The Papua New Guinea economy is on the edge of a ‘slippery slope’, if the Bank of PNG finances government debt and continues to fix the exchange rate at too high a rate. Former Australian Treasury advisor Paul Flanagan says compounding the problems are rising inflation, falling foreign exchange reserves, and declining private sector credit growth.
Cott Oil and Gas Ltd has undergone a restructure to allow the company to focus on developing what could be Papua New Guinea’s first floating liquefied natural gas (FLNG) project – at the Pandora gas field in the Gulf of Papua. Cott’s Managing Director Andrew Dimsey outlines the company’s plans to Business Advantage PNG.
National carrier Air Niugini is aiming to deliver more choice for Papua New Guinean travellers through the establishment of Link PNG, a new low-cost domestic subsidiary.
The O’Neill government is preparing to deliver its 2015 budget, against a backdrop of rising government debt and rising expenditure. Business Advantage PNG asks what business needs and what we might expect.
The Chairman of Papua New Guinea’s Independent Public Business Corporation (IPBC), Paul Nerau, has flagged a ‘tsunami’ of government-backed development projects worth billions of kina, including the relocation of Port Moresby’s port and gas-generated electricity.
The board of Papua New Guinea’s biggest employer, New Britain Palm Oil, has recommended shareholders accept a K5.09 billion (UK 1.07 billion pound) takeover bid from Malaysia’s Syme Darby.
As part of the 2012 Alotau Accord, the O’Neill Government agreed to establish an Infrastructure Development Authority to ‘take ownership’ of Cabinet decisions and oversee major infrastructure projects in Papua New Guinea. Business Advantage PNG spoke recently to the authority’s interim Managing Director, John Kaio.
The successful completion of the PNG LNG project has turned the focus onto where new investment opportunities lie. Senior representatives from the IFC, Austrade and Nambawan Super got together at the recent Papua New Guinea Advantage Investment Summit to share their thoughts.
Papua New Guinea’s largest cocoa grower, trader and exporter, Agmark, says cocoa yields in East New Britain could double, as a result of new technology arising from the battle to recover from the impact of the cocoa pod borer.
Restricting the margins at which the kina can be traded against the US dollar has had little positive effect, with some companies struggling to pay bills, as the central bank reportedly restricts the purchase of US currency, Manufacturers Council of Papua New Guinea CEO Chey Scovell tells Business Advantage PNG.