K13 million study of Ramu Highway upgrade

Australian High Commission

A major upgrade to one of Papua New Guinea’s national priority highways will be scoped and designed following a contract signing on November10,  2014.
The scope and design study of the Ramu-Madang Highway is part the Joint Understanding between Australia and Papua New Guinea on Further Bilateral Cooperation on Health, Education and Law and Order. 

A section of the Ramu-Madang Highway.-Picture courtesy of Australian High Commission

 The K13 million study will examine ways to improve traffic and pedestrian safety, flood resilience and traffic capacity, while decreasing maintenance costs and travel times. It will also examine any alternative routes under consideration.
 “The study will support economic investment along the Ramu Highway and adjacent areas, as well as offering an alternative corridor from the Highlands to coastal ports,” Australian High Commissioner to PNG, Ms Deborah Stokes, said.
 Secretary of the Department of Works, Mr David Wereh, noted the Ramu Highway Scoping and Design Study will contribute to the strategic objectives outlined in the PNG Medium Term Development Plan and the National Transport Strategy.
 “The Ramu Highway is one of 16 national priority highways in PNG. The highway is a key transport link between Lae and Madang and supports important mining and agro-industrial activities, specifically beef, sugar and palm oil production. PNG appreciates the Australian Government’s support for the study and options for reconstruction,” Mr Wereh said.
 The contract is part of the PNG-Australia Transport Sector Support Program - Australia’s long-term commitment to support the development of PNG’s transport network. An international competitive procurement process resulted in the selection of the Ramu Gateway Joint Venture, comprising Shawmac, Infra Tech and ATZ, to implement the study.
 Representative of the Ramu Gateway Joint Venture, Mr Brian Hartley, said: “We are pleased to have been selected to lead the Ramu Highway study to investigate and assess engineering solutions to challenges including major slip activity and river crossings and develop options for a durable and maintainable road for the long-term. As part of the contract, we will identify the various costing options for the highway’s upgrade to support future government investment decisions.”

 The Joint Understanding commitments by Australia and PNG also include the redevelopment of the Lae ANGAU Memorial Hospital, deployment of 50 Australian Federal Police advisors; scoping and design of the lower courts in Port Moresby; and support for the rehabilitation of essential infrastructure at the University of PNG.

Philippines, Papua New Guinea to enhance trade and investment cooperation

PNA

BEIJING, China, Nov. 10 — The Philippines and Papua New Guinea (PNG) are moving for the enhancement of their trade and investment cooperation, Foreign Affairs Secretary Albert del Rosario has said.
"The Philippines has committed to send a scoping mission to Papua New Guinea for trade and investment cooperation," del Rosario said following a bilateral meeting held Monday morning between President Benigno S. Aquino III and Prime Minister Peter O'Neill on the sidelines of the 2014 Asia-Pacific Economic Cooperation (APEC) Chief Executive Officers' Summit here.
He also said the Philippines wants to advance its cooperation in health services because it appears that the country is emerging as a favored destination for "medical tourism."
"We are being asked to advance our cooperation in education, specifically technical and vocational programs. It seems that many PNG nationals are now studying in the Philippines," the Foreign Affairs chief told reporters during a media briefing held at the Philippine Embassy in Beijing.
Del Rosario also mentioned a discussion on the deepening of a cooperation in agriculture between Manila and Port Moresby. He said the Laguna-based International Rice Research Institute is currently exploring suitable rice species for Papua New Guinea.
Both countries also agreed to cooperate with each other during their respective hosting of the APEC Summits in the near future.
"As you probably know, PNG will chair in 2018. And so, we are being asked to cooperate with PNG as we seek their cooperation for our chairmanship in 2015," del Rosario said. (PNA)

PM O’Neill at APEC: Papua New Guinea’s role as gateway between Asia and the Pacific

Prime Minister Peter O'Neill  has begun his first full day of APEC related meetings taking place in Beijing, China, this week.
Accompanied by key ministers involved in the policy and logistics of APEC activities between now and 2018, the Prime Minister met with other regional leaders and spoke to more than 1,000 senior business people.
In bilateral meetings with counterpart leaders, O'Neill highlighted a range of issues that are central to further strengthening Papua New Guinea's economy.
"Papua New Guinea is a gateway to the Pacific Islands for Asian countries,"  O'Neill sad following the bilateral meetings.
"We are utilising our position as a crossroads between Asia and the Pacific Islands to strengthen trade, increase skills and improve the lives of people in our region."
The bilateral meetings undertaken by the Prime Minister and his delegation were with the leaders of Viet Nam, Thailand, the Philippines and China.
The Prime Minister also participated in the APEC CEO Summit, a dialogue of more than 1,000 CEOs from around the world that takes place in conjunction with the APEC Economic Leaders' Summit.
Appearing alongside O'Neill on the panel was H.E. llanta Humala, the President of Peru; Richard Adkerson, President and Vice Chairman of Freeport-McMoRan; and, Akio Mimura, the Honorary Chairman of Nippon Steel & Sumitomo Metal Corporation.
The topic of the panel discussion was: ­"Towards Inclusive Growth: Is Economic Growth the Answer to Rising Global Inequality?"
The Prime Minister provided perspective on inclusive growth as this relates to Papua New Guinea's approach to economic development.
"We must be inclusive with the growth that we're experiencing so that this is shared by all,"  O'Neill said to the APEC CEO Summit.
"It is not just about income it's about a better quality of life for our people in a range of areas.
"To overcome inequality we need to give people support and develop the necessary skills that they need to contribute to the economy."
He made the point that reducing inequality required attention to core services that empower people to take part in the economy such as healthcare, education, law and order, and infrastructure.
"Access to universal healthcare is enabling our people to be more healthy so that they can be productive in the economy and this helps their community.
"Education and skills training is also essential to empower the next generation when they leave our schools.
"We have implemented a free education policy so that all Papua New Guinea children have to go to school.  This will advance literacy rates and we will have a much better educated and trained population.
"We have increased our spending on law and order initiatives and this is making the places people live and work safer."
The Prime Minister added that the provision of new infrastructure was essential but it had to not just be in major cities.
"We are putting national government funds into local level projects," he said.
The Prime Minister acknowledged that overcoming inequality can be a difficult path to navigate, but governments have a responsibility to deal with the issue.
"Yes, we there have been some challenges.  We are learning from the past and we are learning from experience of people in other countries who have had similar growth challenges such as urbanisation."
The Prime Minister is attending the APEC Business Advisory Council Dialogue with fellow leaders in the afternoon of November 10, while formal APEC Economic Leaders' Meeting Plenary Sessions take place today.
The Ministers attending the APEC Economic Leaders' Meeting with the Prime Minister are Foreign Minister Rimbink Pato; Trade and Industry Minster, Richard Maru; and, Minster for National Events Justin Tkatchenko.

Pacific Games venues need work: Council urges Papua New Guinea to continue efforts

Written by Pacific Daily News

The Pacific Games Council said in a news release that it accepts some of the venues for the 2015 Pacific Games won't be fully completed in advance.

 

"Recent developments have gone another step toward satisfying the council that Papua New Guinea will be ready to host the Pacific Games in 2015," said Vidhya Lakhan, president of the Pacific Games Council. "The council's confidence levels continue to improve, but critically important work remains to be done to guarantee a successful Pacific Games in 2015."
Lakhan and Andrew Minogue, the council's executive director, are visiting Port Moresby, Papua New Guinea this week to assess the state of preparations for the 2015 Pacific Games, the news release stated.
"I urge the government of Papua New Guinea and the minister responsible for the games to continue their efforts to ensure that all stakeholders, especially government departments and statutory bodies, work together and with a renewed sense of urgency to bring the final preparations for the 2015 Pacific Games to a positive conclusion," Lakhan said.
During a July visit, the council urged all stakeholders to redouble efforts to get venues finished well in advance of July 2015, the news release stated, to allow the 2015 Pacific Games Organising Committee "sufficient time to take possession of the venues, test them, and install the necessary overlay, technology and other services required to deliver successful competitions at the games."
This week's visit was planned to assess Papua New Guinea's progress, so final decisions could be made as to where each sport will be conducted, the news release stated.
The council did say "very significant progress has been made in the construction program over the past four months."
The council said arrangements must be made "for the hand-over of clean, secure and safety certified venues to the (organizing committee) by next May at the latest."
"There is no reason, given Papua New Guinea's rich and proud heritage of participation in the Pacific Games and having hosted the event so successfully twice before, that this immediate objective cannot be obtained," Lakhan said.

Vietnam eyes stronger ties with Papua New Guinea

HANOI, Nov 10 (Bernama) -- Vietnamese President Truong Tan Sang said the country is keen to enhance bilateral relationship with Papua New Guinea, Vietnam News Agency (VNA) reported.
Sang expressed the desire during a meeting with Papua New Guinea Prime Minister Peter O'neill on the sidelines of the 22th Asia-Pacific Economic Cooperation (APEC) Economic Leaders' meeting in Beijing on Monday.
Exchanging visits at all levels, holding business meetings and signing agreements have been identified as ways to help boost economic, trade, investment and energy ties between both countries.
The two leaders reached a consensus on strengthening bilateral cooperation at multilateral forums and closer coordination within APEC.
Vietnam and Papua New Guinea will host the APEC Economic Leaders' meeting in 2017 and 2018 respectively.
The two countries established diplomatic relations on Nov 3, 1989.

-- BERNAMA

China, Papua New Guinea look to more cooperation

XINHUA

Chinese President Xi Jinping on Monday called for cooperation with Papua New Guinea in trade, energy, natural resources, infrastructure, agriculture and culture.

China is willing to boost bilateral relations with Papua New Guinea, China's important partner in the South Pacific, Xi said.

Xi made the remarks at the meeting with visiting Papua New Guinea Prime Minister Peter O'Neill, who is in Beijing to attend the 22nd Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting from Nov. 10-11.

Papua New Guinea is a major leader in regional cooperation among Pacific islands countries, said Xi, who is going to visit Fiji and meet with leaders of the countries that have diplomatic relations with China in the next few days.

Xi said he expects to hold discussions with leaders of these countries, including Papua New Guinea, on friendly cooperation.

O'Neill told Xi that Chinese investment have contributed to his country's economic growth and people's livelihood.

Papua New Guinea is looking forward to more cooperation with China and will promote the relations between China and other Pacific island countries.

Petrodollars: Figuring out what to do with PNG’s new LNG wealth

By John Kingston | November 10, 2014

Platts

As Papua New Guinea enters the small fraternity of LNG exporters, it needs to figure out what do with the money the poor nation is going to earn. Christine Forster looks at the issue in this week’s Oilgram News column, Petrodollars.

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The start-up in April this year of the ExxonMobil-operated Papua New Guinea LNG project was an historic moment for the small Pacific nation, marking the arrival of the world’s newest player on the global gas market.

At a price tag of $19 billion, the PNG LNG project represents the biggest investment in the country’s history. With the project now up and running at full capacity, and with the prospects firming for the development of a second LNG project at the InterOil-operated Elk-Antelope fields, PNG’s economy is set for a transformation.

But with the oil and gas industry’s increasing importance to PNG’s economy comes an even greater need for transparency, according to Oil Search, a key stakeholder in both PNG LNG and Elk-Antelope and operator of all the country’s producing oil fields.

“We estimate that over the next 30 odd years some $40 billion in total cash flow will come to the PNG government,” Oil Search Managing Director Peter Botten told a recent investor briefing when discussing the returns expected from the emerging LNG industry. “That clearly has to be managed well through a sovereign wealth fund…We need to help, along with ExxonMobil and our other partners in making sure that that those benefits do get delivered.”

The PNG parliament passed legislation in 2011 and 2012 to create a sovereign wealth fund to manage government surpluses from projects such as PNG LNG. But there are still serious challenges for the government to ensure transparency and accountability for the revenues flowing from development.

“Transparency is a very big thing,” Botten acknowledged. “EITI [the Extractive Industries Transparency Initiative] and transparency of where those funds go, the development of the sovereign wealth fund and certainly publishing where all those benefits go is of critical importance in terms of managing community expectations and ensuring we meet those obligations,” he added.

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Natural resources already dominate PNG’s export mix, accounting for nearly two-thirds of earnings, headed by oil, gold and copper. ExxonMobil’s project adds to this list export capacity of 6.9 million mt/year of LNG from two production trains at the liquefaction facilities near Port Moresby.

The project is an integrated development that includes gas production and processing facilities in PNG’s Southern Highlands, Hela, Western, Gulf and Central provinces. More than 700 km (434 miles) of pipelines connect the project facilities, including a gas conditioning plant at the Hides field and the liquefaction and storage infrastructure on the coast.

The project delivered its first LNG cargo in May and reached full operating capacity ahead of schedule in late July, following what was reportedly a trouble-free ramp-up. By the end of September, it had shipped 23 LNG cargoes, including the first delivery under its long-term contracts, which cover 95% of capacity and are with China’s Sinopec, Tokyo Electric Power Company and Osaka Gas, and Taiwan-based CPC.

The scale of the project is huge for such a small nation. Since the start of construction in early 2010, the PNG LNG project has employed a total of more 55,000 workers, peaking at a workforce of 21,220 in 2012. Around 40% of the project’s workforce were PNG citizens, and the co-venturers had spent more than Kina 11 billion ($4.2 billion) on local services and supplies by the time production started.

PNG enjoyed its tenth straight year of economic expansion in 2012, when real gross domestic profit rose by 8.1%, according to figures from the Australian government’s Department of Foreign Affairs and Trade. Growth slowed to an estimated 5.5% in 2013 and is forecast to be 5.8% in 2014.

According to the 2014 CIA World Factbook, the massive gas development has the potential to double PNG’s GDP in the near-term and triple its export revenue from the $5.6 billion recorded in 2012. It will boost government coffers, generate local employment opportunities and royalty payments to landowners, and provide infrastructure which could spur further industry development.

That means the oil and gas industry’s already well-established role in PNG’s economy is likely to get even bigger. For its part, Oil Search is already managing a range of significant infrastructure projects on behalf of the government, and is delivering its own community programs in areas such as agriculture and water supply. In addition, the company is the second-largest health service provider in the country.

For PNG, where only 6% of people have access to power and 30% of the population still lives below the international poverty line of $1.25/day, LNG should be a game-changer. — Christine Forster in Sydney