In brief: BSP ‘committed’ to foreign exchange loan facility for Papua New Guinea, and other business stories

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BSP ‘committed’ to IFC foreign exchange loan facility, PNG to have its first dairy farm, and Kina Asset Management investments up in first quarter. Your weekly digest of the latest business news.

InBrief02

Bank South Pacific Group Chief Executive Officer Robin Fleming says the bank ‘remains committed’ to a foreign exchange loan facility being negotiated between the Government and the International Finance Cooperation, according to The National. He is reported as saying he expects the target date to be mid-May, noting that the utilisation of an amount over US$100 million (K312 million) to be allocated to BSP ‘is solely at the discretion of the IFC’.

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Innovative Agro's Ilan Weiss.

Innovative Agro’s Ilan Weiss.

Israeli company, Innovative Agro Industry (IAI) is set to establish PNG’s first dairy farm at Ilimo, Central Province, according to the Post Courier. IAI Chairman,  Ilan Weiss, says the K90 million include a dairy farm with 500 milking cows, a processing centre where the company will make fresh milk, ice cream and other dairy products. He says small cartons of milk will be delivered to schools to help to improve students’ diet.

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Kina Asset Management Limited has reported an investment gain of 1.4 per cent for first quarter of 2016, citing ‘improved investor confidence and a favorable movement in exchange rates’. Chairman Sir Rabbie Namaliu commented that the first two months of the year ‘were tough, reflective of the global apathy of the New Year’, but said a strengthening of the Australian dollar and decline of the kina pushed the portfolio back into the black, despite a poor performance from Australian and international equities.

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A local business in Jiwaka has laid off 50 employees because of the foreign exchange problem faced by many firms, according to The National. The Managing Director and owner of Waghi Fruit Processing, Robert Mundi, says the 50 were working in working in the production and packing sections, and he is also cutting back on buying fruit.

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Police Commissioner, Gary Baki. Credit; RNZI

Police Commissioner, Gary Baki. Credit; RNZI

PNG Police Commissioner, Gary Baki, has reopened the country’s anti-corruption unit, three weeks after he shut it down. Meanwhile, a service allowing finance ministry staff to anonymously report cases of corruption via text message is proving effective. Researcher, Amanda Watson, says already two people had been arrested on allegations of misappropriating K500,000 of state funds, and several hundred reports are being investigated.

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Australia’s Department of Foreign Affairs has officially abandoned its plan to establish a diplomatic mission in Papua New Guinea’s autonomous Bougainville region.

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Kumul Consolidated Holdings has shortlisted three companies to develop and operate the roposed Ramu 2 hydropower project, according to The National. They are: a Korean consortium which includes Posco Daewoo, Korea Western Power, Daelim Energy and Hyundai Engineering Consortium; China’s Sinohydro Corporation; and China’s Shenzhen Energy Group. The project is due to get underway in 2017.

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Qantas’ low-cost subsidiary, Jetstar, has applied to the International Air Services Commission for permission to fly to PNG. It is reportedly seeking an additional 1,000 seats to those already used by Qantas.

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Contaminated water on Manus. Credit: Tom Anayabere via The Loop.

Contaminated water on Manus. Credit: Tom Anayabere via The Loop.

The provincial capital of Manus, Lorengau, has seen the launch of the country’s first pilot desalination project. The Japanese-funded project will pave the way for similar projects to be implemented for other atoll islands affected by the effects of climate change, resulting in the rise of sea level which is affecting drinking water.

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Village Huts, a local adventure and backpacker tourism operator has launched a new accommodation and tour booking website supported by the  Australian High Commission, under its Market Development Facility. An estimated ninety-five percent of PNG homestays and guest houses do not have their own website and lack promotional tools to market their product.

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And finally, the French mining conglomerate Eramet has approved a plan aimed at saving New Caledonia’s SLN nickel smelter in which it is a majority shareholder, according to Radio NZ. Eramet says it will make available US$45 million (K141 million) to support SLN until the end of June when a restructuring plan is expected to be finalised.

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