Category Archives: Economic

APEC House on Schedule

Press Release

 

Prime Minister Peter O’Neill made a site inspection of the APEC House in Port Moresby yesterday and expressed,

“The APEC house is certainly going to host one of the very most important meetings ever held in this country in November this year. This is an historic event for Papua New Guinea and for the Asia Pacific region. The Issues that are going to be discussed in this particular building will have impact on the global stage. The 21 Nations that are going to be here on that occasion will represent over 50% of global trade and 50% of the global GDP. This 21 Nations play a very important role in the global economy and the economic growth that we continue to have in the region.

The Asia Pacific is seen as the engine room for the global economic growth and the meetings are going to have enamours impact on the confidence of investors that are going to come and invest in our country. Many countries around the world and many investors especially do not have much knowledge about our country, they do not know where our country is and do not know the potential of our country. That’s why such global events like this is another opportunity for PNG to show case itself to the investment community all around the world.

PNG will be highlighted in every Television stations and Newspapers around the world in that particular week in November and that is an important exposer for Papua New Guinea. I am pleased that this particular building is taking shape according to the timetables that are being set and on schedule and PNG is looking forward to welcoming the leaders that are going to come.

I would like to announce that we have already secured the services of the P&O cruisers, three large cruise ships that will be parked here in Port Moresby at our harbour which will cater for 4,000 rooms that will adequately accommodate for all the candidates that will come in to this country, and also in addition to that, Hilton Hotel is now on schedule to be completed well before November. So I want to assure the Nation and our people that we are now ready to host this very important event.

Let me also stress again, unlike many of our critics who said that we are spending billions of Kina in terms of hosting this event we all know we don’t have such money. We have spent less than five hundred million kina by the time we finish in November. The benefits that will come to this Nation is far more than what we have spent we have spent. The billions of kina that will be attracted in terms of investment will be far more than the investment that we are making in hosting this event. So lets us embrace this occasion let us work together in welcoming our most important VIPs including the President of the United States , President of Russia , President of China, Prime Minister of Japan, and many of the other global players that we read and hear about are going to make a first time trip to Papua New Guinea, and on that occasion let us showcase our best.

Let me thank the constructors of this building. Oil Search our partners in developing this building. APEC Minister and his staff and all the construction workers and every person who is involved in this process without your contribution and without your efforts we will not make it a success. Let us stay focus and let us perform beyond our expectations to showcase the best of our ability so that we will be able to have a very successful APEC meeting in PNG.

This is our first meeting that we are hosting as a member country. We have been a member for over 20 years and we have never hosted an APEC meeting. We have been just a attendant and observer in many of this proceedings whereas many other economies have hosted it two or three times already. So it is our turn to stand up and be counted in that particular organisation, that is why we are hosting this meeting for the first time in this country. It maybe another 20 or 30 years before we host another one. So let us make the best of it when we can. As I’ve stated before, after this meeting this building will be a world class museum showcasing our arts and culture that is unique to the world, and I can assure you that this will be the number one tourist destination in the country for many years to come.”

Post PNG Releases Stamp

By : Post Courier

 

Post PNG’s Philatelic Bureau yesterday launched two significant stamp issues to celebrate Christmas and commemorate 500 years of Lutheran reformation celebration in PNG.
Post PNG philatelic manager Banian Masiboda said this is a double and timely celebration that relates meaningfully to the festive season by conveying the birth of Jesus and celebrating the Christian faith.
Issued in stamp sets and souvenir sheetlet and souvenir sheets, the annual Christmas and the 500 reformation commemorative stamps are definitive stamps now available for collectors and customer use.
The 2017 Christmas greetings stamps feature selected greetings from each local dialect of PNG and also define how the country celebrated the festive season with pictures of church buildings, families standing together and other Christmas themes.
“The subjects featured on our postage stamps are of great significance to Papua New Guinea, the region and the world. In a nut shell postage stamps play a major role as a vessel, conveying important messages to all the four corners of the world,” Mr Masiboda said.
“This is the right time for the stamp issues to be released so hopefully our people around the country will be blessed by this release”, he said.
Special projects and strategy manager Kenei Gumaru says the commemorative stamps which began selling yesterday on line via Post PNG Website has created a lot of interest and demand in Europe, German, Australia, UK, US and PNG.
The Reformation 500 years stamp is themed, “Liberated by God’s Grace” and has been described by chairman of Lutheran 500 years Reformation committee, Kingston Alu as a, “great and special moment” for the church.
“This will show other Lutheran communities around the world that we have also taken part in celebrating the 500 reformation anniversary”.
Mr Gumaru said at the end of the year Post PNG also produces an annual stamp album containing around 10-12 stamps issued with all the stamp background and may be good souvenir or a gift pack to give a loved one during this festive season.

The Govt’s 100 Day Plan Expires Tomorrow

BY GORETHY KENNETH  : Post Courier

 

The Government’s 100 days 25 Point Plan expires tomorrow (Tuesday) with most of the proposed projects proactively undertaken, Treasurer and Deputy Prime Minister Charles Abel have said.

And in light of prevailing circumstances the 100 days 25 Point Plan was and is intended to demonstrate proactively and inspire confidence and kick-start the Alotau Accord II by undertaking specific activities around.

“Not so long ago I stood here and delivered the 2017 Supplementary Budget that was Point 1 in the 25 Point 100 Day Plan to kick-start the Alotau Accord ll of this coalition government.

“The 2018 Budget our first substantive annual budget, is Point 2 of the 100 Day Plan, and will be another illustration of our intention to deliver on our promise to maintain fiscal discipline, grow our revenues, strengthen our economic base, improve governance and act strategically,” Mr Abel said.

“Our Government has taken stock following the national elections through a consultative process of engagement with stakeholders from Government, the private sector, development partners and community-based organisations.

“This has been important in helping guide our interventions, and in the spirit of partnership we will continue this open engagement.”

“These activities obviously roll into Points 1 and 2 of the 25 Point Plan which are the 2017 Supplementary and 2018 Budgets.

“The intention in Points 1 and 2 was to maintain fiscal discipline in the light of the prevailing difficult circumstances in terms of our budget parameters of a 2.5% fiscal deficit and debt to GDP of 30% so as not to put more stress on government financing and the economy.

“A number of measures were undertaken to maintain this discipline but primarily as per Point 4, and thanks to the understanding of Honourable Members of this Parliament, the Service Improvement Program was reduced in 2017,” he said.

Here’s how the 25-Point Plan was carried out and is being implemented now:

Point 3 was related to payroll strengthening and the OSPEAC (Organisation Staffing and Personnel Emoluments Committee) has been reactivated and is progressing a payroll audit and cleansing exercise and the MD registration requirement as explained by the Minister for Public Service in Parliament. This is in response to the primary cost escalation factor of Government which is the unsustainable growth in personnel emoluments.

Point 5 was for:

  1. i) The drawdown of the balance of the Credit Suisse loan of which two technical requirements will have been met following this budget session enabling the final balance to be drawn.
  2. ii) To access World Bank and ADB budget support funding for the 2018 budget. This has been achieved following my trip to Washington where the World Bank provides US$100m for debt restructuring in 2018 and another $100m in both 2019 and 2020. The A08 is also providing budget support commencing in 2018 for the health sector of up to US$300m commencing in 2018. These measures provide financial resources on good terms and bring in foreign exchange.

Point 6 was for:

  1. i) Oil Search to provide a minimum of 50% of the crude oil needs to the Napanapa Refinery and in Kina terms. This has been achieved through an agreement and is happening.
  2. ii) Transition to gas-powered electricity the Pom Gas 58MW electricity project has been approved by Cabinet and has commenced construction to provide the cheapest in country power source using our own gas and all sales denominated in Kina. The new power plant will be owned by Oil Search and Kumul Petroleum with shares to be taken up by MRDC. The availability of domestic gas can catalyse other gas-powered initiatives.

iii) Rice production the rice quota scheme has been delayed and 3 large scale rice projects are being developed with 3 separate private sector partners with potential support in the 2018 budget through the Agriculture Commercialization Fund.

  1. iv) The Bank of Papua New Guinea intervention into the forex market with US$100m is done. The BPNG is also conducting a review of all foreign currency accounts and the obligations of those account holders, particularly resource companies to remit excess funds back to PNG.

Point 7 for non-tax revenue collecting agencies to remit 90% of their revenues to CRF has commenced with some immediate action with specific agencies and will be reinforced by the Public Money Management Regularization Bill 2017 approved by Cabinet and to be tabled in conjunction with this Budget.

Points 8 and 10 relate to tax regime reform and this is being managed through the new Medium Term Revenue Strategy, developed in conjunction with the IMF and a new Tax Administration Bill which I will bring shortly. Measures will commence in this budget to tidy up the tax code and the BPNG, lRC, IPA and commercial banks are cooperating to enforce compulsory Tax Identification Number requirement for opening bank accounts. The commercial banks have agreed to provide information to the lRC regarding bank accounts being operated in a business manner for further scrutiny.

Significant funding support is provided in the 2018 budget for both the IRC and Customs to boost capacity against quantified additional revenue collection.

Point 9 was the establishment of the task forces for the IRC, Lands and the Customs and Illicit Trade. Funding has been provided in the Supplementary Budget and the Attorney General, Labour and immigration Ministers are leading the Customs and illicit Trade, Lands Minister the Lands task force and Treasurer the IRC task force.

Point 11 is for the progress of some significant resource development projects and; Wapi Golpu, PNG LNG expansion, Papua LNG is all on track for early works, pre FEED or FEED in 2018. Western LNG has announced pre FEED works last month.

Point 12 is for the launch of the new Australian DFAT grant-funded projects; the PNG Australia Economic and Social infrastructure Program and ANGAU Hospital re-development design are still pending, and the TB Project co-funded with the World Bank has had the financing documents executed already.

Point 13 is the power projects;

  1. i) the 58 MW Pom Gas project construction has begun. ii) the 30MW PNG Biomass Project in Markham with Oil Search is in progress.

iii) the Ramu 2 180MW Project has had commercial close via a Cabinet decision but

is pending financial close due to certain conditions precedent. iv) Naoro Brown River Hydro Project is progressing with funding from the World Bank.

  1. v) Hela Gas power solution is being negotiated with Exxon Mobil and Oil Search.  In the meantime, funding is provided in this budget to pull the power “”9 from Mendi to Hides to provide the missing power and NBN telecommunications link to access power to the communities from the Ramu Grid and surplus from the Tari existing generator.

Point 14 is certain high impact projects:

  1. i) the international submarine cable that the Australian Government has now offered to fund from Sydney to Port Moresby and Port Moresby to Honiara. PNG will own these 100% and 50% respectively and will substantially increase reliability and lower the cost of data into PNG some 25 times.  In the Pacific Marine, Industrial Project has had a new financing agreement sign with the China EXIM Bank, the Sepik Plains agriculture project, together with Baiyer Valley and the Centre.

Plains are identified for large-scale rice production as described earlier.

Point 15 is the commencement of the US$1 billion upgrade of the Highlands Highway of which the Project Management Unit has been established at Works and contracts have been advertised for supervisory contractors. Work will commence in 2018.

Point 16 is the Gerehu 38 Affordable Housing Pilot Project where 1,762 allotments are being made available free to qualifying citizens. The earthworks have been completed and power and water services are now being constructed. Together with the concessional funding at BSP this will make housing accessible to ordinary Papua New Guineans and drive construction and employment. It can provide an example to duplicate in other centres.

Point 17 is for the commencement of the new Enga Provincial Hospital construction and Mount Hagen Hospital PPP redevelopment plan in 2018.

Point 18 is for the ceasing of closed tender financing which Cabinet has approved and the bringing forward the National Procurement Authority Bill which is ready to come back to Cabinet after changes were requested by Cabinet.

Point 19 requires audited accounts for SOEs and Statutory Authorities by mid-2018.

As Treasurer I will be tabling all the reports for the Agencies under my responsibility as soon as they are cleared by Cabinet.

Point 20 is to have all prescribed Boards appointed. This is underway particularly under the State Enterprises Minister and the Agriculture Minister.

Point 21 refers to freeing up resource landowner benefits; 1) the PNG LNG landowners vetting issues are ongoing but royalty payments to the plant site landowners have commenced and it is anticipated to shortly resolve the pipeline first payments and progress to the conclusion the clan vetting at the gas fields.

  1. ii) the OK Tedi landowner CMCA and Non-CMCA have funds held in Trust that has been cleared by the Courts and I am waiting for advice from the Justice

Department to authorise some of the pending contracted works against those funds.

Point 22 proposed to suspend proposed amendments to the Lands Act, the lPA Act, the Agriculture Investment Act, the Agriculture Administration Adjustment Act and the Mineral Resources Authority and the Mining Act to allow further consultation. This has been done.

Point 23 refers to the National Energy Authority Bill. This should refer to the Petroleum Authority Bill which is being finalised for Parliament.

Point 24 refers to progressing the Population Policy and funding has been provided in the 2018 budget under the Sustainable Development Program at Planning for this.

Point 25 refers to Medium Term Development Plan3 to be published in 2018. This is the 5-year development plan and indicator targets for the government of the day which will incorporate the United Nations Sustainable Development Goals.

PM O’Neill Highlights PNG APEC Business Opportunities in China

Press Release

Office of the Prime Minister
Papua New Guinea

 

The Prime Minister, Hon. Peter O’Neill CMG MP, has invited leading business leaders from China to join with other global leading business leaders at the APEC 2018 CEO Summit in Port Moresby next year.

Speaking alongside the Prime Minister of Canada, the Rt. Hon. Justin Trudeau, and Vice Premier of China, H.E. Wang Yang, at the Fortune 500 Global Forum in Guangzhou, China, this morning, the Prime Minister also promoted that key elements of the APEC 2018 agenda.

“Logistics and security preparations are underway for Papua New Guinea to receive the 15,000 delegates and businesspeople, as well as world leaders, who will attend APEC events next year,” the Prime Minister said.

“The first meeting of APEC 2018 actually began today in Port Moresby with the Informal Senior Officials Meeting, and I am advised that it is proceeding well.

“The 2018 APEC policy agenda is also evolving and has a focus on inclusion and the digital economy, which is important for people in all countries.

“The digital future, and the opportunities that are before us, are beyond anything we could have imagined just a generation ago.

“But access to these technologies must be inclusive.

“We need to make sure people right around our countries can have access to the Internet, online services and banking, particularly in remote and rural areas.

“We must endeavor to leave no-one behind, to be inclusive and share opportunity, and this is the focus of APEC work on these issues.

“As we continue to open our economies to increased trade and people-to-people contact, we there is a lot to be gained.”

In his address, and in a subsequent bilateral meeting with Vice Premier Wang, the Prime Minister highlighted the business opportunities that are evolving in Papua New Guinea for global investors.

“Papua New Guinea is not a country that will stand-by and wait for investment to come to us.

“We are proactive, and engage with partners around the world to highlight the opportunity that our economy offers.

“As Chair of APEC 2018, Papua New Guinea will be inviting thousands of senior business people to take part in APEC activities throughout the year, and this will provide and opportunity for them to see first-hand the economic potential of our country.”
—III—

Papua New Guinea’s Prime Minister, Peter O’Neill, with China’s Vice Premier, Wang Yang, and Canada’s Prime Minister, Justin Trudeau, at the Fortune Global Forum today in Guangzhou, China.

PM: Best Budget in 16yrs

By CLIFFORD FAIPARIK (The National )

 

PRIME Minister Peter O’Neill says the 2018 national budget, passed by Parliament last evening, is the best he has seen in the past 16 years, including when he served as the Treasurer.

He yesterday criticised the Opposition response to the K14.7 billion budget, calling on Shadow Treasurer Ian Ling-Stuckey to withdraw his “fake budget” remark.

“This is very disappointing as it will give a bad signal to our international investors. I’m calling on the Shadow Treasury Ian Ling- Stuckey to withdraw his statement,” he said.

“This is by far one of the best budgets that I have ever seen since I have been in this Parliament for 16 years now. That includes the budget that I have presented as well.”

O’Neill had served as a treasurer in the Sir Michael Somare-led government.

“I say this because this budget is now putting us on a course to make sure that this country’s economic base and growth will be such that it can be self-sustainable,” he said.

“So it is quite disappointing that some of the terminologies that he (Ling-Stuckey) used are unbecoming of leaders of this honourable house. We have to be careful of how we portray the image of our country, our parliament and ourselves.

“Sometimes for short political convenience and point-scoring we say things and do things that are not really in the best interest of our country. We have to be constructive.

“It’s always easy to have a blame-game going on in politics. But some of us want to move ahead and met the challenges ahead of us.”

Before it rose for the Christmas break, Parliament passed the Tax Administration Bill 2017 and the Public Money Management Bill 2017. Parliament will resume sitting on Feb 6 next year.

PNG Moving into a Cashless Society

By : Post Courier

 

Papua New Guinea’s remote areas are now moving from traditional communities to the modern economy in the space of one generation, which is an enormous challenge.

APEC Minister Justin Tkatchenko said advances in mobile phone technology were already enabling people in Papua New Guinea and around the world to manage their finances without having to carry cash.

And this will be the topic of discussion in today’s session, with the aim to address the challenges PNG faces, and to develop solutions that authorities and its government can apply in communities throughout the APEC region.

“I am particularly interested in looking at how our economies can move to a cashless society – using modern technologies,” he said.

“Advances in mobile phone technology is already enabling people in Papua New Guinea, and around the world, to manage their finances without having to carry cash.

“Our people can pay their electricity bills and make purchases simply by using their mobile phones. But for economies like Papua New Guinea, particularly in remote areas that are moving from traditional communities to the modern economy in the space of one generation – this is an enormous challenge.

“That is the whole point of this symposium today – to address the challenges we face, and to develop solutions that we can apply in communities throughout the APEC region. I am confident that this symposium, with its impressive line-up of subject matter experts, will set the foundations upon which we can advance APEC’s ongoing agenda.”

“Then for upcoming SOMs, I hope you can see other locations and people around Papua New Guinea – from the Highlands to the Islands.

“May you have fruitful discussions during the course of the following year.

“I look forward to welcoming you and your leaders in November 2018 to Port Moresby for the Leaders’ Summit.

“Our Melanesian culture dictates that we make your stay here in Papua New Guinea as comfortable, enjoyable and productive as possible.”

O’Neill Warns Contractors Over Funds

By : Post Courier

 

Prime Minister Peter O’Neill has warned contractors that they will be held accountable for every toea in public funds they are given for construction of public infrastructure.

He was referring to classrooms throughout the nation.

He said with more schools and classrooms being built, contractors will be held accountable for every toea in public funds they are given for construction.

That is the clear message delivered by Mr O’Neill when opening a new classroom building in Kimbe, West New Britain Province.

“Continuing to improve education is our government’s commitment to our future generations.

“Better education provides the greatest hope for our children, particularly in remote and rural areas.

“In 2018 we have allocated K1.29 billion for the education sector, which is nearly 9 per cent of National Budget. This is an increase of 13 per cent from the 2017 Supplementary Budget.

“We have placed more than an additional one million students in school over the past five years, and now we are applying additional focus on improving the quality of education.

“Now we are building more schools and classrooms.”

The Prime Minister issued a stern warning to all companies involved in the construction of school projects, that public money will be fully accounted for and documented.

“Many times the Government has given contracts to certain contractors who fail to complete their jobs and run off with payments.

“This must stop and we are looking back at previous contracts to identify any irregularities for further investigation.

“It is vital for our children to have proper buildings to learn, and any time there is fraud this deprives our children of their right to education.

“We also have seen a number of builders that have delivered high-quality school buildings and their commitment and accountability is helping us to advance the Nation.”

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