Ok Tedi Mining Limited (OTML) is assisting landowners and the communities in Western province ventured into agriculture businesses so that they can be able to sustain themselves after the Ok Tedi mine eventually closes in 10 years’ time. OTML Managing Director and Chief Executive Officer (CEO) Mr. Musje Wera, said apart from other payments, the company annually pays compensation funds for the use of the land and for certain resources like water, but he said these funds should not be seen as the main source of income for the communities. “I mentioned the compensation that we pay to our communities, but all that is going to end when Ok Tedi closes,” he said. “What’s going to happen, where will they go to get this annual compensation from?” It is for this very reason that the OTML boss said the company and its partners, including Ok Tedi Development Foundation (OTDF) and the Western provincial government, are looking at alternate income opportunities, focusing heavily on agriculture businesses. “So, with the compensation that we pay K60million per annum in that range, it’s a once-a-year payment and if you divide that by the population, its nothing per head. So, by having this agriculture business, that’s income in their pockets every day. That’s what we are focusing on,” said Mr. Wera. So far, the agriculture businesses that are already in existence are the Kaviananga Rice project. “It’s more around food security but obviously there are opportunities to commercialize any excess products. It’s a K5.5million project and we have the Incentive Fund that is funding this project.” The other project that is up and running is the Mount Fubilan Egg and Poultry project, which is owned by the mine villages. ‘So, they have the poultry farm happening in Tabubil that’s supplying the mess hall and obviously Tabubil township and Kiunga,” said the CEO. Meanwhile, the other two agriculture business projects that are coming up are Fly Vanilla and Fly Cocoa. “So, we have Fly Vanilla starting in North Fly. This is two hectors of high value vanilla project at a cost of K39 million funded by OTDF, IAI (Innovative Agro Industry), the Western provincial government and support from the community. This project will be launched at the end of this year.” The other, the Fly Cocoa project, is a 25million dollar investment in the South Fly and it’s a partnership project between Sustainable Development Program (SDP), OTML and IAI. This project is set to commence in 2023. Mr. Wera made all these know during the recent two days 2022 Community Affairs and Business Development Workshop held in Port Moresby.

Key indicators of a country’s progress are vital, especially if one intends to tap into the market of a country and try out in doing business through investments, and one key indicator is the corruption index. Speaking at the 3rd EU- PNG Trade and Investment Conference in Port Moresby this week, the Interim Chairman of ICAC PNG Mr. Thomas Eluh pointed out exactly that. He said that foreign investors are smart when it comes to making investments decisions, they will be looking at a lot of things from economic status of a country to security and law and order, and corruption levels of a country. He said Papua New Guinea (PNG) does not have a good track record when it comes to corruption and that needs to be changed in order to make PNG a favourable investment destination for overseas investors. Eluh added that corruption in the public sector has seen many private sector companies having difficulty in renewing licenses, obtaining services, or getting approvals because somewhere down the line, there is someone asking for some incentives. However, he said to really address this there must be some sort of coordinated approach by organisations responsible to address corruption. “Don’t see ICAC as the only solution to fighting corruption in this country, it needs everybody to come on board and that includes the private sector, includes NGOs, it includes everyone.” “So, we have devised what we call the national anti- corruption plan of action,” said the Interim Chairman. This would bring everybody to come on board so that each organization will be given its own area of responsibility. “The fight against corruption is ongoing, unfortunately its uncoordinated with police doing their own things, Ombudsman doing their own thing, public prosecutor doing their own thing and civil societies doing their own thing. It’s not coordinated so we cannot measure our own successes or failures.” Therefore, he said they would like to see ICAC become that central coordinating point and not just another solution to addressing corruption in the country. He said that way there should be enough good coordination in place to seriously address corruption.

Foreign investors intending to enter a market like here in Papua New Guinea (PNG), would consider a whole lot of things before considering making a final investment decision. Perhaps one of the important things to look at is how the government behaves and its relationship with the private sector. Speaking at the two- day 3rd EU- PNG Trade and Investment Conference in Port Moresby, the President of PNG Europe Business Council Inc. Mr. Michael Sullivan, pointed out that perhaps an important aspect to this, is government debts and how quickly it repays it. “Regrettably, the PNG government has a poor history of paying its debts on time and this is of concern to the business council because paying your debts as and when they fall due, is a fundamental principle of business,” said Mr. Sullivan. “For whatever reason, the government has often found it easier to allow its domestic debts to accumulate and then pay them when considerable pressure is applied.” He told the delegates and foreign investors that the recent lockout of government tenants from Nambawan Super Limited (NSL) owed buildings because of long overdue rentals owed to the superfund, is a perfect example of that. “Government is meant to set an example. If the government doesn’t pay its debts on time, then how can the private sector be expected do so?” In cases where the government still owes money, he said the government currently owes landlords as much as K600 million in unpaid rent for privately owned office space occupied by public servants. “In addition, the government owes PNG Power somewhere between K90 million and K320 million for electricity supplied to Government departments and projects. He said PNG Power in turn is telling the Independent Power Producers (IPPs) that supply electricity to the grid that PNG Power is unable to pay them because the government has not paid PNG Power. “The worst affected IPPs are Niu Power followed by Dirio Power and POSCO,” said the president. Sullivan also said the state has received a lot of revenue coming in from the PNG LNG project since 2014 and foreign aid and low interest rate loans from bilateral nations, but even with all these funding, the state continues to delay when it comes to repaying its debts. He further stated that, if the government is not paying its debts on time because of administrative blockages, then this needs to be addressed urgently. “Alternatively, if the government is not paying its debts on time because the money that would otherwise be available to do so is not allocated for this purpose or is misspent, misappropriated or otherwise lost, then this needs to be investigated and a public explanation provided.” Nevertheless, Mr. Sullivan concluded by saying that its vital government improves on this and on other matters commonly associated with government businesses, because this will in turn result in seeing favourable responses from foreign investors, like from Europe who would want to do business with PNG.

Trade and investment measures must respond accordingly to the constant changes taking place in the world in terms of doing business. That was the message put forth by Minister for International Trade and Investment Richard Maru,  when officially opening the 3rd EU -PNG Trade and Investment Conference in Port Moresby yesterday. Maru said the trade and investment regime is constantly changing, not only with the onslaught of COVID- 19 pandemic, but also changes in technology. "In line with these changes and with a wide range of ambitious investment enabling reforms, the government has allowed for much greater openness, further liberalization and more robust protections to all investors and bringing PNG's investment environment further in line with global standards," said the minister. "In this regard, we warmly welcome EU investment provided in ways that can achieve mutual benefits for both businesses." Meanwhile, day one of the conference started on Tuesday (11/10/22). The two days business to business conference will help increase business contacts, discover new business opportunities and new collaboration partnership between the EU and the Pacific with particular attention to trade and investment aspects of sustainable development. Maru further said that the conference is not only a platform in growing the trade and economic cooperation, but is an excellent opportunity to introduce to the outside companies of both sides in the areas like banking and finance, agriculture, livestock and fisheries, electricity and food processing industry to name some. The trade and investment conference will end tomorrow with the final sessions and panel discussions.

The Papua New Guinea Defence Force (PNGDF) has been receiving a lot support from the Australian Defence Force through the defence partnership and this time, it was gifted with new vehicles, and vessels to go towards its logistical support for its troops and achieving its goals in nation building. Commander Defence Force (CDF) Major General Mark Goina said the equipment includes 20 Isuzu troop trucks, five 19-seater buses, three 30- seater buses, 2 coastal riverine supply vessels, two forklifts and one tow- tractor to name a few. “All of these items are vital for us to create a base line and sound foundation from which we can look to grow capabilities of the PNGDF,” said the CDF. He said with a solid foundation the PNGDF will be able to deliver and develop its capabilities into the future. “These gifts fully support my 2022 to 2026 intent by providing our personnel with modern, reliable, and efficient transportation and logistical support items. “They will allow us to become more proficient in our delivery of operational outputs and they will ensure that as a defence force, we are well prepared to support the government and the people of Papua New Guinea, as we as a nation look to strengthen our economy, social and national security to enable growth and prosperity.” CDF Goina further said that the Australian Defence Force and the Australian Government has and will continue to provide this form of support as seen over the years with the gifting of three Guardian Class patrol boats and recently, the gifting of a new modern landing craft vessel. Goina later thanked the Australian Government and Australian taxpayers for their support in the gifting of these logistical items. The items were presented to the PNGDF yesterday by the Associate Secretary of Department of Defence Australia Mr. Matt Yannopolos to CDF Goina, at the Basilisk Naval Base in Port Moresby. Mr. Yannopolos said through this capability that the Australian Defence Force has gifted, he is confident that they will be put to positive use to strengthen the PNGDF capabilities to better able to deliver to the people and the country

PNG Air, one of the country’s longest serving airline operators marked its 35 years of service to the country recently, celebrating its achievements as it evolved over the years from an island air charter business to one of the major commercial airliners in Papua New Guinea. Speaking during the 35th Anniversary celebrations on Thursday night in Port Moresby, the airliner’s Acting Chief Executive Officer (CEO) Mr. Stanley Stevens, said the company will continue to navigate through the challenges and will endeavor to make the right changes going into the future for its customers and the country. The airline company’s humble beginning started in the Milne Bay province when the Wild family from Australia started the Milne Bay Air, known back then as MBA, in 1987. The airline operated by transported personnel and equipment to the resource projects in Misima Gold Mine and other resource project areas in the country. It expended from there with new aircrafts and with it, expended its services to other parts of the country. In 2001, the airline expended to become Airlines PNG and later in 2015, an image change to the now PNG Air name and with it, saw the company brought in new generation aircrafts for its fleet to service its routes. “35 years of contributing to PNG’s economic growth, it means 35 years of connecting families, business, tourists, charter clients and VIP cargo across the whole country,” said the Acting CEO. However, even though the airline company saw its operations expend over the years, there were always challenges and hard times, which the company continues to face and work to overcome. The Acting CEO said the COVID-19 pandemic was tough on business but with good management strategies, they were able to pull through in a time where a lot of airline operators throughout the world closed business because of the pandemic. “We are excited for what the company has in store for the airline, as we continue to adapt and change with the times, while maintaining our position as the people’s airline and support the government’s plan to connect rural population as well as having the right type of aircrafts going forward into the future.” The Acting CEO later thanked the people and organizations that have supported PNG Air right throughout for without support and partnership, the airline company would not have come this far and now going forward into the future.

The government, through Treasury and Finance Department, must settle the outstanding rentals owed to Nambawan Super Limited (NSL) for the use of its buildings or face a closure of these builds by today (Tuesday 27th September 2022). According to the Superfund, the NSL management and the team from the government met on Monday in a formal meeting to try to resolve this matter quickly. The government owes NSL a total of K160 million of outstanding arrears owed for the use of the buildings for several years. “NSL is waiting for the state to pay the outstanding owed to the account by Monday or else the buildings will be close off Tuesday morning.” Meanwhile, a look around the city of Port Moresby on Monday saw these buildings were still open for business because the State has been given Monday to make the final payment; however, if nothing is paid in to NSL account before close of business Monday afternoon, it will be forced to close these buildings and with it, stopping vital government services. The NSL owned properties occupied by State tenants in Port Moresby city include the Revenue Haus where Internal Revenue Commission is in, and the Vulupindi Haus where the Department of Finance and Department of National Planning are located. It also owns the Eda Tano Haus where the Department of Lands and Physical Planning is in, and the AOPI Centre where the Department of Health and Department of Higher Education are located. In the city of Lae, its the NSL Haus where the Ombudsman Commission, Independent Consumer and Competition Commission (ICCC), and Auditor General’s Office are located.

Badili and Town Police here in the nation’s capital are closely monitoring a very tense situation, after clashes between the villagers from Pari and Wanigela Koki this morning. Shift Supervisor, Senior Constable Pios Moses of the Badili Police station stated that units were dispatched to quell the tensions after 8 truckloads of men, presumably from Wanigela, attempted to attack Pari Village, armed with a variety of weapons. Snr. Constable Moses said that the fight was caused when a Wanigela man married to a woman from Pari was attacked by boys from the village and injured with a slingshot. “He was on his way home and a few drunk men from the village attacked him and hit him with a projectile from a slingshot, which tore the flesh from his head. The matter was reported to the station this morning and dispatched men to the Pari road just in the nick of time to dissuade the Wanigela contingent from attacking the village,” Moses said. As a direct result of the altercation, a member of the group that attacked the Wanigela man is now fighting for his life in the intensive care unit at the Port Moresby General Hospital. Police units from both Town and Badili are on site and monitoring the village to ensure the safety of the public and villagers. The Snr Constable also said that they have identified the instigators of the conflict and they are working closely with the Pari Village councilor to apprehend the suspects.

The much-anticipated Port Moresby Women’s Australian Football League (AFL) friendly match ended with a draw yesterday afternoon, marking a satisfying finish to the women’s 2022 season, especially when the women’s competition had to be cancelled before the finals due to issues of eligibility of players in the competition. The match was between the TSI Lamana Dockers and the Gordons Kokofas. The Dockers came from behind to level the scores in the final quarter of the match with 3- goals and 2- behinds to seal a 20 all tie with the Kokofas, who also secure 3- goals and 2- behinds. Dockers President Mr. Loi Bakani appreciated the Port Moresby AFL Association for allowing the friendly match to go ahead. “It gives us great joy for POM AFL to allow us to host this match so that we can appreciate finishing the season,” said the Dockers president. “There’s no winner in today’s game unfortunately and the scores also said that. A friendly tight game and then you end up in a draw.” The friendly match was played out at the Colts Oval and saw both teams received trophies sponsored by Nelson Saroa Lawyers because the match itself was an unsanctioned match; therefore, Moni Plus did not sponsor this particular match. Meanwhile, the women’s competition is expected to start early next year around the month of April.

The PNG LNG landowner company, Dirio Gas & Power, is expanding its services to cater for the demand for reliable and affordable electricity for parts of the country yet to fully receive this vital service. Speaking during the PNG Energy Summit & Exhibition 2022 this week in Port Moresby, the Chief Operating Officer (COO) for Mineral Resources Development Company (MRDC) Limited Mr. John Tuaim, said apart from its 45megawatt Gas Fired Station next to the PNG LNG plant site outside Port Moresby, Dirio is in the process to set up a similar one in Hela province. “We’ve already signed a PPA (Power Purchase Agreement) with PNG Power, so we are now working with NEA (National Energy Authority) to get the regulatory approvals to actually start that project.” He said that the project will give about 66megawatt power from Hela province that would feed the Ramu Power Grid to supply Southern Highlands province to Mt. Hagen and back. The landowner power company is also in the process of supplying gas fired power generation for 12 locations, especially on the coastal and islands centers as a long-term solution for PNG’s power demands. The power company plans on achieving this by putting mini power generation facilities on barges and move them around the islands to supply power to the centers that relay on diesel and mini- hydro generation, which the costs are quite high. “We’ve already started feasibility studies on this, we’ve already spoken to technology developers on this and that’s ready.” Tuaim added that the submission on this has already gone to the National Executive Council (NEC) to consider this proposed project to address power supply issues. “When its done, we will work with NEA and PNG Power to roll this out,” said the COO. However, these plans are for the domestic use of the LNG, but Mr. Tuaim said Dirio is planning to go big by looking at applying the same concept to the other pacific island countries. “So, in the longer term the island barge concept that we apply within PNG, we can take it to New Caledonia, Fiji, Vanuatu, Samoa and the Solomon Islands, so that’s something we can all do it together to generate sustainable revenue for our landowners and Papua New Guineans.” Dirio is MRDC’s investment project in the power generation business. It is an investment which offers sustained income to the shareholders outside of the oil and gas royalties and provides project security to PNG LNG Project. “Our mission is to be the leading IPP (Independent Power Producer) not only in PNG but also in the pacific and in the process, we want to drive cleaner, affordable and reliable energy.”

Electricity generation and transmission in Papua New Guinea (PNG) should at least reach 70% coverage of the population by 2030 as per the goal of the National Government, but there is still more work to be done to achieve this. This was revealed during the PNG Energy Summit & Exhibition 2022 in Port Moresby this week during the presentations and panel discussions on the use of energy to generate clean and reliable power for the masses. One of the presenters at the Summit was the Chief Operating Officer for Mineral Resources Development Company (MRDC) Limited Mr. John Tuaim, who was presenting the plans and achievements of the PNG LNG landowner company, Dirio Gas & Power. Mr. Tuaim said the reason for the existence of such Independent Power Producer (IPP) like Dirio, is to achieve that goal and the company is going out of its way with innovations to expend this vital service in the country. He said the power generation landscape in PNG consists of three major power supply sources, there is the Port Moresby power grid with 121megawatt, the Ramu Grid, and the diesel generation of power in smaller centers. Even though with this available, he said that electricity has not fully reached the remote parts in the country and added on top of that main towns and cities still experienced power outages. So, while there are issues in the main centers, most of the people have not received this vital service. “It’s a national priority, we need reliable and affordable power in this country as power improves the quality of life and is an enabler for industries to grow, so power is everything,” said the COO. However, going forward he said there is now a vast source of energy to produce power, the renewable energy and the non- renewable energy and the green energy sources that could be used in the country to cover the generation and transmission capacity of power to the people and the industries. This is where overseas investors can tap into this to drive the energy sector in PNG to produce reliable and affordable power to benefit the masses.

 Papua New Guinea (PNG) continues to have vast opportunities laid down in front of it especially in the Asian gas market, and with the focus of the world now shifting to greener energy, the potential to gain revenue from Liquefied Natural Gas (LNG) is even greater. Minister for Petroleum and Energy Kerenga Kua, who spoke on behalf of the prime minister this morning at the official opening of the PNG Energy Summit & Exposition 2022, said major projects in the energy sector lined up for commencement should see the country tap more into this potential. He said the future of the country’s development of petroleum resources looks good with Total Energy announcing its Final Investment Decision (FID) for the Papua LNG project in July this year. “This will almost double PNG’s exports of LNG from the current 8.5million tonnes per annum (MTPA) to 14 to 15MTPA,” said the minister. He added that Papua LNG is likely to reach final investment decision late 2023 and with a four-year construction phase, the first LNG export is expected around 2027 or early 2028. “This will be followed by FID and construction of P’nyang Gas project, planned for delivery of a further 2 to 3million tonnes per annum of LNG by 2032.” He said this is important because of what these LNG projects can bring into the country. “These LNG projects have direct and indirect benefits for the country by providing revenue to national, provincial, and local level governments. They provide employment during their construction and operations, which also generate spinoffs service contracts to local companies and SMEs. He added that these projects will allow developers to put a per centage of their gas for Domestic Market Obligation (DMO) to be used within the country for power generations and other purposes, such as fertilizers and industrial chemical productions. In addition to this, PNG’s LNG supplies to the world market is projected to further generate revenue with the demands increasing due to geopolitical circumstances. This was highlighted by the Executive Vice Chairman and Managing Director for FGE, Mr. Shasha Fesharaki. Mr. Fesharaki echoed the minister by saying that the upcoming projects in PNG should see more generation of revenue due to the demand of gas increasing in the European market and the traditional Asian market. He added that the outlook is healthy projected from demands and productions of LNG around the world and with additional LNG supplies lined up for PNG, the prospects look good. “If you have new LNG supplies in the next couple of years, its like gold,” said Mr. Fesharaki. “PNG LNG is well positioned to extract in significant revenue in the near term with uncommitted volumes due to some expiring contracts, so if you have volume on hand, its like gold and PNG will benefit tremendously from the market situation by having these volumes around one and a half and two million tonnes over the next couple of years.” Meanwhile, the PNG Energy Summit & Exposition 2022 will continue for its second day today and the final day on Thursday 22nd September, the delegation will be given a full tour of the PNG LNG plant site, just outside Port Moresby city.