Business group against deferral of election

By MALUM NALU

BUSINESS Council of PNG president Ernie Gangloff yesterday rubbished calls by Deputy Prime Minister Belden Namah for a deferral of the general election by 12 months to “allow the government to fully implement its major policies”, The National reports.
 Namah made the announcement at Independence Oval in Vanimo on Wednesday in front of Prime Minister Peter O’Neill, half his cabinet ministers and members of parliament.
Gangloff told The National that the private sector view was that there were no legal grounds for a deferral.
“There are no legal grounds for a deferral,” he said.
“The deferral of the elections is not justified.
“The Electoral Commission has issues and is short of time to resolve them but with additional support from government, donors and the private sector, these issues could be overcome.
“A strategic plan highlighting the issues and required resources must be put in place so that an implementation plan must be agreed to and stakeholders notified.
“The risks of deferral are too great to consider and may be outside of any legal basis.”
“Private sector organisations are able to assist the commission.
“They just need to be asked.”
Gangloff said contrary to what Namah was saying, implementing government policies could take more than 12 months.
“These policies may take more than 12 months to implement,” he said.
“Let the voters decide if the policies are value-added, and if so, the members will be returned for five more years.”
Gangloff said the matter would be further discussed at a council meeting on March 14.

Vanimo focus of Frieda River project

By ISAAC NICHOLAS

VANIMO town in West Sepik province will be the focal point of development in relation to the Frieda River copper-gold project, Prime Minister Peter O’Neill announced on Wednesday, The National reports.
O’Neill said the government would be talking with developer Xstrada to relocate the project to the township of Vanimo.
Speaking at Vanimo on Wednesday, he said the country’s economy would double and even triple over the next few years with major resource projects coming on stream.
He said the government would like to see host provinces taking ownership of major projects and to equally benefit from other spin-off business activities and employment opportunities.
O’Neill said Frieda River project was in Sandaun and rightfully so Vanimo should be the project capital.
He said PNG would get two LNG projects: one to start production in 2014 was in Southern Highlands and the second LNG project would be in Gulf province.
The government had asked that the project be based in that province and not Port Moresby.
“In the same way, we will relocate Frieda project operations to Vanimo because Wewak, Madang and Lae have already developed,” he said.
“In the same vein, we the government through Petroleum and Energy will be meeting with Frieda mine developers to relocate the project to Vanimo.”
When the LNG project begins in 2014, the economy would double from K10 billion budget this year to about K20 billion, he said.
“If we cannot manage K10 billion,  how can we manage K20 billion?” he said.
“And that is why we need good quality leaders who have the country at heart to manage the huge revenue inflow.”
He said the second LNG project would come on stream and mining at Wafi, Bulolo, Yandera, re-opening of Bougainville, extension on Ok Tedi and Lihir would further increase economic growth.

OK Tedi posts net profit of K1.24 billion

Ok Tedi remains PNG’s biggest tax payer despite 40% plunge in net profit

By BRIAN GOMEZ in Sydney

Ok Tedi Mining Ltd has announced after tax profit of K1.24 billion, down 40% from K2.03 billion in 2010, on sales revenue totaling K4.5 billion, down from K5.09 billion in 2010, The National reports.

The company, which is now fully PNG-owned following the buyout of the 18% stake held by Canada’s Inmet, also maintained its status as PNG’s biggest corporate tax payer.

Corporate tax last year amounted to K604 million, down 30% from the K840 million the company paid into government coffers in 2010.

The comparable corporate tax figure for the country’s second biggest corporate tax payer, Oil Search Ltd, was K509 million, up from K196.6 million in 2010.

Other payments made by Ok Tedi show the incredible depth of the contribution the company is making to PNG even though its operations is scheduled to be shut down by early 2014 in the absence of a government agreement to allow its operations to continue.

After paying off K881 million to purchase the remaining foreign equity in the venture, Ok Tedi paid out dividends totaling K774 million to PNG Sustainable Development Corporation and to the national government.

Additionally mining royalties, which fell by 8%, amounted to K42.9 million paid to the Fly River provincial government and a similar sum paid out to mine area landowners.

Other payments for compensation and benefits amounted to K70 million.

OTML reported that total taxes paid to the national government, inclusive of pay-as-you-earn deductions from employees and the mining levy, amounted to K1.2 billion.

It also noted that purchases of goods and services from PNG suppliers were valued at K988 million last year.

The annual results statement from OTML did not make any reference to badly-stalled negotiations with the national government on the possibility of mining operations continuing until the end of the decade in the light of ongoing feasibility studies.

However, it said copper and gold production had fallen by 18% and 14% respectively to 130,456 tonnes of copper and 417,236 ounces of gold after a month-long shutdown caused by the rupture of the pyrite concentrate pipeline in May.

Copper concentrate shipments fell by 10% due to lower head grades, suspension of production and a force majeure declared by Japanese smelters in the wake of the tsunami that hit that country.

OTML realised an average copper price last year of US$3.73 per pound, slightly higher than the US$3.68 per pound received in 2010.

“Net cash generated, before dividends and share buyback, was down by 33% compared to the previous year, mainly due to lower shipments and foreign exchange impacts of a stronger PNG kina against the US dollar,” it said.

PNG LNG project develops partnerships for PNG’s future

The PNG LNG Project is developing partnerships with local communities, the government, landowner companies (Lancos), non-government organisations and other key stakeholders to create long-term benefits for Papua New Guinea.

 The project’s fourth quarter 2011 environmental and social report features many examples of mutually-beneficial and inclusive partnerships in long-term focus areas including health, education, women’s empowerment, public policy and capacity building for local business. 

Aerial view of LNG plant construction.-Pictures courtesy of Exxon Mobil

 Onshore LNG  pipeline being laid

 PNG LNG project executive Decie Autin said the PNG LNG Project recognised that strong and sustainable partnerships were integral to community development.

 “When community leadership and direct involvement are achieved, local skills and institutions can be developed, community expectations are more effectively managed, and projects are more likely to result in positive and sustainable outcomes,” Autin said. 

 The PNG LNG Project recently partnered with Delta Green Field Marketing Ltd, a women’s group in Kikori, to sell vegetables for supply to project construction camps.

 The group is also establishing a plant nursery and supplying seedlings to over 500 women in six villages.

 “Agriculture is a major contributor to the livelihoods of PNG’s rural communities and the project is partnering with communities to grow fresh produce, build community nurseries and establish cashew orchards,” Autin said.

  The PNG LNG project additionally recognises that education plays a key role in economic development and employment growth.

 This quarter, the project began working in partnership with National Research Institute to develop a needs assessment of teacher training in the project area.

 “The assessment seeks to identify formal training needs, such as teacher certification, as well as areas for continuous improvement identified by the teachers themselves to help overcome teaching challenges experienced in the classroom,” Autin said.

 The PNG LNG project continues to develop partnerships with Lancos and other PNG businesses.

 Approximately K490 million (US$229 million) was spent with Lancos in 2011 for project services.

 Building on the partnerships created with local communities, governments, non-government organisations, Lancos and other key stakeholders, the project remains committed to developing its long-term goal of establishing sustainable economic and social benefits for PNG.

 The fourth quarter 2011 Environmental and Social Report is the eighth released by the PNG LNG project and is available on the project’s website at pnglng.com.

Women in business summit set for March 25-27

By MALUM NALU

Preparations are well underway for National Development Bank to host its first-ever Women in Business Summit at Holiday Inn from March 25-27.

An NDB banner for the WIB summit set for March 25-27.-Picture by MALUM NALU

The summit was one of the major recommendations from an NDB-commissioned market research into the obstacles and challenges facing current and potential women entrepreneurs from starting, managing and growing their business.

The research was follow-on from NDB’s decision to be the first bank to establish a women’s desk and give special attention to supporting the growth of women-owned and managed businesses in PNG.

Managing director of NDB, Richard Maru, said in just one year of establishing its women in business desk, “we have seen a 1,000% growth in our funding of loans to women-owned and managed companies”.

“In 2010, we lent K750, 000 to 27 women-owned companies and in 2011, we lent K9 million to 90 women-owned and managed companies,” he said.

“There is exponential growth potential of the women in business sector, if the need of our women are addressed, and they are empowered to motivated to start and grow their businesses with strong support structures in place, including training and mentoring services.

“The research results were very interesting as it brought to light a lot of insights that women entrepreneurs face in setting up and running their enterprises in PNG.

“It was found that:

• ·         Women lack confidence to start businesses; 
•    They are afraid of banks;

• Do not have necessary business management skills; and

• ·         Do not have a support network of mentors and much more.

“As a result, NDB and its partner sponsors will stage the first-ever ‘NDB Women in Business Summit’ to address those concerns and develop strategies to support the growth of women entrepreneurs in the SME sector in PNG.

“The summit is for women who are already in business and those that are looking at starting up businesses.”

Pre-registration for the summit closes tomorrow (Friday, Marh 3) as there has been so much interest but not enough space to cater for everyone."

There will be preliminary screening and selection made to ensure that only genuine women in business and those that are seriously intending to start businesses attend.

It will feature international and national women entrepreneur speakers and will cover topis such as how to build a successful business, key business management principles, cash flow analysis, what makes businesses fail, how to differentiate your business, and many more.

“This summit will empower, inspire and add value to PNG women in business and sets the platform for them to take their businesses to the next level,” Maru said.

“In supporting women entrepreneurs in PNG, NDB will also launch the following initiatives, which will further cement its services:

• ·         A new loan package for women entrepreneurs in PNG;

• ·         NDB Women In Business mentor network;

• ·         A website for information, tools, templates etc that women will access for their businesses; and

• ·         An annual awards programme.

“The Prime Minister has been invited to open the summit.

“NDB believes that with these initiatives and this inaugural summit, this should give the women in small to medium enterprises the confidence they need to move forward.

“These summits will be an annual event and is part of the NDB initiative on supporting the growth of women in business segment of the SME sector in PNG.”

Provinces may object, says top lawyer

By LESLIE OMARO

A SENIOR lawyer has warned the government that the provinces could declare independence if the general election is deferred, The National reports.
 Lawyer Alois Jerewai said one of the biggest consequences of any deferment was that provinces would lose faith in the Constitution and declare independence themselves.
“Inherently, the Constitution will be useless and the highest ramifications will be that each province will declare independence,” he said.
“Whatever the government does, it must not delay the election.
“If the current parliamentarians cannot power the state machinery properly, then we go to the general election to get rid of them.”
He said any province could do whatever it wished by declaring the Constitution void and then proceed to adopt its own Constitution.
“In other words, the nation will disintegrate.
“Electoral Commissioner Andrew Trawen and the government are all talking about the common roll not being ready.
"What were they doing in the past five years?
“This will affect the Constitution itself.
 “The general election must be conducted on schedule in accordance with provisions under sub-section 104.
“Whether the common roll is updated based on previous common rolls, the general election must go ahead.”
He said in the event a delay was inevitable, the government would continue in office illegally and without the mandate of people

Namah: Give me 12 months

By ISAAC NICHOLAS

DEPUTY Prime Minister Belden Namah has announced that parliament is looking at deferring the general election for 12 months to allow the government to fully implement its major po­licies, The National reports. He said if he had the support of the prime minister, he would use all his resources to ensure Peter O’Neill was returned as prime minister after the election.
Namah made the announcement yesterday at the Independence Oval in Vanimo in front of O’Neill and half his cabinet ministers plus members of parliament.
Namah had invited the national parliamentarians to West Sepik province for two days.
He said this in response to O’Neill’s address to hundreds of people that the government would be funding major projects in West Sepik totalling more than K140 million.
The prime minister had earlier told the Sepik people: “We had to change the government and give it back to the people.
“We have introduced free education for a total cost of K700 million and have already front-loaded K300 million to all schools.
“We have sold the Falcon jet, which has been used as a private PMV and given the proceeds of that sale, K350 million, to the health sector. We have introduced basic free health care for our people.
“This government is people-focused and people-friendly. In seven months, we have shown our true colours compared to nine years of waste,” O’Neill said.
He said the government he led was for the people, not for one man or one family.
Namah, in reply, told his home crowd that he would use all available resources at his disposal to retain O’Neill as prime minister for a new five-year term after the general election.
He stressed that there was no guarantee that a new government would support the development package that the O’Neill-led government had introduced in the past seven months.
Namah said the Electoral Commission had failed the people, the national population census had failed and PNG needed a system for a fair, just election so that quality leaders were elected “instead of coming through the window”.
On O’Neill’s reference to the scheduled election, he warned: “You said to hold the election by April 27 this year and a new government comes in. The projects will not be implemented and the government policy of free education and free health care will be dismantled.
“This government must continue.
“How do you make a comparison between a government of nine years and government
of six months?
“The Electoral Commission has failed the people. The census has failed. We do not know how many people are in this country?
“There are a lot of mistakes in the common roll. For example, a ward in Koroba has 467 eligible voters and that number has soared to 4060. We must have been working very hard overnight.”
Namah said 40% of the roll had not been completed in the highlands region alone.
He said the new bio-metric system must be in place to ensure a fair and just election.
“The government has plans to delay the election for 12 months to fully implement government policies and ensuring a fair election.”