Category Archives: Economy

Cost of rice will not increase: Trukai

Source: Loop PNG

 

PNG’s leading rice supplier, Trukai Industries, says it will not increase the cost of rice in the country.

 

Trukai Industries CEO, Greg Worthington-Eyre, said while Trukai understands and is deeply concerned over the current economic conditions in PNG, and the pending inflationary impact of fuel price increases, currency devaluation and reduced consumer spending power, it has no plans at this point of passing on the impact of these issues to PNG consumers.

 

Worthington-Eyre says Trukai’s focus on food security, which includes affordability and quality, is at the forefront and they will be making every effort to support the people of PNG.

 

Trukai is the oldest and largest rice distribution and manufacturer in PNG, having been established in February 17th, 1970.

 

Apart from rice, they also supply stockfeed.

Author: Charmaine Poriambep

APEC Meet To Boost Local Businesses

Source: Post-Courier

 

BY MATTHEW VARI

The APEC summit this year is expected to boost the country’s economy through direct spending anticipated at K200 million by more than 15,000 international delegates.

 
This is according to APEC PNG 2018 Co-ordination Authority CEO, Christopher Hawkins on the gain for local businesses during the summit this year.

 
“There is a few different areas for business, one is throughout the year with more than fifteen to eighteen thousand delegates coming, and that is not just the people attending the meetings, but those who arrange for their delegations and ministers and leaders, we estimate there will be a cash injection of around K200 million straight through that,” Mr Hawkins said.

 
He said the estimate covers airfares, accommodation, setting-up temporary offices for delegates to support their ministers, presidents and prime ministers.

 
Mr Hawkins said the spending indicated in the 2018 Budget appropriation of K300 million will also be spent in the local economy, with a major portion also focused on security preparations for that budget.

 
“Then there is the direct spending. We break that into consumables for the meetings that includes booking venues for meetings, the papers used to the signage to bottle of water to the transportation around the city.

 
“That comes out of the APEC budget this year, but don’t forget the big part of the APEC budget is security. That is investing in capacity we should have been advancing many years ago and now our government is in preparation for APEC investing in that capacity.”

 
Mr Hawkins said progress into the year will see more and more tender opportunities posted on the APEC tenders website.

 
“Areas like production of shirts hospitality and catering. We engaged a lot last year that went up on the APEC tenders website.”

Deal made for fishing businesses to recieve loans

By MARK HAIHUIE 


THE National Fisheries Authority has paid K1 million to the Peoples Microbank Limited as part of an arrangement to provide a loan facility to fishing businesses.

 
Bank’s head of credit Danny Koka said it was an installment of the K5 million agreed to in 2014.

 
Koka said the agreement with NFA since 2014 was the commitment of K5 million which would be used as a revolving fund for fisheries business loans.

 
“So far they have given usK3 million and from that we have already lent out K4.2 million to customers,” he said.

 
“The maximum we disperse is K25,000 for fisheries-based business such as to those who want to buy dinghies for their businesses or equipment for fishing and across a range of needs.

 
“This next installment will go a long way in supporting the success we have had with the loans from this arrangement.”

 
NFA provincial support and industry development executive manager Welete Wararu said similar arrangements were in place with other organisations.

 
She said it was important to have timely reporting on funds used to enable funding from NFA.

 
“We are not in the banking business but rather come in with funding to create an enabling environment for fisheries businesses to get funding with ease,” she said.

 
“It is important for us at NFA to have reports on the funds so that funds committed through our agreements either for PML or others to be given early so that we can maintain the support for those in the fisheries sector by getting the funding.”

Airline hails increase in transport subsidies

ONE proposed Government action that should clearly benefit PNG Air is the proposal to increase subsidies for the transport of perishable agricultural products in the country, says chairman Murray Woo.

 
He said this was a sensible economic policy, promoting growth in the agricultural sector, and potentially leading to export markets as well as some import substitution.

 
“It fits particularly well with PNG Air’s decision to convert one of its Dash 8 aircraft to a freighter configuration,” Woo said. “Increased vegetable carriage would provide a steady revenue stream from this aircraft, importantly on flights into Port Moresby.

 
“The aircraft is also able to carry relatively large one-off loads by charter, and to make other regular cargo runs.

 
“The board has not been content to rely on re-fleeting and an upturn in the PNG economy alone to improve the company’s performance.”

 
He said Nasfund, as one of the airline’s major shareholders, had commissioned a report on the company’s business and strategy from the major aviation consultants Aviado.
“The board looks forward to seeing what they may recommend,” he said.

 
“The company has also been the subject of a report from board and governance consultants appointed by the Bank of PNG to look at the board functioning and corporate governance of all companies in which superannuation companies such as Nasfund have substantial holdings, and some recommendations from those consultants to further improve the company’s governance are being implemented.

 
“While there are these positives, certain challenges remained in 2017 due in particular to the weak economic conditions and deteriorating exchange rates.

 
“The falling world commodity prices of the past four years have seen exploration activity remain low and as a result the charter business was flat.”

 

Source: The National

Mori invites NZ to invest in agro sector

COMMERCE and Industry Minister Wera Mori has invited New Zealand to invest in Papua New Guinea’s agriculture sector.

 
Mori went to New Zealand to seek investments in the renewable sector, seek support and networking between co-operatives in PNG and New Zealand in agro industries.

 
He held talks with Cooperatives Business New Zealand, Fonterra Dairies and the New Zealand Business Council.

 
PNG provides the largest market for Fonterra’s dairy products.

 
Mori said Fonterra was looking at increasing its global market share, and was an opportunity for PNG to create the incentives which would attract such a large global player in agribusiness and co-operatives in PNG.

 
Fonterra produces dairy products in New Zealand with 10,500 co-operative farmers.
It is willing to extend its social responsibility to PNG through its one-milk one-child per day programme next year.

 
“Fonterra Dairy produces 22 billion litres of milk annually to supply two billion of its customers around the world,” Mori said.

 
“Such opportunities should be considered in the Sepik plain, Markham Valley, Central and parts of the Highlands.”

 
Co-operative Business New Zealand chief executive officer Craig Presland invited Mori and other government institutions to participate at the week-long summit on Feb 27 next year in Auckland.

Source: The National

Photo Credit: Loop PNG.

GAME CHANGER

 

 

DEVELOPMENT in one of Port Moresby’s iconic area, Paga Hill, will be a “game changer” for the Capital city.

That’s from NCD Governor Powes Parkop when witnessing a historic agreement to begin stage one of the development on Paga Hill.

Governor Parkop, and Lands and APEC Minister Justin Tkatchenko, witnessed the signing by Paga Hill Development Company, and its Advisory Board, who will provide AU$20 million in offshore funding to commence construction of Stage one.

Paga Hill Development Company, led by its chief executive officer Gudmundur Fridriksson, signed the agreement before the two NCD MPs that will see the development of 1.7 hectares waterfront site, which will include restaurants, cafes, retail, commercial and residential apartments.

Advisory board director Peter Barge, the world renowned Australian property executive who was involved in Sydney’s Darling Harbour, Macau, Dubai and other major developments as Jones Lang La Salle Asia Pacific chairman and CEO, flew into PNG from Sydney this week to complete the agreement.

Mr Barge, who was joined in Port Moresby by fellow board members David Galvin and Simon Dulhunty, said the vision for Paga Hill “will help transform a city and country into an emerging tourism destination, while creating many local jobs and boosting the national economy”.

Governor Parkop said his vision is for “Port Moresby to be a model city in the South Pacific, leading the way in tourism and business”, with Paga Hill a key part of this strategy.

He is impressed to see the project now moving from design to construction.

Minister Tkatchenko expressed his appreciation at the amount of open space and discussed the opportunity of establishing a joint working group to ensure the best possible outcome for city and residents, as well as the developers.

Civil works on stage one are well underway with actual construction to commence in March 2018, with Mr Fridriksson saying Stage one will set the scene for what’s to come at Paga Hill Estate, “with waterfront retail, dining and entertainment, it will be an ideal place to live, work and play.”

Source: Post-Courier

Govt signs deal to grow cotton

THE Government’s fact-finding mission to India has resulted in an agreement on mutual agricultural investment prospects.

 
Agriculture and Livestock Minister Benny Allen said a draft agreement was with the government of India and would be sent to Papua New Guinea for further input and signing.
Allen said a new agriculture prospect for PNG highlighted in the draft was the commercialised farming of cotton in Papua New Guinea.

 
He said apart from cotton, commodities such as wheat/grain, rice and livestock were prospect areas for PNG.

 
Allen said it would seek to capture two focus areas where the Indian government could assist agriculture development in PNG.

 
They include the development of a central seeds bank for PNG and research and technology assistance for the PNG National Agriculture Research Institute.

 
Allen said he proposed to the director of the Indian Agriculture Institute to have Papua New Guineans undergo training at the institute.

 
Also, an agriculture machinery manufacturer has shown interest in training mechanics in repairing equipment and also set up shop in Papua New Guinea for businesses to buy equipment.

 
Moreover, Allen said Papua New Guinea has much to learn from India as it has developed largely due to agriculture.

Source: The National

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