In brief: Papua New Guinea’s Ramu 2 project on track and other business stories


The Ramu 2 hydro power station looks to be on track, Mining Minister says there is interest again in Solwara 1 deep sea mining project and the IMF makes sizeable contribution to Papua New Guinea’s economy. Your business news today.

Prime Minister Marape during the opening ceremony of the veneer mill in East New Britain. Credit: Office of the Prime Minister & NEC


The International Monetary Fund (IMF) has agreed to provide a 38-month US$918 million (K3.23 billion) Extended Credit Facility to PNG’s Government. The funds will be used for ‘strengthening debt sustainability, alleviating FX shortages, and enhancing governance and operationalising the anti-corruption framework’.

According to IMF Deputy Managing Director Kenji Okamura, the arrangements will ‘help address balance of payment needs and rebuild the buffers needed to facilitate a gradual and orderly return to greater exchange rate flexibility.’ The credit facility will also be used to finance the national budget. (IMF)


Japan’s JGC Corporation, in partnership with Hyundai Engineering & Construction, has been awarded the Front End Engineering Design (FEED) and Engineering, Procurement and Construction (EPC) estimation contract for the downstream facilities for the Papua LNG project.

The project calls for the design of approximately 4 million tons per year of LNG liquefaction capacity adjacent to ExxonMobil’s existing LNG plant near Port Moresby. The LNG facilities will adopt an ‘E-Drive’ design, where electric motors instead of conventional gas turbines drive the natural gas compressors tol help reduce CO2 emissions during operations. (JGC)


The long-awaited Ramu 2 Hydropower project, located on the border of Morobe and Eastern Highlands provinces, is on track, according to William Baglme, Kumul Petroleum Holdings’ Executive Manager. He explained that during the past 18 months there has been a lot of work ‘to satisfy the government conditions precedents and get the project to financial close.’

The total investment for Ramu 2 will be US$940 million (K3.2 billion). Shenzhen Energy Ltd and Sinohydro Corp Ltd (Project Co) were awarded the contract and will work in partnership with key state agencies.

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Balglme reportedly said the project will be delivered under a build-own-operate-transfer (BOOT) public-private partnership model for 25 years before ownership is transferred to the State. (Post-Courier)


The deep sea mining project Solwara 1 could be back on the table now that Mining Minister Sir Ano Pala is expecting to recommence discussions with Deep Sea Mining Finance (DSMF), the company that acquired Nautilus Minerals.

Governor for New Ireland, Sir Julius Chan, met with DSMF recently to talk about Solwara 1. (The National)


The new developer of the Tolukuma gold mine in Central Province, Tolu Minerals (formerly known as Lole Mining Limited), has cancelled plans to list on the Australian Securities Exchange.

According to a supplementary prospectus issued earlier this month, the company’s directors have resolved to withdraw Tolu’s planned initial public offering and say no shares have been or will be issued. According to Tolu Minerals, investors who applied to get shares will have their monies refunded in full. (Tolu Minerals)


Trade between PNG and South Korea continues to grow, with a value of US$1.8 billion (K6.33 billion) in 2022. Recently, Korean National Assembly Speaker, Park Byeong-seug, led a delegation of Korean politicians, business leaders and government officials during a visit to PNG, where they met Prime Minister Marape.

Park reportedly said there is ‘greater potential’ for development and cooperation between both countries. He invited Marape to attend the first South Korea-Pacific Summit in Seoul to discuss climate change and bilateral relations. (The National)


Nadzab International Airport is ’98 per cent completed’ according to Project Director, Tom Nou. He said during the signing of a memorandum of understanding with the National Polytechnic Institute that ‘the last 2 per cent of the project is the transition point to go through the hand-overs and take-over. We are looking at hand-over, take-over after April to NAC (National Airport Corporation).’ (Post-Courier)


Meanwhile, Air Niugini can only fly Dash 8 aircraft into Kagamuga Airport in Mt Hagen because the runway is being repaired. The works are expected to be completed at the end of April. (Post-Courier)


The Gazelle District, in East New Britain Province, now has a veneer mill. The mill was inaugurated last week by Prime Minister Marape. It’s expected that the mill will boost economic growth in the region and create more employment opportunities in the region. (Post-Courier)


Entrepreneur Susan Hulo is behind Lae Meat House, a shop that sells local organic meat and fresh vegetables. At the Meat House customers will find Siam beef, PNG sausages, chicken, lamb flaps, groceries and fish. ‘There are big supermarkets selling meat, but not concentrating on local organic meat and fresh vegetables. The idea was also to support our local suppliers.’ (The National)


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