The Papua New Guinea Advantage Investment and Infrastructure Summit was held in Port Moresby this week. Over two days, delegates heard about Port Moresby becoming ‘the Dubai of the Pacific’, tax incentives in the 2015 Budget and how to develop relationships with Chinese business. Here are some highlights.

Governor Powes Parkop. Credit: Stephen Rae

‘We [PNG] are the last frontier, and we are transforming Port Moresby into a modern metropolitan city—the Dubai of the Pacific, but more. A new municipal building, a new road network with tenders worth K500m closing at the end of September. K1 billion is being spent preparing for the 2015 Pacific Games.’—Powes Parkop, Governor National Capital District

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‘The 2015 Budget will contain very generous, more incentives, including tax holidays for selected industries like tourism, agriculture and manufacturing, to enable employment opportunities and business opportunities’.—Peter O’Neill, Prime Minister

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‘Developing long-term relationships with Chinese companies will pay off many times over. To do that, make friends, build bridges through chambers of commerce and sister-city relationships, visit Chinese colleagues and invite them to PNG.’—David Thomas, CEO, Think Global Consulting 

BSP’s Robin Fleming. Credit: Stephen Rae

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There is enough gas capacity in PNG for at least three more LNG trains over the next five-to-seven years, which would require an investment of about another A$25 billion.  The amount of proven gas totals about 14 tcfs. The first PNG LNG plant contains nine tcf. The lack of co-ordination between gas developers will be costly and inefficient, with the government being the biggest loser. – Peter Botten, CEO, Oil Search

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‘The National Petroleum Company of PNG (NCPC) has limited capacity to be a miner, but is capable of carrying out some small projects. The biggest challenges facing the company are recruiting qualified staff and board members to join the NCPC and to persuade politicians to allow the company to do its work independently.’—Wapu Sonk, MD, National Petroleum Company of PNG 

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‘There is no such thing as a risk-free investment. Banks will price operational risk as a component, added onto margins and fees. ‘—Robin Fleming, CEO, Bank South Pacific

National Development Bank’s Moses Liu. Credit: Stephen Rae

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‘There is a shortage of land. No-one will loan against customary land. The national government needs to buy more customary land to be made available to small and medium sized enterprises, so that loans can be secured against land.’—Moses Liu, Managing Director, National Development Bank

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‘The PNG economy will be bigger than Australia’s, if I am a minister for the next 100 years.’—Ben Micah, Minister for Public Enterprises

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‘The relocation of the port of Port Moresby to Motukea Island will be completed in time for the 2018 APEC meeting. It is a huge project, which will cost about K1.2 billion. It will include a 500 metre wharf. The equally ‘huge’ new Lae Port is designed to handle two ships capable of carrying 5,000 containers. The IPBC is also considering how to unbundle the main components of PNG Power: retail, transmission and generation.’—Paul Nerau, Chairman, Independent Public Business Corporation

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‘The National Airports Corp is considering offering Port Moresby and Lae Airports for a public-private partnership arrangement. It has also gained access to the giant Komo Airport, owned by the PNGLNG operator, ExxonMobil PNG. It will be used to carry agricultural products and eco-tourists. NAC is spending K1.4 billion in upgrading its 22 airports.’—Joseph Tupriri, Acting Managing Director, NAC. 

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‘West New Britain Province could be self-sufficient in power, using palm byproducts. We have put a proposal to the provincial government for a joint venture arrangement, which would eventually bring electricity to the villages, as well as supply the towns and the palm oil processing plant.’—Harry Brock, General Manager, New Britain Palm Oil Limited

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Transcripts and papers for the Papua New Guinea Advantage Investment and Infrastructure Summit, which was co-hosted by Business Advantage International and the Port Moresby Chamber of Commerce & Industry, are available at www.pngadvantageconference.com.