Proposed Sovereign Wealth Fund reaches third reading stage, Air Niugini ‘on track’ for 50% sell-off, and second LNG plant to create 10,000 jobs. Your weekly digest of the latest business news.

The Sovereign Wealth Fund legislation is ‘high on the agenda’ during the new Parliamentary session, according to the Leader of Government Business and Finance Minister James Marape. He says other bills include the proposed Independent Commission against Corruption.

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SOE Minister Ben Micah says Air Niugini is on track to sell 50 per cent of its shares to the private sector in a bid to expand the operations of the airline.

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Minister James Marape. Credit: pngecho

The country’s second LNG project is expected to create 10,000 more jobs for locals, Prime Minister Peter O’Neill says. He also says his government is working with the French Government to open an embassy in Paris.

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Kina Securities reports its IPO (Initial Public Offer) has closed, fully subscribed. The company sought to raise K202 million (A$97 million). CEO Syd Yates says the IPO was ‘significantly oversubscribed, with demand for shares approximately four times the target amount’.

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The Third APEC Meeting of Ministers Responsible for Forestry will be held in Port Moresby in October. Minister for Forests Douglas Tomuriesa says topics include technical cooperation between economies to ensure best practices, the prevention of illegal logging and engagement with local communities.

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Sinking LNG prices have driven a 19% drop in Santos’s second-quarter sales, compared to the same period in 2014. Santos’s quarterly report also revealed the company has cut spending and investment levels in response to the dramatic oil price falls last year.

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Australian-based New Guinea Energy will undertake a share buy-back of up to 10 per cent of the company’s issued capital. The buy-back commences from early August will be open for up to 12 months.

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Gold has sunk to its lowest level in more than five years this week, on prospects for higher U.S. interest rates and after China said it held less metal in reserves than some analysts expected. The spot price fell to US$1,086.18 an ounce.

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Australia has lifted the limit on the number of workers from Pacific Island countries participating in the Australian Seasonal Worker Program.

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Philippine Airlines will begin a twice-weekly service between Manila and Port Moresby, on 25 October, in competition with Air Niugini, which already flies to Manila four times a week.

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The Executive Director of PNG Power, John Mangos, says he believes the company can meet a government target to have power in 70 per cent of all homes by 2030. At present, 10 per cent of Papua New Guineans have access to power.

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The National Development Bank’s Des Yaninen

The National Development Bank Investment Ltd’s CEO, Des Yaninen, says opportunities should be given to youths to formally run their own business, as an alternative to seeking formal employment. Yaninen was talking up the bank’s Youth Entrepreneurs Scheme (YES), which is being piloted in Port Moresby. He said NDBI has made K2 million available to fund almost 60 youth-owned businesses.

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Governor-General Sir Michael Ogio says PNG is planning to bid for the 2026 Commonwealth Games. PNG topped the medals table at the 2015 Pacific Games with 217, followed by New Caledonia with 165 and Tahiti with 113. The next Pacific Games is set to be held in Tonga in 2019.