In brief: Asian Development Bank downgrades Papua New Guinea’s growth outlook, and other business stories


Papua New Guinea’s growth forecast downgraded by Asian Development Bank, Bank of PNG says growth this year will partly be driven by non-mineral sector activity, plus claims PNG’s global corruption rating will depend on government commitment to accountability. Your weekly digest of the latest business news.

InBrief02The Asian Development Bank has downgraded its outlook on PNG’s economic growth this year to 4.3 per cent, less than half last year’s rate of 9 per cent. The ADB is forecasting growth to slow further to 2.4 per cent in 2017. In his Asian Development Outlook 2016, Pacific Director, Xianbin Yao, blames weak commodity prices for the fall.


The Bank of PNG"s Loi Bakani

The Bank of PNG”s Loi Bakani

The Governor of the Bank of PNG, Loi Bakani, says 2016 growth would be driven by activity in the non-mineral sectors, resumption of production at the Ok Tedi mine, increased production at the Ramu nickel/cobalt mine and an increase in activity in some parts of rural PNG as a result of infrastructure development.


Fisheries Minister Mao Zeming has promised to consult with the Morobe Provincial Government and the landowners of Lae about a proposed new tuna cannery in Lae.


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The EITI's

The EITI’s Lucas Alkan

PNG’s global corruption rating will depend on the Government’s commitment in addressing accountability, transparency and governance issues, according to the Head of the National Secretariat of the PNG Extractive Industry Transparency Initiative, Lucas Alkan. PNG has applied for membership but has yet to achieve all requirements. The PNG Chamber of Mines and Petroleum Executive Director Greg Anderson says PNG’s first report, released recently, is a significant step forward in ensuring greater transparency of benefit streams from the resource industry.


Melanesian Trustee Services has announced a K5 million payout for the years 2013 and 2014 for the Pacific Balanced Fund unit holders. CEO Kennedy Wemin says the fund’s net value had grown to K555 million.


Oil Search's Peter Botten

Oil Search’s Peter Botten

The Hela Provincial Hospital Board has officially taken over operation of the Hela Provincial Hospital from Médecins Sans Frontières, which has been delivering services since 2008. Chairman of the board and MD of Oil Search, Peter Botten, says a PPP agreement will oversee the delivery of medical services. Oil Search will also provide technical expertise on drugs, medical supply systems, HR and finance functions until the new hospital team is fully operational.


Bank South Pacific will move to a new head office in Waigani once it is completed in the second half of this year. BSP Group CEO, Robin Fleming, says the new head office will accommodate almost 900 staff in the retail, HR, IT, operations and finance businesses. BSP will sell its current office building in Port Moresby’s CBD.


Barrick Niugini says the Porgera gold mine has resumed normal operations after repairs to the section of the Lagaip–Porgera Highway damaged by a landslide last month was completed.


NBC Acting Managing Director Kora Nou, Chairman NBC Timothy Tala, and Click TV's Richard Broadbridge.

NBC Acting Managing Director Kora Nou, Chairman NBC Timothy Tala, and Click TV’s Richard Broadbridge.

The national broadcaster NBC and digital platform provider Click TV PNG have signed an agreement that will see NBC TV gain thousands more viewers, mostly in rural PNG. NBC Acting Managing Director, Kora Nou, says Click TV ‘offers us a digital platform at no cost with every home or community to see NBC. We are no longer relying on our tower network alone to get to the masses’.


An understanding has been reached in New Caledonia which appears to have averted a truckers’ blockade of Noumea. Radio NZ International reports the government is set to authorise the export of one million tonnes of low-grade nickel ore to China when it meets next week


Phil Mulacek, former chairman and Chief Executive Officer of InterOil Corporation, and other shareholders are requesting a special meeting of InterOil shareholders to focus ‘on improving the corporate governance of InterOil’. Mulacek says the proposals: ‘reflect fundamental concerns … about the Board’s approach to setting the Company’s strategy and its oversight of management.’


And finally, more than 6000 people at Mogulu area, Western Province, have been given 35 tonnes of rice, as part of drought relief efforts. Digicel Foundation, Ok Tedi Mining, Heduru Trust and the World Food Program, with the support of the Western Provincial Government and contractors, Agility and Central Aviation, have now air lifted 110 tonnes of rice to the area. The latest supplies are expected to last two weeks.


  1. Max Nopire says

    PNG has seen tangible service reaching far and wide of this beautiful country but the distribution of wealth is in one part of the province.

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