Hillary Clinton cancels Papua New Guinea visit

From AFP

 

• Hillary Clinton cancels Pacific trip
• Australia, NZ and PNG were on itinerary
• Ms Clinton will concentrate on Haiti crisis

 

US Secretary of State Hillary Clinton has cancelled the remainder of a trip to Asia to deal with the crisis afflicting Haiti.

Ms Clinton had been due to visit Australia, New Zealand and Papua New Guinea.

Ms Clinton had been scheduled to leave Hawaii today to make a brief stop in PNG before going on to New Zealand and Australia.

Earlier, she told reporters she planned to continue with the journey but would look to shorten it.

"I have decided to cancel the remainder of my (trip) and return to Washington," Ms Clinton said.

Ms Clinton said she had called Australia's Foreign Minister Stephen Smith with the news and he had been "very understanding" of the decision.

"Thankfully, these are very good friends and they know that we wouldn't be cancelling were it not for something of this magnitude," she said.

"When I talked to the Foreign Minister, he was very understanding.

"I told him we would try to reschedule as soon as we can find a mutually convenient time."

Ms Clinton and US Defense Secretary Robert Gates were to be in Canberra for annual foreign affairs and defence ministerial talks (AUSMIN) on Monday.

Ms Clinton indicated the cancellation would have no impact on an already close relationship with Australia.

"I talk to the Foreign Minister all the time. I know that Secretary Gates talks to his counterpart all the time," she said.

"So we have a very close consultative relationship and we will reschedule the AUSMIN as soon as we can."

Ms Clinton's visits to Papua New Guinea and New Zealand will be rescheduled.

Ms Clinton had planned to meet Prime Minister Kevin Rudd on Sunday and was due to visit Melbourne on Tuesday.

Antelope-2 test records more gas condensate

INTEROIL reported Tuesday (January 12, 2010, 03:28pm GMT) that a second drill stem test at its Antelope-2 well at Upper Purari River in Papua New Guinea’s Papuan Gulf confirmed a 15% increase in condensate (liquid gas) production compared with the first drill stem test.

The well flowed at a stabilised rate of about 11 million cubic feet of gas per day, while the condensate to gas ratio averaged 20.7 barrels per million cubic feet of natural gas.

The test is being carried out over an open hole section from 2,222 metres and 2,325 metres.

 “We anticipate that the higher condensate ratio tested in DST-2 of the Antelope structure will improve the previously estimated economics of the stripping plant proposed to be constructed in Gulf Province,” InterOil’s chief executive, Phil Mulacek, said in a statement Tuesday.

InterOil said it would carry out another drill stem test in the lower section of the current open hole before it resumed drilling into targeted heavier condensate and potential oil zone

 Following testing and logging of the lower vertical section of the well bore; the company said it plans to drill a horizontal lateral to explore a potential oil zone.

 

 

 

40 die in horror Papua New Guinea road accident

Villagers assisting survivors from the horrific road accident where two vehicles crashed into each other 130km out of Lae in the Markham Valley on Tuesday afternoon

By PISAI GUMAR and DAISY TANIOVA PAWA in The National

FORTY people have died in the worst road accident in Papua New Guinea.
It happened about 130km out of Lae in the Markham Valley on Tuesday afternoon.
Two 25-seater buses crashed head on at speeds of more than 100km an hour, immediately killing 37 of the 59 people aboard both vehicles.
Three others, who had been severely injured and awaiting transportation to Lae, were later admitted to the Lae International Hospital morgue, at Milfordhaven to take the number of the dead to 40.
Of the 19 survivors, 11 have been treated for injuries and eight have been admitted to the Intensive Care Unit at Angau Memorial Hospital.
Police and medical workers said last night the number of dead could increase.
It is believed another two dead were taken straight from the crash site to their villagers in the Markham valley. If authorities confirm it, the number of the dead should reach 42, Angau Hospital workers said.
The accident took place at Ragiampum village on the Highlands highway between Umi Bridge and Watarais, which is at the foot of the Kassam Pass and near the Madang and Eastern Highlands borders.
A Route 100 (Highway) coaster bus was heading to Lae from the Highlands loaded with people and fresh produce from Mt Hagen, Western Highlands province.
Its passengers were mainly people from Western Highlands, Simbu, and Eastern Highlands provinces.
The other vehicle, a Route 3 PMV that services the Lae and Gusap route, was loaded with passengers of mainly Markham, Morobe province, origin.
According to eye witnesses at Ragiampum village and the Mutzing police, the buses were trying to avoid a pothole when they collided.
The impact killed the passengers. Some of them were thrown out of the side windows and splayed on the tar. Others were thrown onto grass on the side of the road.
Many of the dead suffered broken heads, necks, and limbs.
Motorists who were after both vehicles arrived immediately to a scene in which the PMVs were smashed outside and ripped inside.
Bodies were lying incongruently in a macabre and bloody scene that profoundly shocked many people who had seen ghastly accidents before.
“This is the nastiest and bloodiest of accidents on the highway,” Markham MP Koni Iguan said. Villagers standing near him agreed.
“We have witnessed less than 10 victims on previous occasions ... this is horrific.”

Escapees' hideouts still unknown

By DULCIE OREKE in The National

 

POLICE yesterday afternoon still had no leads into the whereabouts of the 12 escapees who walked out from PNG’s highest maximum security unit at Bomana Jail, on the outskirts of Port Moresby on Tuesday morning.

Acting deputy commissioner of police, chief of operations Raphael Huafolo yesterday said police really did not know where the escapees were but were still looking for them.

He said the people were in fear and were scared to come forward to give any information regarding their escape but it would take time as they were dealing with people.

In the mean time, he said that when they did get any forwarding information police would have to assess and check those information.

Mr Huafolo however, advised the public to co-operate with police and report the matter to them for any sightings of the escapees.

“All information will be treated confidentially,” Mr Huafolo said.     

He also appealed to the escapees to voluntarily surrender to police.

Meanwhile, police in the Milne Bay province have stepped up operations at all entry points into the province for any possible access by the 12 dangerous men.

“More than 20 policemen will be deployed to the airport, waterfronts and along the boarder areas of Oro and Central provinces to check all boats, aircrafts and people entering the province,” provincial police Lincoln Gerari said.

He said although they had not received any leads into the exact location of the escapees, police were prepared to ensure that Milne Bay province was not threatened.

Insp Gerari called on the public

Papua New Guinea must take up the West Papua issue with United Nations

By REG RENAGI

 

The Papua New Guinea government must now take up the issue of West Papua with the United Nations and must not sweep this long-outstanding issue concerning the ongoing Melanesian Papuans under the mat. 

The Australian and the Indonesian government also need to be brought into this three-way negotiation on what can we do now for the people of West Papua.

The so-called ‘Act of Free Choice’ was a total farce by Indonesia to annex West Papua and subjugate its indigenous Melanesian people.

This act was a violation of West Papua’s legal right to self-determination, a violation of the ‘sacred trust’ under Article 73 of the UN Charter and a breach of Indonesia’s treaty obligations under the UN Charter and the New York Agreement.

 This action cannot justify Indonesian sovereignty over West Papua.

The struggle for West Papua 'self determination' will continue whether Indonesia likes it or not.

Many more of our Melanesian people will die in future.

The Papuans are fighting for their future survival.

Countries like Australia and PNG are afraid of Indonesian aggression.

Tragically, West Papuans have been made a sacrificial lamb by the criminal acts of the Indonesian authorities, aided and abetted by a weak-willed United Nations.

It is very sad and unfortunate that, with her great influence and clout in the international arena, all Australia can muster is to watch by helplessly from the sidelines.

Australia in future will continue to wonder just what she could do to help the West Papuans (ditto for PNG) without upsetting Indonesia.

 It clearly failed to do anything in East Timor, so why should it be any different now.

Does Australia care?

 Not really, but anything to do with West Papua and its people should be in her national interest.

This sticky issue will not go away for Australia, Indonesia and PNG, and a middle ground must be found.

The plebiscite took place sometime between 14 July and 2 August 1969; the Indonesian government holding its so-called ‘Act of Free Choice’ in West Papua.

Indonesian authorities took 1,022 Papuan tribal representatives to eight locations – one for each region of West Papua: Merauke, Jayawijaya, Paniai, Fak-Fak, Sorong, Manokwari, Cenderawasih and Jayapura.

Many Papuans walked from very-remote areas for three days to their designated locations leaving behind their wives and children in the ‘care of the Indonesian government’.

These 1,022 Papuans were given two choices: either remain with Indonesia or sever ties with Indonesia, and become an independent state like PNG.

What resulted from this rigged political event is now history.

 But the question still remains: what does the UN and the Australia and PNG governments hope to do about the West Papua issue?

Indonesia is not going to let go of West Papua easily as it wants to own this very resource-rich part of the New Guinea island as part of the republic.

 Additionally, any future negotiations will prove very difficult with the transmigration program going on for many years now to redistribute its growing population eastward towards PNG.

This is another foreign policy challenge for Australia and PNG.

China is a distraction now.

But PNG must be always on guard, and keep watch over its western border at the going down of the sun, lest it be surprised one fine day.

Will Australia come to her aid in future?

Who knows.

This should be a big worry for Prime Minister Michael Somare who's about to leave the political scene one of these days soon.

Prime Minister let us also put this issue on our discussion agenda with US Secretary of State, Mrs Hillary Clinton, when she visits PNG this week.

National security at risk

From The National

 

The escape of the 12 dangerous prisoners is now a national security issue.

The National Security Advisory Committee summoned Correctional Services Commissioner Richard Sikani to brief them after lunch yesterday on the escape.

NSAC chairman and Chief Secretary Manasupe Zurenouc has been recalled from Lae where he is attending the Lutheran church synod to attend to this issue.

The NSAC will be conducting a full meeting today to address the break-out of some of the worst criminals in the country.

Prime Minister Sir Michael Somare has been informed.

Correctional Service Minister Tony Aimo who is away in his Ambunti-Drekikier electoral for electoral duties is also believed to have been briefed and will be returning to Port Moresby to take charge of the situation.

Mr Sikani said yesterday that the NSAC would be conducting its own independent investigations into the great escape.

He said the Correctional Service would be conducting its own investigations in what he called “highly suspicious” escape where all security procedures at the maximum security unit at Bomana were breached.

Business houses have been warned to take extra security measures in light of the escape of the country’s top criminals.

Woman 'lawyer' frees 12 hardcore prisoners

By JACOB POK in The National

 

A WOMAN “lawyer” aided the daring escape of 12 high risk prisoners, including bank robbery suspect William Nanua Kapris from the Bomana Maximum Security Unit in another hostage situation yesterday morning.

Kapris and five others, regarded as dangerous, had been involved in series of major robberies.

Besides Kapris, the others are Oliver Ben Gabi, Ben Nom, Elizah Tingal, Kito Aso and Don Aka.

The other escapees were from the main compound who were temporarily housed at maximum security.

They included John Siko Wel, who was sodomising young prisoners, James Pari, who is a serial rapist jailed for the rape and murder of a woman pilot in Lae several years ago, Peter Plesman, Greg Varvar, Duma Korowa and Raphael Walimini.

Plesman, Korowa and Walimani are on death row, or condemned detainees.

The escape drama started at the Port Moresby General Hospital at about 8.30am where a detainee, accompanied by three warders, was being treated for epilepsy.

Two warders were with the prisoner while the driver, who was in the vehicle, was held up by armed men who blindfolded him and took him hostage to a hotel room.

There he was forced to call the Maximum Security Unit guards to inform them to expect a female human rights lawyer (named) from a law firm to visit prisoner John Siko Wel.

Correctional Service Commissioner Richard Sikani said the daring escape in a hostage situation was aided by this lone woman in a clear breach of established security procedures on which visitation is granted only by the Commissioner, deputy commissioner (operations) or the courts.

Mr Sikani said the woman pretended to act as a human rights lawyer and went straight to the MSU in a blue vehicle where she delivered a letter to the guards and passed through the main gate.

He said the letter was a request letter to the officer in charge of the MSU, seeking entry to give legal assistance to the prisoner Wel.

Mr Sikani said while she was inside the prison, a guard assisted her into the visitor’s section where the prisoner was called out to meet her.

He said they sat and talked at a round table for a while and then the woman lawyer moved her chair and bent forward and in that instance passed a pistol to Siko Wel who held up the guard and ordered the other guard to unlock the cell gates and emptied the entire facility of its 12 prisoners.

He said they then made their way out of the main gate and escaped in the vehicle with the woman at around 10.33 am.

Mr Sikani said his office and police were informed of the escape an hour later at 11.30 am.

This is the second escape of robbery suspect Kapris Nanua who pulled off a similar escape in 2006 where he used a doctor to write that he was very sick and a lawyer wrote to prison officials persuading them to release him for treatment where he escaped when in hospital.

Mr Sikani has reported the matter as high priority to the National Security Advisory Committee who will be meeting today to institute an independent investigation while the CS will carry out its own.

He said all the ports and airports are now being monitored by police and Correctional Service officers and appealed to the community to help report suspicious looking people.

Mr Sikani also asked the public to take precaution and for cooperation in reporting in the escapees.

UK Government to support the preservation of Carteret Islands' Culture

Captions: 1. A Carteret Island family - what does the future hold for them? 2. Carteret Island children playing on fallen coconut trees

 

The British High Commission in Port Moresby is funding the documentation of the Carteret Islands' unique culture to prevent and minimise loss, as well as to assist the islanders maintain their cultural continuity across all relocated groups.

The project which will cost more then K129, 000 when complete will document distinctive aspects of the islanders' culture including songs and dances, ceremonies and traditions, myths and legends.

 This information will then be made available to future generations of Carteret Islanders and others.

The culture of the islands will also be documented in a film, which will be made in close co-operation with local NGO, Tulele Peisa Inc, and in consultation with the Carteret Council of Elders.

David Dunn, the British High Commissioner said, "As is everywhere in the world, people identify themselves with their culture, the Carteret Islanders been no exception, and with their island sinking and the relocation exercise in place, it is important that their culture is captured for the identity of the next generation and beyond." 

The Carteret Islands are sinking due to geological reasons associated with their volcanic origins. Overlaid on top of this are the effects of sea level rising and storm surges, which are accepted as deleterious consequences of Global Climate Change.

Dangerous criminals on the loose in Port Moresby

William Kapris

Peter Plesman

Oliver Ben Gabi

Kito Aso

John Siko Wel

James Pari

Greg Wawa

All of Papua New Guinea’s most-dangerous criminals have escaped from the country’s highest maximum security unit at Bomana jail, outside Port Moresby, yesterday morning and were still on the run last night, The National reports.
The 12 prisoners included three who are on death row, a serial rapist and William Kapris, the mastermind in a series of armed bank robberies.
The National Security Advisory Committee summoned Correctional Services Commissioner Richard Sikani for a briefing yesterday afternoon, saying it was a national security issue.
According to Mr Sikani, the National Security Advisory Committee will be meeting today to institute an independent investigation while the CS will carry out its own.
The escape appeared to be well planned and involved a woman “lawyer” who managed to breach all security procedures to smuggle in a gun and empty the maximum security unit of its occupants at about 10am.
Acting Police Commissioner Tom Kulunga said police had a mammoth task on hand to recapture more than 150 prisoners who escaped from PNG jails in the past 12 months, including 40 from Bomana last October.
Police warned of increased criminal activities in Port Moresby and warned that anyone found aiding, abetting or harbouring the escapees would face the full force of the law.
As news of the daring escape spread, the Business Council of PNG said in a widely-circulated email to its members to take extra precautions when moving in and around Port Moresby because some of the escapees were dangerous.
The maximum security unit at Bomana was undermanned at the time of the escape, Correction Service Commissioner Richard Sikani said.

New Australian high commissioner to Papua New Guinea

From AAP

 

AN Australian who went to primary school in Papua New Guinea is to return - as high commissioner.

Ian Kemish will take up the top job next month.

Mr Kemish, who speaks the PNG language Tok Pisin, is a career public servant who was recently ambassador to Germany.

He was decorated for his work with the Australian Government dealing with the aftermath of the 2002 Bali bombings.

Meanwhile, Australia's consul-general to the Pacific nation of Nauru, George Fraser, has been upgraded to a high commissioner.

The move recognises that Australia's mission to Nauru has been upgraded from a consulate-general to a high commission.
 

Polar bear attacks man in Canada

Man survives bear Attack in Churchill , Manitoba , Canada .

These are pictures of an actual polar bear attack.
The pictures were taken while people watched and could do nothing to stop the attack!
Reports from the local newspaper say that the victim will make a full recovery.

Note to Hillary: Papua New Guinea's government has failed its people

By REG RENAGI

With Hillary Clinton about to visit my country, does she know that the cries of Papua New Guineans go unheard?

Past trends show that PNG’s current political regime will not drastically change its poor governance.

It is now up to the next new leadership and government.

PNG desperately needs a new progressive government after the 2012 elections, one that will totally transform the country.

Since independence, government policies have not regularly being reviewed, updated and broadened.

The next PNG government must have a sound development strategy with two overriding goals: greater participation by the people, and sustainable development.

PNG needs a revolution in political affairs. It must change its political landscape. Every citizen and government must work together for a better country.

A fresh leader with a new political message to inspire PNG is also required.

Today PNG faces very serious national challenges; its performance in the past 20 years has been dismal.

The country is disunited.

There is high unemployment, serious crime, social and political instability, serious health and environmental challenges, a decrepit health care system and rapid urbanisation.

Papua New Guineans are simply fed up with their government’s performance.

Its central agencies are inefficient.

Their output has failed to meet people’s expectations.

The people want to see a progressive and transformational government.

A government with a sound plan and clear strategies targeting critical areas, to totally transform PNG into a prosperous, progressive and united country.

PNG needs a responsive and responsible government with the right plan and a new leadership approach to bring about major change.

The people of PNG desperately wants a caring government with sound policy strategies to target key areas that will grow the economy, create jobs and give full government support to small businesses.

Do we have political parties out there listening to the cries of Papua New Guineans?

Do we have any MP and other aspiring politician prepared to take up this future challenge and field a good prime minister for PNG?

Port Moresby's building boom in pictures

Steamships commercial development in Gordon, along the Poreporena Feeway.-Pictures by MALUM NALU

Nasfund's IPA Haus along Lawes Road

Nasfund's 'The Edge' with Ravalien Haus in the background

The recently-opened ANZ Bank at Harbour City

Nasfund signboard at Harbour City

Nambawan Super commercial development in down town Port Moresby

Crowne Plaza in down town Port Moresby, one of the icons of the city

Steamships commercial development in down town Port Moresby

Port Moresby and Papua New Guinea's current tallest building, the 14-storey Deloitte Tower, owned by Nasfund

Steamships commercial development in Boroko

Datec's new Megastore in Gordon, along the Poreporena Freeway, which will open next week

Latest pictures of Port Moresby's building boom which I took on Sunday.

Evangelical Lutheran Church of Papua New Guinea Synod starts in Lae

Five hundred tambourine girls added colour to the grand opening of the week-long synod of the Evangelical Lutheran Church of PNG in Lae, Morobe province, yesterday. Among the VIPs who witnessed the spectacular extravaganza at Sir Ignatius Kilage Stadium was Prime Minister Sir Michael Somare, who praised churches for providing health, education and other community development programmes for the people.-Pictures by OSEAH PHILEMON of The National

Prime Minister Sir Michael Somare being greeted by dignitaries after slighting from the Government's executive Falcon jet from Wewak yesterday morning. Officially, Sir Michael is still on Christmas vacation but took time off to deliver the keynote address at the official opening of the 27th Synod of the Evangelical Lutheran Church of Papua New Guinea. The jet flew from Port Moresby to Wewak, where it picked up Sir Michael and his entourage for the flight to Lae. The plane was hosed down by airport fire trucks upon arrival. Later, at the opening ceremony, Morobe Governor Luther Wenge, who was the first to meet Sir Michael at the airport, defended the Government's purchase of the jet. He called on the people of Morobe to support the Government for buying the aircraft.

World's largest yacht to visit Papua New Guinea

The world's largest sailing yacht, EOS (pictured), is planning a visit to Papua New Guinea later this month.

Melanesian Tourist Services owner Sir Peter Barter said todat that EOS was currently at Cairns Superyacht Marina in Australia and would be heading up north later this month.

"This luxurious sailing vessel is 302 feet long, crewed by around 30 and will cruise the waters of Milne Bay," Sir Peter said.

He could not divulge further information as owners of the EOS are known in international yachting circles to be very publicity-shy since she was launched in 2006.

According to information sourced from the Internet, EOS is a three-masted Bermuda rigged schooner sailing luxury yacht, currently owned by Barry Diller.

It is one of the largest - if not the largest - private sailing yacht in the world, its overall length measuring approximately 305 feet (93 m).

It was launched in Germany from the Lürssen yard in 2006 after being designed by Bill Langan, with Rondal/Huisman supplying the rig, and the naval architecture being completed by the Lürssen team.

The interior was designed by French designer François Catroux.

The yacht is moored in Cairns at the time of writing.

Characteristics

Length Overall (LOA) - 304.86 feet (a significant amount of EOS' overall length comes from her bowsprit)

Length on Deck (LOD): 271 feet (83 m)

Waterline Length (LWL): 233 feet (71 m)

Beam: 44.29 feet (13.50 m)

Hull Material: Aluminium

Superstructure: Aluminium

Gross Tonnage: 1500

Engines: 2 x 2,333 hp (1,740 kW) MTU Diesels

Propulsion: Twin Screw

Max Speed: 16 knots (30 km/h)

Kalibobo Spirit is shipshape for 2010

Popular Madang-based tourism vessel mv Kalibobo Spirit  has undergone annual survey at Norship Shipyard in Cairns, Australia,  according to owner Sir Peter Barter.

“The ship returned to PNG on Christmas Eve after it had a complete paint job undertaken by the shipyard and night vision and infa-red camera was installed to improve safety on the Sepik River,” Sir Peter said today.

Kalibobo Spirit provides the perfect way to see the coastal ports, islands and Sepik River in Papua New Guinea.

The 30m vessel was built in Picton, New Zealand,   and is owned and operated by Sir Peter’s Melanesian Tourist Services based in Madang.

The ship is fully-stabilised, carries the latest navigation equipment including sonar and provide luxurious accommodation for up to 16 guests in four queen, three singles and a state room, all with ensuites, air conditioning, television and telephone.

 There is a dining room, lounge, cocktail bar and three covered decks to observe and relax.

Facilities aboard the vessel include two zodiac tenders, a fast aluminium river boat that can carry 20 passengers at 50mph along the Sepik and tributaries and on selected cruises a helicopter.

 The ship is equipped with a dive shop which enables guests to dive some of the most-pristine waters in the world.

Whilst the Kalibobo Spirit is primarily for charter, several cruises to the Sepik are scheduled.

Since the Kalibobo Spirit arrived it has had cruises throughout the Bismarck Sea including Manus, New Ireland, Rabaul, West New Britain, Siassi, Madang, Port Moresby, Milne Bay and to the Sepik River.

For more information, call MTS on (675) 852 2766 or e-mail mtsoperations@mtspng.com  

 

 

IPA Haus nears completion along Lawes Road, Port Moresby

View of IPA Haus at the bottom of Lawes Road.-Pictures by MALUM NALU

Workmen at IPA Haus on Sunday

View from Lawes Road of IPA Haus

Crane at work at IPA Haus on Sunday

Work on Nasfund’s IPA Haus along Lawes Road, Port Moresby, is progressing well with work expected to be completed by Jan 31, 2010.

I visited the project site on Sunday and saw workmen hard at work to meet the Jan 31 deadline.

IPA Haus, which is 100% owned by Nasfund, has a total area of 2, 792 sq m.

At the back of IPA Haus is another 100% Nasfund-owned property, ‘The Factory’, with a total of 6, 156 sq m, which is expected to be completed by Mar 10, 2010.

The construction of IPA Haus and ‘The Factory’ is part of Nasfund’s ‘Archipelago Project’, which began in the concept stage in 2006-2007.

The project was designed around building an ‘arc’ of construction projects at the 2km edge of Port Moresby Town, which would capitalise on the highway access, marine facilities and harbour view access.

Building boom to create surplus commercial space, more empty rooms

Nambawan Super commercial development in down town Port Moresby.Pictures by MALUM NALU

Port Moresby and PNG’s tallest building Deloitte Tower…challenged by increasing commercial spaces

Steamships’ commercial property development in Gordon, along the Poreporena Freeway

Steamships’ commercial development in down town Port Moresby

Nambawan Super commercial development in down town Port Moresby

Nasfund has warned of more commercial vacant spaces in light of the current building and construction boom all over Port Moresby.

Joint chief executive officer Rod Mitchell says commercial vacant spaces will grow in 2010 and peak in 2013-2014.

“In early 2009, in the Nasfund newsletter, we stated that ‘Clearly the freeing up of office space in Town, expected early 2010 will signal the beginning of rent stabilisation’,” he said.

“This was stated on the basis that with Harbour City and surrounding Konedobu coming on line, space would naturally free up in town.

“While we do not believe that we will see a dearth of vacant space in town over 2010, we nevertheless are starting to see vacancies in commercial space in Port Moresby.

“This we believe will grow through 2010 and with peak vacancy appearing sometime in 2013-2014.

“The three to five year prognosis for commercial space is increasingly flashing warning signals if all commercial constructions planned to commence over 2010 eventuate.”

Mr Mitchell said there were a number of reasons for raising the alarm bell on commercial construction.

“A number of alternative commercial buildings within close proximity in Gordon’s, Waigani drive and Hohola are now physically underway or near completion,” he said.

“Steamships are building 6,000 sq m in Gordon, there are two three-storey walk-ups in Hohola approximating 3,000 sq m and 4,000 sq m of quality commercial space is being built next to the Westpac building in Waigani drive: The combined space is the equivalent of one Deloitte Tower.

“The Rimbunan Hijau (PNG) Group is powering perhaps the largest long-term retail and commercial development ever seen in PNG – Vision City.

“Taking away the soon-to-be-completed 33,000 sq m ‘Mega Mall’, the commercial element planned over the coming decade is extraordinary with a further 60,000 sq m of office space planned at Vision City, Waigani.

“This will be the equivalent of four times the current commercial space offered at Deloitte Tower!

“In 2010, Nasfund will commence a further 4,600 sq m in town on two sites and Steamships are planning 8,000 -10,000 commercial on the waterfront: Effectively combined, yet another Deloitte Tower in size.

“A further 4,000 sq m in Hunter St will be commissioned in April 2010.

“Uniting Church House, a brilliantly-renovated 2,000 sq m office complex will be commissioned in January – February 2010.

“Harbour City will shortly see a 4,000 sq m commercial development plus three apartments adjacent to the ANZ building commence by a private consortium with two anchor tenants line up (the implication is that they are being cannibalised from an existing building).

“Finally there is a three-storey walk up approved by Physical Planning for POSF at Two-Mile as their new head office (3,000 existing sq m to be freed up at Era Rumana) and 8,000 sq m planned by CHM in Waigani.

Mr Mitchell said with a large amount of commercial space becoming available over 2010-2012, it was hard to see how demand would meet the oversupply.

“However, it will not be until 2013-2014 that we will witness crunch time,” he added.

“That is when it is expected that Exxon will complete its own head office building of 10,000 sq m and vacate exiting temporary to medium-term accommodation already acquired for the LNG start-up.

“In the absence of another major resource project, vacancy rates will most likely increase substantially from 2013.

“The other factor which has to now be considered is the costs of construction which we believe will face strong upward pressure over the next few years.

“The reasons for this are:

• The LNG project will change the face of skilled labour in PNG. In previous discussions on Nasfund’s residential housing construction at Eight – Nine Mile we talked of a very small but emerging middle class. The LNG project we believe will re-rate PNG skilled labour dramatically with demand for local skills (both trades and professional) propelling hourly rates significantly higher. This will lift a whole new group into what we could describe as ‘aspiring middle class’. The re-rating of labour will mean significantly higher costs to business, higher costs of construction as well as bottlenecks within the economy due to skill shortages. The positive outcome however will be a more visible middle class which tends to drive both greater economic diversity as well as social reform including greater demands on elected officials.
• The increased demand for construction materials will also lead to higher prices over the coming few years exacerbated by the easing of the global economic crisis. Imported construction goods will in the absence of an appreciating local exchange rate be expected to increase as world demand picks up; and
• Finally, inflation and expected higher interest rates will also begin to cause on the margin investment plans to falter or completion costs to rise above budget. In the expected soft demand for commercial space combined with higher completion cost for commercial buildings, we will see a fairly difficult period ahead and certainly a case of lowered expectations than the current display of exuberance by market participants.”

Brighter outlook for quality residential in Port Moresby

Signboard at Harbour City

Work on the ‘The Edge’, Harbour City, on Sunday.Pictures by MALUM NALU

‘The Edge’ with Ravalien Haus in the background

Another view of work on ‘The Edge’

Nasfund has recently committed with Curtain brothers to the biggest apartment construction in Papua New Guinea history.

Based on a 70-30% split, 63 luxury apartments will be constructed at Harbour City next to Sol Wara Apartments owned by Nasfund.

Known as “The Edge”, these apartments will butt the sea, looking straight down Fairfax Harbour and the Yacht Club.

The complex will rise six stories (one more floor than adjoining Sol Wara apartments) and is designed in conjunction with the recent constructions along the archipelago.

“That is, Nasfund has ensured that the development fits within the scale of the landscape,” according to Nasfund joint chief executive officer Rod Mitchell.

“We were very conscious that Harbour City displays a modern yet understated feel: - that instead of breaking the landscape, the buildings merge within the landscape.

“Our aim is to turn Harbour City into a showcase of modern subtlety that lifts the image of Port Moresby and demonstrates the growing sense of a confident nation.

“We are very fortunate that Curtain Brothers share these values as we build a legacy for the 21^st Century.”

The land site covers 6,914 sq m.

At K2, 000 per sq m, the land cost is just under K13.8 million.

The gross floor area covered by the 20 x 2 bedroom apartments and 43 x 3 bedroom apartments including balconies is 14,355 sq m with ground level under cover parking for 126 vehicles taking up a further 2,085 sq m.

Total cost of construction will be K7-8, 000 per sq m with an anticipated yield of 12%.

Construction time is expected to be 24 months with a completion date of March 2012.

Mr Mitchell said demand for premier accommodation remained high in Port Moresby with aid agencies, diplomatic missions and senior executives chasing a shortage of upmarket quality apartments.

“Nasfund has taken the view that the complex will be taken up quickly, either by large multinational companies, embassy staff, or aid agencies,” he said.

“If Nasfund fails to secure large immediate tenants, we will aim to entice existing tenants from upmarket locations currently on Touaguba Hill and adjoining Paga Hill down to the water’s edge.

“Research suggests that a new residential complex tends to attract people from existing older complexes looking for an upgrade.

“Add the fact that ‘The Edge’ will sit on the water’s edge over looking the Yacht Club, Fairfax Harbour and 100m walking distance to SVS Foodland, we believe ‘The Edge’ will become the most-desirable address in the country.

“Rental prices remain tight at the upper end.

“High covenant accommodation going for K3, 500 – K4, 000 per week a year ago is now ranging from K5, 000 to K6, 000 per week.

“This trend should continue for the next few years until increased supply comes closer to meeting demand.

“2010, however, will be a year of shock to many tenants, as rental renewals at the upper end will increase by up to 20%.”

Datec signs partnership with Apple, bringing Apple officially to Papua New Guinea

The MacBook Pro, the high performance notebook for everyone

The new iMac, the ultimate all-in-one

The iPod Classic, iPod Touch and iPod Nano. Music for all

Datec PNG is pleased to announce an increase in its portfolio of world-class professional and personal technology by bringing Apple technology and support to the Papua New Guinea market.
Today, Apple leads the computing industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications.
Apple is also spearheading the digital media revolution with its iPod portable music and video players.
The range of products now available within PNG, courtesy of Datec, includes the ‘ultimate all in one’ desktop computer on the market today – Apple’s new iMac.
The full range of MacBook and MacBook Pro Laptops are now in PNG, that suit everything situation ranging from home life, student life and work life.
A range of Apple Accessories will now be available in-store to complement your Apple Technology.
MS office 2008 for Mac for every occasion whether work, school or home, gives you tools that help simplify your life.
With Microsoft Office 2008 for Mac, you can manage projects, collaborate with others and create dynamic documents and presentations simply and easily.
iPod family range – Which iPod are you? From the shuffle, the worlds smallest and most wearable music player comes in new colours and tells you which song is playing, through to the latest iPod Touch, with up to 64Gb of storage, for your games, movies, music and so much more.
If you like the sound of “no-fuss, no downtime, easy wireless, no viruses, everything-just-works… “ then welcome to the benefits of owning a Mac.
Expected early in 2010, Datec will be certified as the only Apple Authorised Service Centre in PNG.
To find out more about Apple, then visit Datec’s new Megastore, opening 21st January 2010, the Lae retail showroom or contact sales@datec.com.pg.