Wednesday, November 21, 2012

PNG K2 billion into the red to pay for infrastructure


Papua New Guinea's treasurer has handed down a K14.55 billion ( $A6.8 billion) budget for 2013, plunging the developing nation more than K2.14 billion ($A1 billion) into the red in a bid to improve the country's failing infrastructure.

Don Polye yesterday announced increased spending for PNG's health, education, infrastructure and law and order sectors, as well as a plan to shift control of some state monies away from the nation's capital, Port Moresby, to provincial governments.

PNG's economy is expected to grow by four per cent over the next year, substantially slower than the 9.2 per cent growth in real gross domestic product (GDP) in 2012.

The deficit announced yesterday amounts to 7.2 per cent of PNG's GDP and is projected to decline to 5.9 per cent in 2014, before falling sharply to 1.6 per cent in 2017.

Mr Polye said the next budget surplus was expected in 2017.

Inflation, which dipped to four per cent year on year in 2012, is expected to climb to eight per cent in 2013, just under 2011 levels.

"The 2013 budget is set against assumptions of a modest acceleration of activity in the global economy in 2013 compared to 2012," Mr Polye told parliament.

"Real growth is expected to slow down ... before rebounding to 5.5 per cent in 2014.

"The slowdown in growth is largely due to the PNG Liquefied Natural Gas project having already reached its peak levels of investment."

Government debt is projected to peak at 74 per cent by 2017, while PNG's debt to GDP ratio will peak at 34.6 per cent in 2014 before dropping to 25.5 per cent by 2017.

The government will also spend K781.27 million ($A365.1 million), up from K683.86 million ($A310.23 million), on improving primary and secondary education, with the vast majority of that money going into boosting teacher's salaries.

Many of PNG's roads, including vital but heavily dilapidated links such as the Highlands Highway, can expect an upgrade and maintenance as well.

PNG's strained police force can also expect a pay rise and some new colleagues, with the government announcing 400 officers are to be hired a year for the next five years.

In a move labelled historic by Mr Polye, the national government will also relinquish some control of state money to give PNG's 22 provinces and districts K5 million ($A2,295,700) and K10 million ($A4,591,400) respectively.

Every province in PNG has one or more district.

"The O'Neill-Dion government believes key services can be better delivered by the parts of government that are closest to its people," Mr Polye said.

Institute of National Affairs director Paul Barker says the plan to hand money to the districts comes with considerable risks.

"It's a large amount of money going out to the local governments, but a lot of them don't have any professional skills," he told AAP.

"As someone in treasury said to me, the national government level has little capacity and the local level is worse.

"A lot of it could end up in Cairns real estate, so there should be some good parties there."

Mr Barker was referring to recent media reports that some PNG politicians and bureaucrats had made substantial property deals in Cairns with public monies.

Tuesday, November 20, 2012

Legends match boosts PNG NRL bid

By Richard Ewart of ABC

Petero Civoniceva
Photo: Veteran rugby league forward Petero Civoniceva was among the Australian Legends who took part in the Port Moresby clash (Dean Lewins: AAP, file photo)
Papua New Guinea's bid for a place in Australia's National Rugby League competition is gathering momentum, with a number of big names in the sport backing PNG's case following the Legends match at the weekend.
A team of former Kumul greats defeated an all-star Australian line up in the Port Moresby clash on Sunday.
The NRL recently said it would not be looking at any expansion of the competition until at least the end of 2014, instead looking to cement the strength and popularity of the current competition.
Brad Tassell, chief executive of the PNG NRL bid team, says several of the Australian players are keen to press Papua New Guinea's case for a place in the Queensland Cup in two years' time.
"It was a real eye-opener for a lot of those guys, as to not only the passion for NRL up here, but what the PNG NRL bid are doing to develop the game up here," he said.
"Guys such as Petero Civoniceva, who's taking up a role with the NRL...is a huge supporter.
"Scott Sattler, as well, it was his first time up here, and he was blown away by the passion and the support - and also by the friendliness and the welcoming attitude that the Papua New Guineans had towards him and the Australians.
"So those sorts of key guys are great to have as ambassadors for our cause."
Mr Tassel says he is confident a PNG side will be playing in the Queensland Cup in 2014, which would be major step on the road to the ultimate goal.
"We did have a full submission that was put forward to the QRL, and that included strong financial support, strong government support and a definite plan for how we wanted to manage entry of a PNG team into the Queensland Cup competition," he said.
"It was received really well, and we'll be having further follow-up discussions with the QRL over the next few months and really pushing and starting to get into place our plans to enter a team in 2014."
Mr Tassel says there's also been a positive response from some NRL clubs in the Queensland and the Australian competition to playing more games in front of a Papua New Guinean crowd.
He says South Sydney and the Broncos have had some discussions about sending teams for pre-season matches against a PNG side.
"Everyone believes that we can have a team from PNG in the future, but what we need to do is make sure that we have the right pathway to put ourselves in a position to be able to bid for a team in the future," he said.

Tuna industry resents European Union accusation

By Natalia Real of Fish Information & Services (FIS)


 A tuna industry delegation from Fiji responded with ire to the media statement released by the European Commissioner Maria Damanaki, warning eight countries that the Commission thinks the sector has not done enough to fight illegal, unreported and unregulated (IUU) fishing.
The group expressed their dissatisfaction during the annual meeting that the Pacific Islands Tuna Industry Association (PITIA) is holding in New Zealand.
A recent independent review by European Union (EU) consultants, GOPA, scored the Marshall Islands, Federated States of Micronesia and Papua New Guinea as low-risk IUU countries, and Kiribati and Fiji as medium-risk.
"We want these countries as partners but we also want to signal to the world that the EU will not tolerate illegal fishing — a criminal activity which undermines the livelihood of fishing communities and depletes fish stocks," Damanaki said.
The Commission’s decision has not entailed any measures affecting trade, but it could. The eight countries have been notified and offered a “reasonable” time to respond and to “rectify” the situation.
The Commission also proposed an action plan for each country and informed that, should the situation not improve, the EU would include them in a blacklist and may take further steps possibly involving trade measures such as a ban on selling fisheries products to the Union. The warning was also addressed to Panama, Belize, Cambodia, Guinea, Sri Lanka, Togo and Vanuatu.
PITIA communicated that it fully supports Fiji’s concerns given the country’s actions and the processes it has implemented, such as its very strict compliance system. Fiji is also in the process of strengthening its monitoring, control and surveillance (MCS) tools, by applying an Offshore Decree to control activities of flag state vessels on the high seas.
The association also highlighted that actions to improve compliance throughout the Western and Central Pacific Ocean are receiving support from the Forum Fisheries Agency (FFA).
The country's Ministry of Fisheries and Forestry (MFF) applies 100 per cent inspection on all vessels landing into Fiji, including foreign ones and applies a vessel monitoring system (VMS) to all its tuna vessels and an observer scheme, according to PITIA.
MFF has already sent two submissions to the EU’s DG Mare informing them of the steps being taken, and is now revising its National Plans to combat illegal, unreported and unregulated fishing (NPOA-IUU) with assistance from Devfish II.
“To say that Fiji does not participate in enough dialogue is rather strange given its efforts to strengthen what is already a very strong monitoring, control and surveillance system,” PITIA stated. “Strange then that other countries that demonstrate higher levels of risk have not been singled out for attention.”

Monday, November 19, 2012

Australia lamb exports to PNG up 58%

OVERSEAS markets are lapping up Australia’s record cheaper supply of lamb but yardings and slaughter numbers are tipped to plateau to the end of 2012, market analysts say.
Volumes exported during October to the Middle East were up 79 per cent on 2011, China up 69pc, Papua New Guinea up 58pc and the United States up 25pc.


While total exports for October had been 18,574 tonnes shipped weight, the record had been driven by increased supply and cheaper product, reflected in saleyard prices to growers.

Overall, while the volume of Australian lamb exported was up 17pc on 2011, the value of those exports was down 4.3pc.

Rabobank senior animal proteins analyst Sarah Sivyer said exports had been higher because of increased supply in Australia, making our product more affordable on the international market.

“The number of lambs slaughtered in the first 10 months of 2012 is up 32pc on the same period last year. That’s the obvious thing,” Ms Sivyer said.

“The reduction in value (of exports) is being seen strongly in the US, which is Australia’s largest value export destination. From January to August 2012, export volumes have increased 6pc on the same time last year but the value of those exports has decreased 22pc.”

The slight lift in the Eastern States trade lamb indicator last week – up 3c/kg carcase weight to 351c/kg - was because of restockers coming back into the market.

She expected rain last week would see many producers hold onto sheep and lambs if conditions improved.

Meat and Livestock Australia chief economist Tim McRae said stock numbers coming through for slaughter were likely to plateau for the rest of the year.

He did not expect to see large yardings in November and December like there had been in 2011, which was part-seasonal and part-income pressure.

“Recent rain could provide some flexibility to hold on to numbers,” he said. “This year has been so far ahead of last year’s slaughter numbers, we may have seen some of the numbers come in early.”

Sunday, November 18, 2012

BSP community projects for 2013 kick off in Lae

BSP has commenced its community projects for 2013, with its first ground breaking taking place in Lae, where its three branches will be combining funds, resources and people to undertake a major upgrade to the rundown Corrective Institutions Servicess (CIS Buimo) Clinic. 
The rundown state of the interior of the clinic today. The project will see a complete upgrade of the health facility.

 It’s a sad state of affair at the clinic, which is a major referral clinic to the Angau Memorial Hospital. The clinic provides health services to thousands of people in the surrounding Buimo, Bundi Camp and even Taraka suburbs, apart from the CIS personnel and inmates.
 The ground breaking ceremony for the community project was held last Thursday, November 15,  attended by BSP staff, warders and inmates. 
Lae Branch managers Agnes Mark (commercial) and Quilan Nongi (market) officiate at the groundbreaking with BSP and CIS staff.

 The upgrade will see a full reconstruction on the existing facility, including the replacement of termite infested timber frames, walls, weatherboards and plywoods. Sinks, cupboards and shelves at the examination room and treatment area will also be replaced. 
The project will also see the installation of an air-condition unit, ceiling fans and lights.
 CIS Buimo commander Simon Sobaim applauded BSP for its commitment not only to providing banking services but also reaching out and touching communities in a meaningful way.
 The CIS nursing officers who work at the clinic were thankful that they will now have a conducive environment to deliver much needed health services to the surrounding community.  
 This year, BSP''s three Lae branches combined and delivered a significant upgrade to the only radio therapy and oncology clinic in the country at the Angau Memorial Hospital.
 BSP’s Lae branch staff who will devote their time during weekends to assist with the project are proud to work with the communities and give back in a worthy way.
 "As the only home grown bank in Papua New Guinea, such is our commitment, as we truly understand that we have the opportunity to make a meaningful and lasting difference where it matters most," said Group CEO Ian B Clyne.
 "BSP’s commitment to give back to local communities is through a number of initiatives at corporate as well as branch level focusing on health, education, sports and the environment.
 "BSP community projects commenced in 2009, and since then has invested back into communities in access of K2 million in which the bank operates in PNG. 
"Our offshore branches, Fiji and Solomon Islands also deliver community projects in areas they operate.
 "This was typically in the form of school equipment provision and classroom refurbishments, hospital and aid post repairs, water tank installations, market and public area clean-ups, and support of equipment and funding of various charities." 

Where biodiversity abounds: Hunting for new species in PNG


Where Biodiversity Abounds: Hunting For New Species In Papua New Guinea
Survey of the canopy with the "arboglisseur" - (La Planète Revisitée)


By Laurence Caramel


LE MONDE /Worldcrunch

MADANG - Armed with thousands of test tubes, flasks, microscopes, mouth aspirators, gillnets and compressors, Olivier Pascal and Philippe Bouchet have arrived in Madang, their departure point for their new expedition in Papua New Guinea, which started last month.
The botanist for an NGO, Pro-Natura International, and the zoologist specializing in mollusks at the National Museum of Natural History in Paris are old accomplices. They even have special nicknames for each other: "Muddy old boot" for the former and "Sea-shells" for the latter. Since 2006, they have led the biggest known research team in recent years. "Our Planet Reviewed" has taken them from Santo Island and Vanuatu to Mozambique and Madagascar in 2009 and 2010.
After two years of preparation, they are finally ready to embark on a new chapter in their inventory of the world's biodiversity, visiting one of the most richly diverse areas, but also one of the least traveled, in the world. The expedition will last three months and will include almost 200 scientists of 21 different nationalities.
The island of Papua New Guinea presents a double attraction for the scientists. It is situated at the heart of the Coral Triangle, which stretches out between Taiwan, the Philippines, the Malaysian peninsula and Indonesia. This is the world’s most bio-diverse marine environment, where two-thirds of the world's coral reefs are to be found.
On land, the potential is just as appealing. The eastern half of the island, shared with Indonesia, possesses the third-largest expanse of intact tropical rainforest, after the Amazonian basin and the Congo. The team will be based in Madang province, where the rainforest extends from the coastal plains to the edge of the slopes of Mount Wilhelm, reaching up to around 3,800 meters.
"Each new expedition is bound to lead us to the discovery of new species," predicts Philippe Bouchet, who will lead the marine mission. This is especially true as the mission will focus on species that have until now been neglected by zoologists: mollusks, crustaceans, polychaeta and algae.
"Mollusks and crustaceans represent around half of marine species; there are eight times more of them than there are fish," says Philippe Bouchet. "However, the scientific community suffers from the same problem as the general public. They're only interested in certain species, such as large mammals."
There is also another reason for this professional snub. It takes a considerable amount of time to track down, classify, and sample these small organisms, rarely bigger than a few centimeters. It can take years to declare a new species.

Oceanic ships and super-sleuths
Discoveries are made almost unintentionally; however, they do follow a precise structure. Philippe Bouchet, staying with his team at the Divine Word University campus, painstakingly goes through minute details with his team each night before dinner.
"On an expedition of this magnitude and at this level of complexity, I have to devote 100% of my time to management. You have to find the right balance between running a tight ship and one that allows researchers to fully express their creativity," admits the museum researcher, putting a dampener on the feeling of adventure that goes with these large expeditions.
If the weather permits it, around 20 divers will go down 30 meters each day to do preliminary sampling, armed with breathing apparatus, light traps and brushing equipment, etc. There is also the Alis, the oceanographic ship being supplied by the Research Institute for Development (IRD), another partner of the expedition, with its trawling net that can reach down to 1,200 meters.
For more delicate operations, the leader of the mission is counting on a few super-sleuths: divers to whom he has entrusted the targeted sampling, and a Filipino fisherman whom they met in 2004, who is second to none when it comes to maneuvering a gillnet around awkward or sloping areas on the ocean floor.
All samples will be sent to the laboratory, on campus, to be studied, sorted, photographed and packaged, then given to the top specialists after the expedition.
As well as this, artificial reefs (around 30 in total) will be installed in the lagoon of Madang after the best sites have been identified by satellite images. They will be taken out again after one year, the time it takes for them to become colonized by various species.

No time to relax or build shelters
On the humid slopes of Mount Wilhelm, surrounded by rich vegetation, Olivier Pascal is preparing for a completely different voyage. He is no stranger to extreme conditions, after his first escapades during the late 1980s in the Amazon. "It'll be bad if it rains," he admits.
Earlier, in May, they had searched for ideal locations, which has allowed them to signpost each stage of the climb. "As soon as we arrive, we have to follow the precise, pre-established scientific protocol." There are eight sites, each divided into five patches of 20m2, and prepared with traps. The sites range from 200m above sea level to 3,700m above sea level.
The researchers will spend three days at each site, and one day hiking to reach the next one. Therefore, there will not be much time to relax or even build shelters. Tarpaulin sheeting will have to do. "You have to be in really good shape, even if we have a doctor with us," says Olivier Pascal.
The scientists will concentrate on insects, which form by far the largest group, on land, of neglected biodiversity, and which represent this expedition’s main area of interest. Unlike Philippe Bouchet, the botanist can also work with a strong team of local researchers.
For 15 years, Vojtech Novotny, a world-renowned Czech specialist in tropical ecology, has been managing Binatang Research Center in Madang. He coordinated the biggest study ever done on the distribution of species in a tropical, low-altitude forest.
The results, published in 2010, have provided one of the most recent evaluations of the world's biodiversity. Olivier Pascal is hoping to prolong the exploration on the peak of Mount Wilhelm with the help of  Papua New Guinean parataxonomists trained by Novotny.
The final objective for the pair is to come up with a new estimate of the number of species currently living on Earth. "For me, that's where the real adventure begins," Philippe Bouchet confides. He is already thinking about the years in the laboratory to come, after these "three months on the ground."

PNG conditionally approves InterOil LNG project

 
The Papua New Guinea government cabinet has approved InterOil Corp.’s Gulf LNG project to be supplied by the Elk-Antelope onshore gas fields with conditions including the 50-50 split of the development between the government and InterOil.
Prime Minister Peter O’Neill said in a statement that Papua New Guinea’s National Executive Council had approved the 50-50 project in which the government would acquire an additional 27.5% stake over and above its legal 22.5% entitlement, which is managed by state nominee Petromin.
The acquisition would give the government a combined half interest in the Elk-Antelope assets. It is probable that some of this equity would be managed for the benefit of capital-lacking landowners.
Elk and Antelope are carbonate reservoirs, technically part of the same field, but separated by a major fault.
O’Neill alluded to the fact that the terms in which the State will acquire the additional equity still need to be agreed.
O’Neill added that the cabinet had also flagged the possibility of two separate development paths. “Cabinet approved that the project may be commercialised equally and simultaneously on a 50-50 basis between the state and InterOil based on the available saleable gas, using two separate processing facilities,” he said.
He said an internationally recognised LNG operator should operate the upstream facilities, meaning that the government still wants a major player to buy an operating stake in Gulf LNG.
The announcement also alluded to the fact that Petroleum and Energy Minister William Duma last year criticized the development for straying from the original project agreement struck in 2009. Cabinet has now approved the “conditional withdrawal” of its notice to terminate the 2009 project agreement. This is subject to the parties agreeing to certain conditions, including “developing saleable gas on a 50-50 basis.”
A Ministerial Gas Committee headed by Minister Duma has been formed, while a separate bureaucratic negotiation team has also been established with representation from the petroleum department, treasury, the justice department and Petromin.
These teams have been charged with fast-tracking the negotiations leading to commercialisation of the country’s second LNG project (after the ExxonMobil-operated PNG-LNG scheme).
A number of questions still remain.
The original 2009 agreement was based on a one-plant project of 7.6 million tonnes/year of LNG. The exact capacities of two LNG plants mooted in the new agreement have not been specified publicly, but it is likely that they would have a capacity of about 4 million tpy each.
Ongoing negotiations will also decide what form the plants will take—conventional, modular, or floating LNG. There also will have to be input from the company or group of companies acquiring an operating stake in Gulf LNG.
Another question is how the government will finance the acquisition of an additional 27.5% stake.