rectitude, dedication, and professionalism to achieve it and gain the desired outcomes. Essential to success will be the vital and appropriate support from the Government to give it the necessary financial and human resources to take on a more advanced role in managing and regulating the petroleum industry of PNG.

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Mining in PNG: Blessings, Curse and Lessons from the Porgera Goldmine

By: ANDREW ANTON MAKO

BLESSINGS - The Porgera goldmine in Enga Province offered so much promise when it began production in 1990 – a modern way of life and improved living standards for the landowners and surrounding communities, with access to modern health, education, and other social services.

Before the closure of the mine in April 2020, it had produced 16 million ounces of gold and earned over K4 billion for the national government. Over its 30 years, it created employment and contracts, other spin-off businesses and infrastructure projects, and scholarships to landowners and other PNG students. (I was a recipient of such a scholarship from 2005 to 2007 at the University of Papua New Guinea.)

As a result of the mine, the lives of the people of Porgera changed dramatically within a generation, from traditional community to urban-based life. A new township was built with a modern hospital, a new high school (which I attended), and an international school for children of the Special Mining Lease (SML) area. Business thrived. The local landowners (people from the SML area) had access to large, new wealth in various forms of proceeds (cash and other spin-off benefits) from the goldmine.

The government set up a special purpose government authority, Porgera Development Authority, to finance the development needs of Porgera-Paiela district, with regular funding from Porgera mine royalties.

Over its lifetime, the mine also provided K335 million to the provincial government, which funded critical development projects as well as school fees for Enga children, enabling the province to emerge as a modern province from the development backwaters before the mine began.

The mine was a blessing, or so it seemed.

CURSE

People from all over the country have settled in Porgera, resulting in a population increase in the district from 4,000 to over 70,000 now. This has created tensions, which have led to fierce fighting. This preceded

but has been worsened by the mine closure, with the current ongoing fighting leading to many deaths, and destruction of much property. The once peaceful mining township is now dangerous and unsafe, even with the presence of reinforced military and police.

The three decades of mining have led to significant environmental degradation. Much of the land on the fringes of the mine is unfit for human settlement and farming due to landslips caused by dumping of waste rocks. The relocation of landowners who still live on the edges of the mine has been hindered, among other things, by population increase and complicated kinship ties.

Because of a lack of arable land for farming, and lack of proper financial literacy, the landowners became dependent on the regular royalty and compensation payments from the mine. The population increase over time also meant each landowner received less money. These payments have now ceased with the mine closure, as well as due to ongoing disputes between landowner factions. Thousands are

facing financial hardship, and are being thrown into poverty, as the mine closure prolongs.

Only a handful of SML children have been able to make it to universities or colleges, even though a scholarship fund (SML Children Trust Fund) and a modern international school were established to benefit the children of the landowners.

Apart from a couple of landowner companies which are controlled by a handful of people (and could be better managed), not many SML people own businesses in Porgera, or have invested in other business ventures outside of Porgera, even though the mine set up a business development office to support local entrepreneurship. Most of the small businesses, such as trade stores and contractors to the mine, have all but ceased during the three years since the mine closure.

In-fighting among the landowners over many years for the control of mining benefits such as royalty payments has perpetuated the suffering of the poor majority, who bear the

brunt of the evils of missed opportunities of mining in PNG.

The money paid to the Porgera Development Authority has all but disappeared, with no developmental trace in the Porgera-Paiela district, leaving Kolombi/Paiela in a shambles of rural decay.

LESSONS

The new Porgera deal offers an important opportunity to right the wrongs of the past in the estimated 20-year life of the mine when it restarts. The government has secured a 51% equity stake in the mine for PNG stakeholders, which includes a 10% free-carry equity for Porgera landowners. At current gold prices, PNG stakeholders would receive US$7.3 billion (K25.2 billion), with an estimated K2.5 billion to landowners for 20 years.

However, the national government will not receive any dividends for ten years, as the money will be used for care and maintenance costs incurred during the closure period. Some lament that a similar or better deal could have been achieved without shutting down the mine.

The bigger problem though is that the negotiations have focused only on getting a bigger share for various stakeholders. Without better local governance, increased funds will just mean increased wastage.

The following are important lessons going forward for the new Porgera mine, and for the resource sector in PNG more generally.

• All stakeholders, especially the people and the government, must be made aware that the minerals will run out eventually, and plans must be drawn up accordingly.

• School education (for both SML and other surrounding communities) should be given prominence to ensure children continue with education past high school. An educated population will drive the development of the Porgera-Paiela district and its people after the eventual closure of the mine. The same goes for PNG more broadly.

• Landowners must be taught financial literacy skills, so that they can invest some of the mine proceeds in sustainable living ventures rather than con suming them all.

• Long-term funds should be considered for landowning communities to sustain important services such as health, education and infrastructure development after the closure of the

mine. Such funds should be ring-fenced with stringent governance and legal mechanisms to prevent looting by un scrupulous actors.

• Issues of land ownership are complex in PNG, and require careful negotiation with all relevant stakeholders.

The 20-year life on the Porgera mine when it resumes will determine the future of the mine’s landowners and the Porgera-Paiela district as a whole. If the mine’s proceeds are once again squandered, it will be more of the same: environmental degradation, violence, population influx, corruption, disputes, and poverty. If, however, they are managed and invested carefully, a new day will dawn.

Disclosure: This research was undertaken with the support of the ANU-UPNG Partnership, an initiative of the PNG-Australia Partnership, funded by the Department of Foreign Affairs and Trade. The views are those of the author only. This article appeared first on Devpolicy Blog (devpolicy.org), from the Development Policy Centre at The Australian National University.

Andrew Anton Mako is a visiting lecturer and project coordinator for the ANU-UPNG Partnership. He has worked as a research officer at the Development Policy Centre and as a researchfellow at the PNG National Research Institute.

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ADB Forecasts Continued Pandemic Recovery for Pacific Economies in 2023-2024

Economies in the Pacific are projected to grow collectively by 3.3% in 2023 and 2.8% in 2024 as the subregion continues to recover from the COVID-19 pandemic, according to the latest issue of the Asian Development Bank’s (ADB) Pacific Economic Monitor (PEM) launched recently.

In Papua New Guinea (PNG), the subregion’s largest economy, increased output outside the resource sector will underpin economic activity. Some tourism-driven economies, such as the Cook Islands and Samoa, will benefit from the lifting of pandemic travel restrictions along with increased public investment spending. Fiji is also expected to grow, albeit at a more modest pace, due to increasing tourism competition from other destinations.

“The lifting of the last pandemic mobility restrictions has enabled economic activity, such as tourism and implementation of public infrastructure projects, to resume in earnest,” said ADB Director General for the Pacific Leah Gutierrez. “The outlook for the Pacific is subject to downside risks, such as sensitivity to

international commodity prices and longstanding vulnerability to disasters, but ADB continues to work closely with government counterparts across the Pacific to help mitigate these risks, restore development gains, and support inclusive, sustainable growth in the subregion.”

Other short-term downside risks to the Pacific’s outlook include uncertainties around the resumption of stalled public investment projects and the uneven recovery of the crucial tourism sector, exacerbated by possible economic scarring from the pandemic.

he latest PEM explores the development impact of the pandemic and challenges to recovery and fiscal sustainability. It examines efforts in the Cook Islands, Fiji, and PNG to address fiscal risks and support sustainable recovery; studies debt management in Nauru amid the pandemic and emerging fuel cost issues in Niue; and assesses the economic costs of and responses to the disasters that struck Vanuatu in 2023. Other articles provide updates on post-pandemic tourism in Samoa and Tonga, explore new growth engines for Kiribati,

Solomon Islands, and Tuvalu, and outline how to offset pandemic-induced social and economic losses in the North Pacific.

Topical policy briefs in the PEM highlight key findings from two ADB-supported reports, Women’s Economic Empowerment in the Pacific Region and Finding Balance 2023: Benchmarking Performance and Building Climate Resilience in Pacific State-Owned Enterprises, while presenting efforts in Solomon Islands to meet local demand for wood products as log exports slowed.

The PEM is ADB’s biannual review of economic developments and policy issues in ADB’s 14 developing member countries in the Pacific. In combination with the Asian Development Outlook (ADO) series, ADB provides quarterly reports on economic trends and policy developments in the Pacific.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

ADB Appoints Said Zaidansyah as Papua New Guinea Country Director

The Asian Development Bank (ADB) has appointed Said Zaidansyah as the Country Director for Papua New Guinea (PNG). Mr. Zaidansyah, who assumed office 1st August 2023, will oversee ADB’s country partnership strategy for PNG and wider engagement in the country.

“Working with the Government of Papua New Guinea, we are committed to, among other things, helping rehabilitate the Highlands Highway and other transport infrastructure, improve civil aviation safety, respond to climate change, promote private sector development, and increase access to health and financial services in the country,” Mr. Zaidansyah said.

A national of Indonesia, Mr. Zaidansyah graduated with a Master of Laws (LLM) degree from Queen Mary College of University of London under the British Chevening scholarship, and obtained Bachelor of Laws (LLB) from the University of Indonesia. He joined ADB under the Young Professional Program in 2002 and spent many years in the Office of the General Counsel. Mr. Zaidansyah held most recently a senior management role as the Deputy Country Director for Indonesia.

ADB is financing large-scale infrastructure investments in transport and energy sectors, including the ongoing $1 billion program to

rehabilitate and maintain 430 kilometers of highway in the highland areas. The program is also upgrading bridges, improving road safety, establishing logistics platforms and services for agricultural production, and supporting transport sector reforms. An electricity grid project to expand the transmission and distribution grid in the national capital was approved in 2022.

The ADB-supported Civil Aviation Development Investment Project (Phase 2) is rehabilitating five more remote PNG airports. Weather observation and navigation services will be installed at the sites, and the power supply at Port Moresby International Airport will be boosted by the project. This will further enhance connectivity in PNG. Women will be the major beneficiaries of civil aviation training.

The Improved Technical and Vocational Education and Training (TVET) for Employment Project, co-financed with the governments of Australia and PNG, will strengthen the country’s TVET program and help prepare students to be more competitive and responsive to employment and industry demands.

ADB has also supported reforms in the health sector, through technical assistance and better public financial management.

For almost 17 years, the Sydney-based Pacific Private Sector Development Initiative (PSDI), co-financed by the governments of Australia and New Zealand, has been helping improve the region’s business environment and promoting private sector investment.

ADB is one of PNG’s largest sources of official development assistance, with an average annual lending of $399 million over 5 years from 2017 to 2022. To date, ADB has committed 268 public sector loans, grants, and technical assistance totalling $4.7 billion to PNG. Cumulative loan and grant disbursements to PNG amount to $3.44 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds. ADB’s ongoing sovereign portfolio in Papua New Guinea includes 16 loans and one grant worth $1.53 billion.

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PM Marape Welcomes Establishment of Independent Commissions Against Corruption

Prime Minister Hon. James Marape expressed his support for the newly formed Independent Commission Against Corruption (ICAC) recently, heralding it as a significant milestone in the fight against corruption. The commission gained momentum with the recent arrival of three highly qualified and experienced ICAC Commissioners.

Recognising the devastating impact of rampant corruption on the nation’s progress, Prime Minister Marape has been an unwavering advocate for the establishment of ICAC since assuming office in May 2019. The culmination of these efforts led to the passage of the ICAC Bill in November 2020.

The three distinguished Commissioners are as follows: Mr. Andrew Forbes, Commissioner; Mr. Daniel Baulch, Deputy Commissioner of Operations and Technical Services; and Mr. Graham Gill, Deputy Commissioner of Prevention and Corporate Administration.

Commissioner Andrew Forbes brings over 30 years of legal expertise to his role and is a renowned legal professional from Australia. With a background in contentious disputes, disciplinary proceedings, and regulatory matters, his appointment significantly bolsters the Commission’s capabilities.

Deputy Commissioner Daniel Baulch, also hailing from Australia, boasts over 20 years of law enforcement experience, having previously served as a police officer with Victoria Police. His extensive investigative background will undoubtedly enhance the operational effectiveness of the Commission.

Deputy Commissioner Graham Gill,

a distinguished professional from New Zealand, previously held the position of Deputy Chief Executive Corporate and Strategy with the New Zealand Serious Fraud Office. With 26 years of experience in prevention work and investigations, his invaluable insights will contribute to the success of ICAC.

“To ensure utmost impartiality, the Commissioners were selected under the oversight of Transparency International, led by Chairman Mr. Peter Aitsi, thereby alleviating concerns regarding Papua New Guineans leading ICAC,” emphasised Prime Minister Marape.

“The ICAC Appointments Committee comprised the Prime Minister, Opposition Leader, Chief Justice, Chief Ombudsman, Public Service Commission Chairman, and Transparency International, providing comprehensive oversight.

“I assure the people of Papua New Guinea that ICAC will receive full support and resources to ensure its seamless operation. This government will never compromise on ICAC’s integrity and effectiveness.”

Prime Minister Marape clarified that ICAC’s establishment does not diminish the important work carried out by the Ombudsman Commission, the Police, or other anti-corruption agencies. Instead, ICAC will focus on strengthening the fight against corruption by providing teeth and bite to combat this pervasive problem.

Corruption, a pressing concern plaguing the nation, poses a significant threat to the economy. In order to achieve the vision of a K200 billion economy, eradicating corruption becomes paramount. Complemented by the Whistle Blowers’

Act (2020) and the Proceeds of Crime Act (2022), ICAC will be an instrumental force in our battle against corruption.

“ICAC’s establishment is a cause for celebration as we approach Papua New Guinea’s 50th anniversary of nationhood in 2025. This milestone has been made possible through the support of Members of Parliament who recognise the damage caused by corruption in our country,” stated Prime Minister Marape.

The Prime Minister emphasised that ICAC alone cannot effectively combat corruption. He urged citizens at all levels, including Local-Level Governments (LLGs), districts, provinces, and the public service, to report cases of corruption.

“They now have an added opportunity to bring these allegations, with evidence, to ICAC,” he said.

Prime Minister Marape expressed his concern regarding serious allegations of corruption shared on social media without corresponding evidence reported to appropriate authorities.

“We all have a responsibility to fight corruption for the betterment of our beloved country by reporting cases. A stronger economy can only be realised if we eliminate the deep-rooted corruption that plagues our society,” highlighted Prime Minister Marape.

Prime Minister Marape issued a stern warning to political and public service leaders, emphasising that ICAC’s arrival places them under intense scrutiny. ICAC will relentlessly combat corruption, and he advised against soliciting or accepting bribes, urging everyone to earn an honest day’s pay.

PM Marape and Deputy Prime Minister Hon. John Rosso with the three ICAC Commisioners

Minister Maru Happy with Visit to China

Minister for International Trade and Investment, Hon. Richard Maru says he is happy with his visit to China recently.

“Building on the sister-city relationship between Shenzhen and Port Moresby and the recent State visit of Governor of Guangdong, Wang Weizhong, I was happy to make my first official visit as the Minister for International Trade and Investment to two economic powerhouse cities of China, Shenzhen, and Guangzhou.”

“My one-week visit to China was to let the Government and the people of China know that PNG was ready to do business with China,” said Minister Maru.

Minister Maru led a small delegation that visited Hong Kong, and Shenzhen and Guangzhou of Guangdong Province from July 2428, 2023.

The main objectives of this visit were to inspect the venue, and do awareness and drum up support from the Private Sector of Hong Kong and mainland China for the upcoming inaugural Papua New Guinea (PNG)-Asia Investment Conference that will be hosted in

Hong Kong from October 16-17, 2023; to check possible locations in Shenzhen to open a new Trade Mission following the closure of the PNG Trade Office in Taipei, Taiwan; and meet with Shenzhen and Guangzhou Municipal Governments and their State-Owned Enterprises and Private Sector to inform them of investment opportunities in PNG.

Minister Maru and delegation visited the confirmed venue of the upcoming PNG-Asia Investment Conference, which is Regent Hotel on Victoria Harbour, Hong Kong.

“If this inaugural conference is successful then it will become an annual event that will build the bridge and relationship between PNG and Hong Kong, China, and the greater Asia Region,” said Minister Maru.

Whilst in Hong Kong, Minister Maru also met with the executives and members of the PNG (Hong Kong, China) Chamber of Commerce (PNGHKCCC).

“PNGHKCCC will host a welcome dinner on October 15, 2023, for the PNG delegates who will be attending the PNG-Asia Investment Conference. Prime Minister Mar -

ape will be invited to this welcome dinner to formally give PNGHKCCC a Certificate of Recognition from the Government of Papua New Guinea. The PNGHKCCC Chairman, Mr. Anthony Lai and I agreed on this arrangement during our meeting,” said Minister Maru.

Minister Maru also met with the Shenzhen Government and private sector where an agreement was reached between them and the Ministry and the Department of International Trade and Investment for the new PNG Trade Mission to be in a very prestigious office building in Shenzhen.

“Under my Ministry I intended to have this Trade Mission opened in October of this year. A team will visit Shenzhen in the coming weeks to finalize the negotiations on the office space and to cost out the whole setup and operation.”

“The position of the trade commissioner will be advertised this week so a trade commissioner could be appointed as soon as possible. If all arrangements go well, we will invite Prime Minister Marape to open this new Trade Mission

during his visit to China for the Belt and Road Initiative Leaders Meeting in Beijing,” said Minister Maru.

Minister Maru also had a bilateral meeting with the Governor Weizhong of Guangdong Province. One of the main issues that Governor Weizhong raised was the difficulty in obtaining visas for business travel in a timely and efficient manner, especially in the south of China.

He informed Minister Maru that there were currently 68 Consulates in Guangzhou with Vanuatu being the latest country to establish its office in addition to their Embassy in Beijing. He strongly recommended for PNG to consider establishing a Consulate in Guangzhou to help facilitate visas and two-way trade.

“I conveyed that this issue will be given the utmost attention to ensure that the PNG Ministry of Foreign Affairs and Ministry of Immigration work to immediately address this issue. Currently all the visas are issued in PNG’s Embassy in Beijing, however, noting that most businesses and possible investors are in the south of China, it would be more practical to have a Consulate in Guangdong Province, specifically in Guangzhou so we can improve the trade and investment relationship be -

tween our two countries and our people,” said Minister Maru.

Governor Weizhong also mentioned that initial talks with Southern China Airlines have started following his discussions with Prime Minister Marape on direct flights between Port Moresby and Guangzhou.

“The commencement of this flight will not only ease the facilitation of business travel into PNG but will also be a booster for tourism in the country and in transforming Port Moresby to becoming a transit hub for Asian and Pacific travellers,” said Minister Maru.

“Overall, my trip to Hong Kong and mainland China was very successful. China is ready to invest in PNG in big ways in both the renewable and non-renewable sectors. My trip has laid the groundwork for key deliverables of the Marape-Rosso Government which is the inaugural PNG-Asia Investment Conference, opening of PNG’s first Trade Mission in Shenzhen, and possibly a new Consulate in Guangzhou.”

“Large investors are looking forward to attending the upcoming PNG-Asia Investment Conference on October in Hong Kong and they are also ready to partner with PNG in the oil, gas and mining sector, and the non-renewable sector. We have to work on addressing the issues that have been raised as a concern to the

people and the Government of China so we can improve the trade and investment relationship between our two countries and peoples,” said Minister Maru.

Minister Maru said added that PNG was serious with its relationship with China.

“China is becoming PNG’s biggest trading partner. PNG’s current exports to China is valued at K5 billion, whilst China’s total value of exports to PNG is worth K1.5 billion. With more mining and petroleum projects coming on board, China will continue to be our biggest market in the future.”

“We have to consolidate and deepen our relationship with China in order to secure future market not only for our resources industries but also our non-renewable sectors of forestry, fisheries, and agriculture,” said Minister Maru.

“With our Government’s focus to follow the path of Special Economic Zones, China is the appropriate partner to learn best practices from given their own success which led to China from being an agrarian economy to one of the economic superpowers of the world today. We can learn a lot from China in terms of technology and skills transfer. This is a whole new unexplored area,” added Minister Maru.

PNG (Hong Kong, China) Chamber of Commerce to be Officially Recognised

The Papua New Guinea (Hong Kong, China) Chamber of Commerce (PNGHKCCC) will be officially recognised by the Government of Papua New Guinea (PNG) on October 15, 2023, during a welcome dinner which will be hosted by the chamber for the PNG delegates who will be attending the upcoming inaugural PNG-Asia Investment Conference in Hong Kong on October 16-17.

This arrangement was agreed on recently by the Minister for International Trade and Investment, Hon. Richard Maru and the Chairman of the PNGHKCCC, Mr. Anthony Lai in Hong Kong where Minister Maru and delegation met with the executives and the members of the chamber.

PNGHKCCC was established in 2019 with the objectives of becoming an information bank and promoter of PNG in Hong Kong, to help build business-to-business and people-to-people relationship between Hong Kong and PNG, and to set the foundation for Special Economic Zone development in PNG through bilateral technological

skills transfer schemes.

“During the welcome dinner on October 15, Prime Minister, Hon. James Marape will be invited to formally give the PNG (Hong Kong, China) Chamber of Commerce an official Certificate of Recognition by the Government of Papua New Guinea. This will mean the chamber is officially recognized by our Government and the country as the official body that will represent Papua New Guinea in Hong Kong,” said Minister Maru.

Minister Maru asked the executives and the members of the PNGHKCCC to get behind PNG Government and the PNG Chamber of Mines and Petroleum to host the inaugural PNG-Asia Investment Conference. Minister Maru and delegation also visited Regent Hotel which had been confirmed as the venue where the conference will be held.

“This will be the first time for us to host such conference out of Australia and it will be the start of a new journey between Papua New Guinea and China. China exports about K1.5 billion

worth of goods to Papua New Guinea annually and we export up to K5 billion worth of goods to China every year. These figures indicate that China is becoming the most important trading partner of Papua New Guinea,” said Minister Maru.

“If this inaugural conference is successful then it will become an annual event which will build the bridge and relationship between Papua New Guinea and Hong Kong, China, and the greater Asia Region,” added Minister Maru.

Meanwhile, PNGHKCCC raised a concern that it had been very difficult for the people, especially businessmen in Hong Kong and the southern part of China to get their visas to travel to PNG because Beijing was further up north, and it was costly for them to travel there and back to access the consular service there.

Minister Maru in response said he had noted these concerns and would take it up with the Government and the responsible departments when he returned to the country.

MRDC Becomes a K7-Billion Company

Prime Minister Hon. James Marape recently gave a report on Minerals Resources Development Company (MRDC) while describing it “very much the success story (Great) Grand Chief Sir Michael Somare wanted it to be”.

PM Marape was tabling the financial accounts of the company in Parliament when he revealed that the company, founded by the late founding father in May 1975, has grown its investment portfolio over the years to K7

K7 billion in 2022.

“In December last year, I received from the MRDC Board the audited financial state ment for MRDC for the year 2019. The audit was carried out by the Auditor-General of PNG in conjunction with the internationally recognised firm, Deloitte.

“For the first time in the company’s 47year history, the audit opinion was clean and unqualified, meaning the accounts and records were properly stated, and there were

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PNG’s Medium Term Development Plan IV Points to Economic Independence

By: PAUL OEKA

In starting a new era that has been proposed to see inclusive growth, the Papua New Guinea Government is planning to increase its economic incentives, according to its newly-released Medium Term Development Plan IV 2023–2027.

The plan envisions a “strategic shift” in budget allocations based on 12 specific priority areas of the government that is poised to see economic growth over the next four years.

The Plan, which was launched and released on 07 July 2023 by the Department of National Planning and Monitoring, suggests that the sternness within priority areas that the government has observed over the last three years may be replaced with more sustainable pathways.

In understanding the country’s fiveyear blueprint, PNG Business News conducted a series of exclusive interviews prior to the launch of MTDP IV and sat down with some of the architects behind the success of the plan. These included the minister responsible for the delivery of the plan, Finance and National Planning chief Hon. Rainbo Paita, and Acting Secretary for Department of National Planning Mr Koney Samuel and his Deputy Mr Michael Kumung.

MINISTER RAINBO PAITA’S OVERVIEW OF MTDP IV

From the outset, Minister Paita drew attention to memorable aspects of PNG’s founding fathers and how they laid out a roadmap for the country towards achieving the government’s vision 2050, as he opened his response with a simple but important phrase.

When ensuring the success and the approach of the plan, Minister Paita said, “Failing to have a plan is simply planning to fail.”

“The country must have a plan, and the vision set by our founding fathers who put together vision 2050 were able to foresee and align a roadmap for the country,” he said.

“It is critical that the country has a plan like MTDP IV to achieve its goals in the next 4 years so we can be on the right track towards reaching vision 2050,” Paita said.

“The National Government has a plan to transform the economy and achieve a growth of becoming a K200-billion economy by 2030. In this

exciting plan, Papua New Guinea will witness improvements in the level of services provided to the people by connecting our country’s main cities with our rural population through Roads, Infrastructure, Electricity, and Technology,” Paita said.

“The vision statement of MTDP IV made by Prime Minister James Marape is to be economically independent and to achieve a K200 billion economy, and this plan helps translate that goal through direct interventions envisioned to see triggers that will enable growth.”

“In paving a way for the government’s plan, we must embark on embracing our national identity and take ownership of this plan,” he said.

Paita hopes to see the government working together and striving to create a future where people can live and work outside main cities to strengthen the rural communities and help regional towns to shape their destiny.

In concluding, Minister Paita outlined that the implementation of MTDP IV will be measured through annual budget operations and will cost around K51 billion to be effectively implemented in which the department will conduct monitoring and evaluation of programs and projects in partnership with stakeholders from the private sector to promote the accountable and transparent implementation of the plan.

He added that Provincial Governments, their districts and LLGs (local-level governments) in all regions of the country will now adopt MTDP IV as a blueprint to create a better life for the people and to forge a better and more prosperous PNG by 2030, while targeting the development aspirations of Vision 2050.

MTDP IV STRUCTURE

The consultation, drafting, design and development of the plan was carried out by the Department of National Planning and Monitoring.

The Department is the only one mandated by the government to formulate development plans for the country, which includes programming, planning resource mobilisation, and budgeting.

When highlighting this aspect, the Acting Secretary for the Department, Mr Koney Samuel, briefly explained the progress and responsibilities in assuring the successful delivery of the current plan as well as the country’s previous development plans.

“Our mandate is to formulate National Development Plans, mostly the medium-Term Development Plans for Papua New Guinea,” he said.

“The MTDP I was launched in 2011 followed by MTDP II. However, MTDP II was not fully developed as it was a twoyear strategy, thus the government went straight into MTDP III in 2018 which was a bridging plan aligned with the parliamentary cycle,” Secretary Samuel said.

“We got 28 years to go and vision 2050 is our destiny. We must be smart, wise, fair, healthy and prosperous by 2050, as our aim is to be in the top 50 countries in terms of human development index and to be a middle-income country by 2030,” he added.

“That’s a massive challenge, but with the collective efforts of all Papua New Guineans and support of all the stakeholders, we can be able to achieve vision 2050,” he said.

PRIORITIES

In PNG’s rural communities, agriculture Page 44 >

remains the principle economic activity for 85 per cent of the rural population, and the government plans to transform this livelihood with the right level of investment provided through the MTDPs implementation process.

In this context the Deputy Secretary for Department of National Planning and Monitoring, Mr Michael Kumung, who played a significant role in the formulation process of MTDP IV, provided his insight by stressing the basic priorities of the plan.

Mr Kumung stated that the “MTDP IV is built around the priorities of the government and there are about 12 strategic priorities of the government. This priority incorporates all the high-level mantra statements in terms of the different sectors of our country, and how we want to institutionalise the aspirations of development for our country.”

“One of the main priorities includes agriculture, which will be a driving force in pushing the agendas of the plan and at the local level, MTDP4 will establish a platform among producers, districts, government agencies and stakeholders, while making strategic investments in rural enterprise, SMEs, livestock, and fisheries productivity,” Mr Kumung stated.

He added that the goal is to work together to achieve the government’s priorities in connecting PNG, generating national wealth, creating jobs, and developing our economy by empowering the people in reducing unemployment, poverty, and inequality.

“We want to make sure that everyone has an improved quality of life and that will only come onboard if we have a plan that guides us,” he said.

LAUNCH OF MTDP IV

On Friday the 7th of July, Papua New Guinea’s Medium Term Development Plan IV 2023-2027 (MTDP 4) was launched in an extravagant array of national and cultural highlights to a full capacity at the APEC Haus in Port Moresby.

The launch signified the fourth visionary development strategy for the people of Papua New Guinea with the theme “National Prosperity Through Innovation and Structural Transformation.”

From start to finish, the much-anticipated plan was delivered in spectacular fashion, with Minister Paita present to launch and oversee the proceedings alongside Acting Secretary Samuel.

Those in attendance included the country’s Prime Minister James Marape, as well as most members of Parliament, heads of department and stakeholders, who assembled to witness the launch of the plan.

Mr Marape highlighted that Papua New Guinea will engage in more economic discussions to grow the local economy while highlighting the 12 key strategic goals stipulated in the Medium-Term Development Plan IV.

Some of the key strategic goals highlighted were economic investment, connect png infrastructure, quality and affordable health care, quality education and skilled human capital, rule of law and justice, national security, national revenue and public finance management.

Furthermore, he said PNG experienced bigger Gross Domestic Product (GDP) growth over the last 20 years as exports grew by 162%. However, the real employment for locals in the country grew by only 2%. Marape said the government is now focusing to relate to vision 2050 as the MTDP IV comes at a very interesting juncture of PNG’s life and progress, which is the 50th anniversary of the country.

The PM’s keynote address went on stating that every Papua New Guinean deserves the right to make an impact no matter how great or how small, as the success of the MTDP IV is not

dependent on the government alone.

“Let’s change our future for a more sustainable society, economy, and environment for a brighter future for all. The MTDP IV belongs to all of us, it is our future so let’s make it work,” he ended.

The ceremony was finally capped off with a two-minute firework display to signify the launch and release of the much-anticipated plan.

Reference:

1) Exclusive interviews with Minister for Finance and Planning Hon. Rainbo Paita/ Koney Samuel Acting Secretary DNPM/ Deputy Secretary Michael Kumung DNPM. 05th July 2023 at the Hilton Hotel Port Moresby [Paul Oeka/PNG Business News]

2) Launch of Medium-Term Development Plan IV APEC Haus Port Moresby, 07th July 2023. [Paul Oeka/PNG Business News]

PNG’s MTDP IV ‘Ambitious’: World Bank

By: PAUL OEKA

Papua New Guinea’s recently launched Medium Term Development Plan IV (MTDP 4) has been described as ambitious by the World Bank, stating that a developing economy like PNG needs a clear plan to address issues and grow the economy.

MTDP 4 stands as the roadmap for the Marape-Rosso Government in pursuit of its ambitious development agenda to incorporate the government’s aspirations. Its aim is to grow the economy to K200 billion by doubling both the internal and external revenues and creating an additional one million jobs by 2030.

In a press conference during the launch of the World Bank’s Country Economic Memorandum on the 11th of July 2023, The World Bank’s country director for PNG and the Pacific Islands Steven Ndegwar said: “A World Bank PNG Country economic memorandum is currently being developed in close consultation with the Marape-Rosso Government’s MTDP to support the National Government’s objectives.”

According to the World Bank’s latest report on the economy, Papua New Guinea can achieve sustainable economic growth if it can convert revenues from resource and mining projects into investments in the health, skills, and education of its population, and into improved infrastructures.

The Country Economic Memorandum for Papua New Guinea outlines that for PNG to better channel its natural resources into sustained economic growth, improvements to the business environment such as easing business entry and allowing greater competition could boost investment, drive positive economic impacts from extractives projects, and critically, share benefits more widely with Papua New Guineans.

When addressing the MTDP 4 Mr Ndegwar said: “It is a plan of what PNG needs, it provides an ambition to what this country can be and what the country does is provide a number of recommendations of how you can get there.”

“PNG also has the means to arrive at those outcomes so we have a problem, we have the opportunity, but we also have the means. And one of the means is that this country economic memorandum that provides the analysis helps you understand what some of the things are that can be done to achieve the goals of the MTDP,” Mr Ndegwar said.

In relation, World Bank’s Senior country economist for PNG Ruslan Piontkivsky highlighted that the agriculture sector as prioritised under MTDP 4 can be a launching pad for economic growth and job creation.

“Agriculture is a main employer overall, most people are employed in agriculture, what usually happens in other countries is recycled Structural Transformation.”

“This is when people move slowly from agriculture into other sectors and industries and are employed within these sectors and productivity in those sectors are higher and as a result the economy overall becomes more productive.”

“From what we observed, the structural transformation the moving between sectors is not happening sufficiently fast and moving

very slowly,” Mr Piontkivsky said. Agriculture commercialization and downstream processing of materials are key objectives under the MTDP4.

Khwima Nthara, World Bank country manager for PNG, said that he believes the objective of the national government can be achieved if the value chain in specific sectors is developed.

“In terms of jobs you create in specific sectors, for example livestock but across the whole value chain in terms of the services of agriculture such as processing, packaging transportation, it is a sector that has huge potential for creating jobs as outlined in the MTDP and we’ve seen it in many countries,” he said.

“There are countries that have developed and have created a lot of jobs through the agriculture sector so there’s still a lot of potential in PNG to grow and create more jobs through agriculture,” Mr Nthara said.

Reference: 1) Press Conference, launch of Country Economic Memorandum World Bank, PNG 11/07/2023, Port Moresby. [Paul Oeka/PNG Business News]

PM Marape Hails Successful Outcomes of Indonesian President Joko Widodo’s Visit

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

Prime Minister Marape recently highlighted the significant achievements resulting from President Widodo’s visit.

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

• Signing of a Grant Assistance Agreement worth K55 million for the enhancement of the Intensive Care Unit and the Mortuary at Port Moresby General Hospital.

• Signing of a Grant Assistance Agreement worth K5 million for the West Sepik Integrated Development Project.

• Key Announcement of Mutual Visa Waiver Exemption for Diplomatic and Official Passport Holders by PNG.

• Announcement of the ratification

and review of the Basic Border Agreement.

• Announcement of the signing of the Memorandum-ofUnderstanding (MOU) on Mutual Administrative Assistance in Customs Matters.

• Announcement of the signing of the MOU on Combating Transnational Crimes.

• Launching of Indonesia’s Citilink flights between Port Moresby and Denpasar.

• Conclusion of the MOU on Higher Education between the two countries.

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

He expressed gratitude for the MOU on Higher Education, which entails Indonesia offering scholarships to up to 2, 000 Papua New Guineans

at its universities and colleges.

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

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

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

• Ratification of the PNGIndonesia Defence Cooperation Agreement during the upcoming Parliament sitting.

• Consultation on Visa on Arrival for PNG and Indonesia travellers with ordinary passports.

• Conclusion and signing of an MOU on Cross-Border Land Transportation.

President Widodo and Prime Minister Marape in a oneon-one meeting

• Conclusion and signing of an MOU on Education.

• Mutual Power Purchase Agreement between Indonesia PLN and PNG Power Ltd to facilitate the supply of electricity from Jayapura to Vanimo.

• Conclusion and signing of an MOU on Intelligence Sharing.

• Conclusion of a Joint Feasibility Study on the PNG-Indonesia Preferential Trade Agreement.

• Conclusion and signing of an MOU on Women Empowerment and Child Protection.

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

“At the onset of our discussions, I emphasised the longstanding partnership between our nations, rooted in our shared land border. As the only nations sharing a land border, it is our responsibility to build the necessary relationships that yield mutually beneficial outcomes.”

“This entails not only focusing on border security but also capitalising on business, trade, investment, cultural and social issues, supporting economic infrastructure, energy sharing, and agriculture, which are the cornerstones of our economies.

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

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

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

“People-to-people relations have also been further enhanced through visa exemptions for diplomatic and official

passport holders, with the potential for expansion to private citizens and investors in the near future.

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

“The inaugural flight from Denpasar to Port Moresby on July 2, 2023, has provided a major boost to trade and tourism, opening an alternate route to the Asian

region and beyond through the successful Air Services Agreement.

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

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

US Defense Secretary’s Visit Solidifies US-PNG

Ties

By: PAUL OEKA

Prime Minister Hon. James Marape on Thursday, July 27, 2023, met with the United States Secretary of Defense Lloyd J. Austin III as Papua New Guinea and USA continue to work at taking their deepening bilateral relation to the next level.

The visit by Secretary Austin to Port Moresby and his meeting with PM Marape is a follow-up to the signing of two significant agreements – the Defense Cooperation Agreement and the Shiprider Agreement – between the two countries in May this year, undertaken by US Secretary of State Antony Blinken and PNG Defense Minster Hon. Win Daki in Port Moresby.

At the bilateral meeting, Prime Minister Marape and Secretary Austin continued to discuss the details and the benefits of the agreements, and United States’ commitment to securing PNG’s sovereignty, as well as its commitment to securing a free and peaceful Indo-Pacific region.

Prime Minister Marape said he appreciated the US’s “3D approach of Diplomacy and Defense followed by Development”, that is being seen in the recent engagements, and the upcoming visit of the head of USAID to Port Moresby to formally signal this office to report directly to

Washington DC instead of through the Manila, Philippines office.

“I take special note of the purpose of Secretary Austin’s visit which is to show commitment in defence and security following the singing of the Defense Cooperation Agreement and the Shiprider Agreement during Secretary Blinken’s visit in PNG in May this year,” PM Marape said.

“The DCA heralds a new chapter in PNG and USA relations, as these agreements form the basis for strengthening and consolidating closer cooperation between our two countries.

“One of the key objectives of the PNG government is for our country to pursue and enhance closer trade and economic ties with key bilateral and multilateral partners, including with the United States under Biden’s leadership.

“In that connection, PNG views the US as a key partner to enhance and diversify trade and economic relations, either through a bilateral or a regional trade arrangement.

“Consistent with President Biden’s call and challenge to American corporations to develop cleaner technology, the Pacific Island region offers great investment opportunities for US companies through

public-private partnerships,” said the Prime Minister.

PM Marape continued by promoting Papua New Guinea’s expanding potential in agriculture and the supply of fresh organic foods to the world, including the United States, while he encouraged the American business community to take more interest in PNG.

In Climate Change mitigation, also a security issue, Prime Minister Marape reminded the US government through Secretary Austin about the Pacific region’s continued vulnerability to rising sea levels and climate-induced natural calamities, and that all nations with interest in the Pacific must take collective action to follow through on general conversations that have been held repeatedly over time.

“While we invite the US to pursue its interests in the region from a geopolitical and geostrategic context, I urge the United States to adjust its lens so that it can truly understand the real needs of the region,” said PM Marape.

PM Marape also highlighted PNG’s impending 50th Independence Anniversary in 2025 and invited US partnership leading up to and its presence at this major national event.

United States Secretary of Defense Lloyd J. Austin III and Prime Minister Marape at a joint press conference after their bilateral meeting

PNG, France Forge Cooperation in Forest Management, Conservation, Climate Change

Papua New Guinea and the Republic of France have established a landmark cooperation in Forest Management, Conservation, and Climate Change during a bilateral meeting between Prime Minister of Papua New Guinea, Hon. James Marape, and the President of the Republic of France, His Excellency Emmanuel Macron, in Port Moresby on 28 July 2023.

Prime Minister James Marape expressed his satisfaction with the fruitful meeting, emphasising that it paves the way for elevating the long-standing good relations between the two nations to new heights.

The leaders mutually agreed to intensify their collaboration in forest management, conservation, and climate change.

“This is an issue that I have been passionate about, as many of you know from my interventions at the United Nations level,” Prime Minister Marape stated.

Among the key areas of intervention discussed, both leaders have agreed to:

1. Establish an office for expertise from France in Papua New Guinea.

2. Foster cooperation in energy transition initiatives.

3. Allocate funding for works at the Port of Rabaul to enhance its climate resilience.

4. Extend support for green finance in the Pacific region.

“The above interventions clearly demonstrate France’s commitment to sustaining its long-term partnership with PNG and the wider Pacific region. This step is highly welcome and timely,” Prime Minister Marape said.

During the meeting, President Macron assured Papua New Guinea of France’s readiness to allocate a funding of EUR$63 million (K238 million) for the period 2021-2024 under the Forests, Climate Change, and Biodiversity (FCCB) intervention programme in PNG. The Managalas Conservation area in the Northern Province will be one of the projects featured in this programme.

The FCCB will also encompass support for government, community

service organisations, private sector, education, and research, complementing and enhancing existing programmes in the country.

On the topic of ongoing private sector engagement, both leaders discussed France’s continued investment in the oil and gas sector, particularly in Papua LNG through TotalEnergies EP PNG Ltd. This substantial investment is set to further transform Papua New Guinea’s economic landscape and boost the Gross Domestic Product (GDP) in the future.

Prime Minister Marape extended an invitation for French companies to participate in Special Economic Zones (SEZs) to engage in downstream processing and add value to agriculture, timber, and fisheries products before exporting them to overseas markets.

“To conclude, President Macron and I will count on the support of our Ministers, Officials, and business community to take appropriate actions towards the realisation of these projects,” Prime Minister Marape stated.

Reflecting on the significance of the visit, Prime Minister Marape acknowledged the historical links between France and Papua New Guinea that date back to the 1800s when the first French Catholic Missionaries arrived on Woodlark Island in the Milne Bay Province,

and later to Yule Island in the Central Province.

He expressed gratitude for their contributions to the spread of the Catholic religion, education, healthcare, and other essential services that continue to support the country.

The visit by President Macron marks a historical event as the first visit by a French President-in-Office to Papua New Guinea, signifying the strengthening and reshaping of bilateral relations since the formalisation of ties in 1975.

“On behalf of the people of PNG, I extend appreciation to the government of France for their contributions to our development agenda, including our trade relations through the European Union. We are extremely grateful for the support rendered to developing countries like PNG,” Prime Minister Marape concluded.

The year 2023 has undoubtedly become a momentous year for Papua New Guinea, with a multitude of global leaders visiting its shores.

Prime Minister Marape expressed that such visits are unprecedented since independence and contribute significantly to the country’s development priorities, particularly in the realm of Forest Management, Climate Change, and environmental sustainability..

President Macron and Prime Minister Marape having a one-on-one meeting at Variarata National Park outside Port Moresby

K92 Mining Announces Significant De-Risking Milestone

Awards Lump Sum Fixed Price Contract for Design, Construction of 1.2 MTPA Stage 3 Processing Plant

K92 Mining Inc. is pleased to announce that the Board of Directors has authorized the Company’s award of the engineering, procurement, construction and commissioning (“EPC”) Lump Sum Contract for the 1.2 million-tonnesper-annum (“mtpa”) Stage 3 Expansion Process Plant to GR Engineering Services Limited (“GRES”) following a tender process.

The EPC Lump Sum Contract award amount is US$81 million and is fixed price / lump sum, significantly de-risking potential cost increases to K92.

In addition to the award of the contract, all process plant long-lead item contracts have already been awarded on a fixed price (excluding freight), to CITIC HIC Australia Pty Ltd for the SAG and ball mills, Jord International Pty Ltd for the filter press, and Metso Outotec Australia Limited for the tank flotation cells, flash flotation cells and high-rate thickeners.

Following the award of the EPC Lump Sum Contract and the placement of orders for the long lead items, the forecast cost of the 1.2 mtpa Stage 3 Process Plant is within 10% of the capital cost outlined in the Kainantu Integrated Development Plan (“IDP”)

Definitive Feasibility and Preliminary Economic Assessment cases (see September 12, 2022 press release – K92 Mining Inc Announces Robust Kainantu Gold Mine Integrated Development Plan), and importantly approximately 94% of the forecast capital cost has been fixed.

This significantly mitigates K92’s cost inflation risk for the largest growth capital cost item for the Stage 3 Expansion (the 1.2 mtpa Stage 3 Process Plant), representing over half of the forecast growth capital (inclusive of attributable EPCM costs) as outlined in the IDP. Approximately 6% of the remaining unfixed price capital cost is for projects led by K92, including bulk earthworks and longlead item freight logistics.

The mitigation of the Process Plant’s inflation risk as noted above has notably strengthened the Company’s self-funding position for the Stage 3 Expansion.

With the award of the long-lead items and the EPC contract, com-

missioning of the 1.2 mtpa Stage 3 Expansion Process Plant is targeting the end of Q1 2025. The mobilization of the construction contractor is forecasted for early 2024, with bulk process plant earthworks to be completed prior.

The EPC contract with GRES is expected to be executed by the end of August. The multi-year growth capital estimate for the Stage 3 Expansion project is planned to be provided at the end of the 3 rd Quarter.

John Lewins, K92 Chief Executive Officer and Director, stated, “The award of the EPC contract for the 1.2 mtpa Stage 3 Expansion Process Plant is a major milestone and de-risking event for the Company.”

“Combined with the long-lead items, the Company has awarded approximately 94% of the process plant capital cost, our largest growth capital item for the expansion, forecasted to represent over half of the growth capital, on a fixed price basis, significantly mitigating potential capital cost increases.”

“Importantly, the forecasted cost of the process plant has tracked well with the Integrated Development Plan and the mitigation of the Process Plant’s capital inflation risk strengthens our position to self-fund the Stage 3 Expansion.”

“We are also very pleased to be working with GRES, a world-class engineering and contracting firm. GRES brings not only significant expertise in the design and construction of process plants but also extensive experience in Papua New Guinea.”

STAGE 3 EXPANSION ACTIVITIES UPDATE

In addition to the 1.2 mtpa Process Plant, multiple activities are progressing considerably for the Stage 3 Expansion including, but not limited to:

• Pastefill Plant Front End Engineering and Design (“FEED”) proceeding this quarter, with final contract to be awarded in the Q4 2023;

• Tailings dam lift 1C well underway (60% complete) and targeting completion by end of 2023;

• Tender process underway for various underground and sur face infrastructure packages in cluding vertical development, power, and transportation; and

• Ongoing expansion of accommo dation facilities.

ABOUT GR ENGINEERING SERVICES LIMITED

GRES is a leading Australian engineering consulting and contracting company, that specializes in providing fixed price engineering design and construction services to the global resources and mineral processing industries.

GRES has a proven track record of delivering integrated project solutions in over 20 countries across all major commodity types, including extensive experience in Papua New Guinea. As a group, GRES employs more than 500 professional, technical and support staff throughout Australia and internationally, in addition to a direct construction workforce and subcontracted personnel.

MINING

Mayur Breaks Ground at its Central Cement & Lime Project

Mayur Resources Limited is pleased to advise that it has commenced pioneering and site enabling construction works at its Central Cement & Lime Project (the CCL Project) in the Central Province of Papua New Guinea.

Construction crew, mobile machinery, and building materials arrived at the site by barge in the month of June. Mayur’s dual objective is continuing the bulk sample test pits for end user customers, and construction commencement to build the pioneer wharf and associated site enabling works.

Mayur is now working with the MRA and Chief Inspector of Mines to progress these works. Equipment mobilised included two 30 tonne excavators, a 6WD all-terrain truck, a D7 dozer, drill rig, and service truck.

An official groundbreaking ceremony was held on 29 June 2023, which was attended by several dignitaries including the Local Member Hon Keith Iduhu, Ward Councillor Kaia Podi, as well as local Clan Head village representatives.

During the ceremony, the Hon Keith Iduhu member for Hiri – Koiari commented on the significant benefits Mayur’s CCL project had for the domestic economy as an import replacement downstream processing business whilst also

adding that it was critical to be pro-business but also have at the forefront the betterment of living standards and benefits for local Landowners.

Hon Keith Iduhu said: “Whilst the construction commences for the CCL jetty, I have asked the PNG Government in the coming weeks to convene the consultative Forum enabling the finalisation of the benefit sharing for Landowners, Provincial Government and District and the PNG State.”

Mayur Executive Director, Mr Tim Crossley, commented, “We thank the many dignitaries for their attendance at our groundbreaking ceremony yesterday and thank the community for their support over a period of more than eight years as our CCL project transitioned from a discovery through to a reality today with these early construction works paving the way for full construction to commence.”

“We particularly acknowledge the MRA for their continued support and their proactive push to diversify PNG’s mineral base. We are pleased to see the project move to full construction that will create large scale local employment jobs and spin off business opportunities for the Kido community for decades to come.”

“As highlighted by Hon Keith Iduhu, our project will also be significant to the PNG

domestic economy, replacing imports and underpinning the beginning of a new export industry as the first commercial manufacturing capability for Lime in PNG.”

When constructed, the Phase 1 CCL Project will be a new, large-scale, low-cost, high-grade aggregates and quicklime manufacturing facility to meet critical demand from battery minerals and environmental sectors in support of the global energy transition.

Mayur expects first revenues from the CCL project in 1H CY2024, with a life of project EBITDA above US$25 million (A$37.8 million) per annum, exceeding US$770 million (A$1,164 million) over the Phase 1 project life of 30 years.

The project will also create more than 400 permanent direct and indirect jobs over the 30 year project life while having capacity to replace all of PNGs current imports of Lime valued at approximately K$100 million (A$42.8 million) per year.

Mayur is also in discussions with the PNG Government on how the Phase 2 CCL Project can underpin the huge road and infrastructure building needs that exist in PNG where our CCL project will eliminate the 100% reliance PNG has on imported Clinker and Cement for its nation building needs.

US$40-Million Investment for Central Lime Project

Mayur Resources Limited is pleased to announce that it has executed a Term Sheet with Vision Blue Resources (“VBR”), a clean energy related investment firm led by Sir Mick Davis, for an investment of US$40 million for a 49% equity share in the Project.

Mayur believes that the Proposed Investment will be sufficient to satisfy the total equity funding required for completion of the Project’s development and construction works, implement onsite carbon reduction initiatives, and enter commercial production.

The Proposed Investment is subject to several conditions precedent including, but not limited to, negotiation of long form investment documents and Project-related documents, securing requested fiscal approvals by applicable PNG government bodies, required debt funding and ongoing commitments to ensure the production of low carbon lime.

VBR and Mayur are working together to secure debt financing of approximately US$70 million to fully fund and complete the Project. Due to the Project’s economic significance in the APAC region, including its importance in supporting the critical minerals sector in Australia, the Company is in negotiations with the Australian Government as one of its preferred debt funders with a view to enhancing bilateral ties between the two countries.

Sir Mick Davis, CEO of VBR, said: “The importance of lime supply to the processing of minerals and metals linked to the energy transition is considerable and the Mayur leadership team’s credentials in this market are world-class.”

“The project in PNG is compelling in terms of its size, scalability, and quality, given the high calcium content of the deposit. The Project has an attractive low risk profile which aligns well with VBR’s investment criteria, is fully permitted, construction is underway, and benefits from project developed road and port infrastructure– all located in a strategic location, to support the PNG and greater APAC markets. We look forward to working with the Mayur team to negotiate the long form transaction documents and satisfy the conditions required for the

Proposed Investment to complete.”

Mayur’s Managing Director, Mr Paul Mulder, added: “We are thrilled to welcome VBR, a partner of impeccable pedigree, to collaborate on our Central Lime Project. VBR’s recognition of the pivotal role of lime in meeting the escalating demand across various environmental and renewable energy sectors is evident.”

“The Project will see PNG become a pivotal contributor to the regional and global lime industry, with demand for lime set to continue to rapidly expand as a key input in the global energy transition.”

“The Project also promises substantial benefits for the domestic PNG economy. It paves the way for an import substitution downstream processing business, while providing significant local employment opportunities. The enhancement of living standards and benefits for local landowners remain at the forefront of our mission.”

“According to Wood Mackenzie forecast lime consumer demand vs. the producer ‘supply response’ clearly evidences the increasing supply deficit and dislocation in a supply chain being able to respond in the APAC region where material upward pressure on lime prices is forecast.”

“The Australian market in recent times has shown consumers are now willing to import higher grade, cleaner better performing lime from abroad. Collectively with our partners VBR we plan to become a dominant player not only in Australia, but also the APAC region.”

“Indonesia has significant forecast demand for lime in the foreseeable future for its Nickel HPAL (High Pressure Acid Leach) plants, being constructed at an unprecedented rate where again we plan to

play a material role. This key downstream processing of its raw minerals opens a sizeable market opportunity in close proximity to the Project, with PNG’s Prime Minister and Indonesia’s President having just last month resolved to markedly pursue increased bilateral trade relations.”

Development of the Project will leverage, and benefit from Mayur’s Executive Team, which includes several veterans from the global lime industry.

Notably, it includes Mr. Brad Lemmon, former Executive General Manager of Lime and Cement at Adelaide Brighton; Mr. Campbell Jones, former Managing Director of Sibelco Australia and Americas; Mr. Bruno Wauters, former President of Sibelco South East Asia, and incoming CEO of the Central Lime Project, Mr. John McBride, who served previously as the President of Graymont SE Asia and CEO of Sibelco Lime and will be returning home to PNG having been born in Rabaul.

The Project’s strategic location, 24 km from the capital city of Port Moresby and adjacent to the US$18 billion PNG LNG facility, within its own unique Special Economic Zone, provides an extraordinary platform for growth and positions the Project to become a regional lime industry leader.

Construction is expected to continue until the middle of 2025 with lime to be produced shortly thereafter. High grade raw limestone will be produced as an early saleable product throughout the construction phase of the lime facility.

ICCC Greenlights Newmont’s Acquisition of Newcrest Mining Ltd

The Independent Consumer and Competition Commission (ICCC) has given the Newmont Corporation the green light to proceed with its proposed acquisition of Newcrest Mining Ltd.

Newmont’s Chief Executive Officer, Tom Palmer, expressed his appreciation to the ICCC in PNG for their meticulous review and clearance of the acquisition proposal for Newcrest, paving the way for the transaction’s closure in the final quarter of this year.

“We appreciate the ICCC in PNG for carefully reviewing and clearing our proposed acquisition of Newcrest,” Palmer said.

“Lihir is one of the world’s great gold mines and a Tier One operation by any measure. We also see profitable gold and copper growth through the world-class Wafi-Golpu project. We remain committed to building strong, mutually beneficial and longlasting relationships with the Government and communities.”

“Newmont plans to establish PNG as a standalone fifth region in our portfolio with an in-country senior leadership presence, and pursue a secondary listing of Newmont

depositary interests on the PNGX (PNG stock exchange).”

The acquisition of Newcrest opens significant opportunities for Newmont, with Lihir being one of the world’s premier gold mines and a highly regarded Tier One operation.

Additionally, Newmont sees promising potential in gold and copper growth through the Wafi-Golpu project, which is renowned for its world-class standards. Newmont is dedicated to forging robust and lasting relationships with the Government and local communities in the region.

Furthermore, Newmont has strategic plans to establish PNG as an essential and independent region within its portfolio, accompanied by an in-country senior leadership presence. They also intend to pursue a secondary listing of Newmont depositary interests on the PNGX (PNG stock exchange).

Despite receiving approval from the ICCC, Newmont and Newcrest will continue engaging with the Government and regulators to secure other necessary approvals and clearances for the proposed transaction. The definitive agreement for the acquisition

of Newcrest was announced by Newmont on May 14.

ICCC Commissioner and CEO, Paulus Ain, clarified that the approval was solely based on competition grounds. He acknowledged that there are other areas of national interest currently under scrutiny concerning this acquisition.

However, the ICCC’s jurisdiction is limited to the assessment of competition effects only. Matters related to investment and capital market listings fall outside the purview of the ICCC and should be addressed by relevant authorities.

“The ICCC understands that there are areas of national interest currently under scrutiny pertaining to this proposed acquisition,” Ain said. “However, the process under which this approval was given is on the competition effects only. Issues on investment and capital market listings are outside of ICCC’s mandate and can be addressed by relevant authorities.”

“While the ICCC has cleared this proposed acquisition on competition grounds, it is not to be taken as the final regulatory approval for the proposed acquisition in PNG.”

PanAust Receives Exploration Licenses for Friend River Project

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

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

PanAust has invested over $260 million US, equivalent to K870 million, in the Frieda River Project since 2014.

Phil McCormack, PanAust General Manager Studies, emphasized, “This includes ongoing community support, government relations, and stakeholder engagements.”

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

With a staff of 26 on-site, PanAust provides various forms of support, including medical emergency helicopter

assistance and contributions to education, health, and local communities. This support has been ongoing since the company’s establishment in 2014.

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

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

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

Garry added, “It is my pleasure to have the Minister sign off on the six supporting exploration tenements, those grounds will ultimately hold various infrastructures for Frieda River project.

Such as airstrip, the dam, the power plant, processing plant, and the other supporting infrastructures.”

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

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

PM Marape: First Step Towards Reopening of Porgera Mine Starts

The first step towards reopening of the new Porgera Mine started Thursday, 20th July, following a Security Forum where leaders and security forces appealed to warring tribes surrounding the mine to stop their tribal conflicts, which affects the mine, businesses and the Porgera Valley.

“The National Government is working day and night to ensure the mine is reopened in September so benefits can flow to the people,” Prime Minister Hon James Marape said in a statement.

“I appeal to you, the people of Porgera and the surrounding communities to stop fighting and do away with the guns and tap into spin off benefits from the mine.

“Let your children live in peace and get the benefits from the mine and stop the killings.”

These were the strong sentiments echoed by Mr Marape at the Security Forum at Paiam Town oval in Porgera.

He also appealed to all the affected communities, landowners, mine license areas to bring their issues and grievances and what benefits

“We want to hear from you. We want to know what you want and how we can share the benefits from our 51 per cent stake in the New Porgera Mine,” he said.

Prime Minister Marape said this following the formal announcement of the Wardens Hearing and the Porgera Mine Development Forum by the Minister for Mining Sir Ano Pala at Paiam Town in Porgera Enga Province.

The National Government wants the next 10 years not to be wasted like the last 30 years.

The Prime Minister said: “I am sorry, and we apologize for the closure of the mine for the last 4 years, but it was a short-term pain for the long-term gains.

“We have wasted 30 years with the benefits and there is nothing to show for and yet we complain for the four years of closure to negotiate for more.

“You must stop your tribal fight, drop your guns and pick up businesses from the mine.

“The Government, Police and the security forces will come down hard and after you if you keep on fighting.

“The people have suffered enough, and the fights must stop,” said Prime Minister

He appealed to the communities to listen and work with the security forces and maintain law and order.

The Prime Minister said the National Government is looking forward to the Porgera Mine Development Forum in Wabag and wants all parties to take their issues to the table.

The Prime Minister also presented cheques totalling more than K18 million to the Enga Provincial Government, Porgera Development Authority and Paiam Town areas to start preparations towards hosting the Development Forum in Wabag in August.

The National Government has also announced a total of K700 million for a 7-year infrastructure development grant, which is meant to also address outstanding issues like resettling of people away from the mine area.

Prime Minister Marape also appealed to other people who do nothing and cause trouble to move back to their provinces and villages.

The Prime Minister said the first gold and revenue from the new Porgera Mine is anticipated by October this year or thereafter.

The National Government will issue or sign the Mining License by the end of August following the Mine Development Forum.

Barrick Readies Porgera for Restart

Barrick Gold Corporation is aiming to restart operations at the Porgera gold mine later this year, president and chief executive Mark Bristow says.

This follows the Security Forum and the opening of the Development Forum on July 20, a precondition for the granting of a special mining lease, by the Minister of Mining, the Hon Sir Ano Pala, at an event attended by the Prime Minister, the Hon James Marape, the Governor of Enga Province, Sir Peter Ipatas and several thousand Porgerans.

At the same event, the Mining Minister told the audience the maintenance of law and order was critical for the successful restart and operation of the mine.

Bristow commented that, if all goes according to plan, Porgera could be back in operation before the end of 2023. In preparation for the restart, the mobile fleet and fixed plant are being recommissioned, the mining and metallurgy plans have been updated, and the personnel recruitment plan has been finalized, with preference given to local employment.

“It’s been a long journey but in the process, we have secured the buy-in of all the stakeholders. For Barrick, the re-opening of the mine represents another victory for our host country partnership model which has been so successful in Tanzania and has also been adopted for the Reko Diq project

in Pakistan,” he said.

Papua New Guinea stakeholders own 51% of New Porgera with Barrick Niugini Limited, which will operate the mine, holding 49%. Economic benefits will be shared 53% by the PNG stakeholders and 47% by Barrick Niugini.

PM Marape Commends ExxonMobil for Continuing its Exploration of Oil, Gas in PNG

Prime Minister Hon. James Marape has recently commended multinational oil and gas corporation, ExxonMobil, for continuing its exploration in Papua New Guinea over the last two years, which has revealed “some good finds”.

The Prime Minister said the company has spent up to $300 million on exploration in the last two years.

“From my discussions with ExxonMobil leadership in Houston, Texas, and my follow-up engagements, I am glad to see the company take up exploration again.

“I commend them for investing between $200 million and $300 million on exploration in the last two years. They have been exploring in the south-eastern Papuan Fault Belt area, and have indicated some good finds, which we will make sure are protected.”

PM Marape said the government has been working on an incentive regime for ExxonMobil and those in the exploration space and would be announcing soon.

“This is so that we not only earn ‘con -

struction dollar’ for the development of the fields, but we also have ‘exploration dollars’ coming into our country.

“Our government will soon be announcing these incentives.

“I want to commend ExxonMobil for the fact that, even before the commencement of these incentives and just going by my word with its Houston headquarters, the company has brought over $200 million into our country through exploration alone. This was over the last two years when our economy needed it the most during the aftermath of COVID-19.

“PNG might be the only one or two countries in the world where ExxonMobil has engaged in exploration. I commend ExxonMobil leaders in Houston, Texas; Asia Pacific, and Papua New Guinea for continuing to invest in our country.”

The Prime Minister also called upon companies within the oil & gas, and mining sectors to take up exploration in PNG.

“Many of the resources we have today both in the oil & gas, and mining spaces

are resources established in prior years of exploration.

“I encourage Total and partners who are in country to move into this space beyond just the development phase of Papua LNG.

“Likewise, we call on other companies who want to come into the exploration of mining and petroleum: if you have an interest, place a call to the two departments concerned for license or permit. We will help you.”

The Prime Minister has also called on companies holding onto exploration licenses to look into developing their fields quickly before they lose them to expiration.

“If they do not have the capacity to engage in explorations, it is in their interest to talk to the Petroleum and Mining departments for assistance.

“Our country has abundant potential for oil & gas, and mining, and so I want to assure our people that we are still an attractive place for investments, as indicated by ExxonMobil,” said PM Marape.

JX Nippon Transfer Official Signing Ceremony in Port Moresby

On the 6th of July, 2023, Petroleum & Energy Minister Hon. Kerenga Kua, officially signed the Memorandum of Approval for transfer; of a 2.58% equity share from the operator of the Papua LNG project TotalEnergies EP PNG (TEP PNG) to JX Nippon Oil & Gas Corporation.

Witnessed by the joint venture partners of the Papua LNG project,, as well as State agency representatives and the visiting delegates from JX Nippon, Minister Kua described the event as a major milestone for the Project.

He added that for the Government and the people of this country, this achievement was and is confirmation that we still enjoy the faith of our international partners and investors as a potential investment destination.

“It’s more than having a partner joining our Project: it’s a very big statement to the international investment community that, they can look at what JX Nippon is doing and follow suit,” stated the Minister.

“The Government of Papua New Guinea stand fully behind this Project, we have supported the operator TotalEnergies to do what they have

to do, to move this Project forward through the Front End Engineering Design (FEED) phase and eventually Final Investment Decision (FID),” he added.

Sharing the Minister’s sentiments, Senior Vice President for TotalEnergies Asia Pacific Mr Julien Pouget, noted that the transfer was a way to harmonise the participating interests in the Papua LNG and the PNG LNG projects.

“We are not only welcoming JX Nippon into the Papua LNG project, but through JX, we are welcoming Japan,” he said.

“It’s a very important milestone in the Project and a good basis to progress marketing, with Japanese buyers and to progress financing from Japanese financiers,” he added.

“PNG is not only gifted with excellent natural resources but is also extremely well positioned to take advantage and contribute to the energy transition in the Asia-Pacific region. PNG gas will replace coal, with a very positive impact on the planet,” he explained.

Mr Pouget concluded his remarks by thanking the JV partners, Minister Kua and the Department of Petroleum for their support and encouragement.

Senior Vice President for JX Nippon Mr Hideo Kondo, affirmed the long-standing relationship between Japan and PNG, which is built on mutual trust, respect, and compliance.

“Energy security, especially in relation to LNG, is a key issue of Japan and we are now very excited and honoured to be a part of the second LNG project in PNG. We believe JX participation, will further strengthen the relationship between both countries,” said Mr Kondo.

JX has been actively involved in PNG since 1990 and will continue to work closely with the PNG government and partners, to ensure the Papua LNG project delivers longterm benefits, to key stakeholders and most importantly to the people and nation of PNG.

TEP PNG Acting Managing Director Mr Sang Ratnam acknowledged the continuous support of the Government of PNG and various state agencies in realizing this transfer in record time and further asserted that the Minister’s approval today is once again a testament to the strong support the Government has for the Papua LNG project.

L-R: ExxonMobil Commercial Manager Joseph Lanzon, TEP PNG Acting Managing Director Sang Ratnam, Minister for Petroleum & Energy Hon. Kerenga Kua, JX Nippon Senior Vice President Hideo Kondo and Santos Executive Vice President & Country Chair Leon Buskens. (Inset on the screen: TotalEnergies Senior Vice President Asia Pacific Julien Pouget and Senior Vice President LNG Thomas Maurisse)

pIONEERS IN & ENGINEERING in png QUALITY, INFRASTRUCTURE GREEN ENERGY SOLUTIONS

K250-Million Interim Dividend from Kumul Petroleum

At Parliament House recently, Kumul Petroleum Holdings presented the Government with a dividend cheque for K250 million

Handing over the interim dividend payment to Treasurer, Ian Ling-Stuckey, and SOE Minister William Duma, Wapu Sonk, Managing Director of Kumul Petroleum Holdings said, “KPHL is fulfilling the commitment it made in its 2023 Annual Operating Plan, that an interim dividend payment would be made mid-year.”

“Kumul Petroleum has continued to support Government through direct payment of dividends and tax and indirectly through implementation of NEC approved projects. In 2022 KPHL paid K951 million in corporate taxation and this year, KPHL is expected to pay similar amount.

Mr Sonk, accompanied by KPHL directors Paul Nerau and Peterson Pipi, outlined that Kumul Petroleum was still negotiating finance but close to closing a deal on acquiring additional equity in the PNG LNG Project from Santos, as requested by Government. Also, that KPHL was ready to participate and maximise its participartion in the

forthcoming Papua LNG Project.

“Kumul Petrolem intends to continue with its petroleum and energy sector initiatives which will result in long-term benefits for the country. This includes commercialising stranded gas fields and investigating domestic utilisation of gas for electricity generation and value added petrochemical chemical production. We can only do this if KPHL has the financial capability and allowed flexibility to operate commercially.”

Mr Sonk added, ”Kumul Petroleum intends to maximise national involvement in current and future LNG projects in areas of national content, es-

pecially during the construction phase.”

“To make this a reality, KPHL is investing in a highly advanced skills training facility together with a Fabrication Facility which will create 4000 jobs directly and indirectly on top of those that will be created by Papua LNG and other projects.”

Mr Sonk concluded, ”Kumul Petroleum, as the national petroleum and energy company, stands ready to support the National Government and its development priorities as outlined in the recently launched Medium Term Development Strategy and Vision 2050 plans.”

Kumul Petroleum’s Fabrication Facility –First Construction Contract Signed

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

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

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

“This is the first step in the establishment of the KPHL training and fabrication facility. Civil construction work under the contract will prepare the

training facility pad, fabricating facility pad, construction lay down pad, ready for phase 2 activities.”

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

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

Mr Sonk concluded,” Kumul

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

KPHL Managing Director, Wapu Sonk shakes hands with Treasurer Ian Ling-Stuckey, witnessed by SOE Minister William Duma and KPHL directors Peterson Pipi and Paul Nerau

Bapa Hydropower Project: Illuminating a 9MW Collaboration for Sustainable Energy

By: MARGARET TAMBAGLE

Avisionary collaboration unfolds at the heart of Buang LLG, Bulolo District, Morobe Province – the 9MW Bapa Hydropower Project, a partnership between contractors AG Energy Ltd, local landowners, and the district. The impact of this venture reached a crescendo on August 18th, as we celebrated the monumental breakthrough of our Phase One achievement: a striking 1200-meter tunnel with a width and height of 3.8meters. Apart from AG Energy’s Managing Director Allan Guo and staff, the event was attended by esteemed guests, with the District Member, Honorable. Sam Basil (Jnr), PPL Chairman Mr. McRonald Nale, Mr. David Wissink, General Manager of Environment and Community Affairs at Wafi Golpu, Mr.Sujan Ghimire, Senior Hydropower and Dam Engineer from SMEC and the notable inclusion of Mr. Justin Parker, a local entrepreneur, gracing the occasion.

Over the past two years, the project team, with a majority of local workers, has been diligently working on the tunnel. Local labor was trained by an international team to handle explosives, lay foundations, and move rock debris. The 1200-meter tunnel is a crucial element for the Dam penstock, The 1200-meter tunnel stands as a beacon of progress, poised to become the conduit for the Dam’s penstock pipes, and the project now looks to move ahead to its next stages.

Spanning across the ancestral lands of the Dando, Baiyun, and Kwasang clans, the project’s significance is underscored by Mr. Nalai Iru, the clans’ representative, he highlighted the increasing number of projects in Morobe Province and the need for enhanced energy sources. This sentiment resonated with Mr. David Wissink from Wafi Golpu, who spotlighted the imminent demand for 100MW during the mine’s construction phase. It is with this backdrop that initiatives like the Bapa Hydropower

Project shine as pivotal answers to Morobe’s energy needs.

The resounding endorsement from Mr. McRonald Nale, Chairman of PNG Power Limited, underscores the project’s worthiness. AG Energy garners praise as an unwavering partner to PNG Power Limited, and is looking forward to continued collaboration in the future.

Bulolo District Member, Hon. Sam Basil (Junior), accentuates the essence of renewable energy, noting the district’s contribution of nearly 26MW to bolster the PPL grid. In this light, the Bapa Hydropower Project stands as a testament to progress, enriching the lives of Buang LLG’s residents. The district’s support becomes a cornerstone for a brighter future.

As the celebration reached its zenith, a mesmerizing demonstration by the drilling and blasting team was staged, a reflection of remarkable expertise. AGE’s Managing Director, Mr. Allan Guo, extended gratitude with thoughtful tokens to the three clans and the District. In a heartwarming turn, the District and the clans reciprocated, mirroring the unity that propels this transformative project.

The 1200-meter tunnel stood not just as a marvel but as a testament to unity, witnessed by an assembly of over 200 attendees. With each milestone, the Bapa Hydropower Project surges forward, a beacon of promise that charts a course towards a future of sustainable energy abundance.

Prime Minister Marape Applauds Upcoming Edevu Hydropower Project Operations

Prime Minister Hon. James Marape expressed his satisfaction upon receiving the announcement that the monumental K770 million Edevu Hydropower Project, situated along the Brown River in Central, is set to commence operations next month.

Having inaugurated the project in April earlier this year, Prime Minister Marape acknowledged the government’s collaboration, facilitated by Kumul Consolidated Holdings, in partnership with the project. The government has committed K120 million towards the establishment of a 132KV transmission line connecting Edevu to Port Moresby. This contribution supplements the K650 million already invested by Chinese investor PNG Hydro Development Ltd.

In light of the imminent project launch, Prime Minister Marape emphasised the significant positive impact the endeavor will bring to the Port Moresby Grid, which is currently facing operational constraints and frequent power outages.

“This initiative will play a crucial role in alleviating power supply chal-

lenges in the National Capital District, as well as Central and Gulf provinces,” Prime Minister Marape stated.

Reflecting on the broader implications, Prime Minister Marape underscored the Edevu Hydropower Project as an exemplary achievement of what a government agency accomplished through a collaborative effort with a private enterprise.

He recounted the progress achieved during the past four years of his tenure, refuting criticisms that have cast doubt on the government’s accomplishments.

“The K650 million hydro power station and the K120 million allocation for the 132 KV transmission lines exemplify strategic investments aimed at lighting up previously underserved regions of Papua New Guinea, including National Capital District, Central, and Gulf provinces. These regions stand to gain the most from this transformative initiative,” Prime Minister Marape said.

Moreover, Prime Minister Marape took the opportunity to highlight the project’s socio-economic contribution.

“An estimated 2,000 jobs have been

generated, both directly and indirectly, benefitting the communities of Central and NCD,” he affirmed.

Prime Minister Marape extended gratitude towards the landowners and developers for their dedicated efforts in bringing this ambitious project to fruition. He commended the proactive approach of Edevu landowners, exemplifying effective collaboration with foreign investors as a model for other landholders across the nation.

Acknowledging the commitment of PNG Hydro Development Ltd and its Managing Director, Allan Guo, as well as the Chinese financier, Prime Minister Marape hailed their unwavering dedication to the project since its inception in 2009. In particular, he highlighted their perseverance during the challenging times posed by the COVID-19 pandemic.

“The dedication demonstrated by Mr. Guo and his team amidst the global adversity caused by COVID-19 is truly remarkable. It serves as a testament to the confidence of an international investor in Papua New Guinea’s potential,” Prime Minister Marape said.

National Agriculture Sector Plan to Provide Strategic Direction for Sector

The National Agriculture Sector Plan 2024 to 2033 aims to provide a strategic direction for the agriculture sector in Papua New Guinea, Minister for Oil Palm Francis Maneke revealed.

Minister Maneke said this during the opening of New Guinea Islands regional consultation on the NASP workshop recently held in Kokopo, East New Britain Province.

The Government is using the Plan for outlining the priorities, strategies, and actions needed to achieve sustainable agriculture development, food security and nutrition, poverty alleviation, and rural development.

The Plan will focus on improving production and productivity, enhancing value addition, promoting market access, strengthening institutional and policy frameworks, enhancing human and institutional capacity, promoting research and development, and addressing climate change and environmental sustainability.

The PNG agriculture sector is crucial for the livelihoods of rural populations, providing food and income to 85% of the population. Additionally, it plays a significant role in the economy, accounting for 26% of the Gross Domestic Product (GDP) and generating employment for many.

However, the sector is facing many challenges, including low production and productivity, poor quality agricultural products, limited market access, and insufficient investment and growth in MSMEs, poor

extension services and fragmented and uncoordinated subsector operations, Mr Maneke admitted.

These constraints have resulted in low productivity and stagnant production in livestock and food crops production and most commodity cash crops, except for palm oil, he added.

In recognizing the importance of the agriculture sector, the Government has made agriculture a top Deliberate Intervention Program in the Medium Term Development Plan 4 2023 to 2027 (see related stories in

Business – Editor).

The NASP 2024 to 2033 will provide a comprehensive roadmap that will guide the implementation of the MTDP4 aiming to increase production and export revenues, reduce food imports, improve farmers’ income, enhance food and nutrition security, and alleviate poverty.

The NASP will also play a crucial role in contributing to the Government’s goal of growing the Papua New Guinea economy to 0200 billion by 2030, as outlined in the MTDP4 2023 to 2027.

NARI Starts Project to Safeguard PNG Sweet Potato Diversity

The National Agriculture Research Institute (NARI) has partnered with the Global Crop Diversity Trust to source project grants needed to continue to safeguard the country’s sweet potato diversity.

Currently, the institute is maintaining more than 800 local sweet potato cultivars at Papua New Guinea’s national sweet potato germplasm at the NARI Aiyura Highlands Regional Centre.

NARI is now undertaking the Biodiversity for Opportunities, Livelihood and Development project with funding from the Norwegian

Development Corporation.

The project is focused on regenerating, characterising, and preserving the diversity of genes in Papua New Guinea’s sweet potato varieties, in the form of true seeds.

The project aims to use at least 500 local varieties from the national different sweet potato germplasm to regenerate more than 200,000 true seeds for new lines of sweet potato.

These seeds will make up the inaugural deposits of PNG sweet potato landraces at the Svalbard Global Seed Vault -- the world’s largest gene bank based in Norway.

Marape Government Strives to Boost Oil Palm Production by 2027

The Marape Government has ambitious plans to escalate palm oil production through enhanced collaboration and equity participation of all stakeholders in the palm oil industry, according to Oil Palm Industry Corporation (OPIC) General Secretary, Kepson Pupita.

Pupita made this announcement during his address at the Council of Palm Oil Producing Countries (CPOPC) International Smallholders Workshop held in Melaka, Malaysia.The Papua New Guinea Medium Term Development Plan (MTDP) IV 2023-2027 spearheads this initiative, aimed at fostering sustainable growth and development.

Founded in 2015 by Indonesia and Malaysia, the CPOPC is an intergovernmental organisation dedicated to promoting the responsible and global use of palm oil.

As the world’s leading producers, contributing to 90 percent of global palm oil output, Indonesia and Malaysia initiated the establish

visit by Indonesian President, H.E. Joko Widodo. During his meeting with Prime Minister Hon. James Marape, President Widodo extended an invitation for PNG to increase its palm oil production and export to Indonesia.

By 2027, Papua New Guinea envisions achieving the following targets:

• Increase palm oil export value to US$ 1.594 billion (K5.313 billion);

• Raise crude palm oil (CPO) export volume by 1.3 million tonnes;

• Expand oil palm planting by 200,000 hectares;

• Engage 50,000 households in cultivating oil palm; and

• Enhance rural income and selfemployment opportunities, leading to improved livelihoods.

“Palm oil serves as a vital agricultural export for PNG, generating an average of US$510 million (K1.7 billion) in export revenue per year from 2018 to 2022,” stated Pupita.

more smallholder growers in the industry. At present, companies account for 66.5 percent of the total planted area, covering 133,854 hectares, while landowners hold the remaining 33.5 percent on 67,610 hectares, summing up to a total of 201,464 hectares. Surprisingly, this constitutes only 4 percent of the total moderate-highly suitable areas for oil palm cultivation in PNG.”

Pupita emphasised, “Incorporating new development areas into the current project areas managed by OPIC and milling companies’ estates would lead to an increase in the total planted area, reaching up to 250,000 hectares.”

“The smallholder segment plays a significant role, with 21,126 smallholder blocks under three distinct schemes: Land Settlement Scheme (LSS), Village Oil Palm (VOP), and Customary Rights Purchase (CRP). Currently, smallholders have cultivated 67,610 hectares of oil palm under these schemes.

“The Marape Government’s commitment

Launch of the Inclusive Green Finance Policy in Papua New Guinea

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

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

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

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

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

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

The Prime Minister commended the Green Taxonomy, a unique feature of this policy, which is the first of its kind in the Pacific and Papua New Guinea. He congratulated the Acting Governor of the Bank of PNG and the development part-

ners for their contribution to establishing this crucial tool and service for the benefit of the people.

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

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

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

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

Mr. George Awap, Assistant Governor of the Financial System Stability Group at the Bank of PNG and Chairman of the Inclusive Green Finance Steering Com -

mittee highlighted the policy’s development and the discussions surrounding the impact of climate change on economics.

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

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

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

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

PM Marape Asserts PNG Economy Primed for Unprecedented Growth

Prime Minister Hon. James Marape expressed his confidence that the Papua New Guinea economy is on the brink of an unprecedented surge, fuelled by the advancement of major resource projects within the country.

He emphasised that this remarkable economic expansion will inevitably foster the growth of the micro, small, and medium enterprises (MSME) sector.

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

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

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

promising,” elaborated PM Marape.

“We are committed to ensuring a seamless transition from Papua LNG construction to the commencement of the P’nyang project, guaranteeing a continuous inflow of construction investments into our economy even beyond 2027, when the Papua LNG construction concludes.

“The combined value of these two LNG undertakings alone will exceed US$10 billion, spanning from 2024 to 2032.

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

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

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

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

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

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

PNGX Welcomes Market Growth Targets, Corporate Debt Market, Listed Property Trusts to Develop Local Capital Markets

PNGX Group, operator of Papua New Guinea’s national stock exchange, has welcomed the statement by Minister for International Trade and Investment, Hon Richard Maru MP, to seek to increase the size of the Papua New Guinean capital market to over 500 billion kina in the next 4 years.

Minister Maru outlined the objective when announcing the new PNGX Corporate Debt Market. The current total market capitalisation is 135 billion kina. The target represents an increase of 350%.

“We would like to thank the Minister for his final approval of the new corporate debt market” said PNGX Group Chairman, Mr David Lawrence.

“We would also like to thank the International Finance Corporation (IFC), the ADB Private Sector Development Initiative (PSDI) and the Securities Commission of PNG for their work and support,” he said.

The Minister also expressed support for the development of major listed real estate investment trusts (REITs).

REITs have the potential to provide opportunities for significant mobilisation of capital and a multiplier effect throughout the economy, including through SMEs in the property development supply chain. PNGX has been working with the Property Developers Association to develop the REIT market.

To support SMEs having better access to capital, the Minister foreshadowed the introduction of a new “small offers” regime to allow SMEs to more easily and cost effectively raise small amounts of capital to fund their growth. PNGX is working on the development of a suitable market structure to support the “small offers” regime.

“The Minister’s comprehensive package of announcements could provide a significant stimulus for the local market. It could deliver

the increased diversity of investment opportunities which large and small investors have been seeking.”

The Minister’s target of 500-billion-kina market capitalisation within the next 4 years is further supported by the Government’s recently released Medium Term Development Plan.

The plan targets 10% annual growth in the number of Papua New Guinean companies listed on PNGX, 10% annual growth in the number of domestic retail investment participants in the market and an increase in the proportion of the PNG population investing in the domestic capital markets.

PNGX welcomes these growth opportunities and expresses its readiness to work closely with all market participants and stakeholders. Our goal is to facilitate the growth emphasized by the Minister and contribute to the overall development of the PNG capital market.

PM Marape addressing the SME breakfast

PNGX Introduces New Corporate Governance Code to Enhance Standard for Listed Companies

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

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

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

Following an extensive period of public consultation that began in March 2023, the adopted Code consists of 17 Standards, each containing a set of Recommendations. While compliance with the Code is not mandatory, PNGX listed companies are encouraged to establish appropriate corporate governance policies tailored to their operations.

Moreover, companies are required under the Listing Rules to address each Recommendation outlined in the Standards and include a corporate governance statement or the URL of the page containing the statement in their annual reports.

Developed with the unique characteristics of the PNG market in mind, the Code draws upon global standards and practices employed in other markets. It has been meticulously tailored to meet the specific needs of the country while aligning with international best practices.

The Code promotes flexibility, allowing companies to adopt or

adapt the Standards and Recommendations as they see fit. However, it is expected that directors disclose the extent to which their company adheres to the Code in their annual reports.

In cases where non-adoption or partial adoption occurs, directors should provide reasons for their decisions, following the globally recognized “if not, why not” approach.

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

The development of the draft Code has been made possible through collaboration with our contributing partners, the International Finance Corporation (IFC), a member of the World Bank Group, and the UN Sustainable Stock Exchanges Initiative.

As a partner exchange of the Sustainable Stock Exchanges Initiative since April 2022, PNGX showcases its commitment to transparency and sustainability. IFC has provided expert awareness or training programs focusing on environmental, social, and governance (ESG) standards, as well as board gender diversity, aligning with international good practices, including the new revised OECD Principles of Corporate Governance.

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

Mr. David Lawrence, Chairman of PNGX, stated: “Recognizing the sustainability challenges faced by emerging economies like Papua New Guinea, PNGX acknowledges the importance of addressing factors such as corporate governance and transparency, climate change and environmental sustainability.”

“Today, addressing these sustainability factors is crucial to securing access to finance, and PNGX remains steadfast in its commitment to driving progress in these areas.”

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

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

“Good corporate governance practices enhance company performance, and are vital for sustainable private sector development,” Markus Scheuermaier, IFC’s Resident Representative in Papua New Guinea, said.

“The inclusion of standards addressing workplace responses to gender-based violence and childcare demonstrates innovation and aligns with international good practices. We are proud to support PNGX in this groundbreaking initiative.»

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

Citilink Airlines Opens Denpasar-Port Moresby Route

Citilink has launched its inaugural international route from Denpasar, Bali to Port Moresby, Papua New Guinea. This pioneering feat establishes the budget airline as the first Indonesian carrier to connect the two nations with a direct flight, the website Coconuts Bali reported.

Citilink, formerly a subsidiary of Garuda Indonesia, began the new route from I Gusti Ngurah Rai International Airport in Denpasar, Bali to Jacksons International Airport in Port Moresby, Papua New Guinea on Sunday.

Citilink president director Dewa Kadek Rai said in an official statement that the new route is a momentous occasion for both countries.

“This is also a history for Citilink, particularly, as we become the first Indonesian carrier to offer direct flights connecting Indonesia and Papua New Guinea,” said Dewa.

Putu Supadma Rudana, the vice Chairman of the Inter-Parliamentary Cooperation Body (BKSAP) of the

House of Representatives of Republic of Indonesia (DPR RI), added further context to the significance of this new air link, which has been eagerly anticipated by the people of Papua New Guinea.

“Previously, people in Papua New Guinea wishing to visit Indonesia, especially Bali, had to endure transits in Manila or Singapore. However, now we have a direct flight to Indonesia, particularly to Bali,” said Putu.

The opening of this crucial air bridge between Indonesia and Papua New Guinea is expected to foster substantial economic growth and yield wide-ranging benefits for both nations.

“We hope that the establishment of flights connecting Indonesia and Papua New Guinea will bring about maximum benefits for the economic advancement of the people,” added Putu.

Bali Tourism Agency Head Tjok Bagus Pemayun expressed his optimism regarding the newfound

connectivity.

“Through this flight, we hope to see an increase in foreign tourist arrivals in Bali. As of June 22, we have already recorded 2.2 million foreign tourist visits, and our target, as set forth by the Governor [of Bali], is 4.5 million tourist arrivals,” he said.

Operating twice a week, specifically on Thursdays and Sundays, Citilink’s Denpasar-Papua New Guinea flight will be seamlessly facilitated by Airbus A320 aircraft.

Citilink’s first direct flight route to Papua New Guinea has certainly opened new horizons for enhanced regional connectivity, fueling hopes for expanded tourism between Indonesia and Papua New Guinea.

Indonesian Ministry of Tourism and Creative Economy Revitalizes Papua-PNG Border

The Indonesian Minister of Tourism and Creative Economy (Menparekraf), Sandiaga Salahuddin Uno, praised the successful organization of the 2023 Crossborder Skouw Festival, which took place on July 6, 2023 in Jayapura.

About 1,500 attendees came from both Indonesian Papua and Papua New Guinea, at the event that centered around the National Crossborder Post (PLBN) RI-PNG in Skouw, Muara Tami District, Jayapura City, Papua.

“I thank everyone involved. This is the third Crossborder Skouw Festival, and it forms part of our efforts to strengthen brotherhood, boost the economy, and achieve our collective goal of recovering from the pandemic,” said Menparekraf Sandiaga.

He also mentioned that this event is a direct implementation of Indonesian President Joko Widodo’s directive to host events across Indonesia to ensure economic equality for all citizens.

For the third time, the Crossborder Skouw Festival was held at the easternmost gateway of Indonesia. The Festival is part of the effort to achieve the target of 8.5 million foreign tourists and 1.4 billion domestic tourist movements this year. It aims to enhance the working relationship and friendship between Indonesia and neighboring Papua New Guinea.

The festival was initiated by the Ministry of Tourism and Creative Economy, in collaboration with BNPP, PLBN, the Consulate of the Republic of Indonesia in Vanimo, TNI, POLRI, Jayapura City Tourism Office, local government, private sector, the running community “Lelarian Sana Sini”, and local MSMEs in Papua.

The Crossborder Skouw Festival is a fun festival encompassing various exciting activities like music, sports, and MSMEs, featuring performances from local Papua musicians such as Epo D’Fenomeno, MAC, Dave Solution, and Blager.

Additionally, there were performances from SMAN 2 Jayapura’s marching band and the modern dance group Freedom Squad, which got festival goers dancing. In total, about 100 local workers (60 construction workers and 40 cleaners), as well as 110 artists and event supporters (66 musicians, 45 marching band crew members, and 10 dance crew

members) were involved in the event.

Minister of Tourism and Creative Economy/Head of the Tourism and Creative Economy Agency (Menparekraf/Kabaparekraf) Sandiaga Salahuddin Uno attended the festival and participated in a 5 km fun run, with a route crossing two countries (Indonesia and Papua New Guinea).

The run, which also featured members of the TNI/POLRI and the “Lelarian Sana Sini” community, marked the close of the festival.

Thirty-two booths of local MSMEs across various sectors such as food and beverage, fashion, and souvenirs added vibrancy to the festival. There was also a coffee exhibition in collaboration with local coffee shops and baristas.

Not only were visitors able to sample the coffee, but they could also buy it, either ready to drink or as beans. The average transaction at F&B stands was recorded at around IDR 25-50 thousand.

In his speech, Menparekraf Sandiaga said he hoped the festival could be held annually in various border areas of Indonesia. This would offer a multiplier effect on employment, provide local communities with opportunities to get involved, promote local wisdom, and recognize and appreciate local cultural heritage, thereby enhancing pride in and identification with Wonderful Indonesia.

On the day of the Crossborder Skouw Festival 2023, the economic turnover nearly reached IDR 3 billion, and the economic transaction volume for the day was close to IDR 200 million. This

data indicates a significant boost to the economy, particularly benefiting local MSMEs and creating job opportunities.

Furthermore, the creative economy sector is now one of the largest contributors to the national Gross Domestic Product (GDP), at 7.35%.

The 2021/2022 Tourism and Creative Economy Outlook shows that the three largest contributing sub-sectors to GDP and exports are culinary (39%), fashion (17%), and craft (14.9%).

Inaugurated by President Jokowi on May 9, 2017, PLBN Skouw is part of the “Nawa Cita” program, aimed at building Indonesia from the periphery by strengthening regions and villages within the framework of a unitary state.

PLBN Skouw is located in Muaratami District, Jayapura City, Papua, and is one of two national border posts in Papua Province, the other being Sota in Merauke.

To support mobility and economic needs of the residents of Papua and Papua New Guinea, the Indonesian government has built Skouw Market, located just 500 meters from PLBN Skouw. Established on a 3,600 square meter plot of land, the market consists of 506 stalls and is usually bustling on market days (Tuesday, Thursday, Saturday, and Sunday).

On non-market days, around 300 people cross the border from PNG per day, whereas on market days, the number can reach up to 1,000 people per day. On Saturdays and Sundays, many Jayapura residents and surrounding community members visit PLBN Skouw with their families.

The Minister of Tourism and Creative Economy, Sandiaga Uno, officially opened the “Skouw Crossborder Festival” at the Skouw Integrated Border Post in Papua, on Thursday, 6 July 2023. The Minister also expressed his gratitude to all parties for the successful organization of the crossborder event for the third time.

Still the one for H2

By: AARON ROSS & NICK EASINGWOOD Global Head of Project and Export Finance & Head of New Energy, ANZ

Hydrogen is getting hotter. The shift to net-zero carbon is driving rising interest in a range of innovative energy industries, and the hydrogen sector is at the forefront of activity.

The Australian economy is uniquely placed to play a key role in the rise of hydrogen, creating a big opportunity for local businesses. The opportunity lies not just on the direct export side - although that could be large as overseas demand grows - but also in utilising existing natural resources to produce green hydrogen and steel, for both domestic and export purposes.

What’s clear is Australia can’t afford to be complacent. Other economies are already moving to position themselves as hydrogen leaders, including in the US, where recent policy announcements have signalled an intention to grow their own hydrogen capability. In Saudi Arabia, NEOM Green Hydrogen Company has secured $US8.4 billion in funding for a green hydrogen production facility.

But Australia has a few tricks up its sleeve as well – including an existing $A127 billion pipeline of announced hydrogen investment, according to the DCCEEW. There’s little wonder why – some estimates put the size of the hydrogen export opportunity in Australia at $A10 billion by 2030.

In South Australia, the state govern-

ment has been open about plans to construct what could be the world’s largest green electrolyser and hydrogen power plant. In Western Australia the Yuri Renewable Hydrogen to Ammonia Project is another large-scale investment.

The latter project highlights hydrogen’s versatility as a fuel, and why many see the commodity as a ‘Swiss army knife’ solution. In many ways the best application for hydrogen in the shift to net-zero has yet to be settled. That’s part of why the opportunity is so vast.

OPPORTUNITY

Banks and export credit agencies are really going to be key providers of capital in this opportunity. In 2022, ANZ put together the ANZ Hydrogen Handbook to help our customers better grasp the scale of what is happening in the space.

In another sign of ANZ’s commitment to the shift to net zero, the bank has added a fourth ‘arm’ to its project and export finance team, which previously consisted of infrastructure, renewable energy, and resources pillars. The new ‘new energy’ vertical will better support our customers in developing markets like hydrogen.

The bank is already having a lot of very detailed discussions with many clients, and these are expected

to increase over time, particularly in Australia, where policy support is growing.

Various state governments have announced strategic approaches, while at a federal level, the Hydrogen Head Start program will provide revenue support for selected large-scale projects through production credits. The $A2 billion program is a fantastic proposal that will drive investment in projects, support bankability and galvanise support for hydrogen in Australia.

Globally, export credit agencies are focused on providing support to both buyer and supplier arrangements that benefit their country. Recent reforms to OECD guidelines increased the tenor for climate-friendly investments to 22 years in a bid to better support the transition to net zero. There will be considerable support provided by export credit agencies to develop the hydrogen industry.

Further competition will come from the US, after the implementation of the recent Inflation Reduction Act, which included a hydrogen production tax credit aimed at encouraging domestic production.

While the move may be a small step back for Australia in the hydrogen space, in the long term these are the type of policies new energy needs to move ahead, and the world needs to achieve long-term sustainability targets.

Some investment will move to the US through 2023, but technological innovation will increase as a result - a rising tide likely to lift all boats. A similar dynamic played out in solar energy in Germany, which has led to recent advancements for the whole sector.

Ultimately the US move will be positive for the transition and firm up the hydrogen industry globally.

INVOLVED

ANZ is committed to helping finance the shift to net zero. In April, the bank launched a new target to fund and facilitate at least $A100 billion by the end of 2030 towards improving social and environmental outcomes for our customers, which includes initiatives that help lower carbon such as hydrogen projects.

While it is yet to fund any hydrogen projects directly, ANZ is already engaging with customers in the hydrogen space. Many clients have told the bank they want to take advantage of what they see as a large opportunity. As they develop these plans, the key questions

they ask are around bankability and what issues lenders consider.

ANZ has already completed detailed analysis around green hydrogen project key risks and has begun developing potential measures for managing them. From a financing perspective, it’s clear the space will involve projects with long value chains and many component parts. The complexity of these chains is something banks will analyse closely.

It’s important for those seeking financing to explain the entire project value chain clearly and demonstrate to lenders that all material risks have been considered and will be managed appropriately. Technology risk, particularly in relation to electrolysers, will be a key focus of lenders. Project value chain optimisation is also a focus.

The environmental and social sustainability of the project is another key element, and something banks like ANZ are eager to understand early on.

The final component is the end buyer of the hydrogen, and the length of the revenue stream. Long-term offtake agreements with creditworthy buyers are ultimately what will unlock

the availability of debt financing. The levelised cost of green hydrogen is currently significantly higher than grey hydrogen. Lenders will only leverage contracted revenues streams as a result.

ELEMENTS

There are a whole range of elements coming together in Australia which leave the economy well-placed to take advantage of the hydrogen opportunity.

It’s a country with strong existing renewable credentials and world-class wind and solar resources. It has an unrivalled history of delivering large natural resources projects, along with a broad skill base which can quickly transfer to new energy.

It has strong export relationships across the energy sector with a number of advanced economies in the region, including Japan and Korea. Australia will need to compete hard, but if all the pieces can come together, it has more than enough potential to come out on top.

Aaron Ross is Global Head of Project & Export Finance & Nick Easingwood is Head of New Energy at ANZ

WE OPERATE WITH EXCELLENCE, MAXIMISING THE VALUE OF OUR MINERAL RESOURCE IN AN ENVIRONMENTALLY RESPONSIBLE WAY, TO DELIVER SUSTAINABLE ECONOMIC AND SOCIAL BENEFITS TO OUR COMMUNITIES AND THE PEOPLE OF PNG.

PNG Workers Mentally Resilient -- Psychologist

Papua New Guinea workers cope better with the psychological impact of workplace accidents and incidents because they have been more widely exposed to aggression and trauma in the community since a young age, says a workplace psychologist.

PNG Counselling and Care director Aaron Hayes says that the incidence of Post-Traumatic Stress Disorder in PNG employees after exposure to traumatic experiences in the work environment seems remarkably low compared to other societies.

“In 20 years of providing counselling support to employees all over Papua New Guinea we have diagnosed only a few cases of full-blown PTSD. Most PNG workers impacted by accidents and incidents bounce back

well in mental health terms after receiving psychological first aid, critical incident debriefing and a short course of trauma counselling support. After this, long term psychotherapy for traumatic stress symptoms is rarely needed,” Mr Hayes says.

While in some cases exposure to multiple traumatic experiences over the years does cause accumulated stress, Mr Hayes says the opposite appears to be widely true in PNG – people seem to become hardened or desensitised to violence and trauma in the community over the years and workers are less impacted psychologically by an accident or incident in the workplace especially if provided with basic psychological support at the time.

“A little support immediately after a harrowing experience seems to avert long term effects,” said Mr Hayes.

Over the years, his counsellors have provided critical incident support following employee deaths, motor vehicle and machinery accidents, plane crashes, workplace hold-ups, carjackings, kidnappings and home invasions.

Workplace Counselling Keeps Workers on the Job – Psychologist

Workplace counselling support helps to safeguard workers’ mental health and keep everybody at the top of their game according to workplace psychologist Aaron Hayes.

“Employees often have personal and domestic problems that can worry them, distract them and impact on their attendance and work performance” says Aaron.

“Having a visiting counsellor come on site regularly gives workers an opportunity to unburden themselves and get support for complex personal issues without having to take days off work to seek outside help.”

An Australian-registered psychologist, Aaron has been operating a counselling practice in Papua New Guinea for the past 20 years, specialising in employee assistance programs.

PNG Counselling and Care now has more than ten tertiary-qualified PNG national counsellors who provide on-site and telephone counselling support for the workforces of various corporates including Air Niugini, PNG Ports Authority, K92 Mining and Barrick Niugini.

“The most common stressors PNG workers experience, especially those working away from home, are problems arising from fractured relationships, polygamy, extended family pressures and personal debt. While counsellors don’t have all the answers, they can help workers find a way through without allowing personal issues to impact on their work and potentially losing their job,” Aaron says.

Employee Assistance Programs are particularly effective for supporting women to cope with work/home life balance and stay in the workforce, says Aaron.

“A survey conducted by the PNG

Business Coalition for Women some years ago found that almost 40% of PNG businesses reported having problems retaining their female staff. Some of the key challenges for female workers that were identified by the survey included outside pressures disrupting focus at work, absenteeism, husbands wanting wives to stay at home, taking unpaid leave to look after sick children and elderly parents, and even resigning for personal and family reasons. Workplace counselling support can help working women cope with such problems so they can stay at work and make the most of the years invested in their education, training and job experience.”

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Redback Drilling Tools Highlights Papua New Guinea Operations

Papua New Guinea (PNG), a country known for its diverse natural resources and rich mining industry, has witnessed a significant boost in its drilling operations, over the last few years. Redback, a global leader in drilling tools and equipment, has increased our operations in this region to best service our clientele.

With a commitment to excellence and a focus on delivering cutting-edge solutions, Redback has established a strong presence in PNG, partnering with major mining companies and exploration firms to enhance their drilling capabilities. By providing state-of-the-art drilling tools and a comprehensive suite of services.

As a proud member of the SGS Group, Redback Drilling Tools possesses a unique advantage through our global network. This advantage enables us to deliver not only a comprehensive range of cutting-edge drilling solutions but also facilitates connections to a diverse array of upstream and industry services. Our primary objective is to support your operations throughout the entire lifecycle,

ensuring seamless efficiency and success.

One of the key factors that sets Redback apart is our unwavering commitment to quality. We adhere to the highest standards in the design, manufacturing, and delivery of our drilling tools. Redback’s product range includes a wide variety of drilling equipment, such as drill bits, reamers, stabilizers, and hammers, among others. These tools are engineered to withstand the most challenging drilling conditions, ensuring optimal performance, durability, and efficiency.

Mining companies and exploration firms in PNG have experienced improved drilling efficiency, reduced operational costs, and enhanced overall performance. Alongside client benefits, we are also creating job opportunities for skilled workers, contributing to the growth and development of the local workforce. By transferring knowledge and expertise, we are committed to upskilling local professionals and promoting the longterm sustainability of the drilling industry in PNG.

We have a key emphasis on research and development in PNG continuously investing in advanced technologies, materials, and manufacturing processes to develop innovative drilling solutions. By staying at the forefront of industry advancements, we can provide tools that deliver superior performance, minimize downtime, and maximize productivity.

Our competitive edge stems from harnessing the vast expertise and global connections of the SGS Group. This enables us to deliver an integrated approach tailored to your specific needs, whether it’s cutting-edge drilling solutions, extensive industry services, or steadfast support at every stage. With Redback Drilling Tools, you gain access to a comprehensive suite of services coupled with unmatched industry insights. Count on us as your trusted ally, supporting your business ventures and driving sustainable growth in PNG’s energy industry.

With an extensive range of services in PNG, contact us today to find out how we can benefit your operations.

Peuna PNG: A Young Company with Deep Roots in Papua New Guinea

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

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

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

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

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

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

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

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

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

Today, Peuna PNG has grown into a reputable business with proven ability to deliver business and project

solutions in PNG, even during the most difficult and challenging times -- none more so than during the Covid-19 pandemic.

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

In a short time, Peuna PNG has developed a reputation as a reliable, go-to partner to provide facility management solutions, agile project

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

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

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

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

responses, and end-to-end project management solutions across diverse industries and contexts or regions.

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

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

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

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

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

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

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

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

Ok Tedi Focused on Delivering Maximum Return to PNG

Ok Tedi Mining Ltd (OTML) is strengthening its operations to deliver maximum return to PNG shareholders, mine impacted communities and the people of Papua New Guinea.

Managing Director and CEO Kedi Ilimbit said this when speaking to OTML and Business Partner employees during a roadshow conducted from the 6th to the 9th of June.

The roadshow was conducted to inform employees about Ok Tedi’s new Vision, and the improvements that are being undertaken to strengthen the mine’s operation to ensure maximum return was achieved for mine impacted communities, PNG shareholders and the people of Papua New Guinea.

“Our focus currently is to ensure existing systems and processes we have in place are improved to strengthen our operations and derive maximum value of the resources we have during and beyond the current Life of Mine plan of 2033,” he said.

OTML’s New Vision is ‘We operate with excellence, maximising the value of our mineral resource in an environmentally responsible way, to deliver sustainable economic and social benefits to our communities

and the people of PNG’.

“With this new Vision, we are excited about Ok Tedi’s future, and will be working with all our employees, business partners, communities and shareholders to make Ok Tedi the best it can be as it provides us guidance about why Ok Tedi exists and what is the desired result of our efforts,” he added.

The Company expects to generate over PGK19 Billion in social benefits for the benefit of PNG over the next 10 years within the current life of mine plan. OTML has tripled its value in the last 6 years with an extended mine life to 2033 with a possibility of further extension.

The Ok Tedi Mine is 100% PNG owned with the State of PNG through the Kumul Minerals Ok Tedi Ltd owning 67% while three Western Province entities hold the remaining 33%.

Since mining operations commenced in 1984, the mine has generated PGK13 Billion in dividends to PNG shareholders, PGK10.2 billion in taxes/duties, PGK1.5 Billion in compensation payments, and PGK1.3 Billion in royalties. The mine has also paid PGK972 Million in Community Mine Continuation Agreement (CMCA) payments since 2001 and spent PGK515 Million in Tax Credit Scheme projects since 1997.

PacTow Involved in PNG Port Upgrades

Papua New Guinean marine services company Pacific Towing (PacTow) is assisting Australia’s Pacific Marine Group (PMG) with the upgrade of two major PNG ports. PacTow’s commercial dive team completed work at the Alotau provincial wharf in Milne Bay Province in May and is part way through similar work in Manus Province. The two port upgrades are part of a broader infrastructure program funded by multiple parties including the PNG and Australian governments.

PacTow General Manager, Neil Papenfus, confirms that PacTow and PMG collectively hold nearly 70 years marine services’ experience in PNG and that their working relationship commenced in 2017 with a 900-metre ocean outfall pipeline project in Port Moresby’s Fairfax Harbour. PacTow commercial divers were involved in several aspects of the project including the relocation of hundreds of

living corals from the new pipeline footprint.

The more recent Alotau provinical wharf project involved the demolition of an existing jetty, followed by the installation of a new jetty made from tubular steel piles and a concrete deck. A new floating concrete pontoon, together with an access walkway from the jetty and associated site buildings were also delivered as part of the project.

PacTow’s commercial dive team’s involvement in the Alotau project included a seabed survey, debris clearance, underwater cutting of broken steel piles, gridline mark outs, and the application of pile jackets on all new piles. PacTow divers worked on the Alotau project for approximately five weeks split over a seven-month period (i.e., Oct 2022 - May 2023).

Commercial Dive Manager, Ricky Leka, reports that the project went well although it was called off at one point for three days due to strong wind (i.e., 25-30 Knots) and rough seas.

PacTow divers commenced work for PMG in Manus in May on the upgrade and extension of an existing marine facility as part of a significant and ongoing infrastructure project. Their responsibilities have included clearing debris, removing old anode straps, and installing new anode straps. Similar to the Alotau wharf project, they will work on the project in several different stages, returning to site when required until its estimated completion in Q4 2023.

PacTow has PNG’s (as well as broader Melanesia’s) only permanent commercial dive team. Its divers are internationally trained and certified with a wealth of experience servicing diverse sectors throughout the region. Oil and gas majors are among PacTow’s clients, and the company has introduced numerous niche services for PNG’s growing oil and gas sector, including emergency response and spill services.

OTML Managing Director & CEO Kedi Ilimbit speaking to employees at Ok Tedi’s mining operations and at its Processing Operations.

PNGFP - Investing in the Future

PNGFP NiuHomes already supply an extensive range of best value, high quality kit homes, but did you know they also produce prefabricated, modular kitset buildings for the Education and Health Sectors? In fact, PNGFP have supplied over 1,000 School Buildings and hundreds of Education and Health Facilities throughout PNG.

For Health, they supply rural aid posts, health clinics, 12 to 20 bed wards and rural health centres. If a larger health facility is required, sister company NiuBuild can do the design, construction and fit-out of hospitals and health centres, as they did for Bulolo, Mutzing, Laiagam and Umbe.

PNGFP’s range of prefabricated school buildings include single and double-storey classrooms, administration blocks, science laboratories,

rability of these kit-set buildings are unique in this country due to PNGFP’s preservative pressure treatment, which fully protects the buildings from termites and rotting.

Employing over 1,300 Papua New Guineans, PNG Forest Products is

PNG pine plantations managed by the PNG Forest Authority. These buildings are not just PNG Made… they’re PNG Grown!

So, when you invest in a prefabricated building from PNGFP, you are not only investing in the best

Santos Delivers News Literacy Library for People of Pimaga, Southern Highlands

The people of Pimaga, in Kutubu, Southern Highlands Province, were the proud recipients of a brand new literacy library presented by Santos through the Santos Foundation, signifying the company’s strong commitment to its project impact communities.

At the official opening ceremony at Pimaga in June, over 2000 people gathered at the Kawama Foursquare church ground to celebrate what was described as the first of its kind learning facility established in the community.

Santos Vice President PNG Operations, Sigurdur Jonsson, in his address at the official opening ceremony, commended efforts by all parties who contributed towards the successful completion and finally unveiling of an important resource for the community and especially for the children who are the future leaders of Pimaga.

“Having a quality early childhood education allows children to be able to access opportunities that will lead them to better lives for themselves and their families and develop a lifelong passion for learning,” Mr Jonsson said.

“I am excited to see here today, partners from the government, churches, and the community. Through partnerships, we can effectively leverage resources for greater

good and effective service delivery.”

He thanked the Foursquare church and the local landowners for donating the land to build the facility.

Foursquare Church Education Secretary, Steven Aparo applauded Santos for helping to lay a solid foundation for the Kutubu children.

He said the church has a partnership arrangement with schools around the country where they work with the government, non-government organisations (NGOs), and companies to support quality education through a holistic approach.

Meanwhile, First Assistant Secretary of the Education Department, Sam Lora, also commended Santos for contributing towards developing education in the community, emphasising the importance of introducing literacy, especially at an early stage.

Since the literacy library opened its doors early this year, the early childhood learning centre has enrolled 60 children, consisting of 33 boys and 27 girls. The school has benefited the surrounding communities of Kawama, Daga, and Orokana.

The children are taught to read and write, to do simple arithmetic and to learn through and enjoy reading.

The Pimaga Literacy Library was implemented through a partnership with Buk bilong Pikinini (BbP), which

is a local NGO that provides teacher induction as well as ongoing in-library training support. Apart from supplying 3000 books, numeracy and literacy toolkits, and ongoing teacher and librarian mentoring, BbP also manages salaries of the teacher librarians through a partnership agreement with the Santos Foundation.

The land was donated by the local Foursquare church, and the classroom was funded by the Foundation. A local landowner company, Mananda Investment Corporation (MIC), was contracted to build the facility at a cost of approximately PGK 690,000.

The Pimaga Literacy Library initiative is in line with the latest reform in the national education system, which has taken on and prioritised early childhood education as the way forward to build strong education foundations for children in PNG.

Santos Foundation commenced its literacy library programme in 2016 and has since established four literacy libraries. Two of these are in Hela, one in Kikori, Gulf Province, and now Pimaga in Southern Highlands is the fourth facility.

There are plans to establish a new literacy library in the Moran area, starting with a scoping and needs assessment activity that will commence in July 2023.

Group photo of children and teachers at Pimaga Literacy Library and representatives from Santos, Kutubu District and LLG, Four Square church and Buk bilong Pikinini.

Steamships, Gulf Provincial Government, GFS Form Joint Venture – Gulf Maritime Services

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

GMS will provide marine, quayside and land logistics services to Papua LNG and more broadly to the Gulf Province. GFS and Steamships recognise the growth opportunities within the Gulf of Papua.

The partners are committed to working with Gulf landowners to ensure opportunities for employment and economic advancement are captured in the project impacted areas.

GFS will own 44%, the Gulf Provincial Government 2.5%, Project Impacted Landowners 6% (spread between PRL 15 Landowners 2%, Pipeline Landowners 2%, Riverine Landowners 2%) with Steamships holding the remaining 47.5%.

The 8.5% equity made available to the Gulf Provincial Government and the PRL-15 im-

pacted landowners will be free-carried by the partners. The Gulf Provincial Government through its business arm holds shares in GFS which makes GMS a truly Gulf Province company.

The Governor of the Gulf Province, Hon. Chris Haiveta CMG, GCL, MP said: “The Gulf Provincial Government and Gulf landowners are excited about the new joint venture between the GPG, landowners, Steamships and GFS.”

“The local partnership should put Gulf Maritime Services in a strong position to tender and win projects in our Gulf region, particularly P’nyang and Papua LNG. We hope to utilise this opportunity to create more opportunities for growth, development, and employment within the region.”

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

look to procure additional vessels and vehicles to support the expected increase in work.

“The 6% interest of the Project Impacted Area Landowners will be held in trust until such time as the Minister for Petroleum & Energy signs and gazettes the Landowner Ministerial Determination for the Papua LNG Project,” says Steamships Managing Director, Rupert Bray.

“Once this has been formalised, Steamships will work with the Gulf Provincial Government to transfer the shareholdings to the respective incorporated landowner entities.”

Mr. Dickson Tasi, Director GFS, added: “GFS are delighted to be working with another strong local partner to provide local Gulf solutions to the logistics needs of Papua LNG and beyond.”

“GFS’ credentials as the premier logistics operator over the last 26 years in the Gulf Province are without a doubt, and teaming up with a company like Steamships provides GFS and GMS the ability to continue to grow.”

Empowering Papua New Guinea’s Future: Wan PNG Prepares for Launch after Months of Preparation

In a transformative move towards enhancing the prospects of Papua New Guineans, the Wan PNG platform is all set for its grand debut after several months of meticulous groundwork.

With an unwavering commitment to address the challenges posed by skill gaps in the nation’s workforce, the Wan PNG team has undertaken a dynamic journey, connecting with educational institutions and aspiring graduates to pave the way for a brighter and more empowered Papua New Guinea.

The journey towards Wan PNG’s launch has been marked by extensive travels and engagements, as the team traversed the length and breadth of the nation, forging connections and spreading the message of empowerment.

The heartening initiative has been across the country from places like the University of Papua New Guinea (UPNG) Expo held on the 9th and 10th of August, a vibrant event that showcased the talents and aspirations of Papua New Guinean youth.

At this event, the Wan PNG team interacted with graduates and learners, discussing the exciting opportunities that the platform holds for them. Before this, the team was up in Lae

at the Unitech and Lae Polytech exploring how the platform can help its graduates find work and transition from education to a good career.

A highlight in this journey was the collaboration with the Kumul Petroleum Holdings Limited (KPHL) Graduate Development Program. This strategic partnership showcased the platform’s commitment to working hand in hand with institutions to bridge skill gaps and create avenues for employment.

The KPHL Graduate Development Program resonates deeply with the ethos of Wan PNG, aligning visions to uplift local talents and channeling them towards a prosperous future.

Furthering their commitment to empowerment, the Wan PNG team engaged with the Institute of Business Studies University (IBSU). This engagement was a testament to the platform’s focus on reaching diverse sectors of the economy.

By collaborating with academic institutions like IBSU, Wan PNG demonstrates its capacity to encompass a wide spectrum of industries, nurturing skills and talents that span various fields.

The team’s journey of empowerment also led them to the National Health Fair, an

event that highlighted the significance of a skilled healthcare workforce.

Engaging with healthcare professionals and aspiring students, Wan PNG emphasized the platform’s potential in facilitating the development of the healthcare sector, ensuring a competent workforce to cater to the nation’s needs.

Wan PNG’s efforts have been truly commendable, encompassing educational institutions like the MAPEX Training Institute and the International Training Institute. These engagements reaffirm the platform’s inclusive approach, as it collaborates with institutions from various sectors to ensure that no opportunity for growth is left untapped.

As the launch of Wan PNG approaches, Papua New Guinea stands on the cusp of a transformative era. The platform’s tireless journey across the nation, connecting with graduates and institutions alike, showcases its dedication to creating a dynamic ecosystem where skills, talent, and opportunities converge.

Wan PNG is primed to usher in a new era of empowerment and growth for all Papua New Guineans. It thanks its platform partner Papua LNG and appreciates the Royal Papua Yacht Club’s support.

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PM Marape Highlights Rugby League as a Powerful Uniting Force for PNG at NRL Bid Corporate Dinner

Prime Minister Hon. James Marape emphasised the potential of rugby league as a potent “unifying force” for Papua New Guinea during his address at the Australian National Rugby League (NRL) Bid Corporate dinner in Port Moresby on Wednesday, July 19, 2023.

The event took place as PNG seeks to secure its position as the 18th team in the NRL for the 2025 season.

The dinner, graced by the presence of Australian Minister for International Development and the Pacific, Hon. Pat Conroy, witnessed executives of major companies, Governors, Ministers, and MPs expressing their support for PNG’s NRL Bid. Hon. Conroy reiterated the backing of Australian Prime Minister Hon. Anthony Albanese and his Government for this endeavor.

Drawing inspiration from a quote by Nelson Mandela, the late South African leader who eloquently stated, “Sport has the power to change

the world... It laughs in the face of all types of discrimination,” Prime Minister Marape underscored rugby league’s significance as the “common denominator” that has the potential to unite the nation.

“In the PNG context, rugby league is the ‘common denominator’ that binds and holds our society together, especially at the national level,” Prime Minister Marape stated.

He further added, “This is evident when our national team takes to the field. Even during challenging times, the pride of Papua New Guineans in rallying behind our national team is second to none. As the Government, we recognise that this pursuit will provide a platform to unite the most diverse nation on Planet Earth, under one flag.”

“The bidding process for a team in the NRL is not solely about rugby league; it is about uniting our nation behind a common focal point,” Prime Minister Marape asserted.

“This path will be instrumental

in keeping our nation united for the next 50 years and beyond, with rugby league as our country’s number one sport. We, as the Government, saw the need for a public policy centred around making this game a unifying force in our country.”

Expressing gratitude for the support from the Australian Government in their NRL Bid, Prime Minister Marape remarked, “For us, nothing can be better than both the Australian Government and the Papua New Guinea Government working hand in hand to have a team in the NRL based in Port Moresby, with a footprint in Far North Queensland as well as in the South Pacific.

“Our government stands firmly behind the bid to ensure that the 18th NRL spot is secured by a PNG team,” he said.

“Thank you very much to the Australian Government for your unwavering support and for embracing our vision for having a team in the NRL.”

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