Day 2 of the 2024 Business Advantage PNG Investment Conference featured top speakers from across government and business, including Papua New Guinea’s Prime Minister James Marape, state-owned enterprises such as Air Niugini and PNG Ports and business chamber presidents. It also saw the unveiling of PNG’s newest bank and plans for Port Moresby’s next major hotel and resort.

Rio Fiocco and John Byrne at the 2024 PNG Investment Conference. Credit: BAI

PM Marape: Government ‘not detached’ from business

The Papua New Guinea government is “not detached or divorced from business,” Prime Minister James Marape said in a speech delivered via live video call to the conference.

In his speech, Marape said PNG was “still rebounding” from the impact of Covid-19, and that it had applied fiscal policy “to ensure the economy remains on track for growth.”

“In this sort of context, the government is always on the lookout to assist investors and to ensure new policy inputs are forming to address some of the shocks that may be imported into the economy, or the shocks that we generate ourselves, like the January 10 event,” Marape said.

“Our government has given assistance to businesses who have fallen victim to the January 10 event. This just indicates to all of you who are investing in Papua New Guinea that the government is not detached or divorced from business.

“In a small economy like PNG, the government’s number one role is to protect investors and to ensure their safety.”

PNG’s new bank launched

Danny Robinson, CEO of Credit Corporation, provided the conference with an update on the launch of Papua New Guinea’s newest commercial bank – CreditBank PNG. He described the move as finally fulfilling the vision of the original founders of the company back in 1978.

The bank, he said, would be digital first. He unveiled new mobile phone apps through which customers could effectively open new accounts with the bank by themselves.

Robinson was followed by Kevin Gani, Country Leader for Australia, New Zealand and Pacific Countries at the IFC’s Financial Institutions Group. He explained how the IFC is currently assisting a number of second-tier finance companies in their transformation into banks, as part of a program to ensure greater competition in the sector and more finance options for business.

Paga Hill unveiled

An artist’s impression of the completed Paga Hill Estate. Credit: Paga Hill Development Company

The Paga Hill Special Economic Zone in Port Moresby was presented to the conference as an investor-ready location by Gudmundur Fridriksson, Chairman of Paga Hill Development Company.

Delegates were also shown fly-throughs of the planned Radisson Blu resort on the site by Lachlan Hoswell, Managing Director of the Radisson Hotel Group’s Business Unit Australasia.

Air Niugini CEO explains tough operating conditions

Speaking after Kumul Consolidated Holdings Chairman Moses Maladina had outlined major new investment in the airline’s fleet, Gary Seddon, Chief Executive of Air Niugini, pointed the finger squarely at Puma Energy for recent cancellations of domestic and international flights.

“Air Niugini has had to contend with an almost insurmountable jet fuel supply issue in PNG,” Seddon told the conference.

“Aside from the increased cost of fuel, we have had to overcome the challenges associated with the supply chain,” he said.

“There’s only one company in PNG that supplies jet fuel or [that] has jet fuel storage at port. Puma [Energy] has monopolised infrastructure, and [they] were using this position to strongarm Air Niugini and the government into supply of foreign exchange.”

Seddon noted that Air Niugini’s domestic schedule had been subjected to what he called “substantial” fuel rationing.

Following Seddon, PNG Ports Corporation’s MD Neil Papenfus provided an update on the new 45 hectare Westside industrial park and logistics hub in Lae. Credit: Stefan Daniljchenko/BAI

Fiocco: Jan. 10 phase three funding “still to be finalised”

The Papua New Guinea government has “heeded” the calls of the business community in response to the January 10 riots, Rio Fiocco, President of the Port Moresby Chamber of Commerce and Industry (POMCCI) told the conference.

Fiocco told the conference that POMCCI, together with the Manufacturers Council, Business Council of PNG, and the Employers Federation, had been “hammering the government for compensation for our members.”

The first phase of funding for employee retention is over, he noted, and the second phase for restocking and clearing of debris is in full swing.

“Only a week ago, City Pharmacy Stop and Shop received K16.1 million towards their restocking exercise.”

The third and final part is for rebuilding of damaged property.

“The government is saying they won’t make grants available, but they’ll make concession funding available up to K500 million. But the mechanics of that – whether it’s through the PNG National Development Bank or a private bank; and whether it’s interest-free for three years or something like that – the mechanics are still to be finalised,” Fiocco said.

More investment flowing to Lae

John Byrne, President of the Lae Chamber of Commerce, also gave an update on developments in PNG’s second city and logistics and manufacturing hub.

“Lae, like the country, is very resilient,” he told delegates.

He named several examples of ongoing investment in Lae, including by Coca-Cola and Nestle, the latter of which he said was in the process of constructing a new assembly line. He also noted that one lane of the highway to the new Nadzab Tomodachi airport was almost complete.

He emphasised the importance to the city and business of the Wafi-Golpu copper-gold project currently being negotiated.

You can also find our special report on Day 1 here.