Tag Archives: Resources

Commodity Boards warned

 

23rd November 2017.

Commodity Boards in PNG have been warned to perform or else will not receive funding from 2019 onward.

 

Planning and Monitoring Minister, Richard Maru, issued the warning on Wednesday during the inaugural National Agriculture Summit.

 

Maru said he wanted to see a high performance culture as well as good governance practise instilled in all commodity boards.

 

He said millions of kina had been squandered by some commodity boards despite continuous government funding over the years.

 

Minister Maru said under his watch, any commodity board that does not perform well and is not accountable for the funds it uses will not receive any further funding after 2018.

 

“We must overhaul the boards. And we will only support that boards that perform deliver value, have a good corporate governance structure, and can show us the funds are managed well.

 

“Only performers will continue to receive government funding.

 

“If we are funding you and your industry is declining in output and production we have a problem. We should get that resource from you and give it to another sector that’s performing,” said Maru.

-Author: Cedric Patjole

-Via Loop PNG.-

National Agriculture Summit Underway

The Inaugural National Agriculture Summit commenced on Monday.

Prime Minister, Peter O’Neil, opened the summit to indicate his Government’s commitment to really improve the sector.

 

The Summit was also attended by Government Ministers and Parliamentary Leaders.

 

In his Opening Remarks, Agriculture Minister, Benny Allan, said this summit gives the opportunity for the private investors both large and small to talk, and the Government to listen.

 

He said the Government has come up with policies for the Agriculture Sector, but has not sat down with the players to listen to them.

 

Referring to the theme of the Agriculture Summit of “Unlocking the Power of Agriculture for PNG”, Prime Minister, Peter O’Neil, reiterated its importance and reaffirms his government’s commitment in the sector as captured in the Alotau Accord.

 

“We’ve seen PNG’s Economy go into vast cycles for quite a while, largely because we over depend ourselves on one sector of the Economy (resources). And it has serve PNG well, but I think we’re too complaisant and we are not realising all the other potentials that we have in our country. Especially, when all the Commodity Prices of Oil and Gas goes down, our economy goes down.”

 

Representatives from all sectors of Agriculture packed the Lamana Conference Room to be part of this first ever organised National Agriculture Summit.

 

Presentations are based on each Agricultural Business and investment and the challenges they face including solutions to assist the Government improve the sector.

 

The conclusion of the summit will assist the Government through the Department of Agriculture, come up with a Medium Term Agriculture Development Plan.

 

The Summit will continue today(Monday) and will end on Wednesday afternoon.

 

Author: Charmaine Poriambep of Loop PNG

New Infrastructure Projects with China will Change Lives – Direct Investment by China Railway Group in PNG Economy

 

Media Statement via Prime Minister’s Office PNG

Monday, November 20, November 2017

The Government of Papua New Guinea has signed a serious of Memorandums of Understanding (MOU) with the Government of China and the China Railway company that will deliver a number of new infrastructure projects in the Highlands.

 

Witnessing the signing of the MOU today in Port Moresby, the Prime Minister, Hon. Peter O’Neill CMG MP, said the new projects will have direct positive impacts on the lives of people in Eastern and Western Highlands provinces.

 

“These projects will enhance agriculture, roads and water supply in parts of the Highlands will improve lives and help people to be more active in the economy.

 

“China is one of our strongest development partners, and this direct investment is an example of the huge confidence that China and Chinese companies have in Papua New Guinea.

 

“Despite the challenges in the global economy in recent years, the outlook for the Papua New Guinea economy is very positive and we thank our partners for their commitment to our country.

 

“The projects that we initiated today will be delivered in some of the most remote parts of our country where there is a need to improve connectivity and services.

 

“These projects are taking place as part of the ‘One Belt One Road’ initiative that is creating more efficient trade corridors between the Asia-Pacific and Western Asia.

 

“As this initiative grows we are seeing infrastructure improvements across many developing countries.

 

“At the eastern end of the initiative, Papua New Guinea is deriving benefits that will strengthen capacity to trade across borders.”

 

The Prime Minister thanked the President of the China Railway International Group, Mr. Zhang Zongyan, for visiting Papua New Guinea to see for himself where support can be allocated.

 

“I thank the Government of China and the China Railway Company for their ongoing commitment to Papua New Guinea.

 

“The projects we have agreed on today will deliver positive change for people in many towns and villages.

 

“Your support for Papua New Guinea will be remembered long into the future.

 

“I look forward to further discussing these and other initiatives with President Xi Jinping when he arrives in Papua New Guinea for APEC next year.”

 

The three MOU’s signed today are:
– China-PNG Integrated Agriculture Industrial Park;
– The High Priority Economic Roads Project;
– Goroka Town Water Supply Upgrade Project.

 

The signing of MOU’s was witnessed by Prime Minister O’Neill, Works Minister, Michael Nali, and Lands minister, Benny Allen.

 

Photos:PM O’Neill meets with officials from China Railroad Group and Chinese Government before the signing the MOUs.

Qatar’s Broadening Economic Base Offers Opportunities for PNG

 

The Prime Minister, Hon. Peter O’Neill CMG MP, has concluded a series of high level meetings with Government Officials in the State of Qatar, from which he anticipates will come greater technical co-operation and investment from a country that has transitioned into the LNG market as is the current experience of Papua New Guinea.

 

Following meetings with Qatar’s Prime Minister, Finance Minister and other senior Government Officials, while on his return from the APEC Summit in Viet Nam, Prime Minister O’Neill said the key outcome of the visit is a further demonstration of the urgent need for Papua New Guinea to properly diversify the Nation’s economic base.

 

“We have been talking about diversifying our economy to maximise gains for some time, and now is the time to act so we can build our key sectors into the future,” the Prime Minister said at the meetings in Doha.

 

“There is great potential for creating thousands of new jobs, establishing new skills and stimulating small business.

 

“From humble beginnings, Qatar has diversified its economic base better than most resource-focused economies around the world.

 

“While oil and gas remain the cornerstone of its economy, Qatar has made inroads into downstream processing and other energy related fields.

 

“Qatar has also leveraged its resources boom to expand the tourism sector, and made substantial investment in agriculture around the world.

 

“The perspective from our engagement in Qatar is clear, that we have to not only get the most from expanding our LNG production, but we have to utilise these gains to diversify production and jobs in our economy.”

 

The Prime Minister said following the visit this week, a delegation from Kumul Consolidated Holdings, as well as other Government agencies and private sector representatives, will meet with officials in Qatar.

 

“The Qatar Prime Minister and I have agreed that we will bring together a joint forum to look at capacity building and investment opportunities between Papua New Guinea and Qatar.

 

“As an emerging economy, Papua New Guinea must take advantage of new opportunities to expand the economy. Importantly we must move beyond the boom-and-bust cycles that comes with dependency on global energy prices.

 

“In doing so we will draw on the experience and capacity building opportunities from countries like Qatar, and our other partners around the world.

 

“I look forward to tangible outcomes from the discussions that have taken place over the past two days, and delivering additional policy initiatives to work with the private sector.

 

“I thank the Prime Minister of Qatar, Ahmed Bin Jassim Bin Mohammed Al-Thani, for his invitation for Papua New Guinea to undertake an Official Visit to his country.”

 

Photo: Papua New Guinea’s Prime Minister, Peter O’Neill, meeting with Qatar Prime Minister, Ahmed Bin Jassim Bin Mohammed Al-Thani, meeting in Doha on Tuesday.

-Press-

LANDOWNERS WILL BE PAID: MANO

 
By SHIRLEY MAULUDU 
Source: The National
 
MINERAL Resources Development Company managing director Augustine Mano says landowners will be paid their benefits once certain processes are carried out following the verification of clan-vetting information.
Petroleum Minister Fabian Pok said yesterday said the clan-vetting exercise had resumed for some areas of the PNG LNG project.
Mano said there were two sorts of benefits for the landowners.
“The royalties are with the Central Bank (Bank of Papua New Guinea) and the equity is with us (MRDC),” he said.
“This process is very critical for us to release both the royalties and equities because ultimately we’ll pay the royalties and equities.
“This clan-vetting exercise can take up to four weeks, depending on the status on the ground. After that, we’ll have a ministerial determination.
“After the ministerial determination, then we will open the accounts. After we open the accounts, then we will have elections of respective directors and chairmen of pipeline and PDL (petroleum development licence) areas. After that, the benefits will be paid.
“It is important that landowners must understand that the same precedent we did with plant site landowners will also be applied to the pipeline and PDL.”
He is hoping that the process would be sorted out before Christmas.
Meanwhile, Pok said following the successful distribution of royalty benefits to the plant site landowners, the department was focusing on the completion of the clan-vetting exercise in the other impact areas.

K1.7m road for remote EHP

1st November 2017

Source: Post-Courier

 

The Coffee Industry Corporation’s Productive Partnerships in Agriculture Project (coffee) is set to construct the 5km road.

 

Contract signing for construction of the Nombia-Bibiori road was at the Central Supply and Tenders Board (CSTB) office in Port Moresby on Friday, 20 October, 2017.

 

 

The road will service over 20,000 people of the Lamari LLG in the Tairora area of Obura-Wonenara to transport their coffee to the nearest Kainantu town. The area is known for producing very high quality organic coffee.

 

 

CSTB chairman Dr Ken Ngangan says: “The contract is not of a high amount but we have to ensure the process is followed.”

 

 

Minister for Labour & Industrial Relations and MP for Obura-Wonenara electorate, Mehrra Minne Kipefa, on behalf of his people thanked CSTB for allowing the procurement and tendering process to go through.

 

 

The local MP also acknowledged CIC-PPAP for partnering Obura-Wonenara District Development Authority (DDA) to rehabilitate the road, which he says will open up the area for other services in health and education.

 

 

With productive partnership with DDA and PPAP, over 20km of road will be rehabilitated beginning from Norikori Junction to Bibiori. The first 15km is being funded and/or counter funded together.

 

 

This March/April, the DDA through its District Support Improvement Program (DSIP) fund, financed the construction of a 7km access road from Norikori junction to Barabundora Junction. The other 9km from there to Nombia will be counter funded by the DDA and PPAP as per discussion between Minister Kipefa and Project Manager for CIC-PPAP, Potaisa Hombunaka.

 

 

Meanwhile, Hombunaka congratulated Kassampy Construction Ltd for being awarded the contract and also for making it into the good books of World Bank and International Fund for Agricultural Fund (IFAD) for passing this first test. The real test will be accomplished on delivering a Works standard road.

 

 

 

“We have to ensure the process is followed because the end game is to build a road that is of high quality standard that will last for years,” says Hombunaka.

 

 

 

During construction, both PPAP Consulting Engineers and Provincial Works Engineers will carry out routine inspections till conclusion.

 

 

 

The World Bank and IFAD are financiers of the CIC-PPAP industry rehabilitation effort and construction of access roads comes under Component 3 infrastructure development function. The CIC going forward will be recommended to have an Engineering section in its structure as market access is critical to growth of the industry.

 

 

 

The CIC-PPAP senior procurement officer, Ms Theresa Witi, was overwhelmed in that this will be the first road to be constructed under the project.

 

 

 

“Finally we will build the first road. I would like to thank everyone, including CSTB and project financiers for the process to go through,” says Ms Witi.

 

 

 

Coffee is the lifeline of the local Lamari LLG people. The locals are hard working. They have the capacity to produce more beans from their coffee gardens, but the dilemma for the last 40 plus years is they have no easier access to market.

 

 

 

There are only two closest access roads to Lamari, one ends at Obura Station and the other at Nombia.  The locals prefer walking to Nombia, which is about 25km from Kainantu town and 20km from Aiyura Research Station and SIL Ukarumpa. The economic cost of transporting a coffee bag to Kainantu through Obura station is K50 compared to Nombia, which is only K20.

 

 

The new road link will be a new chapter in the lives of these people, often referred to as the back page of Eastern Highlands Province.

 

 

At the signing ceremony were CSTB chairman Dr Nagangan, project manager of CIC-PPAP Hombunaka, Minister Kipefa and local contractor Kassampy Constructions Ltd representatives.

 

 

The coffee rehabilitation is a CIC project through Department of Agriculture & Livestock. It is financed by a loan facility from World Bank and IFAD with support funding from the PNG Government.

PNG’s Self-Sufficiency Drive Offers Openings For Agri-Industry

 
 
 
October 31, 2017
Via: Post-Courier
 
 
After being returned to office following the National Elections in Papua New Guinea earlier this year, the government of Prime Minister Peter O’Neill has stepped up its drive to improve food sustainability and reduce foreign exchange outflows.
 
The administration’s focus on import replacement and food self-sufficiency should create opportunities for the food processing industry, in particular, encouraging investment in downstream capacity.
 
The government plans to place investment funds, to be dispersed through the Supplementary Budget, with the state-owned agriculture investment company, Kumul Agriculture, which can then partner with local and international investors.
Richard Maru, Minister for National Planning and Monitoring, told local media in September that the entity is soon expected to start receiving funds to invest in the sector.
 
According to local media, the plan to establish a state-owned investment vehicle for agriculture was first mentioned in 2015.
 
Government to mobilise investment funds, target agriculture. In particular, the government is looking to curb the island nation’s sizeable food import bill – reported to be as high as PGK4bn ($1.3bn) per year – by expanding the agriculture sector.
While PNG is self-sufficient in many fresh or semi-processed foodstuffs – rice being the key exception – it has to import much of its processed food, both for human consumption and livestock feed.
Speaking to local media at the end of August, Charles Abel, DeputyPrime Minister and Treasurer, said that the rice import bill was the second-highest consumer of foreign exchange in PNG, after the fuel import bill.
Loi Bakani, governor of the Bank of PNG, also highlighted import costs as being a top concern.
“In particular, I am concerned about food imports, because it constitutes the highest demand for foreign exchange and it is not matched by any foreign exchange revenue from food exports,” he told an investment conference in Sydney, Australia, in mid-September.
 
Courting downstream agriculture investment to generate export potential
In addition to boosting primary production, PNG is seeking investors in downstream value-added processing, which could create export potential.
Palm oil and coffee, among others, have been cited as examples, with processed goods both easier to freight than fresh, and able to generate far higher returns.
“We have water and very fertile land,” Mr Maru told local media in mid-September.
“What we have to do now is to mobilise the land, and then find investors who have the technology and the capital to partner (with) us to start investment in commercial agriculture in a very significant way.”
 
Recent investment in value-added growth areas. The agro-processing industry is already seeing an increase in investments that should help reduce the food import bill and improve sustainability.
Agri-business firm, Innovative Agro Industries, is currently developing a K130m ($40.6m) dairy farm and processing facility outside Port Moresby, with production set to begin in November. When fully operational next year, the 5m-litre annual output from the plant is expected to cut up to K400m ($124.7m), or 10%, from PNG’s import bill.
An even larger investment is taking shape in West Sepik Province, around 30km from the Indonesian border. Chinese investors signed a memorandum of understanding last December with the PNG Government to develop a $3.8bn industrial park. Along with an industrial hub for processing steel and cement, the project – described as a long-term venture – features a processing cluster focused on fish, cassava, tropical spices and timber.
Fish is an area where PNG has significant potential for value-added processing. The country’s 2.5m-sq-km exclusive economic zone is home to roughly 18% of the global tuna supply, according to a 2013 report by Pacific Tuna Forum, and an estimated 750,000 tons of the fish is caught each year in PNG waters.
While this represents a raw value of around $1.5bn, most of the value creation occurs during processing, which takes place offshore. Countries such as the Philippines and China generated an estimated K30bn ($9.4bn) in added value by processing raw tuna exports from PNG, the Manufacturers Council of PNG reported.
 
Agro-processing agenda part of broader bid to industrialise
Promoting value-added agriculture forms part of a broader national effort to increase industrial capacity in PNG.
Speaking at a recent conference on financial inclusion and innovation, Wera Mori, the Minister of Commerce and Industry, said the government aimed to restructure the economy so that 70% of gross domestic product (GDP) was generated by sectors such as manufacturing, agriculture, fisheries and forestry, with the latter three all having strong downstream potential.
To help achieve this goal, Mr Mori said the government would move to improve access to credit, introduce regulatory and supervisory reforms, and further promote micro-, small and medium-sized enterprises.
« Older Entries