Vaccine roll-out commences in Papua New Guinea, the effects of the liquor ban in PNG breweries, and funding for the Edevu Transmission and Electrification project. Your business news curated.

Prime Minister Marape launches the vaccination program. Credit: FM 100

National

The liquor ban has affected most brewers in PNG. SP Brewery has reported losing 20 per cent of its workforce and Vitis has let go 1500 employees as a result of ‘the business making a loss’. A third brewer, Pacific Beer, told Post-Courier that ‘they haven’t let go any staff as they are a very small brewery’.

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The PNG vaccine roll-out program has started. Launched by Prime Minister Marape this week, the program consists of three phases: the first covers the health workers and essential non-health workers, the second is for people aged 45 years and older and the third, scheduled for 2022 and 2023, is for everyone aged 18 years and above. (PNG National Department of Health)

Banking & finance

Bank South Pacific (BSO) Financial Group Limited has slashed service charges on mobile banking, EasiPay top-up and branch EFTPOS by 50 per cent for all BSP customers.

BSP’s CEO, Robin Fleming, reportedly said: ‘BSP has foregone in excess of K50 million in fees annually as a result of its fee reduction initiatives. The bank has made a conscious decision not to pass on any increased costs to customers and we have made every effort to reduce fees and ensure customers are provided with a cost-effective product that suits them.’ (Post-Courier)

Energy

The Edevu Transmission and Electrification project in Sogeri will get US$90 million (K315 million) in funding thanks to the Papua New Guinea Electrification Partnership with Australia, the US, New Zealand and Japan. The financing, according the Loop PNG, will be on-let to PNG Power, subject to approval by the National Executive Council.

Resources

The Pasca A project in Gulf Province is now expected in 2025, reportedly said Twinza Oil. The project has been delayed because last month, just before signing the agreement, the PNG government made a demand for a six per cent production levy, which was higher that what was originally agreed. Roppe Uyassi, Country Manager for Twinza, said:

‘We firmly believe that the deal agreed to between the State and Twinza strikes the right balance and provides a win-win outcome for both parties, delivering the highest State take of any resource development in PNG, be it on a discounted or nominal project value going to the State.

‘We understand that the outcomes of over 65 per cent discounted and 52 per cent nominal State take were even verified and benchmarked independently by Deloitte after being consulted by the State.

‘The agreed terms also included domestic market obligation (DMO) for the supply of gas being provided from the first year of production for the first time in PNG’s history, plus an increased percentage of domestic market gas supply to 10 per cent of production.’

An additional investment of about K5 billion will be required for the Pasca A project over the next few years. (The National)