Manufacturing affected by downturn in economy, Japanese International Cooperation Agency ready to start Lae-Nadzab Development Project and CPL’s profit comes in at K6.5 million. Your weekly digest of the latest business news.
The downturn in Papua New Guinea’s economy is affecting the local manufacturing industry, says Manufacturers Council of PNG Chief Executive, Chey Scovell. He adds that many are cutting jobs.
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The Japanese International Cooperation Agency (JICA) is ready to start the Lae–Nadzab Development Project, which will expand Lae city and develop Lae–Nadzab as the industrial, manufacturing and distribution centre of PNG.
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CPL Group’s net profit after tax in 2015 was K6.56 million, down from K6.91 million in 2014. Chairman Mahesh Patel says sales for PNG’s largest retailer rose from K401.11 million in 2014 to K462.08 million in 2015.
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The Sovereign Wealth Fund (SWF) legislation has major flaws, according to the National Research Institute’s Acting Director, Osborne Sanida. He says the rules relating to government withdrawals and the nature of the sub-funds need changing.
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Papua New Guinea has the poorest access to clean water in the world, according to a study released to mark World Water Day. It found 60 per cent of the population live without a safe water supply. The international trust, Water Aid reports that at a cost of K7.54 ($A3.25) for 50 litres—the World Health Organisation’s recommended minimum to meet daily basic needs—a low-income earner in PNG can expect to spend up to 54 per cent of their daily earnings on clean water.
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A new K7 million a year support package will help Bougainville cocoa farmers boost output, improve quality and gain better market access. It offers grants and targeted assistance to cocoa farmers, dryers, fermenters and traders. Measures include training in financial literacy and business management. It is funded by the PNG, New Zealand and Australian governments.
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Barrick Niugini has suspended some of Porgera mine operations after a landslide blocked road access to the mine. Forty homes were buried in the mudslide, Police Acting Superintendent George Kakas estimates that it will take at least four weeks to repair the road to Porgera gold mine.
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PNG Air recorded a profit of K4.21 million last year. The company branded and introduced the first new ATR 72-600 into its fleet last year. Five more are expected by the end of 2017.
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The slump in commodity prices has caused Woodside Petroleum to put on hold its A$40 billion (K93 billion) Browse LNG project in north-west Western Australia. Woodside, which holds a 30.6 per cent stake in the project, said its joint venture partners decided not to progress with the huge development at this time.
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The high cost of hotels and airfares, and a lack of infrastructure on the ground, are two major barriers to tourism in PNG, according to Philippe Gigliotti, Managing Director for international tour company, Voyages en Papouasie/PNG Travels. ‘Law and order is also a problem. But the lack of infrastructure is the worst,’ he says.
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And, finally, congratulations to PNG model Donna Eve Tickle, who was runner up in the World Supermodel Pageant in South Africa this week. Donna comes from mixed PNG-Australian parentage and grew up in Rabaul, East New Britain. She is now based in Melbourne, Australia.
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