Sir Mekere Morauta calls for ‘genuine government effort’ to resolve K2 billion dispute, IFC approves credit facility and Manus business leaders want to be treated as a ‘special case’, if detention camps close. Your weekly digest of the latest business news.

Former Prime Minister and Chairman of  PNG Sustainable Development Program Ltd, Sir Mekere Morauta, says there is a three-step solution to the dispute over the company’s K2 billion held in trust in Singapore. He says the requirements are that Prime Minister Peter O’Neill ‘withdraws from the Singapore litigation; the Prime Minister and BHP Billiton Ltd jointly agree to change the definition of Mine Closure in PNGSDP’s Program Rules to trigger the flow and expenditure of the Long Term Fund by PNGSDP; and the Prime Minister ceases his attacks on, and interference in, PNGSDP—with the State signing a legal agreement to that effect’.

***

Business leaders on Manus Island have called on the PNG government and Australia to treat Manus as a special case, after it emerged that the Spanish company Ferrovial poised to take a 59 per cent shareholding in the business operating Australia’s offshore asylum seeker detention centres said it plans to step away from the facilities on PNG and Nauru. The board of Broadspectrum, formerly Transfield Services, has agreed to a buy-out. Australian taxpayers paid more than A$1 billion (K2.38 billion) in the 2014-15 financial year to run both centres.

*** 

The Bank of PNG’s Loi M Bakani

The Post-Courier is reporting that International Finance Corporation has approved a line of credit for US$300 million (K967.7 million) to alleviate PNG’s foreign exchange shortfalls. Bank of Papua New Guinea Governor, Loi M Bakani, says the credit facility will be used by commercial banks and will run for three years.

***

The PNG Government has secured $US$100 million (K314 million) in funding for infrastructure projects from India, following last week’s visit to PNG by India’s President Pranab Mukherjee.

***

Air Niugini has received approval from Independent Consumer and Competition Commission to continue partnering with Qantas for another three years.  The Commissioner and Chief Executive of the ICCC, Paulus Ain, says there are ‘some benefits to the community likely to result, especially to those who depend on air services.’

***

The ANZ Bank has announced a 24 per cent slump in its first half cash earnings to A$2.8 billion (K6.8 billion), well below the consensus forecast of $3.6 billion (K8.79 billion).

***

Ramu NiCo management is reviewing staffing levels at its two sites, Kurumbukari Mine and Basamuk Refinery in Madang Province, following orders from the Mineral Resources Authority to to cease operation at the High Pressure Acid Leach (HPAL) area at Basamuk.

***

Crater Gold Mining has commissioned a new processing plant at its High Grade Zone gold mine in the Eastern Highlands Province, according to Managing Director, Russ Parker.

 ***

The Department of Petroleum and Energy, PNG Power and the Asian Development Bank (ADB) have released the National Distribution Grid Expansion Plan, which outlines a plan to expand the grid to rural communities around PNG Power’s 34 provincial grids.

***

And finally, researchers say they have located the wreck of the Endeavour, which Captain James Cook commanded on his first ‘voyage of discovery’ around the Pacific.