Kina Bank announces K50 million for small and medium-sized businesses, Prime Minister Marape’s update on mining projects, and BSP Financial Group cautiously optimistic about Papua New Guinea’s post-COVID recover. The business news you need today.

Kina Bank ATM. Credit: Kina

Ports

Atlas Steel PNG has been awarded a contract under the PNG Ports Safety and Security Upgrades Program to supply over five kilometres of security fencing to the ports in Motukea (Port Moresby), Daru (Western) and Buka (Autonomous Region of Bougainville). (The National)

Mining

Porgera gold mine. Credit: Barrick

Prime Minister James Marape reportedly said that Papua LNG ‘will move into pre-Feed in September after the financial stability agreement was signed in February.’

The Prime Minister also said that he expects to ‘observe much progress’ in Porgera, Pasca A, P’nyang and Wafi-Golpu when PNG celebrates its 46th Independence Anniversary on 16 September.

According to the PM, a State Negotiating Team for P’nyang has been established and will recommence talks with ExxonMobil and other stakeholders later this month.

He also mentioned that the government is expecting that all parties involved in Wafi-Golpu will get together this month to ‘establish negotiation pathways for formal negotiations.’ (The National)

Power

PNG Power Limited signed a contract with the Chinese Tibean Electrical Company for the extension of the 132 kV transmission line from Mt Hagen to Tari and from Tari to Hides. The K71 million contract also includes ‘land access, tower base payments and compensation for improvements all inclusive’.

Minister for State Enterprises William Duma said: ‘The Tari to Hides link is critical to enable dispatch of the proposed Hela Power gas fired plant into the grid and reliably distributed to customers optimising the use of the upgraded transmission infrastructure and making the project economically viable in the medium term.’ (Post-Courier)

Economy

In its latest economic update BSP Financial Group said that the PNG economy is expected to grow by 3.5 per cent in 2021 as it recovers from the ‘pandemic-induced recession in 2020’. For 2022, its growth projection for the country is 4.2 per cent. (BSP Financial Group Limited)

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Nambawan Super’s Reg Monagi.

Nambawan Super’s Trustee Board Chairman, Reg Monagi, announced that the Trustee Board of the superannuation fund is calling for BSP Financial Group Limited (BFL) to work with the Central Bank and the Financial Analysis and Supervision Unit (FASU) to resolve last week’s allegations of anti-money laundering issues. (Last week, BFL refuted the claims of non-compliance with anti-money laundering laws.)

‘Nambawan Super Members are 12 per cent shareholders in BFL. This investment makes up a significant proportion of their funds that are under management with NSL,’ Monagi said.

‘As part of investing members’ fund responsibly, NSL also considers it important that the companies it invests in operate to the highest governance and compliance standards.’ (Nambawan Super)

SMEs

Kina Bank has pledged K50 million to support local small and medium businesses. The funds will be available at a concessional variable interest rate of four per cent. The announcement is part of Kina Bank’s efforts to support local businesses.

Greg Pawson, CEO of Kina Bank, said: ‘We recognise that we are in challenging times and also that business is a key cornerstone of the economy. Through giving strong support to business we are providing an environment for it to consolidate, grow and prosper.

‘This is about money for innovation and growth, while at the same time being a good corporate citizen.’

Kina has also removed several fees to make its business loans more attractive and offer more transparency in the loan process. (Kina Bank)