The hosting of the APEC Summit in Port Moresby in 2018 has sparked a flurry of investment in tourism infrastructure. It promises to kick start the country’s tourism industry as the nation’s capital gets more hotel rooms, airports are upgraded and a new tourism minister takes the helm.
There are many challenges facing Papua New Guinea but which are the most critical to address first? In the first of a two-part series, Jenny Hayward-Jones outlines seven key issues that confront the nation’s emerging leaders. In the second part, she identifies which areas to target first. Trying to solve all of them at the same time, she believes, will not deliver the progress Papua New Guineans expect.
France’s Total SA has confirmed its plans to commence construction for Papua LNG, the country’s next big liquefied natural gas project. Business Advantage PNG spoke with Philippe Blanchard, Managing Director of its PNG subsidiary, Total E&P PNG, to learn more about its race to start construction in 2018.
In an environment of plummeting interest rates, long term infrastructure investment is a sound option for both investors and governments. Financial and business commentator Michael Pascoe, speaking in Port Moresby last week, noted that the difficult global financial environment throws up opportunities for countries like Papua New Guinea.
The Bank of PNG has granted exemptions to some PNG insurance companies from the tight foreign exchange restrictions, to enable the general insurers to meet their reinsurance commitments to international reinsurers.
Papua New Guinea’s first LNG project has transformed the country’s exporting landscape, with Japan overtaking Australia as its number one trading partner. China will also become a major source of funds, taking over from Australia and global lending agencies. But don’t expect the broader bilateral relationships to change quickly.
Contracts in Papua New Guinea can be challenging, according to research from the World Bank. The Bank’s Doing Business 2016 survey ranked PNG only 169 out of 189 in the world for ‘enforcing contracts’. It pays to be well informed, says Peter Taimre.
Business Advantage International’s PNG 100 CEO Survey of chief executives of Papua New Guinea’s biggest corporations has found that many business leaders struggled to meet their expectations for profits in 2015. Only 4 per cent exceeded what they expected. But despite the tough times last year, the mood is cautiously optimistic.
The downturn in the Papua New Guinea economy has presented challenges for Avenell Engineering Systems (AES). But Managing Director Dominic Avenell tells Business Advantage PNG that the company has adapted well. AES is, he says, strengthening its capabilities and preparing for the next upturn.
Lifting the tax credit scheme to five per cent would see a big boost in road building and maintenance, according to the General Manager of West New Britain’s Hargy Oil Palms, Graham King.