Morobe Governor says Wafi-Golpu agreement will contain risk funding provisions, internet cable breakages set to take months to fix, and superannuation fund puts pressure on government over rent arrears. The business news you need today.

Two sisters participating in a recent Westpac PNG financial literacy training session in Port Moresby. Credit: Westpac PNG

Mining

A risk funding clause could be added to the Wafi-Golpu agreement, explained Morobe Governor Luther Wenge. He said that, in the event of the tailings pipe breaking or other potential issues with the pipe or discharge from the mine, communities will be compensated.

‘It’s going to be in the agreement; it’s going to be held in trust by the national government, with the Mineral Resources Authority.’ (LOOP PNG)

Telecommunications

PNG DataCo has issued a statement about the breakages on the submarine cables outside Madang, a consequence of the earthquake that recently hit PNG. Customers in Momase, the Highlands and New Guinea Islands connected through Madang remain affected. The company has advice it will take a minimum of two months to repair the cables. (PNG DataCo)

Agribusiness

There are plans to try to establish a halal certification facility export in North Fly, Western Province. MP James Donald reportedly said North Fly will be seeking the assistance of Asian investors to set up the facility. (The National)

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Over 800 people, a mix of professionals and casual workers, could be employed by the spice industry, reportedly said the PNG Organic Spice Developers and Traders Director, Sakarias Ikio. He mentioned the industry has enormous potential but has been ‘underfunded for the last 30 years’. (Post-Courier)

National

Notice has been given to all State tenants as Nambawan Super prepared to start locking out State tenancies from its premises as of 26 September. According to the fund, the State owes it K160 million in rental arrears. ‘We are reluctantly conducting this lock out, especially as the workers impacted by the lockout are our own members, however, we have had to take this action after many broken commitments for settlement of the arrears over several years,’ said Nambawan’s Chairman Reg Monagi.

The superfund is avoiding locking out the Department of Health ‘recognising the critical nature of the services that it provides’. (Nambawan Super)

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During his visit to London to farewell Queen Elizabeth II, Prime Minister Marape met with John Swire of John Swire & Sons Ltd, the principal shareholder and parent company of PNG’s Steamships Trading Company.

In a statement, Marape said: ‘Steamships has been with us long before our own Independence and knows the PNG business environment like no other. Nothing would make us happier than to see it expand into the areas we are working at such as agriculture, downstream processing and building MSMEs among Papua New Guineans.’ (Office of the Prime Minister & NEC)

Travel

Papua New Guinea’s national airline, Air Niugini, has increased flights to Lae, Morobe Province, after the completion of work on the runway and has started servicing the route with its Boeing 737-800, which can carry up to 144 passengers per flight. (The National)

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Meanwhile, the airline has reported that it continued to perform ‘exceptionally well’ in delivering its scheduled flights in July and August, outperforming Qantas and Virgin Australia. For example, in August, Air Niugini operated 1995 flights with a domestic on time performance (flight leaving within 15 minutes of the scheduled departure time) of 89 per cent. The cancellation rate for Air Niuginoi flights schedule for July was 3.3 per cent while Qantas was 6.2 per cent and Virgin Australia was 7.7 per cent. (Air Niugini)

Energy

With only 13 per cent of PNG’s population having access to electricity, the Minister for Trade and Investment, Richard Maru, has said that it is priority to explore ‘cheaper and cleaner energy options’. He has met with the Snowy Mountains Engineering Corporation to discuss a feasibility study into the Sowom Hydro Project in East Sepik Province. He would like to see the  completed feasibility study by the end of the year. Maru said: ‘It is difficult to attract major investment projects in East Sepik Province without reliable and cheaper power.’ (Post-Courier)

Photo of the week

Prime Minister Marape during the 77 session of the UN General Assembly General Debate. Credit: Office of the Prime Minister & NEC

Prime Minister Marape delivered his speech to the 77 session of the United Nations General Assembly General Debate on 22 September. In his speech, he highlighted the countries climate concerns and addressed PNG’s potential in the agriculture sector, amongst others. About agriculture he said:

‘For the first time in our country, my Government has inserted efforts to address this imminent problem by placing more emphasis on in the agriculture sector. This is viewed not only as a revenue source for our economy but also a conduit to empower the majority of our rural communities through introduction of innovative farming methods in cash crop production, livestock and poultry, to take ownership and leadership of their development needs and livelihoods and at the same time also foster poverty alleviation and food security.

‘It is from this perspective that we have established new ministerial portfolios for Oil Palm, Coffee and Livestock that will assist us cater better not only for needs of the majority of our rural communities and their local economies to be integrated into the national and global markets to improve their lives and livelihood but be the source for food security and hunger and poverty alleviation for other countries.’ (Office of the Prime Minister & NEC)