A new national air traffic management system, Koim declares victory after jailing of corrupt MP and Telikom and Digicel boost remote services. Your weekly digest of the latest business news.

PNG Air Services Ltd has signed a $US12.8 million (K35 million) contract with Comsoft, a German company, for the delivery of a new air traffic management system. The project includes complete air traffic management automation, full air traffic control and 3D tower control simulators for the entire country.

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Sam Koim, Chairman of Task Force Sweep.

The Chairman of the Investigation Taskforce Sweep, Sam Koim, says the jailing of MP Paul Tiensten is a victory for Papua New Guinea. Tiensten has been sentenced to nine years jail for misappropriating US$3.8 million (K10.5 million ) when he was the Minister for National Planning and Monitoring. Koim says about 77 further corruption cases are currently before the courts.

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The race to improve PNG’s communications to remote areas is stepping up. Telikom  is spending US$20million (K55 million) this year to build microwave links to provide broadband services over previously inaccessible parts of PNG. And Digicel has launched two communication towers at Fife Bay, in the Suau area, along the western shores of Milne Bay and Agaun, in the inland area of Rabaraba, further east towards the Oro provincial border from Alotau town.

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A decision on the national minimum wage case may be known by the middle of the year. Sources have told Business Advantage PNG the ruling may not be known until the end of May or June.

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The proposed changes to the Mining Act 1992 will not affect Papua New Guinea resource owners and investors, according to Mining Minister Byron Chan. He says amendments to the act will be taken to parliament later this year.

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A new Asian Development Bank report says Pacific economies will grow by up to five per cent this year, driven by an increase in infrastructure expenditure. ADB Economist Emma Veve says most of the increase will come from Papua New Guinea and Timor Leste.

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Trade, Commerce and Industry Minister Richard Maru says the Sepik oil palm project will go ahead despite opposition from some landowner groups in the Sepik plains. Maru says Singapore-based Wilmar International, the main investor in the project, will change the face of the plains. Wilmar has been praised for its commitment to sustainable forestry development after CEO Kuok Khoon Hong agreed to stop his company and its suppliers from cutting down tropical forests to produce palm oil.

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Governor-general, Sir Michael Ogio

Governor General, Sir Michael Ogio, says income from the resources sector should be invested in the forestry, agriculture and fisheries sectors. Sir Ogio said PNG is experiencing an economic boom, and many people are moving away from a subsistence life and are now living on dried and tin food.

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An expansion in the economy next year will also mean more demand for food. Fabian Chow, chairman of the Fresh Produce Development Agency, says the food industry and commercial farmers could expect a growth opportunity in an expanding economy. But Chow warn local producers need training in commercial agriculture and management skills.

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Port Moresby’s K1 billion skyscraper will go ahead despite coming under the scrutiny of the Ombudsman Commission and moves within the Government to stop its construction, says Djoko Tjandra, who owns Central Land Ltd. He says proposal will go ahead, as he owns the title and the land in Waigani.

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PNG Power has signed a US$83 million (K231m) deal to upgrade Port Moresby’s power supply. The deal is with the  German company Fichtner GimbH Co HK. The three-year project will be funded by the Asian Development Bank (US$66.7m) and the PNG government (US$16.3m).   

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Goodman Fielder has cited a lower selling price for baked goods, poor performances from its groceries division and higher farmgate milk prices, as reasons for earnings coming in up to A$27 million lower than its previous full-year profit guidance of around A$180 million.

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South Seas Tuna Cannery in Wewak exported 95% of the total 22,545 tonnes of frozen precooked loins to European customers last year. Managing director Mike McCulley says the remaining 5% was shipped to Southeast Asian markets.

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Highlands honey. Courtesy: Roger Smith.

Finally, the president of the Eastern Highlands Beekeepers Association, Jonah Buka, says demand for local honey is so high local businesses ‘cannot keep up’. He says returns are positive and says the current price at K11.50 per kilogram is a good one.