Papua New Guinea’s Prime Minister, James Marape, talks about the delays in resources projects, Bank South Pacific boosts profits and K113,000,000 from the COVID-19 stimulus package will be used to improve food security and strengthen agriculture production. The business news you need to kickstart your week.

Prime Minister Marape [centre] and representatives from New Zealand, the US, Australia and Japan. Credit: Prime Minister Office and NEC.

Electrification

After a meeting with the High Commissioners of Australia and New Zealand and the Ambassadors of Japan and the United States at Sir Manasupe House, Prime Minister James Marape met with the Ambassador of Japan to PNG, Kuniyuki Nakahara, to further discuss Japan’s contributions to PNG’s plan to connect 70 per cent of households to electricity by 2030.

Nakahara said Japan will fund the Ramu grid transmission reinforcement project (K263 million) and co-fund the electrification project to connect households to the power grid in Oro and East New Britain provinces and the Autonomous Region of Bougainville. Marape took the opportunity to thank Japan for its involvement in these projects. (Department of Prime Minister & NEC)

Aviation

Air Niugini is proposing to buy up a controlling interest in PNG Air through its subsidiary Link PNG. It’s been reported that Link PNG has lodged an application for Authorisation with the Independent Consumer and Competition Commission (ICCC). Regulatory approvals from ICCC are needed before the partial acquisition is finalised. (Business Advantage PNG)

Resources

After comments by Governor Chris Haiveta about delays in resource projects, particularly P’nyang and Papua LNG, Prime Minister Marape released a statement in which he acknowledged the comments and said that his government won’t ‘continue to give revenue concessions away as we did with PNG LNG and Papua LNG’. He also said that negotiations between the State Negotiating Team, Exxon Mobil and Oil Search are turning in the right direction. ‘We will shortly be sending Exxon our final position,’ Marape said. (Department of the Prime Minister and NEC)

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Last week, Prime Minister Marape visited Kumul Consolidating Holdings (KCH) with Morobe Leaders and Mining Minister Johnson Tuke to announce the progress of the Wafi-Golpu mining project in Morobe Province. During the visit a Memorandum of Understanding was signed between Morobe Governor Ginson Saonu and the Mining Minister.

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Agribusiness

Farmers from the Southern Highlands, Enga, Western Highlands, Jiwaka and Chimbu have supplied over 300,000 kg of potatoes to the Highlands Kuk chips factory in Southern Highlands. The factory is a partnership between the Southern Highlands government and Innovative Agro Industry. (The National)

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The Market Development Facility and Paradise Foods have signed an agreement to boost locally manufactured cocoa products. Thanks to the partnership, Paradise Foods will improve production capacity for a new range of processed alkalised cocoa products, reports The National.

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The PNG Government is set to release K113,000,000 from the COVID-19 stimulus package to improve food security and strengthen agriculture productions. Each District Development Authority and Provincial Executive Committee is expected to receive K1,000,000. ‘Each district and province will have different needs in the development of food security for its citizens so we want to empower them to make the decisions that are right for their local communities,’ reportedly said Treasurer Ian Ling-Stuckey. (LOOP PNG)

Economy and finance

Representatives of the IRC and PNG Customs Services sign an agreement to share data. Credit: IRC/Facebook

In a move to increase PNG’s revenue collection, the Internal Revenue Commission and PNG Customs Services have signed a Memorandum of Agreement to share data from PNG Customs automated system for customs data (Asycuda). The agreement will help the IRC keep track of goods and services taxes. (IRC)

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Last week, Bank South Pacific (BSP) published its 2019 financial report and announced a net profit of K890 million in the 2019 financial year, a 5.5 per cent increase from 2018. BSP also announced a net asset of K24.5 million, representing a 6.2 per cent increase from the previous year. In the same report, the bank said it will continue to advance its digital strategy and examine market ‘opportunities to further expand asset finance within South-East Asia.’ (BSP)

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The courts rescinded last week the Public Money Management Regularisation Act, a move that will ‘hurt the nation’s money plan,’ reports the Post-Courier. The Act was passed in 2017 and it was expected to contribute K800 million in 2020.

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PNG will receive an additional K8 million from the United States to help in the fight against the COVID-19 pandemic. This brings the total US assistance to almost K12 million. (NBC News)

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According to ANZ latest Papua New Guinea Business Survey, firms’ profitability worsened in the March quarter with ‘business confidence about future economic conditions for the next 12 months turned from a net positive in December 2019 to a net negative in Q1 in 2020.’ The report suggests that the COVID-19 pandemic, the lack of uncertainty on gas projects and a shortage of foreign currency have affected the near-term outlook of businesses.  (Post-Courier)

Photo of the week

Credit: Air Niugini

Last week, after years of training and service, Jason Nonggorr and his father became Air Niugini’s first Papua New Guinean father and son captains. Captain Jason Nonggorr is now Captain on a Fokker 100 jet aircraft and the senior Nonggorr is the Captain on the Boeing 767 – Captain Paun Nonggorr is also Air Niugini’s longest-serving pilot, having joined the company in June 1975.

‘A lot of hard-work, commitment and discipline is required to become a pilot. Jason has reached a milestone in aviation from being a pilot to becoming a fully fledged Fokker F100 Captain and his families from Mount Hagen and his mother’s people from Wuvulu Island, Manus, are proud of his achievement,’ said Paun about his son. (Air Niugini)