Cabinet considers a rise in the minimum wage, Australia to involve private sector in aid delivery, and Oil Search expects huge annual cashflow from LNG plant. Your weekly digest of the latest business news.

Papua New Guinea’s cabinet is reportedly considering a recommendation to increase the country’s minimum wage from K2.29 to K 3.20. The Post Courier reports that after 12 months the wage will then increase again to K3.36 an hour, before rising again to K3.50 after two years. The determination will also cover various allowances, such as camping, tool and heavy duty allowances, which may also be increased.

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Australia’s Foreign Minister Julie Bishop has foreshadowed radical changes to the way Australian aid to PNG in managed. Aid will focus strongly on boosting the private sector, trade and innovation, with tough performance benchmarks.

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The Spirit of Hela being loaded with the first LNG shipment. Credit: Exxon Mobil PNG Ltd

The CEO of Oil Search, Peter Botten, says income from the LNG plant will provide about US$1.5 billion (K4.1 billion) in cash-flow for his company. Meanwhile, Chairman Richard Lee has told the company’s AGM it could have interests in as many as five LNG trains in PNG by 2020. For our in-depth full interview with Oil Search CEO, Peter Botten, click here.

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Cabinet has approved setting up a special-purpose company, Port Moresby Power Limited (PMPL) to hold the city’s power generation assets. PMPL will be a wholly-owned subsidiary of PNG Power. Israeli-based LR Group will take a 50% stake in a company to manage those assets. Prime Minister Peter O’Neill has also ordered that independent power purchase agreements be arranged with private companies to produce and provide power in Rabaul, Wewak, Kimbe and Madang. The IPBC and PNG Power are expected to advertise for EOIs this week.

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Malaysia’s Felda Global Ventures Holdings is considering buying a major stake in New Britain Palm Oil through the London Stock Exchange.

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Sir Puka Temu

More than 1000 public servants will be retrenched this year, according to Public Service Minister Sir Puka Temu, at a cost of K50 million.

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National Planning Minister Charles Abel has tabled a bill to introduce a national identity card. Under the system, every individual and family within a community is obliged to register every birth, marriage (including customary marriage), divorce and death.

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The Enga provincial government is considering a proposal to build a K93m hydro dam. Guangdong Foreign Construction Company carried out a feasibility and design plan at its own cost. Governor Peter Ipatas says construction could next year.

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MA Investment’s Anat Maler and PNG CRIL chairman, Sane Simeon Gao

Israeli firm MA Investment has signed an agreement with PNG Cultural Resources Incorporation (PNGCRI) to boost alluvial gold trading.

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A new state-of-the-art container examination facility is being built for the Customs Department in Port Moresby. Curtain Bros began work on the K20 million project this week. Customs Commissioner Ray Paul says the new facility will end the need for manual container examinations and ease the backlog.

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InterOil has announced a net profit of US$318.6 (K881 million) for the first quarter of 2014. The company says this is mainly due to the US$340.5 million (K941 million) sale of an interest in the Elk/Antelope fields to Total S.A of France.

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Ramu NICo, operator of the Ramu nickel mine in Madang Province, is currently operating on a deficit budget, with its parent company, MCC China, providing funds for daily operations, according to a company official.

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The Manus Chamber of Commerce president Peter Poiou says investors in the proposed US$1 billion (K2.4 billion) Manus free zone project have yet to visit the province. Dubai-based AWAL Impex International (Holdings Ltd) says it wants to develop Manus into an international free trade zone.

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Lae’s industrial centre has suffered another fire. A warehouse belonging to a packaging company, Color Pack, was burnt to the ground. Damage is estimated at K1million. Previous fires gutted the Brian Bell Home Centre and Pelgens in Lae’s Market area.

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Gold Ridge Mining says it wants to return to its site on Guadalcanal as soon as possible but the Solomon Islands Government continues to bar its staff from returning.

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A shop burning in Honiara.Credit: Fiji TV One.

A new bridge is expected to arrive in Honiara next week to replace a key installation washed away during severe flooding last month. The NZ government-funded bridge will replace the old Mataniko Bridge. Riots and looting last week prompted many local businesses to close for several days in Honiara. Police say 21 people have been charged in relation to the riots.

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A regional Pacific tourism expo this week in Auckland will draw more than 100 New Zealand travel agents and 66 international buyers from around the world.