PNG SMEs to get help

By MALUM NALU

Two Papua New Guineans who completed a one-week training workshop in Suva, Fiji, last week will assist PNG small and medium enterprises (SMEs) with business development services (BDS), The National reports.

 Small business and arts entrepreneur Joycelin Leahy and National Agriculture Research Institute food scientist David Minemba were among 24 participants at this workshop held at the CETC Training Centre, Suva. 

Entrepreneurs Leahy (left) and Minemba at last week’s SME workshop in Suva

 The BDS workshop, attended by participants from 10 countries, was aimed at capacity building and training PNG and other Pacific islander to assist SMEs in their respective countries.

 The training is expected to equip the consultants to trouble-shoot businesses and assist entrepreneurs to better manage their businesses.

  Contents of the training included steps taken in the entrepreneurial journey, managing business, business coaching, using basic principles in business, working with human resources and marketing business.

 “The entrepreneur’s journey is often tough and lonely and there are many pitfalls,” Leahy said.

 “Sometimes you need to have a guiding hand that will work with you and assist you to realise your goals and find the best ways to achieve your profits.

  “As entrepreneurs we often think that we know everything, but we don’t.

 “When you develop a good idea into a business, it does not mean that you can instantly make a profit.

 “You still need to go through the hard yards before you get there.”

 “This is where the services of a BDS provider will come in handy.

  “The BDS provider can assist with advice and steps to improve the business after close consultation with the business owner.”

 Leahy intends to assist with BDS for small to medium businesses in the informal sector and rural PNG.

 Minemba, who is a senior food scientist with NARI, will be looking at assisting PNG farmers, especially in Western Highlands.

 “We want to help change the lives of our people and help them to become good business people,” Leahy said.

 “There is a very prominent trend in business downfall due to our ‘wantok’ system and we want our people to learn about how they can cope with this cultural mentality, use it to assist their businesses and not let it encumber their dreams.”

 The BDS training clinic will be run from Port Moresby in September, after the elections.

 Further dates and information will be announced later.

 For more information email Leahy at beyondart@tpg.com.au and Minemba david.minemba@nari.org.pg.

Politics in PNG reaches new heights!

Wow!
Politics is PNG is literally reaching new heights!
National aviation entrepreneur Robert Agorabe, of Helifix fame,  is doing it in style, his whole fleet of helicopters flying over the city in an aerial tour-de-force, to disrupt NCD Governor Powes Parkop's launch today. 
Agorabe is challenging Parkop.

Four of Agorabe's helicopters captured over Port Moresby today.-Picture@MALUM NALU

Sir Mekere gives full support to Loani Henao for Moresby North-West

Note: This article is from the office of Sir Mekere Morauta

Member for Moresby North-West and Minister for Public Enterprises, Sir Mekere Morauta, yesterday (Friday) handed a personal cheque for K1,000 to Loani Henao to pay his nomination fee to contest the seat of Moresby North-West in the national election.

Sir Mekere said he wanted to pay Henao’s nomination fee as a demonstration to the people of North-West of his full support for the PNG Party candidate.

He said: “I want to thank the people of Moresby North-West who voted me into office in the last three elections. They gave me the opportunity to serve them, and the nation, in the highest political office.

" I thank them for their trust and for their support.

“Together we set a record for the electorate by my serving three terms. 

"I know that many people are disappointed I am not standing for a fourth term. "

I believe that if I contested I would win again, and I believe my supporters feel the same way. 

"However, I ask them to accept my decision, and to transfer the trust and support they have given me over the past 15 years to Loani Henao.”

Sir Mekere said his decision not to contest the 2012 election was the result of hard thought and careful consideration.

 It was made with the best interest of the electorate at heart.

Sir Mekere worked in the public sector for 43 years, and has had the privilege of serving the people of Papua New Guinea as Secretary for Finance, Managing Director of PNGBC, Governor of the Bank of Papua New Guinea, Member of Parliament, Minister, Leader of the Opposition and Prime Minister.

“That is quite an innings,” he said. 

“I feel it is now time for younger leaders to take the helm. 

"It is also time for me to do something different.

“While I am retiring from politics, I am not retiring from life! 

"I stand ready to help in any way that I can – help the members of PNG Party, the new Government when it is formed, and other church and private organisations that have the welfare of people and national development at their heart.”

Sir Mekere said his decision not to contest was made easier when Loani Henao agreed to stand for the seat under the PNG Party banner.

“Loani Henao is an outstanding Papua New Guinean. 

"He comes from a very distinguished family – his father was one of the six founding Bishops of the United Church. 

"He is highly educated; an excellent lawyer who has run a very successful law firm for a long time, and so has good private sector knowledge and experience.

“Loani has served on government boards and so has public sector experience apart from his high knowledge of the Constitution and laws of PNG.

" He is an honest and honorable man, with a wonderful wife Betty and fine family, all of whom will I know support him in political life.”

“It was very important to me to find someone who would contest the seat whom I believed had similar background and ideals as my own and would serve the people of North-West with distinction. 

"That person is Loani Henao. His agreeing to stand also helped me persuade my party leader and colleagues to accept my decision not to contest.”

“I wish Loani all the best for the campaign. 

"I ask all of the people of Moresby North-West who voted for me in the past to vote now for Loani Henao.

“I also ask people who did not vote for me to give their vote to Loani Henao.

" I give him my full and unconditional support, and have every hope that he will succeed me as the Member for Moresby North-West.”

New special-purpose company created for Yonki expansion

National Executive Council has authorised the creation of a special-purpose company within PNG Power, Yonki Hydro Ltd, to rehabilitate the Yonki power assets and expand the scheme.

“This brings the full development of Yonki, in three stages, a step closer to fruition,” State Enterprises Minister Sir Mekere Morauta said.

“The O’Neill-Namah government’s aim is to stabilise generation as soon as possible to prevent the current widespread power cuts affecting the Momase-Highlands region, especially in Lae and Madang.

“Our long-term aim is to greatly increase power supply to the region to allow the development of new resource projects, promote economic development and increase the standard of living of the people in the area.

“We now have a coordinated strategy for repairing and expanding Yonki and ending the power cuts that have crippled the business sector over the past 10 years of the Somare government and caused such problems in the daily lives of ordinary Papua New Guineans.”

An important element of the plan is to make provision for landowner equity in the Yonki scheme.

The Somare government failed to deal with this very important issue, Sir Mekere said.

The O’Neill-Namah Government will tackle it in two ways.

 “The first is to develop a framework for landowner participation as private equity partners,” he said.

“The second is to encourage the employment of landowner companies in the development and construction phase by acting as preferred providers of services.

“Other private sector participation in the project is to be encouraged through existing PPP (private public partnership) arrangements.

“PNG Energy Development Ltd, a 50-50 joint venture between PNG Sustainable Development Ltd and Origin Energy of Australia, has joined the project steering committee recently set up by IPBC (Independent Public Business Corporation).

“This committee will continue with its technical, social, environmental and social investigations.”

The Yonki project has three phases. They are:

• The refurbishment and upgrade of Ramu 1 power station, at a cost of K58 million. Further work will be needed to return the station to full operational capacity, which is expected late this year;

• The completion and commissioning of the Toe of Dam generation system. The Toe of Dam project is designed to generate 18 megawatts of power from water flowing down the dam spillway that would otherwise be wasted. Construction began in 2009 but was suspended owing to problems with the contractors. PNG Power has now resumed construction work with support from two Japanese companies - Nippon Koei and Daiho  – and expects the plant to be commissioned by the middle of next year; and

• The construction of a new powerhouse, Ramu 2, which would generate an additional 120 - 180 megawatts bringing the total power generated at Yonki to  from 45 megawatts to 180-240 MW.

Sir Mekere said the transfer of assets into Yonki Hydro would be subject to due diligence, and a final feasibility study would be needed for Ramu 2.

Lae port project cuts down red tape

 National Executive Council has approved the adoption of immigration and customs processes for the K700-million Lae port project.

NEC’s decision means the Lae port project will go ahead under the procedures laid down for the PNG LNG project at the Department of Labor and Industry and the Department of Foreign Affairs and Immigration.

“This is a critical project for the Momase and Highlands regions, and by applying a similar process approved for PNG LNG, we can cut red tape and fast-track work,” Minister for Public Enterprises Sir Mekere Morauta said.

“The arrangement will cover both the construction supervision consultant, Korean Engineering Consultant Corporation, and the civil works contractor, China Harbor Engineering Company.”

NEC also approved an extension of the temporary importation period from 12 months to 30 months for China Harbor Engineering’s construction equipment.

This means that equipment brought in temporarily under duty-free arrangements can remain in PNG for the full three years of construction.

Sir Mekere said NEC’s decision recognised that  the project was of special significance both nationally and within the Highlands and Momase regions.

“Congestion and inefficiencies at the existing Lae waterfront have increased costs across the region and nationally, and have been an impediment to economic growth and national development,” he said.

“The project - including a tidal basin, a berth and a terminal – will help to lower import costs and therefore the price of goods and services.

“It will also help to increase the competitiveness of Momase-Highlands exports to the rest of Papua New Guinea and overseas.”

Work on the project, funded 70% by the Asian Development Bank and 30% by the national government, is expected to finish towards the end of 2015.

NEC endorses report on Port Moresby waterfront

Minister for Public Enterprises, Sir Mekere Morauta, says that National Executive Council has endorsed a progress report from PNG Ports on future options for the Port of Port Moresby.

“The port is already working at maximum capacity and cannot keep up with the growth demands imposed by the surge in national economic activity over the past few years,” he said. 

“It is holding back economic development.

“Expansion is urgently needed, but there is not enough room at the present location to provide the required operational life of 100 years, nor is large-scale expansion appropriate there because of social and environmental issues.

“The scope of the expansion required for a 100-year life would also put even greater stress on local infrastructure such as roads and freight depots and warehouses.

“The consequences for people living and working close to the port – noise and dust pollution and the general inconvenience of large trucks moving through already overcrowded and unsuitable streets – would be intolerable.

“NEC has therefore endorsed a proposal from PNG Ports to move ahead with a plan to relocate the Port.”

Sir Mekere said the first step was to finalise the evaluation of a number of locations and identify a site that can provide the 100-year life span at the least possible cost.

Sir Mekere said previous studies had indentified Tatana Island and Motukea as the best available options. 

Napanapa and Bootless Bay have been excluded.

“This is a very large and complex project of national importance,” he said. 

“The task of finding a replacement for the existing wharf is now very urgent.

“Completion of critical engineering studies is now under way, as are investigations of land and water tenure issues.”

In the meantime, all efforts to make the existing port as efficient as possible are continuing.

 There is scope for one expansion to meet short-term demand, and this will also be considered.

NEC also endorsed the creation of a Project Management Unit by Ports PNG and a Relocation Project Steering Committee consisting of government departments and authorities.

Boom in PNG mining and petroleum

By MALUM NALU
Papua New Guinea is experiencing an unprecedented period of activity and growth in the mining and petroleum sectors, PNG Chamber of Mines and Petroleum executive director Greg Anderson said yesterday (Thursday), The National reports.
He highlighted this at the start of a two-day media workshop for journalists and industry public relations professionals at the Gateway Hotel in Port Moresby.

Participants at the first day of the workshop yesterday.-Nationalpic by MALUM NALU

“We (PNG) have been very blessed and if we can keep up the level of activity (in mining and petroleum), we can develop a number of exciting projects,” Anderson said.

Anderson (left) and workshop facilitator and veteran resource and business journalist Brian Gomez yesterday.

According to an updated industry overview from the chamber, mineral production in 2011 was over 62 tonnes gold, about 90 tonnes silver, and 130, 456 tonnes of copper contained in copper concentrate.
Activity in the petroleum sector is spearheaded by the much-publicised PNG LNG project which has focused international attention on the country.
The PNG LNG has increased the focus on PNG and has attracted international interest, which has contributed to the high level of activity on oil and gas exploration.
There are currently 71 petroleum prospecting licenses (PPLs) and over 15 applications pending, covering large parts of the country.”
PNG ranked as the 11th largest gold producer in the world in 2010.
“PNG has developed two major mining projects in the last two years, the Ramu nickel-cobalt mine in the Madang province which is at commissioning stage; and the Hidden Valley gold-silver mine in the Morobe province, which commenced production in 2011 and is ramping up an average annual production of 250,000 ounces of gold and 3.6 million ounces of gold,” the overview said.
“Over the last two years, there has been considerable capital expansion at the three major mines including, the twin declines at Porgera, now completed; the million ounce production upgrade (MOPU) at Lihir which is in its final stages and expected to come on stream at the end of 2012; and the ongoing technical studies at Ok Tedi to determine the possibility of a combined underground/open cut mine with a reduced throughput (to 60%) to extend mine life from 2015 to 2025.
“A mining lease was granted for the exciting Solwara 1project in January 2011.
“Situated about 30km offshore, west coast central New Ireland province, this will be the first project in the world to mine deep seafloor massive sulphide deposits which are small in size but boast exceptional grade (around 9% copper equivalent), compared to the standard onshore copper-gold mine.”
There are a number of potential mining developments achievable over the next 10 years, central to these being the three world-class copper-gold/copper-molybdenum Frieda (East Sepik), Wafi-Golpu (Morobe) and Yandera (Madang).
Current large mining projects include Barrick Gold’s Porgera gold mine, Ok Tedi copper mine, Newcrest’s Lihir gold mine and MCC’s Ramu nickel-cobalt project.
Three small to medium operations are Petromin’s Tolukuma gold mine, Allied Gold’s Simberi gold mine, and New Guinea Gold’s Sinivit gold mine.
“General exploration activity in the mineral sector is at a high level but administration to tenements has become an issue because the record number of applications and renewals has resulted in a backlog in the Mineral Resources Authority.
“At the end of the first quarter 2012, there were over 282 current exploration licenses and renewals and over 394 outstanding applications spread right across the country.”