ANZ Bank expects the kina to rise above US$0.35 from early 2020, Ramu 2 hydropower project to commence next March, and security preparations for APEC step up. Your weekly digest of the latest business news.

The start of the PNG LNG expansion, the Train Three Project, will inject US dollars into the country from early 2020 and most probably restore balance in the foreign exchange  market, according to the latest ANZ Bank Pacific Insight. Analysts say they expect Kina to fall to US$0.2644 cents by next September, but the flows from the next round of projects will take over as the driver of the currency and push the kina above US35 cents in early 2020. They say the kina could go higher at an earlier date, if the central bank intervenes more frequently and brings demand for the kina back to balance earlier than anticipated.

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Minister William Duma and KCH’s Darren Young. Credit: Post Courier.

The lead consortium partner in the K3 billion 180 megawatt Ramu 2 Hydropower Project expects construction work to commence in March, 2019, and to be completed in November, 2024. Shenzhen Energy President, Wang Pingyang, told local media that the assets will be given back to the Government after 25 years of operations, debt free. The project should see the electricity output of the country increased by 33 per cent after the completion of the project. The project site is located downstream from the existing Yonki Dam and is capable of generating 180 megawatts of renewable energy. Kumul Consolidated Holdings Managing Director Darren Young reportedly said the project could create up to 900 jobs.

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Australian Special Forces have arrived in Port Moresby as part of an Australian military and policing effort to help secure Port Moresby ahead of the APEC Leaders’ Summit in November. The Post-Courier reports the US Vice-Presidential advance team arrived to help provide security for the world leaders.

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The government is centralising all its investment in the agriculture sector under the newly established Kumul Agriculture Limited (KAL). State Investments Minister, William Duma, reportedly said KAL is designed to attract foreign investors, and will make it easier to sell off subsidiaries at a later date.

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The Government has paid K95 million to Nambawan Super Ltd to settle unfunded contributions for public servants who retired in 2016, reports Loop PNG. Around K200 million remains outstanding.

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The ICCC’s Paulus Ain

The Independent Consumer and Competition Commission (ICCC) has called on commercial banks and other financial institutions to follow Bank South Pacific (BSP) and reduce bank fees and service charges. BSP reduced fees and charges on a wide range of transaction and lending products, removed some lending fees. ICCC commissioner Paulus Ain, told The National the current level of ‘fees and charges were burdensome for consumers.’

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The Governor of Indonesia’s Papua province wants West Papuans to be able to connect more with people in neighbouring Papua New Guinea. Lukas Enembe has told Radio NZ Pacific it should not have taken 43 years for PNG and Papua to have formal contact. He was in Port Moresby to mark PNG’s 43rd anniversary of independence.

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And finally, US Vice-President Mike Pence will stay in Australia for the duration of the APEC Summit, flying three hours a day between Cairns and Port Moresby. The fly in-fly out arrangement has meant a massive security and logistical operation to accommodate the Vice-President and his large entourage in north Queensland.

Photograph of the Week:

The refurbished and upgraded Ela Beach in Port Moresby at night. Credit: Aaron Chin via FB