Papua New Guinea’s COVID-19 cases on the rise, Twinza Oil commences negotiations on Pasca-A, and K135 million for agriculture. The business news you need to kickstart your week.

Banks

Kina Securities Limited has announced the divestment of EsiLoan to MiBank (Nationwide Microbank Limited), the largest microfinance institution in the South Pacific.

Kina Securities Managing Director and CEO, Greg Pawson, said that by transferring the Esiloan portfolio to MiBank, ‘we’re able to direct our focus on our core target markets of retail, SME and commercial customers.’ (Kina Bank)

Resources

Map of Twinza Oil site in Gulf of Papua

The PNG Government’s State Negotiating Team has started negotiations with Twinza Oil ‘on the fiscal terms that will apply to the Pasca A gas-condensate field’.

Twinza’s PNG Country Manager, Roppe Uyassi, said that the company ‘is committed to working closely with the Government to deliver an agreement that allows the Project to move forward toward development, whilst providing a higher State take than previous projects.’ (Twinza Oil)

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Representatives of the Bilimoia Landowners Association, Associated Landowners Association, the State, Eastern Highlands Provincial Government and K92 Mining revised last week Kainantu memorandum of agreement (MOA). This is the second revision of the MOA and the negotiations included royalty distribution, grants, infrastructure and business development and training and employment, among other things. The revised MOA still needs to go through several processes before being approved by the National Executive Council. (Post-Courier)

Agribusiness

A K135 million loan agreement between the World Bank and PNG that will benefit coffee, coconut, spice and small livestock farmers in 12 provinces is expected to be signed this month (July), reports The National.

Aviation

Air Niugini has increased its domestic flights and seats and resumed Fokker 70 services to Kavieng. The airline has also increased flights between Port Moresby and Lae, Mt Hagen, and Rabaul. Air Niugini Chief Executive Officer, Bruce Alabaster said: ‘when we re-introduced domestic services in April we said we will operate limited services to begin with, and build up to our normal schedule once demand picks up. As demand recovers we are now delivering on that promise and adding more flights on most routes.’ (Air Niugini)

Finance

PNG’s Treasurer, Ian Ling-Stuckey, met with the head of the European Union to PNG, Jernej Videtic, to talk about development cooperation and investment opportunities. Ling-Stuckey reportedly said that ‘EU has presented the opportunity to look beyond these partners [World Bank and ADB], especially to partner with the European Investment Bank’. (Post-Courier)

COVID-19

Credit: World Health Organisation/Facebook

Paison Dakulala, Deputy Controller of the Pandemic Act, announced four new cases of coronavirus in Port Moresby. Prime Minister James Marape announced one more case, bringing the total number of cases in PNG to 16. On Monday morning, another case was confirmed.  (EMTV).

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According to  the fourth Pacific Trade Invest Pacific Business Monitor Report, 72 per cent of respondents are confident their business will survive the COVID-19 pandemic and 18 per cent of business expect to ‘return to a business-as-usual revenue’ this year. According to the survey, 35 per cent of businesses had temporarily closed. (Pacific Trade Invest)

Superannuation

Nasfund Contributors Savings and Loan Society (NCSL) has announced an income of K12.09 million for its 2019 audited results. Its Chairman, Ian Tarutia, said the society has recorded a 38 per cent increase in revenue and a 15.5 per cent increase in memberships. About the future of NCSL, Tarutia reportedly said: ‘Becoming an e-bank later on and the best e-bank in PNG is not an easy task but we are committed and we have the result to get there.’ (Post-Courier)

Photograph of the week

Kavieng’s redevelopment ground breaking ceremony. Credit: National Airports Corporation/ Facebook

Last week, Prime Minister James Marape officiated the ground breaking ceremony of the upgrade works at Kavieng Airport in New Ireland Province. The K91.8 million redevelopment is co-funded by GoPNG and the Asian Development Bank under the National Airports Corporation Civil Aviation Development Investment Program.