The ratings agency Moody’s has affirmed Papua New Guinea’s B2 rating, but downgraded it from ‘negative from stable’, citing higher government liquidity risks, increased gross borrowing requirements and limited funding sources. It points to a growing reliance on short-term debt.
The Papua New Guinea government has set up a new authority to oversee the restoration of services and infrastructure, following the February 26 earthquake. As humanitarian relief work continues, analysts expect GDP to fall slightly.
The Mineral Resources Development Company (MRDC) was formed in 1975 and is as old as Papua New Guinea itself. Chief Executive Augustine Mano tells Business Advantage PNG that the enterprise has a wide mandate.
Work at the Misima gold project has commenced, with Kingston Resources planning to extend the current resource and develop new mining areas. Kingston Resources Managing Director, Andrew Corbett, tells Business Advantage PNG he expects drilling programs to commence in April.
To remain impartial, the Papua New Guinea Government should not be a shareholder, but only maintain regulatory oversight of mining projects, according to geologist and mining consultant, Jerry Nombri Garry. He tells Business Advantage PNG, there are other ways for the country to derive healthy revenues from mining projects.
Loloata Island Resort in Bootless Bay, near Port Moresby, is getting a stylish makeover, with the help of the Papua New Guinean super fund, Nasfund.
Software entrepreneur Samson Korawali has helped establish five start-ups and a digital consultancy located in Australia and Papua New Guinea. He tells Business Advantage PNG that the country can greatly benefit from developing its online business capacity.
The operators of the Papua project are expected to make a financial investment decision on the project in 2019. But now that Papua New Guinea has ‘proven itself’ as a good manager of major global projects, it should be able to negotiate less generous terms with the operators of the second LNG plant, say economists and investment analysts.
A ‘cash culture’ in Papua New Guinea is beginning to change and there is more willingness to buy shares, according to Aiabba Minerals Executive Chairman and Managing Director, Moses Mondowa. He tells Business Advantage PNG it is a significant shift for the future success of the country’s resources and business sectors.
Oil prices are up and copper is also strong, but LNG has weakened. Business Advantage PNG’s monthly review of Papua New Guinea commodity and financial markets.