The World Bank has released its economic update on Papua New Guinea, superannuation funds reject bank levy, and SNT Chair says Porgera will reopen next month. The business news you need today.

Detail of the Grand Papua Hotel in Port Moresby. Credit: Steamships

Economy

The World Bank has published the report The PNG Economic Update: Navigating a Fragile Recovery and suggested the PNG gross domestic product (GDP) growth is estimated at four per cent for 2022. The growth is in part driven by the resources sector, in particular the much-expected reopening of the Porgera mine. But whereas GDP growth looks better than in 2021, the report also says PNG’s economy medium-term will be ‘impacted by higher global uncertainty.’

‘The biggest challenge for the PNG economy this year will be navigating a fragile recovery; this is particularly challenging while uncertainty remains high,’ World Bank Country Economist for PNG, Ruslan Piontkivsky said. (World Bank)

Resources

Project-impacted provincial governments of Hela, Southern Highlands, Central, Gulf and Western and all landowners from the impacted areas of the PNG LNG Project look sent to receive increase equity in the project, according to Manese Makiba, the Vice-Minister for Petroleum.

He says the intent is to increase their share from 4.27 per cent to 10.27 per cent, made possible by Santos relinquishing six per cent of its stake in the project. (The National)

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Dairi Vele, Chairman of the State Negotiation Team (SNT) for the Porgera gold mine, reportedly says the mine in Enga Province will reopen next month. He is reported as saying that Barrick Niugini, the operator of Porgera, will fund the cost of restarting the mine, with the state expected to repay Barrick its share of the restart cost. (The National)

Banking

The Women’s Micro Bank and the Oro government have signed an agreement to rollout financial services in the province. The government of Oro Province has committed K500,000 to K1 million in SME funding for women. (The National)

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The Association of Superannuation Funds of PNG (ASFPNG) says the State should reject the K190 million market concentration levy that could be imposed on BSP Financial Group Ltd in July this year. The levy, a super tax on profits announced in the last budget, is indexed to grow by five per cent annually and it has the potential to affect BSP’s shareholders, according to ASFPNG.

About a quarter of BSP shares are owned by the three major superannuation funds – Nambawan Super, Nasfund and Comrade Trustee Services – and they are expecting a loss of more than K317 million in assets and reduced dividends in the first year of the levy implementation. (ASFPNG)

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KINA Asset Management reported a net profit of K6 million in its annual report. The profit was driven by an investment return of 8.3 per cent, with share markets in most countries recuperating. (Kina Asset Management)

Aviation

It’s been reported that the Independent Consumer and Competition Commission (ICCC) has started a process to revoke its authorisation for Link PNG and PNG Air to enter a code-share agreement. The ICCC said that Link PNG took ‘no further steps with PNG Air on the proposed shared agreement’. (Post-Courier)

Tourism

The Grand Papua Hotel, part of the Coral Sea Hotels, has entered a partnership with Radisson Hotel Groups and has become a member of Radisson Individuals. This means the Grand Papua will be part of the Radisson Hotel Group’s sales and distribution network, and guests will be able to benefit from Radisson Rewards, a hotel loyalty program. (Steamships)

Fisheries

The British groceries and general merchandise retailer Tesco is purchasing Marine Stewardship Council (MSC)-certified tuna from PNG.

Marcelo Hidalgo, PNG Fishing Association Sustainability Director, reportedly said: ‘Tesco, after several meetings, decided to buy MSC-certified tuna from PNG because of our Responsible Social Policy (RSP).’ Tesco is the first supermarket in the UK to start buying MSC-certified tuna coming from purse-seiners.

The PNG Fishing Association got the MSC certification in May 2020. (Sea Food Source)

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An investment of K7 million in equipment will see the South Seas Tuna Corporation (SSTC) produce pouched tuna products for ‘mass feeding clients’ such as school cafeterias, airlines, fast food chains and others, according to SSTC Managing Director, Mike McCulley. He told The National that the company expects to start production in the second quarter of the year.

‘We estimate this will increase throughput from 130 tonnes per day to 160 tonnes per day and add an estimated 500 additional staff,’ he said. (The National)