Ending the year in style on Fisherman's Island

Story and pictures by  MALUM NALU

On Sunday, Dec 28, 2014, my elder brother David and his children invited my children and I for a day cruise to Daugo (Fisherman's) Island off Port Moresby.

Also joining us were his tambu (sister-in-law) Geno and her kids, as well as our cousin Yapi Delabu, all the way from our home at Butibam village in Lae.

Maus Wara on Fisherman's Island

 

Sun, surf, and sand



Boats galore



We had a wonderful time, leaving the yacht club at about 10am on the BAT vessel Maus Wara, didn’t try out the fishing unfortunately, and then ended up at the island where we swam and enjoyed lunch.



With my daughter  Moasing and niece Lautuoc



My son Jr and niece Lautuoc
 

Building sand castles

 

Family having fun



The kids had a great time swimming, playing on the sand, and taking pictures with their GoPro camera, which produced some unbelievable shots (I have to get one for the New Year).

GoPro shot 1 by VELEKIRI NALU

 


GoPro shot 2 by LAVAU NALU

 

 



My baby son Keith





My daughter Moasing and me



I took along my still and video cameras as well to capture these moments for posterity as well as post pictures live to Facebook for family and friends to see.

Twas great to see the large number of expatriates on Fisherman's Island enjoying the sun, surf, and sand in bikinis, and freely talking and mixing with the locals, even buying and eating cooked fish.

 

 

A game of beach volleyball.

Fun in the sun

Good to see the large number of expatriates

 

It made me wonder why Papua New Guineans, including leaders, are taking their holidays overseas and in other Pacific countries.



Endless white sandy beaches bring the words of one of my favourite poems to mind

Footprints in the Sand

One night I dreamed I was walking along the beach with the Lord.
Many scenes from my life flashed across the sky....
In each scene I noticed footprints in the sand.
Sometimes there were two sets of footprints,
other times there were one set of footprints.

This bothered me because I noticed
that during the low periods of my life,
when I was suffering from
anguish, sorrow or defeat,
I could see only one set of footprints.
So I said to the Lord,
"You promised me Lord,
that if I followed you,
you would walk with me always.
But I have noticed that during
the most trying periods of my life
there have only been one
set of footprints in the sand.
Why, when I needed you most,
you have not been there for me?"
The Lord replied,
"The times when you have
seen only one set of footprints,
is when I carried you."
- Mary Stevenson

 

Big brother David, nephew Vele, cousin Yawi, niece Zarin (back), and cousin Yapi



My son Jr



Historically, Fisherman’s (Daugo) is an abandoned WW11 strip, which until some years ago was used by trainee pilots from Port Moresby.

By 1944, Port Moresby had six airfields.

 Jackson was the largest, and was named after Australian ace pilot John Jackson, leader of RAAF Squadron 75, who was killed in a dogfight against Japanese planes over Port Moresby on April 28, 1942.

Wartime airfields in the area included the following:Kila Drome (3 Mile) Airfield for fighters and bombers; Ward Drome (5 Mile) Airfield for heavy bombers and transport planes; Jackson Airport (7 Mile) Main airfield still in use today by Air Niugini; Berry Drome (12 Mile) Fighter and medium bomber base near Bomana; Schwimmer (14 Mile) Fighter and medium bomber base; Durand Airstrip (17 Mile) Fighter and medium bomber base; Rogers (Rarona, 30 Mile) Fighter and medium bomber base; Fisherman's (Daugo) Emergency landing strip on off shore island

After 4pm, after a lot of fun in the sun, surf, and sand, and lots to eat and drink, it was homeward bound.

Homeward bound

View of Port Moresby from the sea on Sunday afternoon. Note that Paga Hill to the right of this picture, the controversies of which I've written a lot about this year, is shaved bare for a multi-million dollar housing estate.

Along the way, we passed Gemo Island, which is one of a number of abandoned gun emplacements, bunkers and fortifications during WW11, and the site of a hospital for leprosy and tuberculosis patients from 1937-1974.

It looked so quiet but would tell so much if it could talk.


Gemo Island

 

These were constructed by Australian Engineers in 1944, but never used, then abandoned after the war: Basalisk Battery Largest, three gun battery to the west of Moresby; Paga Hill Battery Gun battery and radar set location hill outside Moresby; Gemo Island Battery Gun position on offshore island, overlooking the east; Bootless Bay Battery Gun position at Bootless Bay; Boera Battery Gun position west of Port Moresby.

A great was to end 2014 in style.

 



Me and Captain Martin at the wheel



 

PS: A Happy New Year 2015 to readers of this blog and thank you for all your support in 2014.

 

Three bodies found in freezer of suspected illegal fishing boat off Papua New Guinea

By PNG correspondent Liam Cochrane

Updated about an hour agoMon 29 Dec 2014, 7:46am



Photo: Illegal fishing is a growing problem in the Pacific. (ABC News, file photo)

 

Three human bodies have been found packed amongst tuna in the freezer of a fishing vessel that ran aground on a remote island of Papua New Guinea.

The suspected illegal fishing vessel was found on December 10 at Paona Island, a 45-minute boat ride from Fead Island, which is 200 kilometres north of Bougainville.
Due to the remote location, authorities had only begun launching an investigation mission to the area.
"Local reports coming from the area are that there are three dead bodies in the ship's fridge with some fish they have caught," said Franklin Lacey, Bougainville disaster coordinator, who is leading the investigation team.
Mr Lacey said the deceased were of Asian appearance and may have been crew members.
The identities of the bodies or the ship had not yet been established.
"The occupants of the boat, when it ran aground, they tried to burn it but it did not get ablaze – it's only the top part of the ship that's been burnt," Mr Lacey said.
Mr Lacey said the freezer containing the corpses was still working.
"We've been giving a warnings to the locals not to get the fish from the fridge, which they normally do with other ships that run aground," he said.
Illegal tuna fishing is common in the area and the crew was believed to have fled to a "mothership", acting as a hub for smaller vessels.
An assessment team was expected to leave Bougainville for the remote island on Monday and hand a report to the country's National Maritime Safety Authority, which will lead the recovery of the bodies and the vessel.
"We'll leave it to the NMSA to do the rest, because they could get the fish and dead people off and bury them somewhere," Mr Lacey said.

New Bougainville time zone takes effect today

The Autonomous Region of Bougainville will move its clocks  forward by one hour on December 28, 2014.

A new time zone, to be known as Bougainville Standard Time, has been adopted by the Bougainville House of Representatives. 

The new time zone is 11 hours ahead of co-ordinated Universal Time, which means Bougainville will be one hour ahead of the rest of Papua New Guinea.

The change will happen at 0200am on December 28, 2014, when all clocks in the Bougainville region will move forward to 0300am. 

From this date onwards, when it is noon in Bougainville, it will be 1100am in the rest of Papua New Guinea. 

All persons travelling to Buka or Kieta  will need to forward their watches by one hour, to align with Bougainville time.

 Similarly when leaving Bougainville and traveLling to the rest of Papua New Guinea, travellers will need to move their watches back by one hour.

Air Niugini is also in the process of updating its booking systems and timetable information to reflect the above, for all flights to/from Buka and Kieta operating from December 28 onwards.

Race for stake in NBPOL most intense plantation deal

Saturday, 27 December 2014

By: HANIM ADNAN

The Star

As of Dec 22, the plantation group has a market capitalisation of RM5.4bil.

 

     

THE most intense cross-border oil palm plantation deal this year has to be the race for a major stake in London Stock Exchange (LSE) listed New Britain Palm Oil Ltd (NBPOL) based in Papua New Guinea (PNG).
NBPOL was coveted by many regional plantation companies given its credentials as a fully integrated palm oil producer with 135,000ha of brownfield assets, 12 mills and one refinery each in PNG and Liverpool as well as the largest sugar cane and beef producer in PNG.
As of Dec 22, the plantation group has a market capitalisation of £997.82mil (RM5.4bil).
Initially, the NBPOL’s stake up for grabs was the 49% stake owned by Malaysia’s Johor Corp plantation investment arm, Kulim (M) Bhd, which saw competitive bidding from seven potential planters, whereby four believed to have been short-listed.
It is also believed that intense bidding war took place between two government-linked companies, Sime Darby Bhd and Felda Global Ventures Holdings Bhd (FGV) for Kulim’s stake in NBPOL.
In the end, lady luck favoured Sime Darby as the conglomerate was chosen as the preferred party to negotiate for Kulim’s equity stake in NBPOL in July.
The plantation conglomerate also had a 60-day exclusivity period to decide on the proposed acquisition.
Upon the expiry of the exclusivity period under the exclusivity agreement between Sime Darby and Kulim on Sept 28, Sime Darby made an announcement to Bursa on its decision to abort the NBPOL deal but it did not disclose the details.
This sudden turn of event has sparked market talk that it could paved the way for other suitors including FGV to acquire the NBPOL stake.
On Oct 9, Sime Darby sprung another big surprise to launch a conditional general offer (GO) to acquire all shares in NBPOL at £7.15 per share or £1.07bil in cash.
The GO will be subject to Sime Darby receiving a minimum acceptance of 51% of the NBPOL shares, an assurance that the offer will not be contrary to PNG’s national interest, and meeting the regulatory requirements by the LSE, the Port Moresby Stock Exchange, the PNG government and Bursa Malaysia.
The latest development is that Sime Darby has extended the offer period for the takeover of NBPOL from Dec 18, 2014 to Jan 20, 2015.
NBPOL’s shareholders owning 58.7% of the shares, including Kulim, have accepted Sime Darby’s offer.
Sime Darby expects the exercise to raise about RM2.75bil. The privatisation of NBPOL will also see the PNG plantation group delisted from the UK bourse.
Meanwhile, Felda Global Ventures Holdings Bhd (FGV)is also a no stranger to mega plantation deals particularly in the past two years. FGV upped the ante this year by setting its sight on Asian Plantations Ltd (APL) listed on the LSE’s Alternative Investment Market (AIM) and also, NBPOL.
FGV, however, failed in its bid to acquire NBPOL after an intense bidding process.
Undeterred, FGV reverted to its earlier plan by launching an offer to buy APL for £2.20 (RM11.50) per share, or RM628mil in total, in late August.
The offer became unconditional on Oct 13 after FGV secured valid acceptances of 93.9% APL’s issued shares.
On Nov 11, FGV went on to delist APL from LSE’s AIM market after the plantation group completed its purchase of APL shares.
Hence, with the delisting of APL on AIM, FGV will be working towards integrating APL into its wholly owned subsidiary, according to FGV group president and CEO Datuk Mohd Emir Mavani Abdullah.
APL owns 24,622ha of oil palm plantations through its five wholly-owned estates in Miri and Bintulu, Sarawak.

Four women, 13 children at risk of murder in PNG after being accused of witchcraft, missionary says

ABC

Updated Fri 26 Dec 2014, 10:45pm



 

A group of four women, along with their 13 children and grandchildren, are at risk of being murdered in Papua New Guinea after being accused of witchcraft, a missionary says.

Anton Lutz, a Lutheran missionary in PNG's Highlands, told Radio Australia's Pacific Beat that while details are still coming in, the church, government and NGOs are trying to see if they can help.


Photo: People stand by while fire burns on a pile of rubbish in Mount Hagen, near where a woman accused of witchcraft was reportedly killed in 2013. (AFP/Post-Courier, file photo)      

He said a "witch-hunter" pointed them out when villagers were investigating a measles outbreak which has killed several people.
"A witch-hunter, as it were, travelled from a village called Wanakipa ... to the place where these women were and to identify them," he explained.
He said their lives are in serious danger.
"This is happening in the Hewa language [group], which extends between the northern part of Hela province and the western part of Enga province," Reverend Lutz said.
"It's a very large group and they are well known for murdering women."

'Over 20 accused witches killed in recent years'

Reverend Lutz said he knew of at least 25 women who were killed over the past 10 years after being accused of sorcery in the western part of the Hewa language group, with no arrests being made.
He said it is difficult to get the authorities to help, because the community is only accessible by one airstrip and reports have only just emerged about the imminent killings.
"It's an extremely remote part of this country," he said.
"We're still trying to notify the authorities and we're waiting for calls back from the police right now."
But the missionary said accusations of sorcery and retaliatory violence against women are not unique to remote, undeveloped areas in PNG.
He pointed to last year's killing in Papua New Guinea's third-largest city, Mount Hagen, where Kepari Leniata, 20, was burnt alive after being accused of sorcery.
The young woman was from an area believed by many in PNG to be hotbed of witchcraft.
"And she had run away from her village because she had been accused of this witchcraft thing and she escaped here," he said.
"But she was actually murdered [in Mount Hagen] based on accusations from [her hometown], which is where this story is unfolding.
"So it's a very real risk that sort of extends right through the highlands.

Accusations becoming more widespread

Reverend Lutz said the accusations of sorcery are becoming more widespread.
"For instance, I live in the Enga province, in the eastern part of it, and there are no traditional beliefs about this kind of witchcraft," he said.
"But, because of the movement of people ... those who have never believed in these kinds of things before are now hearing these stories and believing in them."
Last year, a conference on sorcery in Melanesia heard the belief in the power of others to cause harm using supernatural powers is deeply ingrained in the region.
"We consider it a very troubling phenomenon that really goes to the heart of the international human rights framework as a human right violation against women's right to life," said Nancy Robinson, UN High Commissioner for Human Rights regional representative.
"A right not to be tortured and also to lead a life without violence.
"These are issues that we are aware of exist in many countries, but her feel that it is inadmissible that by virtue of cultural practices, women's right to life is being violated."

Cue completes sale of assets in PNG to National Petroleum Co. for $7m

By  Cue Energy Resources Ltd.

Press Release

|Friday, December 26, 2014

 

Cue Energy Resources Limited (CUE and the Company) announced  the sale of its interests in Papua New Guinea to the National Petroleum Company of PNG for $7 million. CUE received $7 million in cash via the sale of 100% of the shares in CUE’s wholly-owned subsidiary, Cue PNG Oil Company Pty Ltd, effective Nov 20, with the sale proceeds substantially exceeding the book value of the assets. The sale follows a strategic review of the company’s PNG assets and immediately allows CUE to realize value from its share of the declining reserves and contingent gas resources and releases CUE from a potential substantial well commitment of up to $10 million, delivering a material saving over the short to medium term. The sale aligns with the company’s strategy of operating in lower cost areas with near term development options and enables CUE to re-allocate capital to other opportunities more closely aligned with its strategy, including the recently increased 100% participating interest in the Mahakam Hilir PSC and farm-in to the highly prospective Mahato PSC, both located in Indonesia. Commenting on the transaction, CUE CEO David Biggs said, “The sale of our interests in PNG, together with the recent announcements of our increased participating interest in Mahakam Hilir PSC and farm-in to Mahato PSC demonstrates CUE’s focus on delivering its strategy of effective capital allocation to core areas in support of CUE’s future growth.” “We are very excited about our increased position in Indonesia and the proceeds from the sale of the PNG assets allows CUE to add value for shareholders in a more meaningful and immediate way.” Biggs sai The asset interests sold by the subsidiary are: PDL 3 - 5.568892 percent SE Gobe Unit - 3.285646 percent PRL 9 - 14.894 percent PRL 14 - 10.94 percent

- See more at: http://www.rigzone.com/news/oil_gas/a/136517/Cue_Completes_Sale_of_Assets_in_PNG_to_National_Petroleum_Co_for_7M#sthash.GKi9goP1.dpuf
 

Papua New Guinea among must-visit destinations in 2015

Source: Vietnamplus

Papua New Guinea ranked fifth on the list of five must-visit destinations in the world next year, according to the travel online agency Destinia.com.
Dubai, the most populous city　in the United Arab Emirates, is at the top of the list, followed by Namibia,  Burma, Vietnam, and PNG.  
The travel site said that Vietnam will celebrate National Tourism Year 2015 under the theme "Connecting world heritage" in the central province of Thanh Hoa, to celebrate the cultural legacy of the country.
All the provinces and cities with UNESCO recognised world heritage sites and practices will host various artistic and cultural performances and events during the year.
At present, Vietnam is home to 22 world heritages recognised by the UNESCO, including two natural heritages, five cultural heritages, nine intangible cultural heritages, four documentary heritages, one geological heritage, and one mixed heritage.

Focusing on reading in Papua New Guinea

Improving how reading is taught and learned

December 23, 2014

by Jeff Ramin 

Global Partnership for Education

                

Papua New Guinea is making great strides in improving how students are being taught to read.

This is good success considering that in 2011 literacy rates among primary and secondary students in five of Papua New Guinea’s 22 provinces were below 20% (ASPBAE Australia).

 

Two girls sitting at a desk in Papua New Guinea.Picture: Jeff Ramin

The Pacific Island nation of 7.3 million people joined the GPE in 2010, with an ambitious Universal Basic Education Plan designed to ensure that “all children of school age must enroll in school, complete nine years of basic education and should have learnt skills, knowledge, and values covered in the basic education curriculum”.
The plan aims to improve access and the quality of education as well as enhance management of basic education, retention, and equity.
 The Global Partnership for Education supported Papua New Guinea with a $19.2 million grant to implement this plan.

Reading is a fundamental skill to promote learning

The 2011 PNG Read program, funded by the GPE grant and implemented by the Papua New Guinea Department of Education with the support of the World Bank, is an innovative program founded on the principle that reading is the fundamental skill all children must acquire to promote learning.
The program promotes better teaching and learning of reading skills in elementary and primary education.
In Papa New Guinea, elementary level means preschool and the first two years of primary school, and elementary level includes grades 3 to 8.
The program consists of three basic interventions:

• Classroom libraries and related support for grades 3 to 8;
• Learning kits and materials for elementary grades, also to teach reading;
• Introducing a reading assessment tool to enable teachers to measure student progress

Many challenges to address….

As a result classroom libraries of 60 books are being established all grade 3 to 8 classes across the country.
 Considering that PNG is as large as the United Kingdom with much of it not accessible by  road, delivering books to every school in the country represents a major logistical challenge that is still underway. 
Selecting and procuring more than one million books was another challenge, as well as preparing teacher’s manuals and training DVDs to promote the use of these books via activities such as silent reading, paired reading, story time, and improved methods to teach reading.
Preparing, selecting and distributing the learning materials for younger children, much of it in vernacular languages as more than 800 languages are spoken in PNG, was yet another challenge we are addressing.
And finally, adapting and testing the reading assessment tools known as Early Grade Reading Assessment (EGRA) in four of Papa New Guinea’s 22 provinces is underway and is meant to give teachers and education departments officials practical tools to measure progress of the reading-related initiatives, including the ability to identify and address problems quickly.

…and successes to report

During a recent visit to Papua New Guinea I was able to see the progress of the PNG Read program. Reading scores in Madang province for both boys and girls have improved, interventions in the Western Highlands province are on track, and books for the classroom libraries are being distributed. In addition, teachers are being trained to use the materials to promote reading and improve reading scores.
In the capital Port Moresby I visited two local schools and observed that teacher training to promote reading has been quite effective.
Teachers are integrating the classroom libraries and reading sessions into their classroom schedules. Techniques such as having a reading buddy are being used to pair stronger readers with less-proficient readers to help those struggling to become more confident and willing to participate in the reading activities.
The PNG Read team is also working on the development of a new “Standards Based Curriculum”, which highlights the importance of data collection to inform curriculum planning.
This will strengthen evidence-based decision making going forward and the establishment of a strong and sustainable system.

Jeff Ramin is the GPE Country Lead for Papua New Guinea, Bhutan, Haiti, Maldives, Mongolia, Philippines, Timor-Leste, and Yemen.

InterOil spuds Antelope-5

InterOil

 

Singapore and Port Moresby, December 23, 2014: InterOil Corporation (NYSE: IOC; POMSoX: IOC) has started drilling the Antelope-5 appraisal well in Petroleum Retention License 15 in the Gulf Province of Papua New Guinea.

Antelope-5 is about 1.8 kilometers from Antelope-3 and will appraise the western extent of the Elk- Antelope field.
InterOil will keep the market informed of material developments.

***
About InterOil
InterOil Corporation is an independent oil and gas business with a primary focus on Papua New Guinea.
 InterOil’s assets include one of Asia’s largest undeveloped gas fields, Elk-Antelope, in the Gulf Province, and exploration licences covering about 16,000sqkm.
The company employs more than 2,000 staff and contractors.
Its main offices are in Singapore and Port Moresby. InterOil is listed on the New York and Port Moresby stock exchanges.

Prime Minister Peter O'Neill 2014 Christmas Message

2014 Christmas Message

Hon. Peter O’Neill CMG MP

Prime Minister

23 December 2014

 

Firstly let me take this opportunity to wish every citizen on our country a very Merry Christmas and a happy New Year.

As we end this year I know that it has been challenging year for all of us including our

Government and our country.

We again want to inform you that our country’s performance, in terms of the development of our country, is very positive and it is gaining strength and momentum as we are ready to enter the New Year.

Our economic growth over the past few months has been very stable - it has been growing at around 8 per cent per annum and indications are that we will end the year on a very strong note.

Our inflation has been very steady, our interest rates are very steady, our foreign reserves are very high, enough to cover six months of imports, and our employment levels in the country are continuing to increase because of the government’s strong commitment to the policies that we have introduced to our country.

Our strong investment in health and education is starting to produce results, we are seeing more kids in school.

We are also investing more money into higher learning institutions like universities, we are putting direct funding into those areas so that we could accommodate more students being taken into the coming year.

In 2016 we are putting more money as we have committed in the budget into those institutions, while the same time continuing to fund the free education program that we have so far successfully introduced for the past three years.

I know that it is not been an easy year.

Politically of course we have had some challenges, based on some ongoing and unfounded allegations, but as a Government we have been able to maintain some stability and of course that stability has allowed us to continue to achieve the outcomes that we have been able to do so this year.

We have also increased our investment in infrastructure.

Many roads throughout the country have been built, and as a result of that you can see that people are able to move freely, access services, and have ]access to markets where they can sell their goods and earn an income for their families.

We will continue to maintain that level of investment in 2015, 2016 and 2017, so that we can open up our country.

We are starting to invest more into opening up our country in some of our areas that have been isolated for many years.

Places like Telefomin, places like Simbai, Karimui-Nomane, places like Kandrian- Gloucester and many other places in the country like Kaintiba and Menyama and Aseki and all these places where no proper road infrastructure was able to connect them to receiving services that they are entitled to.

The Government is continuing to expand on investing in the road infrastructure that will link those communities.

We are investing more money to the districts which are now starting to maintain the roads and maintain the schools, to maintain the hospitals.

So all-in-all I think that we have had a very good year and I know that next year is going to be a continuation of that work that we have started.

We are continuing to invest money into the same priorities that we have invested in 2014 into

2015.

Because we can see the results, it is important that we continue to maintain the course of that investment.

 If we divert our attention elsewhere we are not going to achieve the results that we all want. We must invest in health, we must invest in education, we must invest in law and order, we must invest in infrastructure.

More work will be done. We cannot fix all the problems in one year, but I want to assure every citizen of this country that your Government will continue to work for you so that we can have meaningful change in this country, and as a result of that change, your life can get better and the life of your kids and your families can improve into the New Year and beyond.

So once again I want to take this opportunity to wish every man, woman and child, and the community throughout the country a very best Merry Christmas and happy New Year.

I know that next year is going to be challenging year.

Many of you know that we have had declining oil prices coming through the global economy, some of the global economies like in Europe and America are slowing down.

They are struggling to maintain some level of growth.

In some cases they are entering into recession.

These are a concern to our economy as well because we are selling to those markets.

China is also slowing down slightly, we hope they will continue to maintain their growth because they are our biggest customer.

Japan has entered into a slight recession, but hopefully with the re-election by Prime Minister Abe their economy will be entering positive growth because they are again very important customers of Papua New Guinea, very important trading partners of Papua New Guinea.

When their economies do well, our economy will do well as well.

We will as government continue to maintain a very close watch on many of these issues, especially how the global economy trends, but all-in-all I can assure you that the economy and the management of the economy and the management of our country is in good hands.

We have got a hard-working Government, hard-working ministers and a hard-working

Parliament that is working for the good of our people.

We look forward to seeing you in the New Year, and once again let me thank you for your support.

Thank for your prayers that has been able to give us the strength and the encouragement that we need to continue to work for our people.

Thank you and God bless each and every one of you.

 

 

 

PM O’Neill opens Raba Raba Jetty in Milne Bay

Prime Minister's Office

Thousands of people living in the area around Raba Raba Station in Milne Bay will benefit from

the construction of a new jetty that was opened by the Prime Minister Peter O’Neill  this week.

The people of Raba Raba will also have clean drinking water and sanitation for the first time in

their history following the commitment to build a water treatment plant.

 

 

As the nation prepares to celebrate 40 years of independence, the Prime Minister has further

committed K200,000 to restore burial headstones as a lasting memorial to two of the nation’s founding Fathers, Sir John Guise and Sir Kingsford Dibela.

In opening the jetty, O’Neill said he hoped the new infrastructure, that includes new roads

under construction, would deliver immediate positive change for people in villages around Raba

Raba.

“For the first time, agricultural producers in the area surrounding Raba Raba will have a more

efficient means for getting their product to market than in the past,” he said.

“We must build infrastructure that will be used by people throughout the country.

“This is a rural-focused Government, we are here to serve the majority of Papua New Guineas

who live in the rural communities around the country.

“We need services in the rural areas.

"We need healthcare and education delivered to the rural areas so that people can have better lives. To deliver these services we need to build the infrastructure that make it possible for government to deliver services, while at the same time businesses can grow and develop.”

The new jetty in Raba Raba is one of six jetties that have been delivered by the Member for Alotau Open and Minister for National Planning Charles Abel MP through his DSIP funding.

The jetties are constructed of concrete and steel to withstand cyclonic conditions and last for decades to come.

During the visit, the Prime Minister committed K1 million to build a water treatment system Raba Raba that will bring clean drinking water and sanitation to Raba Raba for the first time in
the station’s history.

“Access to lasting supply of clean drinking water and sanitation is a basic service that must be

delivered and we will build the water treatment plant.

“This is part of Government’s ongoing commitment to improve standards of living right around the

nation and access to clean water is part of this program.

“For too long Governments in Waigani have done nothing when the basic things such as water

should have been provided.”

O’Neill said in committing funding to restore the headstones of two of the nation’s founding

Fathers in Raba Raba was important for the nation.

“I want to thank you for producing some of the best leaders of Papua New Guinea, including Sir

John Guise, our first Governor General and Sir Kingsford Dibela.

“They have contributed immeasurably to our country and we must continue to honour them.

"Even as a small boy in Ialibu-Pangia we knew of Sir John Guise and Sir Kingsford Dibela.

“It is important that their memorials are restored and they are accorded the respect an dignity that

they deserve.”

Lupari: Polye-Flanagan seek to undermine economy for political self-interest

Office of the Prime Minister

 

Prime Minister's Chief of Staff  Isaac Lupari has raised concerns at political interference by a former Australian government advisor working with the Leader of the Opposition to undermine the government.
Lupari said that as a close advisor to the former Treasurer, recent articles written by Paul Flanagan were more political spin than real analysis and these views were not impartial.
"Despite claims by Mr Polye and Flanagan, Papua New Guinea is largely protected from oil price fluctuation because forward contracts were signed before the recent change in oil prices," he said.
"Their argument is based around the claim that Papua New Guinea will receive substantially less income from LNG sales and this is simply not true.
"PNG LNG exports and prices are predominantly locked into long-term forwards sales contracts.  In simple terms this means that Papua New Guinea will receive the same price for LNG.
"Mr Flanagan should know that LNG prices are locked in but he continues to play politics with business perceptions and the Opposition is going along with this nonsense.
"Polye-Flanagan appear to have no conscience when it comes to talking down the economy for their own political self-interest, and do not care of harm this could cause to small business and jobs in Papua New Guinea.
"Almost every budget in ever country in the world is framed around a theory of market fluctuation and expectation that prices will change.  The 2015 budget is designed according to these economic principles, so the Polye-Flanagan assertion that the 2015 budget is under threat is grossly misleading.
"Analysis and discussion on the economy is always welcome, but motive must be declared.  Mr Flanagan's agenda is very clear - it is political and unprofessional. If Mr Flanagan was genuine, he could have sought to engage with the Government and voice his concerns instead of playing games in the media.
"If the Leader of the Opposition does not understand the subject matter there are a number of truly independent experts who live and work in Papua New Guinea from whom he could seek advice."

PNG joins list of countries staring into the abyss

By ROWAN CALLICK

The Australian

Dec 23, 2014

 

PAPUA New Guinea has joined the list of countries severely damaged by the collapse in oil and gas prices.

It faces a spiralling budgetary deficit unless it swiftly adjusts to lower revenues and unwinds ­ambitious new spending, according to former Treasury official Paul Flanagan. “PNG had set itself on a slippery slope towards a crisis, and the world just gave it a great big shove,” he said.

If the government does not act soon, he said, “PNG will be going to the International Monetary Fund or another country seeking a large bailout”.

Opposition leader and former treasurer Don Polye agreed, yesterday saying the country’s budget deficit threatens to rise above 10 per cent, and the debt to GDP ratio to 75 per cent by 2017 — 2½ times the maximum level permitted by the country’s Fiscal Responsibility Act.

Mr Polye urged that the kina, the rate of which has been managed since June 4, be allowed to depreciate — claiming that international reserves would otherwise be exhausted within two years. “Unfortunately Santa Claus isn’t going to be visiting the government this Christmas.”

 Prime Minister Peter O’Neill responded that “the opposition leader should not panic, but needs to better consider the current ­global market situation before making irrational claims”.

He said that “price fluctuation is factored into the budget”, and the government was monitoring the situation. “Energy production is a long-term investment that will experience market turbulence. The market for liquefied natural gas remains strong.”

The government announced in its 2015 budget plans to cut spending by 6 per cent in 2016 and 2017.

Mr Flanagan, who was seconded as an adviser to the PNG Treasury from 2011 to 2013, has written a paper for the Development Policy Centre at the Australian National University, where he is now a visiting fellow, saying that LNG production had often been conceived as transformative for PNG. “But just at the time the country was to benefit from the revenue and foreign exchange flows from (PNG’s first, ExxonMobil managed, LNG project which came on stream in midyear), international markets have dealt a cruel blow,” he said. There would be no tax revenue from this first LNG project “for many years,” Mr Flanagan said — until depreciation allowances end.

The oil price collapse “also significantly reduces the viability of other LNG projects in the pipeline”, he said.

The country’s growth rate for 2015 was forecast in the budget — just six weeks ago — at a world-topping 15.5 per cent thanks to LNG receipts, but is now expected to reach 6.9 per cent. With good policies, suitable adjustments could be made. “However, PNG has moved to poor policies over the last six months such as moving away from a market-based exchange rate, starting to print money to fund the deficit, and deciding on an unsustainable fiscal policy in the 2015 budget,” Mr Flanagan said.

The adjustment needed to avoid a crisis is thus all the more painful, Mr Flanagan said, urging that the 2015 budget be rewritten to avoid a spiralling deficit: “Good public policy making just became much harder — but also more ­important.”

The shift from the market-based kina, he said, triggered a fall in income for PNG’s 2.1 million people who depend on coffee-growing, as well as other small-scale agricultural producers. The kina has since risen by 22 per cent against the Australian dollar since the June 4 intervention — “which makes no economic sense unless payments against major loans in US dollars are being protected”.

The return to a market-based exchange rate would provide a “shock absorber” for the economy, he said. “Market estimates are that the oil price will recover, but only very slowly — and by the end of 2019 it would still be nearly 30 per cent lower than PNG Treasury forecasts.”

At a PNG Mining and Petroleum conference in Sydney earlier this month, Mr O’Neill detailed the government’s “record investment” via the 2015 budget “in free primary education, free universal health care, and expanded skills training.”

The country remained, he said, “a sound and secure nation in which to invest to do business.”

The Asian Development Bank said in its recent regional review that the rest of the PNG economy beyond mining and petroleum was unlikely to salvage the ­dilemma — with its growth forecast at just 1.6 per cent for 2014, and with 2015 returns shadowed by the boosted kina.

Pruaitch: Government monitoring world commodities markets

Office of the Minister for Treasury

Minister for Treasury, Patrick Pruaitch, in response to the Opposition Leader’s claims in the Post-Courier front-page report yesterday about falling commodity prices, re-assures the country that the Government is fully aware of the current developments in the world commodities markets and is closely monitoring the movements in prices.

“As a responsible Government, the O’Neill-Dion Government is monitoring the developments very closely and is fully aware of the implications the falls in prices will have on the economy particularly on Government revenues,” the Treasurer said in a statement.
“The Government , however,  believes that it is too early to be making any adjustments to the 2015 Budget for now.
“At this stage, there is no need to panic.
"The Government is fully aware of the situation and is looking ahead at the options available should the need to adjust arise.”
Pruaitch assured the people of Papua New Guinea that the Government would take all the necessary measures to ensure that the adverse movements in the revenue outlook were contained and that the 2015 Budget remained on track for the stated fiscal targets.
“Whilst the oil prices have fallen by 36.6% since the 2015 Budget, copper and gold prices remain on track. 
"They have only declined by 6.1 and 7.2% respectively since the 2015 Budget, contrary to the 40% price decline as claimed by the opposition leader.
“For the LNG exports, whilst world LNG prices depend and trend closely to the world oil prices, much of the PNG LNG exports and prices is locked in the long term forwards sales contracts.”
Pruaitch whilst he had been unwilling to respond to Opposition Leader directly, "these are other recent statements in the Press recently that are utterly irresponsible. 
"Now is the time for cooperation to give Papua New Guineans the true facts and not political point scoring."
He said the Opposition Leader's statements were extremely consistent with the former head of the Australian advisory team during Polye’s tenure in Vulupindi Haus. 
"In some instances,  it is difficult to work out whether these thoughts are Polye’s or those of this advisor,  which is receiving a lot of air time in the mainstream and social media," Pruaitch said.

 “For my department, we are well aware of the scenario and will take the necessary measures to ensure that external impacts are mitigated as much as possible.

“Developments in the world economy is something that is beyond everybody’s control and it is times like this when responsible Government’s will need to be proactive and have contingencies in place to be able to effectively deal with such circumstances.
"This is what the O’Neill –Dion Government is doing and is asking everyone to be patient and to refrain from making claims that could drive public perception – remember perception drives fear more so than facts.
“Finally let me re-assure the nation that, the Government understands the implications of the recent sharp movements in commodity prices particularly oil and will be monitoring it closely as we head into Christmas and the New Year.”

Marape: No need to panic

Office of the Minister for Finance

The Government is confident the 2015 Budget assumptions are safe despite the fall in the price of oil.Finance Minister James Marape said this yesterday, despite the "doom and gloom predictions of an Opposition Leader (Don Polye) determined to talk down a growing economy"

“While we welcome the advice proposed by the Opposition, this needs to be based on fact instead of drivel,” Marape said.

“There is no cause for alarm and this is not the time for a knee-jerk reaction, as proposed by the Opposition.
“A number of factors have contributed to the current market, with the oil price trending downwards. In less than two months the global oil price slumped about 35%. It may take the same period, if not less, for the price to climb back up and beyond.
“You do not have to be a former Treasurer to understand that this is how a market works. 
"Even high school students know that markets fluctuate, so I think the former Treasurer could be more considered in what he says.
“As a responsible government, we are watching these trends very closely.
"We are not about to over-react, nor should anyone else.
“The factors causing these price swings are beyond our control.
"All we can do is closely and carefully monitor the situation, and act to protect our interest when the time to review our budget comes around.
"That time is June next year when Treasury releases a review of the Budget."
 Marape said forecast for the revenue from the PNG LNG project remained on track because the sale price was locked into long-term contract agreements signed with the customers.
He also said the Central Bank’s decision to intervene in the currency market was a decision that the government welcomed.
“The buy and sell margins were too wide, and the commercial banks were sitting back and making money at the foreign exchange market, at the expense of our people and visitors, so the Central Bank intervention is timely and one we fully support," Marape said.
“The kina exchange rate against its major trading currencies remains stable around levels very attractive to exporters.
"Members (MPs) should be back in the villages using their district funds to help people get their coffee, copra and cocoa and other export crops to the market.
“Members (MPs) should not be holed up in hotels in Port Moresby listening to prophets of doom who preach nothing but negative politics.
"It’s the festive period and we must be with our people to celebrate Christmas.”