Tag Archives: Infrastructure

Pom Gen to receive K100 million

THE Port Moresby General Hospital will receive K100 million of the K1.5 billion health sector allocation in the 2018 national budget, Health and HIV/AIDS Minister Sir Puka Temu says.
Sir Puka said they had been allocated 100 per cent funding but the challenge was how to implement the budget.
“I’ve been in this hospital most of my life and I’ve seen transformation under the new board. The highest institution in healthcare is the hospital,” he said.
“This is to bring the private sector skill, experience and acumen into the public sector. The things they lack are because of the Budget issues.
“I was health secretary before and I would beg the government to fund our health plan below 60 per cent. It’s now 100 per cent funding.”
Sir Puka said the key word was partnership and he urged the communities to help the management of the hospitals by doing their part.
“Don’t throw rubbish everywhere. Listen to security guards,” he said.
“Visit patients on time with one guardian. Doctor-patient relationship must be improved. Prescription practices must be good and patients must complete their doses to avoid drug resistance.”

Source: The National

Power Project Welcomes LO Participation

Source: Post-Courier

 

 

Landowners can be given the first right of refusal as equity shareholders in the proposed US$120 million (K375 million) Port Moresby power project.
This is according to Kumul Petroleum Holdings Limited (KPHL) managing director Wapu Sonk, who says participation by resource landowners in the project was welcome.
He says this can be achieved through equity participation by the Mineral Resources Development Company (MRDC) in NiuPower Limited.
NiuPower is the entity created by KPHL and Oil Search Limited to underwrite the US$120 million gas fired power station.
LNG project landowners were angered at not being part of the project and threatened to disrupt the US$19 billion investment demanding they own the power station.
Hela landowners said that they had been denied the opportunity to participate in the new project, which will use gas from the PNG LNG liquefaction plant near Port Moresby.
“NiuPower has always been keen to bring in additional equity partners.
“Of course any equity participation must be on commercial terms consistent with the terms agreed between NiuPower and PPL.
“Otherwise there will be substantial increases in the cost of power to PPL and its customers,” Mr Sonk said.
He said Kumul Petroleum and Oil Search had previously invited the State owned MRDC to take equity in NiuPower’s investments to ensure landowner participation in the development of the Port Moresby power station.
“This offer remains open and NiuPower is awaiting engagement from MRDC to discuss the commercial terms for equity participation.
“We, therefore, urge landowners to work constructively with MRDC to achieve their participation in this milestone power project,” he said. Mr Sonk added that following the establishment of the power station, generation requirements for the National Capital District will be covered for a number of years.
“With the creation of NiuPower and the development of the gas fired Port Moresby power station, Kumul Petroleum and Oil Search directly contribute to the government’s energy objectives of electrifying 70 per cent of PNG by 2030, today estimated at around 10 per cent.
“We recognise that electrifying PNG is a development game changer that will improve the lives of our people in line with Vision 2050,” Mr Sonk said.

Photo Courtesy: Loop PNG

Construction of college facilities underway

WORK has started on the construction of facilities for the Enga Teachers College through a K33.5 million tax credit scheme funding from the Porgera Joint Venture.
Executive managing director Richmond Fenn said the mine was proud to partner with the government through the tax credit scheme arrangement.
“The province is fortunate to have a mine in this region. But I want to thank the Governor (Sir Peter Ipatas) again because there are few people that have as clear a vision about education as he has,” he said.
“And to think that he has been promoting education for 20 years, that is an amazing vision.
“It takes dedication to make it come true.”
The project involves the construction of three-storey 144-bed female dormitory and four-storey 192-bed male dormitory.
There will also be a mess hall with a 400-person sitting capacity.
Fenn said they were not only trying to build colleges but these colleges would eventually provide degree programmes.
Cardno PNG is the design consultant and HBS PNG will build the facilities. The project is expected to be completed in February 2019.

PNG moving away from tied loans

Source: Loop PNG

10/ 12/ 2017

Acting Prime Minster, Charles Abel, says the Government is moving away from loan financing with tied conditions.

He said the Government has learned from experience and is now negotiating loans which have better terms for the country.

 

He said this following the signing of a concessional loan with the Czechoslovakian EXIM Bank for K172 million (Euro 55 million) for the Boram Hospital Upgrade Project.

 

Abel said given the experience of the China EXIM Bank loan, which had tied conditions, the PNC-led coalition is now working to move away from such arrangements.

 

He said the Government is now looking more at financing arrangements, which are not tied and will also have a trickling effect on the economy.

 

“We want to begin a process where we want to move away from what we call tied bilateral financing. Some of the conditions that come with these loans require that a company must come from that particular country, so we’re doing our best to move away from that.

 

“We want as much as possible to have open tender, and to have Papua New Guinean companies participate so that more of the indirect benefits from these financing can stay in Papua New Guinea,” he said.

 

Another aspect of the financing arrangements being explored by the Government is concessional loans with relaxed repayment terms.

 

The Czech EXIM Bank loan of K172 million for the Boram Hospital is one such arrangement, he said, which has 2 percent interest and 15-year repayment period with a three grace period.

 

“How we improve these terms so that we have more participation from local companies is very important to us,” Abel said.

Photo Credit: ABC News Page

 

Author: Cedric Patjole

Parkop: Resident Take Ownership Of City

 

Source: Post-Courier 


BY MIRRIAM ZARRIGA 

Residents of Port Moresby have been asked to take ownership of the city.

 

NCD Governor Powes Parkop in a fiery statement told residents of six mile not to be complacent and wait for hand outs but to take ownership of the many infrastructures given by their members and work towards sustaining their livelihood by making use of the services.

 

SME (Small Medium Enterprises) is a vision shared by all members including the Prime Minister Peter O’Neill, we do not want people working towards earning money for a day but we want them to work towards long term goals Governor Parkop said.

Basil planning big energy push

Communications, Information Technology, and Energy Minister Sam Basil plan to seek the National Executive Council’s approval to roll out Bulolo’s sustainable energy programmes throughout the country.
“I will also seek off-grid solutions that can be provided by investing in micro-hydro, solar, wind small-scale geothermal, biomass and smart technologies like in my electorate,” he said.
Basil was speaking during the opening the first Ramu grid round-table workshop for key stakeholders of the Ramu Power Grid on Friday.
Themed “Towards accessible, reliable and affordable electricity, as a key enabler for economic growth and prosperity”, the workshop was aimed at providing the participants the opportunity to describe their current consumption levels and future demand requirements and what they were willing to pay for electricity.
Basil said that the Government’s recent undertaking as outlined in the Alotau Accord 2 was to create an environment in Papua New Guinea where it would continue to develop and maintain key productivity infrastructure assets, including utilities such as electricity to create a public-private partnership in the energy sector to improve and upgrade provision of accessible, reliable and affordable electricity in PNG.
“The National Development Strategic Plan 2030 projects that by the year 2030, 70 percent of the population will have access to electricity in PNG,” he said.
“I consider this to be a major challenge, however, I believe that an initiative such as the National Electricity Roll Out Plan (NEROP) has the potential to contribute significantly to this projection if resourced and implemented.
“NEROP requires government funding, however, for this to happen, NEC must sanction this plan. I intend to take NEROP to Cabinet for consideration and approval.”
He said the Ramu grid was the largest of three systems in PNG covering seven provinces (Morobe, Madang, Eastern Highlands, Chimbu, Western Highlands, Jiwaka and Enga) with 1.1 million households within 20km of the current grid and would drive the economic heartland of PNG.

PNG Logistics To Benefit From Transport Infrastructure Upgrades

4th December 2017
[This Papua new Guinea economic update was produced by Oxford Business Group.]
 
 
In June the Asian Development Bank (ADB) approved $866.5m in funding for the upgrade and maintenance of the Highlands Highway, one of PNG’s main logistical arteries.
 
The project will see the rehabilitation of large stretches of the 1200-km route, improving connectivity and road safety. As well as ADB financing, funding will come from other development partners and the PNG government, bringing the overall investment to just over $1bn for the 10-year project.
 
The upgrade has national importance, as the highway runs from the main port of Lae through mountainous regions and into the Enga Province, serving around 40% of the population.
 
In addition to roadworks, the investment programme will support the establishment of logistics platforms and services for agricultural production, as well as help modernise other forms of transport infrastructure.
 
 
# Highway work to support logistics and export growth#
 
Improved access to the Highlands region should support the growth and competitiveness of the logistics sector, and back up government plans to boost exports.
 
At present, the imbalance between inbound and outbound cargo has been cited as a key contributor to slow turnaround times and the high costs endured by freight carriers.
 
Many planes and ships bringing goods to the country often leave either empty or carrying exports at volumes lower than their capacity, which affects local logistics costs.
 
According to the World Bank, the average cost of exporting goods from PNG was $1335 in 2014, the most recent year for which figures are available, considerably higher than Singapore ($460), Indonesia ($572) and Australia ($1200).
 
To address this issue, it is hoped that improvements to national transport infrastructure outlined in the long-term development plan Vision 2050 will pave the way for the cheaper transport costs, which could unlock growth opportunities in targeted agri-processing and industrial sectors.
 
“The upgraded Highlands Highway will not only improve connectivity, but also help drive inclusive economic growth,” David Hill, country director of the ADB, told OBG.
 
“Although more infrastructure investment is needed to improve transport links across the country, the recently approved 10-year Sustainable Highlands Highway Investment Programme will connect PNG’s Highlands – a region with a lot of mining activity and vast opportunities for agri-businesses – with the country’s most important port, Lae, which was recently upgraded by ADB financing.”
 
 
# Extraction industries continue to provide short-term logistics opportunities#
 
While government plans to improve infrastructure and diversify the economy are not expected to translate into benefits for the logistics sector immediately, in the near term operators stand to receive a boost from proposed projects in the extraction industries.
 
Such projects are major drivers of logistics sector growth, according to Mark Schell, country manager of international carrier DHL Express, who noted that logistics services experienced high levels of growth during the development stage of recent large-scale liquefied natural gas (LNG) undertakings, only to fall back to pre-construction levels once work was completed.
 
“When these large projects are under development you can expect growth of 10-40%; but once completed, the following year can see a reduction of 10% year-on-year,” he told OBG.
 
In terms of potential developments, French energy giant Total is reportedly looking to further develop reserves in the Elk-Antelope gas field, while ExxonMobil is assessing the feasibility of a proposed third LNG train at the PNG LNG project.
 
In the mining industry, the planned $2.3bn Wafi-Golpu copper and gold mine is expected to come on-line in 2020, and production at the Chinese-backed Frieda River copper-gold project in the Western Province is slated to start in 2024. 
Via: Loop PNG
 
 
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