P&O Maritime Logistics, a leading provider of maritime services globally, has delivered the second new vessel- the “Fly Valiant,” designed specifically to service Ok Tedi Mining Limited (OTML) and its operations along the Fly River in the Western province. The Head of Australia and PNG P&O Maritime Logistics Mr. John Connor said the vessels were designed specifically to meet the requirements of the OTML supply chain. “This ship along with the other ships of the P&O fleet provide good support for OTML and in doing so, support the development and prosperity of PNG and in particular of the Western province,” said Mr. Connor. He said with no road links to Kiunga, the marine assets engaged by OTML remain vital elements of their supply chain. “Just as with her sister ships, P&O has used its long-term expertise to best service the routes and to help in movement of copper to the global market while also providing logistics support to OTML.” He said the partnership between P&O and OTML provides them a unique opportunity to offer insight into the development of these vessels so to ensure they are fully equipped to safely navigate through the challenging environment. This is because P&O has been working in the country and on the fly river for 30 years. During that period, the company has developed a wealth of expertise in the local area. “We are proud to have supported OTML’s operations and the positive impact on the lives and communities that have benefit through the products of the company.” Meanwhile, OTML Managing Director and Chief Executive Officer (CEO) Mr. Musje Werror thanked P&O for the new specifically designed vessel and said this will support OTML operations until 2032, or even beyond if possible, depending on the mine’s future operations. “We still have 200million tonnes of resource that is still going to be in the ground post 2032 and that can take us well into the 2040s, even 2050s,” he said. He added that the mine will not close in the near term as there is still life going into the future, but the challenge is managing the environmental impacts, which is how OTML treats and manages the tailings from the mine. This will mean P&O Maritime services will still be needed going into the future. The addition of the two new vessels, the Fly Enterprise and Fly Valiant, represented an extension of P&O Maritime Logistics and OTML’s long-term partnership, where the Dubai based maritime services company continues to leverage its expertise to bring value and efficiency to operations, while investing in the success of the Ok Tedi mining operation.

The controversial Additional Company Tax (ACT) imposed on BSP Financial Group Limited (BSP) by the government, has been paid out but it is currently being parked in an account with the Central Bank awaiting court proceedings after BSP filed an application with the Supreme Court on the constitutionality of the Tax. This was revealed just recently by the Group Chief Executive Officer (CEO) Mr. Robin Fleming when presenting BSP’s 3rd quarter results for 2022. “In relation to the additional company tax, BSP has and continues to progress its challenge by the Supreme Court. We’ve re-filed our application in May and the Supreme Court has been progressing and the next hearing will be relating to the standings of BSP and not to mention the interveners, which include the key superannuation funds as well as IRC (Internal Revenue Commission) and the Attorney General,” said Mr. Fleming. The application was filed under Section 18(1) of the Constitution and seeks to render the ACT unconstitutional and invalid. “In the interim, we put our K190million which was due on the 30th of September, into an escrow account with Bank of PNG with the agreement of IRC on the basis that it remains in that escrow account until such time the matter has been heard in the Supreme Court.” Meanwhile, the Tax applies a flat K190million on any bank that has over 40% market share of financial assets, which could only apply to BSP because the bank’s financial assets are over that percentage mark. The ACT applies to the following years to come, so that means that BSP is liable for another K190million on the 1st of January 2023. The main concern of BSP is that the more the bank pays this Tax, the interim dividend paid out to its shareholders, which includes the country’s superfunds, will continue to be reduced.  

BSP Financial Group Limited (BSP) coverage of its electronic banking service has reached over thousands of customers, both old and new, over the last three years linking customers even in rural areas to vital banking services, and the most used is the mobile banking service. The Group Chief Executive Officer (CEO) Mr. Robin Fleming said mobile banking service is top out of the other performing channels of EFTPOS and ATM. “Mobile banking has seen a lot of improvement and increase in transaction activating, especially for top up for power, top up for mobile telcos and transfers to other customers who are also on our mobile banking platform,” said Fleming. He also said BSP mobile merchant platform is a very easy to use way of undertaking transactions with merchants who are registered to mobile banking without having to use cash. Fleming also added that BSP just this week added Vodafone PNG to the bank’s top up merchants, which is a plus because of the reach now for BSP customers with an additional mobile service provider on board. According to the BSP 3rd quarter report presented just on Thursday, 33 million Mobile banking transactions were done in the quarter compared to card transaction with 10 million transactions, and ATM with 9 million transactions done in the 3rd quarter. “The ongoing strategy and desire and intent of BSP is to encourage to use transactional activities in channels which don’t involve queue up at the branch or to queue up at an ATM,” the CEO added. Mobile banking makes banking easy and safe with twenty- four- seven cashless payments and transfers; therefore, this has resulted in a lot more people now signed on for the BSP mobile banking service.

Vodafone PNG is quite a new mobile service provider in the Papua New Guinea market, but it is determined to make sure its reach covers the whole of the country. The communication company so far has over 300, 000 customers and its network coverage are live in National Capital District (NCD), Central, Morobe, Eastern Highlands, Western Highlands, Chimbu, Jiwaka, East Sepik and Madang provinces. Vodafone PNG Public Relations and Sponsorship Manager Ms. Charmaine ToRobert, said West Sepik and Milne Bay Provinces will connect soon to the Vodafone network. “We should be live in those areas by the end of the month, so we are going to be rolling out with different roadshows and registrations. By the end of the month, we’ll have towers there commissioned and the network live and running.” She added that the coverage for the two provinces once connected to the network, will initially be for the main provincial capitals only. “For starters, the coverage reach will be in the main town areas and then slowly go out to the rural areas just like how we’ve done in Wewak and Jiwaka.” Vodafone is expecting a good coverage and subscriber base once the coverage in these two provinces is fully up and running.

Vodafone PNG subscribers nationwide who bank with BSP Financial Group Limited, can now be able to access BSP banking services on their mobile phones. This was made possible today when BSP and Vodafone launched their partnership in mobile banking services using the BSP Mobile Banking USSD (Unstructured Supplementary Service Data) platform. Vodafone PNG Public Relations and Sponsorship Manager Ms. Charmaine ToRobert, said Vodafone customers can now avoid the long queues in the bank and the shops, make it easier to pay for easipay for electricity. “So, we a truly excited about the positive impact this partnership with BSP will have on the economy and stimulating business growth and connecting people and provide much needed opportunities to enrich the lives of everyday Papua New Guineans,” said Ms. To Robert. Vodafone is a new telecommunications company in Papua New Guinea (PNG), but it already has over 300, 000 customers and its looking to further expending its services in the country. Vodafone network coverage is live in NCD, Central, Morobe, Eastern Highlands, Western Highlands, Chimbu, Jiwaka, East Sepik and Madang provinces. West Sepik and Milne Bay provinces will be connected soon to Vodafone network. ToRobert said with this coverage, its vital Vodafone partners with BSP so that they customers have better access to banking service. “AS a digital operator, we are thrilled with this partnership as it enhances the experience for our customers by giving our uses not just a smarter way to bank, but a smarter way to bank all day, every day.”

The national government’s Special Economic Zones (SEZ) and donor support should be the assistance that is needed to ensure Western province progresses long after Ok Tedi Mining Limited (OTML) closes its operations. OTML Managing Director and Chief Executive Officer (CEO) Mr. Musje Werror, said the SEZ is one such benefit that would see sustainable growth in the province’s economy and improve service and development, as it will attract investments in the long run for the province. “Special Economic Zone, in terms of attracting more investors into the province, its going to be a critical part of government’s input into sustaining Western province beyond closure,” said the CEO. Mr. Werror said he met with Minister for International Trade and Investment, Richard Maru, and discussed this as to how this can take place in the near future. Werror said the government is looking at gaining assistance from the Japanese government to do overall economic plan for the country including Western province, which is something to look forward to. “I spoke with the minister, and he really wants to start off with Western province, on how the Japanese government through their team or agency can come in to help shape the future for Western province.” In addition to this, Mr. Werror said there are more donor partners in the province all looking at how they can assist the province. “They recognize that Ok Tedi is the focal point and one day with Ok Tedi gone, something must take place. So, that recognition is there so that’s another positive,” said the CEO. Meanwhile, OTML has about 10 more years left of mining life and after that, its closure and the benefits that go towards the resource landowners and the provincial government, will stop flowing as well

Local cocoa farmers in the East Sepik province are working towards having downstream processing for cocoa so that they can benefit more from the cocoas they produce. Mupa Cocoa Farming Founder and Director Mr. Sperian Kapia said that is one thing the farmers in Angoram district are doing with the help from partners like the European Union (EU). He said the farmers in the Yuat Local Level Government (LLG) want to establish a working downstream processing so to manufacture a semi- complete product to sell to the markets. “So, we want to produce powder (cocoa powder) in our villages so that we can sell and also add value to our product,” said Kapia. This is because with downstream processing, the farmers will do away with the middle- man or the buyer and make some good money from selling the powder directly to companies manufacturing finished cocoa products like chocolates. “We need to get them to downstream processing so that we give our farmers good prices so that the real farmers can enjoy the benefits.” He said in a village setting, some of the benefits this could bring about include access to better services like health and education. That is why the group of farmers is working on it and its getting better with the support of Streit PNG Program funded by EU. “Currently, there are 1, 500 seedlings in the nursery to distribute in the Yuat LLG by December. Our target is to get 250, 000 trees so that when we have the downstream processing facility, the consistency of supply will always be there,” he said. Mr. Kapia was at the 2022 EU- PNG Trade and Investment Conference in Port Moresby recently as a guest invited to showcase his cocoa products, which includes cocoa beans and even the finished product, chocolate. He said it is such events that expose local cocoa farmers to markets, even overseas markets and he was privileged to showcase products produced by his fellow cocoa farmers in East Sepik province.

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