Italian firm to construct giant Chimbo hydro dam, SOEs’ assets valued at K20 billion, and development concept for Elk-Antelope expected by mid-year. Your weekly digest of the latest business news.

The giant Italian construction firm, Salini-Impregilo, has won the contract to develop the Karamui dam in Chimbu province to produce 1,800 megawatts of electricity for Simbu Province, and the Highlands and Momase regions. It will be the biggest hydro project in PNG. Salini-Impreglio has built more than 230 dams worldwide.

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PNG’s 13 state-owned enterprises increased their asset value from K4 billion to K20 billion in just over two years, says Public Enterprises Minister Ben Micah.

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The Antelope 3 gas field. Courtesy: InterOil

Elk-Antelope, PNG’s second liquefied natural gas (LNG) project in the East Papuan Basin is on track to select a preferred development concept by mid year, begin early development work in 2016 and award contracts for construction in 2017, project executives told Prime Minister, Peter O’Neill, at an on-site briefing.

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Construction of the Pacific Marine Industrial Zone (PMIZ) project in Madang is expected to start at end of May. Trade Minister Richard Maru says China’s Shenyang International Economic and Technical Corp has completed the design for the first phase, which he wants finished within 12 months. The project will cost US$95m (K255m) and contain ten canneries and other support industries.

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Analysis of the annual report by Bank South Pacific shows it is the most profitable bank in Australasia.The report shows a return on equity in 2014 of 29.7%, more than 10 percentage points better than the ROE of any large Australian bank, according to banking analyst, Ian Rogers. BSP’s net profit for 2014 was K503 million, due to its wholesale banking segment, which increased by K$222 million (50%). The bank’s assets stand at K16 billion.

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PNG is the Asian Development Bank’s (ADB) largest borrower in the Pacific region for loans for public and private sector development. ADB says the country’s active portfolio totals US$1.1bn (K2.98bn) since it joined the bank in 1971, including 22 ongoing loans for 11 projects, eight grants, nine technical assistance projects, and two private sector loan and equity operations.

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Newcrest Mining’s Lihir gold mine. Credit: Newcrest Mining.

Newcrest Mining reports gold production at its Lihir project in New Ireland Province increased 11 per cent in the first quarter of 2015, compared to the last quarter of 2014.

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A Hilton Hotel will be built in Port Moresby before APEC 2018. Chief Secretary, Sir Manasupe Zurenuoc, says landowners of Ok Tedi, the Fly River Provincial Government, and Petroleum Resources Kutubu will partner the project. He says it will be the major venue for world leaders and the Hilton Hotel Convention Centre would host the gala cultural dinner.

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Landowners in Kairuku, Central Province, are considering allocating more land for commercial rice production, after successful trials conducted by Trukai Industries.

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The PNG LNG project has celebrated its first anniversary since the start of liquefied natural gas (LNG) production at the operation. According to operator, ExxonMobil, the project has so far produced more than six million tonnes of LNG and delivered 87 cargoes.

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Telikom PNG has dropped prices by more than 50% for its prepaid and post-paid internet plans. The previous plan charge for a 1GB plan at K110 has now been brought down to K49, while a 5GB plan that was selling K550 is now K249.

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PM Peter O’Neill attends the christening of Air Niugini’s latest aircraft, Mt Hagen.

Air Niugini has introduced the latest addition to its fleet, a Fokker 70 aircraft which has been named Mt Hagen. Prime Minister Peter O’Neill christened the new aircraft at a ceremony outside of the new Kagamuga Airport terminal in Mt Hagen in Western Highlands Province.

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And finally, the Chairman of Solomon Islands Parliamentary Entitlements Commission, which controversially removed taxes from MPs salaries this month, says he wants taxes removed for all public servants.