Tag Archives: 2018 Budget

Each of 6000 wards to get K10,000

THE Government has allocated K60 million in the 2018 national Budget for developments in wards.

Provincial and Local Level Government Affairs Secretary Dickson Guina said K10,000 was allocated to each of the 6000 wards for development projects.

“The only way for the country to be developed is for development to take place at the village level,” he said.

Guina said during the launching of the department’s 2018-2022 corporate plan in Port Moresby that the government had made the right decision to allocate the funding.

“Unless we change our villages, we will never change this country. This is what this department is doing,” he said.

Guina said the government policies had changed to focus on the districts.

Meanwhile, Inter-Governmental Relations Minister Kevin Isifu has thanked the Australian government for supporting the preparation of the plan.

“I expect the other government agencies to implement this plan. Let us now change to frontline services delivery. We must see development in our villages,” he said.

Source: The National

The Govt’s 100 Day Plan Expires Tomorrow(19th December 2017)



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:


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.


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:


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.


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.


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;


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.


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:


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;


i) 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.


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.


Source: Post-Courier

PM Responds To Police Budget Cuts


Budget cuts to priority sectors should not be taken literal as perceived by the numbers presented in the National Budget.


Prime Minister Peter O’Neill was responding to questions raised on the cut of the budget for police in particular with law and order issues pressing for the country.


Police budget in some areas were cut, but you know that both district and provinces Services Improvement Programs, law and order has got 20% of the Budget he said.


“The funding is still there but it has been prioritized to the other areas of the law and order sectors,” said O’Neill.

Source: Post-Courier

Fire Service thanks Government for K18mil allocation

THE PNG Fire Service has thanked the Government for the K18 million allocated in the 2018 Budget.
PNG Fire Service chief Bill Roo said the fire authority was happy, and would upgrade its existing fire stations and build new ones.
Roo said over the years, the fire service managed to use whatever funding it was allocated and continued to provide its services.
“Even if we get a cut or an increase, we use whatever is given,” Roo said.
“This year, we have received an increase and we thank the Government for the support.”
Roo said they were willing to work with provincial governments to establish fire services in the provinces.
“We are also looking at building our capacity, get new fire trucks and fix the old ones,” Roo said.
He said the fire service had 14 stations – four in the National Capital District and 10 in other provinces.
“We are looking at upgrading these existing ones and also build fire stations for the other 12 provinces,” Roo said.
“Fire service is essential and we are looking at improving our service delivery.”
Roo said they were also up-skilling officers and upgrading fire service equipment in preparation for the Asia-Pacific Economic Cooperation summit next year.
The fire service will be celebrating its 50th anniversary tomorrow at the Port Moresby Fire Station – the first fire station in the country.


28 November 2017

Source: Post-Courier

Prime Minister Peter O’Neill said the 2018 National Budget is based on common sense and restraint, and builds on the proactive manner in which the Government has managed the recent global economic pressures.


“When we formed the Government in Alotau, we promised to deliver stable and sensible administration, and you can see that commitment evident in this budget,” the Prime Minister said ahead of the tabling of the budget by the Treasurer in Parliament this week.


“In this budget, there will be no cuts to our core national priorities, particularly education and healthcare.


“We will deliver a productive and safe APEC summit in 2018 through modest expenditure that builds capacity and leaves the legacy in our Government agencies.


“Our Government will also continue to build more efficient public services that are increasingly capable while being less expensive to operate. I am looking forward to sensible debate about the budget that is based on fact and not misinformation.”


Mr O’Neill said while pressure on the economy from global factors is easing, the Government will continue to ensure fiscal discipline is maintained.


“There is no doubt that we are seeing improvements in the global economy, and this is reflected in positive indicators in our own economy.


“Commodity prices are returning to healthier levels but there is still a long way to go before we can relax.


“When global conditions were at their lowest, our Government managed the challenges we faced and this has placed us in a stronger position today. We continued to maintain positive economic growth through a program of reducing spending, managing expenses and rescheduling some infrastructure construction,” the PM said.


“It is because of our responsible approach that we can deliver the budget that will be presented to the Parliament this week.


“The Treasurer, working with all Cabinet members, and Treasury officials, has developed a very responsible budget that takes account of current global challenges.


“I congratulate our Treasurer and Deputy Prime Minister, Charles Abel, and look forward to the delivery of his first budget speech on Tuesday.”