PM highlights importance of agriculture and tourism in Independence message

Prime Minister Peter O'Neill has emphasised the importance of agriculture and tourism in his Independence Message.

He said this in his message themed 'Embracing the Future'.

Prime Minister Peter O'Neill receiving a gift from East Sepik Governor Allan Bird in Wewak on Wednesday. He is flanked by Maprik MP John Simon, Civil Aviation Minister Alfred Manase and Police Minister Jelta Wong.

"Our country has products that the world wants and needs to buy," O'Neill said.

"This is not just our oil and gas resources, but we have renewable resources that are in high demand.

"Our agriculture sector should be the food bowl of the region.

"We have vast expanses of land, with rich fertile soil that is purely organic.

"We have some of the most amazing tourism sites that people from around the world want to visit.

"But all of this potential is worth nothing if we do not believe in ourselves.

"We must continue to invest in our nation and in our communities.

"This means building the roads that we need to transport our goods to market, to build the airports for our people to travel and to construct the schools that will educate the next generation.

"The only people who can deliver a stronger Papua New Guinea – are Papua New Guineans ourselves.

"As a country we have many friends who are helping us to advance, and we value this support, but we must do things for ourselves and chart our own course.

"We have to have confidence in our potential, we have to make firm decisions on our future and we have to stand by those decisions all the way.

"I give you every commitment, on behalf of our Government, that we will not let your down.

"Each and every day, we will continue to do our best to advance the interests of Papua New Guinea, and continue to deliver real change for our nation."

O'Neill said PNg must prepare its communities to adapt to changes in the modern world.

"This includes dealing with natural disasters brought about by climate change so we can protect our people," he said.

"We must better adapt to the evolving global economy, so that we not only insulate ourselves from economic shocks – but we must take advantage of economic opportunity for our people."

A very special day for Lae

Lest We Forget:September 16 2018 is the 75th anniversary of the recapture of Lae by Australian troops in 1943 from the Japanese. 

This makes this year's Independence celebrations in Lae very special. 

We hope Australia, Papua New Guinea, Lae and Morobe will make that day a memorable one. 

Our young people must know the rich and colourful history of our hometown. 

A place with no past has no future. 

Below is the article in The National Weekender of Sept 14  on the 75th Anniversary of the Liberation of Lae on Sept 16, and Salamaua on Sept 11 (please click to enlarge)

Treasurer Charles Abel returns from sovereign bond roadshow

Deputy Prime Minister and Treasurer, Charles Abel returned to Port Moresby yesterday after leading the international roadshow to market Papua New Guinea's inaugural (first ever) sovereign bond.

The DPM and delegation covered Singapore, Hong Kong, London, New York, Boston and Los Angeles in 10 days.

The PNG delegation (right) at one of the meetings

 In a packed schedule arranged by global lead coordinator Credit Suisse and joint bookrunners Citibank the delegation presented to around 100 global banks and fund managers at seven meetings per city.

"Our international partners have done a fantastic job in arranging meeting and providing advice," Abel said.

"The interest has been really good with full meetings including all the major players.

"Everyone is interested in the PNG story.

"The market for emerging market or frontier market bonds has been rattled recently by the Turkey and Argentina economic problems but we believe PNG has a strong case regardless.

"We are looking at a five year or 10-year benchmark minimum issue of US$500m.

"This is the minimum amount to qualify for the Emerging Market Bond Index and facilitate participation in the secondary market after issuance.

"Now that the roadshow is concluded we will field offers for amounts and pricing (interest rates) before making a final decision to sell the bonds.

"Of the potential proceeds, $200m will go into operation and capital costs and $300m will convert short term (less than 12 months) domestic debt into long term debt.

"This will better balance our loan book and bring in foreign exchange.

"PNG will be looking to establish its brand and yield curve in the international market for the future.

"Since the 2017 Supplementary Budget our Government through the 25 Point Plan has put revenue to GDP on an upward path from 12 per cent of GDP to 16 per cent.

"Fiscal deficits are in a downward trajectory from 6 per cent to 2.4 per cent.

"Debt to GDP is a prudent level of 32 per cent.

" International reserves are stabilised at US$1.7 billion, being 10 months of non mining import cover, and the forex market is coming back to balance. 

"We are working on constraining our wage bill and interest costs.

"Oil prices are recovering well and we are negotiating the Papua LNG, Pynyang LNG and Wafi Golpu projects.

"There are good times ahead for PNG if we remained focused and work hard."

Abel was accompanied by Governor of the Central Bank Loi Bakani, Secretary for Treasury Dairi Vele, Vice Minister and Tambul Nebilyer MP Win Daki and Finschhafen MP Rainbo Paita.

PNG - Australia partnership supports local road maintenance contractors

Australian High Commission

Small and medium sized businesses are crucial to the delivery of maintenance on Papua New Guinea’s national road network. 

Australia is continuing to work with the Department of Transport, Department of Works, National Roads Authority, and the Department of Commerce and Industry to strengthen the local contracting industry.

During a series of Australian sponsored workshops in Mt Hagen and Madang last week, Kia Gorabi from the Department of Commerce and Industry Construction Industry Unit reflected on the challenges and opportunities for SMEs in the road sector.

Participants of the workshops recently held in Mt Hagen and Madang.

“The government relies on local contractors to deliver essential work. 

"It’s great to be able to provide support to small businesses on the ground. 

"These workshops have focused on improving understanding of technical, financial, business, and contractual aspects of work in the road sector.

“Road works provide jobs for a range of skill levels in communities along the highways. 

"Good roads are vital for the private sector and act as a catalyst for economic growth.”

Amex Sipatu works for a small contractor that has been operating for seven years.

 “Running a road contracting business is complex and competitive. 

"This workshop has helped me to improve my operations and understand how to grow my business and avoid the most common pitfalls.

“I also enjoyed the opportunity to discuss the challenges with officials from government departments in our sector,” Amex said.

Australian High Commission Minister Counsellor Benedict David was pleased that Australia was able to support these workshops. 

“Our focus on maximising opportunities for local contractors and communities is a big part of our support for infrastructure development in Papua New Guinea.

“Many of these projects are delivered by Papua New Guinea businesses and these workshops are an important way to maximise local participation in the development of growth enabling infrastructure,” David said. 

In partnership with Australia through the Transport Sector Support Program, the Department of Works delivered more than K60 million worth of road maintenance works in 2017. 

These works were delivered by 70 different local contractors.

ADB inaugurates new office in PNG as partnership expands


adb.org | September 12, 2018

PORT MORESBY, PAPUA NEW GUINEA (12 September 2018) — Prime Minister of Papua New Guinea Peter O’Neill joined Asian Development Bank (ADB) Pacific Department Director General Carmela Locsin and ADB Country Director for Papua New Guinea (PNG) David Hill in inaugurating the new premises of ADB’s PNG Resident Mission today.

Country Director of ADB’s Papua New Guinea Resident Mission David Hill, Prime Minister of PNG Peter O’Neill, and Director General of ADB’s Pacific Department, Carmela Locsin.

“ADB has been our strong development partner since 1971,” said O’Neill.

Prime Minister Peter O’Neill

“For almost 50 years now, we have worked together to improve transport infrastructure, expand access to renewable energy and health services, and raise living standards for the people of Papua New Guinea.”

ADB’s PNG Resident Mission assists the government in implementing its Development Strategic Plan 2010–2030.

Country Director of ADB’s Papua New Guinea Resident Mission David Hill

ADB’s support is guided by its Country Partnership Strategy (CPS) with PNG for 2016–2020, which focuses on removing infrastructure bottlenecks and barriers to job and business creation in the country.

“ADB’s Papua New Guinea Resident Mission has boosted our responsiveness, allowed us to better align our programs to those of the government, and enabled us to expand our cooperation with other development partners,” said Locsin.

“We are now implementing about $1.8 billion worth of projects and programs with the government.”

PNG is home to both the largest population and economy in the Pacific subregion.

In 2017, gross domestic product reached $23.1 billion and the country’s population was about 8.2 million. PNG recorded its 9th consecutive year of economic growth in 2017.

ADB works with the Government of PNG to improve transport infrastructure, renewable energy, health, water and other urban infrastructure, and public sector management.

 The PNG government has also placed emphasis on environmental sustainability, private sector development, gender equity, and knowledge management.

For instance, the ADB-supported PNG Health Services Sector Development Program combines a policy-based operation and project financing to support sector reforms and investments in PNG, enabling long-term sustainability and effective use of the country’s health sector financing.

The program will support the delivery of accessible, affordable, and high-quality health services in PNG.

The ADB-supported Civil Aviation Development Investment Program is connecting people, goods, and essential services across PNG’s most challenging terrain.
 The project is strengthening the country’s land and air aviation infrastructure while improving safety and security in 21 national airports.

ADB is helping the government increase access to clean and reliable electricity by working with PNG Power to build renewable generation assets, expand transmission and distribution networks, connect new users to the grid, and boost grid efficiency.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

Established in 1966, it is owned by 67 members—48 from the region.

 In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.

New infrastructure for Buna Village, NorthernProvince

 Australian High Commission

Residents of Buna Village in Northern Province have celebrated the opening of a new double classroom and a new health centre. 

Buna school children stand in front of the new double classroom

The infrastructure was delivered jointly by the Australian Government – through the Kokoda Initiative – and the No Roads Foundation, with specific contributions from other partners.

New double classroom in Buna village

Representatives from the Australian High Commission, No Roads Foundation, Kokoda Track Foundation (KTF) and local and provincial authorities gathered to inaugurate the new buildings on Sept 10, along with representatives from the local community and some Kokoda trekkers.

Special guests and 12 medical volunteers from Australia in front of the new Buna Community Health Centre

Counsellor Alistair McEachern from the Australian High Commission told locals the new facilities highlighted Australia’s commitment to the ongoing development of the Kokoda Track and surrounding areas.

New Buna Community Health Centre

“Given Buna’s unique connection to Australia during WWII, the Australian Government is now supporting the community with education and health facilities delivered under the Kokoda Initiative in partnership with the Government of Papua New Guinea.”

The new double classroom completes the Australian Government’s K10 million package of education infrastructure delivered across the Kokoda Track corridor to honour the 75th anniversary of the Kokoda campaign. 

The package included eight fully-furnished double classrooms, five upgraded classroom buildings, and nine new staff houses, across Central and Northern provinces.

The new facility will replace the existing health centre, which covers 12 catchments with a population of up to 7000 people. 

The old centre was too small to cope with the growing healthcare needs of the local community, so the new centre is both timely and necessary.

KTF has provided funds to support a health officer at the previous facility for a number of years and will continue to support the new centre. 

Rodney Hart Wakei is the current officer-in-charge and has been working at the old health centre since 2012.

“This new building will encourage more patients to access the health facility each day, including women giving birth. 

"I really appreciate the donor agencies for the genuine support they’ve provided to the Buna community.”

After running tours along the Kokoda Track for many years, Andrew Grasby from the No Roads Foundation said basic health infrastructure and services were critical to the well-being of Kokoda communities.

“Local people often live in remote and isolated areas, with limited access to health services. 

"For this reason, we are proud to support the building of the health centre in Buna and provide health services to communities today.”

No Roads Foundation also sponsored 12 medical volunteers from Australia to support the set-up of the health facility and run a community health clinic after the opening. 

Rotary Australia also provided funding and donated the health centre’s ward beds, wheelchair and other key medical equipment.

Rebuilding health infrastructure in Hela

Australian High Commission

The Government of Papua New Guinea, Australian Government and Oil Search Foundation are working together to support provincial health Authorities to deliver improved health outcomes in Hela and Southern Highlands provinces.

Australian High Commissioner Bruce Davis (left) during one of his visits to Hela with the Member for Koroba-Lake Kopiago and Minister for Immigration  Border Security Petrus Thomas.

Member for Koroba-Lake Kopiago and Minister for Immigration and Border Security Petrus Thomas presented a cheque of K200,000 of district funding to support rehabilitation works at the Koroba District Hospital, at an event on Friday Sept 7 in Port Moresby, also attended by Australian High Commissioner Bruce Davis and Oil Search Foundation executive-director Stephanie Copus-Campbell.

The rehabilitation is part of a boarder partnership initiative, Wok Bung Wantaim, that is funded by the Australian Government and the Oil Search Foundation. Its isolation and remoteness, combined with damage sustained in the February earthquake in the Highlands, had seen the facility deteriorate significantly.

Koroba Kopiago’s district development funds will add to previous commitments from OSF to ensure the facility is returned to full function as soon as possible. 

Australia has also provided K1.2 million for a new X-ray and pathology facility to give patients access to a more comprehensive range of services at the hospital.

“Each one of us – government, donors, churches, NGOs and the private sector can do a lot to support improved health services," Thomas said.

"But when we coordinate funding, skills and experience through partnership we can together drive real change.”

Davis said that Australia was pleased with the expanding partnership that would deliver better health outcomes in Hela.

“I am delighted that Australia, working with OSF, churches and NGOs, can support the Hela Provincial Health Authority, local "Members of Parliament and their District Development Authorities," he said. 

"This partnership will improve health services for the people of Koroba-Lake Kopigao and beyond.

“Australia is working with all its partners in Koroba-Lake Kopiago to deliver not only on the restoration of services post-earthquake but improving those services to meet the growing needs of the district. 

"This partnership is a unique way of working together and we are delighted to be part of such a great initiative.”

OSF is working closely with the Hela Provincial Health Authority to manage the project on behalf of the Koroba-Lake Kopiago District Development Authority, in partnership with Australia and others.

Commending commitments made so far, Copus-Campbell said the partnership and rehabilitation work was a step forward to improving health services to people of the district.

“District hospitals are an important part of Government’s health service delivery framework," she said.

"OSF is fully committed to working with the Hela Provincial Health Authority, the Australian Government and the Koroba-Lake Kopiago District Development Authority to ensure the people of Koroba-Lake Kopiago access health care.”

A fully functional district hospital, such as the Koroba District Hospital, brings essential health care services closer to communities, especially as they operate closer to the communities they serve compared to larger provincial hospitals.

Australia is separately funding the reconstruction or refurbishment of other social infrastructure in Koroba-Kopiago District, collectively worth around K8 million. 

This infrastructure will include Kopiago Health Centre, Fugwa Primary School, Fugwa Health Centre, and Koroba Police Barracks.