Power outages in Papua New Guinea’s second largest city linked to K60 million debt, government looking into outstanding debts and new partnership between the Morobe Provincial Government and the National Airport Corporation. The business news in brief.

Map of PNG Power’s network. Credit: PNG Power

Power

The power outages in Lae, PNG’s second largest city, are linked to a K60 million debt owed by PNG Power Ltd (PPL) to POSCO International Power Ltd (PIPL), reported the Post-Courier. PIPL operates a power plant in Muya, outside Lae, and the company reportedly gave PNG Power the option to pay the debt in instalments, but these have not been met.

‘We met with PPL in February about a payment schedule, but this arrangement has been kept only for one month and a half,’ says PIPL. ‘We notified PPL that if they do not make weekly payments by May 3 at 12 noon, we will have no choice but to turn off the plant due to lack of working capital.’ (Post-Courier)

Agribusiness

A new partnership between the Morobe Provincial Government and the National Airport Corporation aims to develop Nadzab Airport (now the Michael Somare Airport) into a hub for local ‘farmers, fishermen and small medium enterprises to bring their produce and catch to have them exported.’ (Post-Courier)

National

Jacks of PNG has launched Chauka Ya, a garment and accessory label by Cynthia Kewei. The brand has a ‘strong connection’ with Manus Island, and 50 per cent of the sales royalty will go ‘towards supporting rural community initiatives in Manus and around the country.’ (The National)

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Two hundred million kina in outstanding debts has been paid to businesses, said the Executive Director of the PNG Business Council, Douveri Henao. After a meeting with Treasurer Ian Ling-Stuckey, Henao explained that there is a committee looking into debts to suppliers. (The National)

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In its first Pacific Economic & Market (PEM) Insights 2021, BSP Financial Group Limited says that the country’s economy will recover at 3.5 per cent while the world economy is projected to grow at six per cent. The positive rebound is attributed to the reopening of the Porgera mine and the prospect of growth in the liquified natural gas (LNG) industry. For the rest of South Pacific Island countries, BSP in its PEM Insights suggests that because of the collapse of the tourism industry due to COVID-19 ‘growth in these economies is expected to remain around nine per cent below pre-pandemic levels.’ (BSP Financial Group)

Tourism

P&O Cruises Australia has extended its voluntary pause to 17 September 2021. All cruises to PNG and the Solomon Islands have been cancelled for the remainder of the year. (P&0 Cruises Australia)