Wholesale internet rates to fall by 70 per cent in 2020, New Ireland Province signs deal with Zenith to build three solar plants and Bmobile and Huawei PNG sign a deal to roll out 5G in Papua New Guinea’s Port Moresby. The business news you need to kick-start your week.

The National Information and Communication Technology Authority (NICTA) has released its determinations for internet wholesale rates, which include a 70 per cent cut for Coral Sea Cable transmission capacity. The Coral Sea Cable is funded by the Australian Government and is jointly managed by PNG DataCo. NICTA has set prices at K195 per Mbps per month for 2020 and at K135 per Mbps per months for 2021 and K90 per Mbps for 2022. The prices for the domestic cable are to be set announced. (Post-Courier)

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The New Ireland Government and Zenith Ltd signed a deal to build three solar farms and power plants in Konos, Kavieng and Namatanai. Zenith’s Salim Chamadia; Alois Tabareng, Chairman of NIDC and New Ireland’s solar company NISOLAR, and Lamiller Pawut, Provincial Administrator, signed the deal. It is estimated that Zenith will complete the solar power plants in nine months. The company will run and operate the plants for five years, and then they will be transferred to NISOLAR. One of the technical phases of the project includes securing the use of PNG Power’s existing power grid under a Power Purchase Agreement. ‘Solar power generation is the way of the future … Once the power plants are up, the only expenses we will be paying for are operational and maintenance costs; we won’t be paying for fuel. In the long run we will save a lot of money. It will definitely alleviate the power woes we are currently having with PNG Power,’ said New Ireland Governor, Julius Chan. (PV-Magazine)

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In December. Bmobile and Huawei PNG signed a plan to roll out a 5G trial in PNG’S capital, Port Moresby, in 2020. ‘In PNG [the] agriculture sector would benefit enormously from this technology,’ said Bmobile’s CEO Athula Biyanwila. A timeframe wasn’t announced at the time of the signing. (Post-Courier)

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Due to inadequate water levels in the Fly River in PNG’s Western Province, Ok Tedi Mining was forced to reduce its production by 50 per cent and now its stocks of ‘fuel, diesel, explosives and other vital materials and concentrate storage in Kiunga are approaching capacity.’ A return to normal operations is dependent on the successful passage of ‘two vessels that departed Port Moresby today [7 January] for the river mouth with combined 6.4 million litres of diesel,’ according to Ok Tedi Mining’s CEO and Managing Director, Peter Graham. ‘If they can get through to Kiunga by the end of this week, Ok Tedi will be in a stronger position.’ (The National)

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Telikom PNG launched Telikom TV in December 2019. The new product offers 20 free-to-view channels and apps such as Netflix, Plex and YouTube. The service is available on fixed line data services but not yet on mobile due to bandwidth usage. The TV Box sells for K150 at Telikom retail outlets. (Post-Courier)

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Mayur Resources’ Paul Mulder

Mayur Resources completed a detailed survey using state-of-the-art technology to deliver a ground surface model of Depot Creek and Orokolo Bay. The model will help to complete resourcing and reserving work. It will also be used to plan mine activities as part of the ongoing feasibility study at Orokolo Bay Industrial Mineral Sands Project in Gulf Province. Mayur’s Managing Director Paul Mulder said in a statement that the survey: ‘Is an important step in de‐risking both projects and addresses the gaps we had with the existing topographic data. Our resource geologists and mine planners can now move forward with confidence with resource and reserve estimation work and with mine designs and infrastructure configuration.’ (Mayur Resources)

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Air Niugini diversified its payment methods for purchasing tickets online last month, when the company started accepting PayPal and POLi. ‘For Air Niugini customers, this is an added convenience, especially for those existing PayPal and POLi customers who are used to their preferred payment method,’ said Air Niugini’s General Manager – Commercial Services, Dominic Kaumu. ‘These two alternative payment methods may also be welcomed by those who are still not comfortable about giving their credit card details away online.’ (Air Niugini)

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As part of his New Year’s message, Allan Bird, East Sepik’s Governor, announced his team is working towards announcing a Sepik Agriculture Blueprint by mid-2020. ‘This is a good time to start planning investment in Sepik, especially if you call this home.’ (The National)

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The National Fisheries Authority (NFA) launched the 2019 PNG Standards for Fish and Fishery Products, which is a legal instrument ‘covering requirements for processing and exporting fish and fishery products’ while setting clear requirements for import control. (EMTV)

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The Autonomous Bougainville Government (ABG) passed its 2020 Budget, which received increased support from the national government. The K439 million ABG budget focuses on post-referendum plans and activities. ‘This 2020 budget has an increased funding support from the national government, especially with the new Marape government’s concern to uphold the Bougainville Peace Agreement by sorting out the past financial issues,’ said ABG Minister for Finance and Treasury, Robin Wilson. (Post-Courier)

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Last week in Mendi, the Southern Highlands Provincial Assembly passed a K400 million provincial budget. It comprises K218 million government grants and K292 SHP internal revenue. The budget will focus in six key areas, including an electrification rollout program, potato farming, and a seedling program. The budget also allocated funds for the sealing of the Tari-Mendi Highway. (EMTV).

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Oil Search’s assets in Alaska. Credit: Oil Search

After the results of the pre-Front-End Engineering and Design (FEED) studies, Oil Search’s Board has approved the Pikka Unit Development on the North Slope of in Alaska to enter its FEED phase. The final decision, however, is subject to the approval of its joint venture partners and finalisation of third-party agreements, and it is expected early this year. The Final Investment Decision (FID) for the Pikka Unit Development is expected in the third quarter of 2020, with early road works and well pad construction expected to begin earlier. ‘The basis of design and the assumption for FEED is to commence an early production system (EPS), targeting up to 30,000 bopd, in 2022.’ (Oil Search)

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Ticket Bilum, a new smart phone app designed for, and by, Papua New Guineans, was launched in December to help people avoid long queues and buy their tickets to events online. Users can buy tickets to their preferred events using mobile credits instead of credits cards as soon as the ticket sales dates open. (Post-Courier)

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Photograph of the week

Prime Minister James Marapa at the new gas-fired power plant in PNG’s capital, Port Moresby. Credit: Wärtsilä

Prime Minister James Marape inaugurated a new 58MW gas-fired power plant in Port Moresby. The technology group Wärtsilä in partnership with the Australian-based Clough Ltd built the project under an engineering, procurement and construction (EPC) contract. ‘We are very pleased to have successfully delivered the high efficiency Port Moresby Power Station to NiuPower. Running on domestic natural gas, it provides low carbon energy, which reduces the country’s imports of diesel,’ said Frederic Carron, Energy Business Director, Australasia, Wärtsilä Energy Business. NiuPower, which is jointly owned by Kumul Petroleum Holdings Limited and Oil Search Limited, expects that it will generate annual savings of approximately K100 million. (Wärtsilä)