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Saturday, January 19, 2013
Mining and petroleum companies to come under PNG government scrutiny
Petroleum companies or developers must ensure that they execute their national content plan satisfactorily in order to bring tangible developments into the
for Trade, Commerce and Industry, Richard Maru made this comment when
announcing that he would be visiting several mining and petroleum companies or
areas around the country to review their supply and procurement and local business development as per their national content plan.
Ihe Department of Commerce & Industry is responsible for the
monitoring and evaluation of supply and procurement and local business development by mining and petroleum companies operating in the country.
provided for in the memorandum of agreements (MOA) that are individually signed for
the respective Projects.
Maru’s visit to these petroleum and mining areas will cover questions and
issues like how many new businesses were given contracts by the company to
supply goods and services in the quarter or progressively over the past
He said it was important that mining and petroleum companies adhere to, or comply to the
terms or clauses of the agreements that they sign.
is signed between the Independent State of Papua New Guinea, the host provincial government and the developer.
The goods and services monitoring committee meets quarterly or otherwise as agreed to
by the committee to discuss issues on local business development and supply and procurement.
State representatives in the committee include the Department of Commerce &
Industry, Department of Mining and Petroleum, Mineral Resources Authority and
other concerned departments to get a briefing from the concerned project developer on what it has done in compliance with the relevant clauses over the
past quarter or six months.
Maru said the value of the contract had to be noted and to what extent the company was complying with awarding contracts.
Firstly preference is given to
the certified landowner companies or businesses, secondly, to other contractors
or businesses in the Province, thirdly, to other Papua New Guinean companies or contractors, and finally to overseas based companies.
this is being the case, the business requirement of competitive bidding have to
be adhered to.
" That is, competitive
price, they meet quality requirements to undertake such tasks and that services
rendered are on a timely basis” Maru said.
In terms of
selecting local contractors, preferential treatment may be on special case by
case basis as determined and agreed to by the committee or prerogative of the company and relevant covernment representatives.
In essence, the process has to
be transparent and that contractors are selected on merits, though at times,
special consideration has to be given to candowner companies.