Mining and petroleum companies to come under PNG government scrutiny

Mining and Petroleum companies or developers must ensure that they execute their national content plan satisfactorily in order to bring tangible developments into the impacted areas

Minister 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.

Richard Maru

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. 

This is 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 periods.

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. 

The MOA 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.

“Whilst 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.