‘More jobs to go’ warning if businesses continue to rationalise, O’Neill says US$300 million loan to be used for foreign exchange, Australia funding APEC 2018 to fend off China. Your weekly digest of the latest business news.

More jobs will be lost in 2017, if businesses around the country continue to rationalise their operations, according to the President of the Business Council of PNG, David Toua. Speaking during the ‘Prime Minister’s Back to Business Breakfast’ in Port Moresby, Toua reportedly said 2016 had been a tough year for business. He cited lower than expected commodity prices, foreign currency challenges, and uncertainty generated by the proposed changes to legislation: the Mining Act, the Land Act, a Revised Activities List and SME policy.

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The Business Council’s David Toua.

The Managing Partner at accounting firm Price Waterhouse Coopers, Jonathan Seeto, says business leaders are very pessimistic about revenue growth in 2016 and 2017. ‘Only 10 per cent of our CEOs are actually very confident about future prospects for growth and 46 per cent are not confident at all about the future,’ he told the ‘Back to Business Breakfast’ function.

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A Credit Suisse loan of US$300 million (K952 million) will be used to mitigate the issue of foreign exchange in the country, Prime Minister Peter O’Neill says. He told the Business Council breakfast: ‘I am told by our people in the banking industry that we were behind by an almost US$1.6 billion (K5.1 billion) shortfall. It’s now down to less than US$300 million (K952 million).’ O’Neill also said the government is ready to go to market with a bond issue, but the time is not ‘conducive’. ‘The rates are simply too high for us.’

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O’Neill has reportedly assured the business community that the government will not rush into passing any legislation that will affect them. He said consultations would be held with the private sector prior to any changes.

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Australian taxpayers are on track to pay at least a third of the costs of next year’s APEC summit to stave off rising Chinese influence in PNG, reports the ABC. Seventy-three Australian Federal Police officers will remain in PNG until the end of the summit. Australian Government sources have told the ABC the prospect of China bankrolling the Summit loomed as a significant factor in its decision to prolong the AFP deployment and to lend other forms of support.

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Negotiations are continuing with the Indian Exim Bank on a US$300 million (K952 million) loan for three projects. Treasurer, Patrick Pruaitch says the money has been earmarked for the Kimbe Highway in West New Britain Province; refurbishment of the Mount Hagen National and Supreme Courts and improvements to the Madang-Baiyer Road.

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The Hela Provincial Government has allocated K2 million to revive its tourism industry which once drew visitors to see bride price ceremonies, bird watching and sing-sings, among other attractions. Governor Francis Potape noted, however, that the province has to address lawlessness.

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Oil Search and ExxonMobil have reportedly surrendered their prospecting licence 277 in the Highlands, because of the difficulties associated with exploration in the region and the recent dry wells at Strickland.

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Mainland Holdings’ William Lamur.

Mainland Holdings is to begin manufacturing in the Port Moresby region this year, says Chairman, William Lamur. He said products being manufactured would be its leading brands: Tablebirds poultry, eggs, day-old chicks, stockfeed and its Three Roses Flour.

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Darren Limited, a local construction and civil works company in Kokopo, East New Britain, has reportedly signed an agreement with the Cocoa Board of PNG to build eight homes for its staff at a cost of K1.38 million.

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Work to complete the upgrading of Vanimo Airport will recommence when funding is made available, says Civil Aviation Minister Davis Steven. He added that over K46 million had already been paid to the contractor before work stalled.

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Vanuatu’s Torba Province. Credit: The Guardian

And finally, leaders in Torba Province, Vanuatu, aim to ban foreign junk food imports in favour of an all-local, organic diet as a way to combat future health problems. According to the Guardian, community leader Father Luc Dini said his province had an abundance of locally grown or sourced food to sustain its population including fish, crabs, shellfish, taro, yams, paw paw and pineapple. The most popular imported foods consumed in Torba were rice, sweets, tinned fish and biscuits.