A budget deficit for Papua New Guinea but the ADB forecasts massive growth in 2015. Meanwhile, nickel production looks set to rise. The week’s business news in brief.

New Treasury Minister Patrick Pruaitch has revealed a 7.9% budget deficit, in releasing Papua New Guinea’s 2013 provisional final budget outcome. He says the final budget outcome will be presented to Parliament in May.

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Papua New Guinea should expect unprecedented economic growth next year. The Asian Development Bank‘s Asian Development Outlook 2014 report says growth in PNG will balloon out to 21% in 2015, due to LNG exports. Such growth will be an all-time record for any country in the Pacific.

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Sacked PNG Treasurer, Daniel Polye

The National Court has directed state lawyers to disclose details of the procedures that the Government followed to secure a controversial K3 billion loan to fund a 10.1% stake in Oil Search Limited. Sacked Treasurer, Don Polye, has sought a court order for the government to pay back the loan. Polye says he is seeking a ruling the loan breached the constitution. 

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PNG insurer, Capital Insurance Group, has bought the Fiji firm Dominion Insurance Ltd. The company’s chairman Michael Koisen, says it makes sense to expand into Fiji, Vanuatu and Tonga. It recently expanded into Solomon Islands.

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Ramu NiCo’s board chairman Zhao Shimin says the company will push production to 70% capacity, even though the world market price of nickel is unfavourable to the project. But he expects world nickel prices will be favourable during the second half of the year.

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The United Nations has offered to support Papua New Guinea protect its tropical forests. The chairperson of the UN Development Group Helen Clark says PNG has the third largest reserves of forest in the world and this is of global significance.

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The National Information and Communication Technology Authority (NICTA) will investigate the cost of internet services rates. CEO Charles Punaha says rates in PNG are two-three times more expensive than Fiji, Tonga and Vanuatu.

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New Zealand will provide up to US$ 6 million to help upgrade Gordon’s Market in Port Moresby. NZ Foreign Minister, Murray McCully, says funding will contribute to civil infrastructure works, a new drainage system, new retail market facilities and a dedicated wholesale site.

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An extra 180 automotive trade training places for Papua New Guineans will be created at a new National Automotive Training Centre to be built in Port Moresby. The centre will be built at the Australia Pacific Technical College for K4.5 million, of which the Australia is contributing K1.1 million.

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A purse seiner offloads in Majuro. Courtesy: Giff Johnson.

The Marshall Islands has sold fishing days for US$7,000—setting a price record for the country since a Vessel Day Scheme went into force five years ago. Marine Resources Authority Director Glen Joseph says the current minimum day rate set by the Parties to the Nauru Agreement is US$6,000, but the price is escalating because of demand.

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Telecom New Zealand has confirmed it will sell its 60 per cent stake in Telecom Cook Islands to Digicel for about $NZ23 million. The deal is expected to be completed by May 31, 2014.

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New Caledonia’s Southern Province has approved a deal with two major global nickel companies, France’s Eramet and Brazil’s Vale, to explore a huge nickel ore deposit.

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Solomon Islands faces a challenging economic future, as natural forests are logged out. Asian Development Bank economist Milovan Lucich says the government needs to support other industries such as agriculture, mining and tourism.