Falling commodity prices and rating outlook drop prompts Budget review, O’Neill supports Madang marine zone and new police chief to boost numbers in Port Moresby. Your weekly digest of the latest business news.

The PNG Treasury has indicated that a budget review will be held soon and government departments will be consulted on where cuts can be made. Treasury Secretary Dairi Vele announced the Supplementary Budget planning in light of the drastic fall in world commodity prices that had also affected revenue as well as PNG’s international rating.

Last week, Moody’s Investor Service  reaffirmed PNG’s B1 rating, although had changed the outlook to negative from stable.

‘The reality is that a whole world is undergoing a rebalancing in reaction to the downturn in global commodity prices,’ Vele said in a statement.

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Prime Minister Peter O’Neill says land for the Pacific Marine Industrial Zone (PMIZ) in Madang is state rather than customary land and, was bought from R D Tuna Cannery for K4 million. He said the project would generate K2 billion every year in economic activity, as tuna processing will be done in PNG instead of being sent overseas. He added the PMIZ will also generate ‘more than 20,000 jobs for local communities through direct employment and the generation of small business’.

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New Police Commissioner, Gari Baki

Papua New Guinea’s Police Commissioner, Gari Baki, has announced major changes to the police force, including an increase of numbers in Port Moresby. He says he wants to bring policing to the people and strengthen the force from its present 6,000 to 10,000 by 2018. He will also review a policing arrangement that has 73 Australian Federal Police officers deployed in PNG. Security and law and order is the top issue facing business, according to our 2015 PNG 100 CEO survey.

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Guangdong Rising Asset Management (GRAM) is expected to announce next week the Bank of China will fund a A$ 50 million (K106.3 m) feasibility study for the $US2 billion (K4.25b) Frieda River project. GRAM now owns 87.38% of PanAust and its offer of A$1.85 (K3.93) per share expires on Wednesday, 26 May.

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Newcrest Mining CEO, Sandeep Biswas, says he would be willing to buy out his 50% per cent partner (Harmony Gold) in the US$2.3 billion (K4.89 billion) Golpu copper and gold project in Morobe if the stake came on to the market.

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Prime Minister Peter O’Neill will open the landmark Kookaburra Flyover on Sunday, 31 May. Built by NZ construction company Hawkins Group at a cost of K162 million, the flyover links Jacksons International Airport to Waigani. The project comprises a 600m long four-lane concrete flyover, just under 2.5km four lane road, side road tie-ins, roundabouts, drainage, foot paths, service relocations, lighting, bus bays, and associated streetscapes and furniture. It will be open for pedestrians on Sunday and for vehicles from Monday, 1 June.

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Prime Minister O’Neill says a misunderstanding caused a diplomatic row with Australia over its proposal to set up a post in Bougainville, and it was being resolved. PM O’Neill met Australian Foreign Minister, Julie Bishop, in Japan at the weekend.  The government banned Australians from Bougainville, after the Australian government announced it would be opening a consulate on the island.

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The new banknotes

The Bank of Papua New Guinea has launched a limited number of new bank notes and coins to commemorate the 15th Pacific Games and PNG’s 40th independence anniversary. They will circulate with the current banknotes and coins.

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More than 70% of the Pacific’s coconut trees are ‘senile’ and need replacing, according to the Executive Director of the Asia Pacific Coconut Community, Uron Salum.

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Bank South Pacific has announced a final dividend payment of 76 toea per share for the year ending, 2014, after declaring a net profit after tax of K507.4 million, an increase of K70.5 million on its 2013 result.

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Madang’s tourism industry has fallen by more than 60% in recent years due to the cutbacks by government and donors in hosting conferences in the province. Sir Peter Barter, the owner of Melanesian Tourist Services, says most hotels have a less than 50% occupancy rate, prompting layoffs.

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Tropicair’s new Cessna

Tropicair has bought two new aircraft, designed to land on unpaved strips, including grass and gravel. They are a 19-seat Twin-Otter and a 7-seat Cessna Citation. Commercial Manager, Chris Nguyen, says the aircraft will allow flights into remote areas ‘that we couldn’t get to before’, including Kerema and Kamusi in the Gulf.

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Swedish Insurance company, Bima, has partnered with the Pacific Financial Inclusion Programme (PFIP), to provide micro insurance products in rural areas. Products on offer include death and disability and hospital cover.

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The Solomon Islands government is holding a three-day workshop this week in Honiara bringing together various stakeholders to look at how to set up the countrys’ first Independent Commission Against Corruption.

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Canadian gold miner Barrick Gold Corp says it will sell a 50% stake in the Porgera gold mine in Papua New Guinea to China’s Zijin Mining Group Co Ltd for US$298 million in cash. Barrick’s PNG subsidiary, Barrick Niugini, owns 95% of the Porgera mine. Earlier this year, Barrick said it was aiming to reduce its debt position by at least US$3 billion in 2015 and, as part of that strategy, hoped to offload non-core assets, including the Porgera mine.

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Solomons Gold

NZ-based C-Corp has launched a branded chocolate bar made from Solomon Islands cocoa. The ‘Solomons Gold’ range comprises four dark chocolate bars with 70 to 75 per cent cacao content. It is currently sold online and in NZ’s retirement capital, Tauranga, but C-Corp is also looking for national distributors.

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And finally, Melbourne scientists say if you are having trouble concentrating, looking out the window will help—but only if you see green. Glancing at a green roof for only 40 seconds markedly boosts concentration, says research leader, Dr Kate Lee. ‘Imagine the impact that has for thousands of employees working in nearby offices.’