BA-PNG ANNUAL 2024 - WCD

ANNUAL
2024
• Economic update
• Exclusive interviews
• Market trends & insights
businessadvantagepng.com/annual
Welcome
Welcome to the 19th annual edition of Business Advantage PNG.
Business Advantage International According to the PNG 100 CEO Survey, the annual
has produced this annual snapshot survey we run in partnership with Westpac, almost two-
of Papua New Guinea’s business and thirds of CEOs say they are planning to increase their capital
investment prospects each year since expenditure this year, while 63 per cent are planning to employ
Credit: Godfreeman Kaptigau
2006. more people.

It is the longest-standing and The reason for this optimism is the pipeline of major
most respected guide of its kind, and projects lining up in PNG – by some calculations worth up to a
has a genuine worldwide readership. combined US$50 billion.
As well as this magazine, we are There is also much-needed and significant investment in the
responsible for a range of resources enabling infrastructure to support such projects – in energy,
designed to help you do business in PNG successfully. telecommunications, roads, ports and airports. Meanwhile,
Its sister publication is businessadvantagepng.com, PNG’s improved connectivity is driving technological innovation and
top-ranked online business magazine. There, you can sign up digitisation.
to receive our regular free PNG business updates, as well as As our CEO survey confirms, PNG is certainly not without
research the market using our comprehensive Doing Business in its challenges, but the rewards are there for those prepared to
PNG guide, and the png1000.com online business directory. take the long-term view. The first time I visited PNG, in 2006,
Business Advantage PNG also convenes the premier annual the World Bank measured PNG’s GDP at US$8.35 billion.
investment conference on PNG. In 2024, this will take place at This year, it could exceed US$30 billion, while many sober
the Brisbane Convention and Exhibition Centre on 12 and 13 observers expect it to double again over the next decade.
August (for more, visit pnginvestmentconference.com). That kind of growth presents opportunities right across the
Working in a challenging frontier market tends to make economy, and you’ll find plenty of them inside this magazine.
PNG’s business people patient, resourceful and resilient. In the
past five years, they’ve dealt with natural disasters, COVID-19, Andrew Wilkins
inflation and supply chain constraints yet have emerged this Publishing Director
year still positive about the country’s prospects. Business Advantage International
Business Advantage PNG 2024 was made possible by the support of the following organisations:
BUSINESS ADVANTAGE PAPUA NEW GUINEA 3

CONTENTS
12 Perspectives 39 Infrastructure and
Business and
government leaders 6 transport
Port activity is set to
share their insights and Economic increase and we look at a
views on PNG’s economy. transport success story.
update
14 Investing in PNG We talk 43 Telecommunications
We look at five factors directly to Massive growth in
that will influence the experts demand for data
investment this year. for PNG’s is driving network
18 PNG 100 CEO short-to- expansion.
Survey medium-term 46 Finance
The results of PNG’s prospects. PNG’s financial
annual business institutions share
confidence survey, with their ambitious digital
analysis from Westpac strategies, as the country
economist Justin Smirk. waves goodbye to
22 Property cheques.
Rising demand for 50 Manufacturing
executive apartments is We look at new
driving some signature investment in PNG by
24
new investments. two international brands.
30 Economic map 52 Agribusiness
of PNG Petroleum Government agencies
32 Energy seeking to partner with
and gas the private sector, and
The latest on plans to
upgrade and expand All the latest a transformative rice
PNG’s power capacity. on the highly project.
anticipated
35 Mining 54 Aviation
pipeline of new
What’s next for the National airline makes its
projects. We
sector now that the largest-ever investment,
talk exclusively
Porgera gold mine has as PNG gains a second
to the major
reopened? international airport.
players.
57 Directory
Key contacts for doing
business in PNG.
Business Advantage PNG 2024 is published by Business Advantage Project Director: Robert Hamilton-Jones
International Pty Ltd (rhj@businessadvantageinternational.com)
Level 20, 31 Queen Street, Melbourne VIC, 3000 Australia
Tel +61 3 8330 6081 Publishing Director: Andrew Wilkins
(aw@businessadvantageinternational.com)
Editorial: Tony Jordan, Paul Chai, Robert Upe,
Sally Woollett
Experts in publishing and marketing Advertising: Robert Milne
businessadvantageinternational.com (rm@businessadvantageinternational.com), Charles Saldanha, Kate
Hammond
A digital edition of this publication is available free online at
businessadvantagepng.com. Additional printed copies can be Design: Peter Schofield
purchased for A$50 (incl. GST and postage) from the above
address or by emailing info@businessadvantageinternational.com. Cover image: David Kirkland
© Copyright 2024 Business Advantage International Pty Ltd and DISCLAIMER
contributors Business Advantage PNG is a general guide to some potential business opportunities
in Papua New Guinea and is not designed as a comprehensive survey. The opinions
ISSN 1836-7895 (print)/1836-7909 (online) expressed herein are not necessarily those of the publisher and the publisher does not
endorse any of the business or investment opportunities featured, nor does it accept
Printed in Australia. Both printer and paper manufacturer for any liability for any costs or losses related to dealings with entities mentioned in this
publication. Readers are strongly advised to pursue their own due diligence and seek
this publication are accredited to ISO14001, the internationally- expert advice before making any investment decisions.
recognised standard for environmental management. This
publication is printed using vegetable inks and the stock is
elemental chlorine free and manufactured using sustainable
forestry practices.
4 BUSINESS ADVANTAGE PAPUA NEW GUINEA

Developing Future
Industry Leaders
We are incredibly proud of our ExxonMobil PNG workforce.
Our team of 3,770 dedicated women and men are the heart
of our operations. Almost 90 per cent of our workforce
are Papua New Guinean, and they continue to deliver on
our operational commitments and to the country of PNG
every day. This team has made the PNG LNG Project
one of the safest and most reliable and efficient LNG
Operations anywhere in the world.
ExxonMobil PNG is not only building a pipeline of

qualified and experienced Papua New Guinean
personnel to support our business. We are
building operational and intellectual capacity that
will benefit future generations of Papua New
Guineans for decades to come.
www.pnglng.com facebook.com/ExxonMobilPNG1/
ECONOMIC UPDATE
Decade of growth begins
ExxonMobil’s Kumul Marine Terminal at Caution Bay

outside Port Moresby. PNG’s LNG exports look set to
increase substantially over the coming decade.
Credit: ExxonMobil
As part of our extensive in-country research for this

PNG has missed the foreign exchange the mine brought
publication, Business Advantage PNG spoke exclusively in during its first 30 years, and its restart will undoubtedly
to dozens of business leaders to understand how help mitigate the country’s longstanding forex shortages
they are preparing for imminent growth – and what – nominated by the country’s CEOs as the number one
impediment faced by business (see page 18) – as well as
challenges they face. Here’s what we learned. create an estimated 3,000 new jobs this year alone.
PNG’s next anticipated resources project is new and
By Andrew Wilkins substantially larger: the US$10 billion TotalEnergies-led
I
f 2023 was the year Papua New Guinea started to gear Papua LNG project. The country’s second gas project, it will
up for an anticipated decade (or more) of major new represent the second-largest foreign direct investment in its
investment, primarily in its resources sector, then 2024 is history, as and when it commences.
expected to mark the actual start of that decade. While there have been several delays, the departing
An estimated US$50 billion pipeline of resources projects Managing Director of TotalEnergies E&P PNG, Jean-Marc
is lined up for development. Even without these projects, the Noiray, tells Business Advantage PNG he is “confident” a final
International Monetary Fund (IMF) expects PNG’s GDP to investment decision will come in 2024, “with all the lines of
grow by five per cent in 2024, stabilising at around three per activity progressing well: technical optimisation, regulatory
cent in the years thereafter. permitting, gas marketing and project financing” (see page
“Like most PNG businesses, we are cautiously optimistic 24 for more).
that 2024 will see improved economic conditions,” says Mark
Robinson, CEO of PNG’s largest bank, BSP Financial Group. PNG LNG expansion
“These large extractive projects are critical for PNG’s Meanwhile, the operator of PNG’s first gas project,
economic growth and their flow-on impacts for PNG ExxonMobil, is working to complete the Angore Pipeline
businesses will be profound.” Tie-In Project in Hela Province. Natural gas from the
US$1.3 billion project is expected at its Caution Bay plant in
Underground movement 2024.
The first of these projects, the restart of the Porgera gold “As Papua New Guinea’s only significant gas development
mine, is already under way. currently under construction, we expect Angore to bring
Closed since 2020, while terms for an extension to its on additional gas volumes later this year to supplement
special mining lease were negotiated, Porgera officially the existing PNG LNG gas production,” Tera Shandro,
reopened at the end of 2023 under a new ownership Chairperson and Managing Director at ExxonMobil Papua
structure, which will divide the benefits more evenly between New Guinea, tells Business Advantage PNG.
local and international interests. As delegated downstream operator for the TotalEnergies-

ECONOMIC UPDATE
GROWING MIDDLE CLASS DRIVES HOUSING CONSTRUCTION

PNG’s construction sector as a whole has returned to
Credit: Atlas Steel

pre-COVID levels, driven in part by a growth in demand
for housing.
Why? Well, firstly there’s a growth in housing tied to

a person’s employment – what the CEO of Nambawan
Super, Paul Sayer, refers to as “institutional” housing.
In PNG, this housing has typically been most
associated with public service employment but more
recently this has expanded into the private sector,
as competition among employers for skills has led
to improved salary packages and greater employee
benefits.
Demand for housing from PNG’s growing middle class is rising.
“Sometimes the level of income that people
have is just not going to get you into a house, So, housing construction, both in estates such as Edai Town
as an employer, there’s a need to look at providing and Tuhava Town outside Port Moresby and the ever-
institutional housing,” notes Sayer. expanding suburb of Gerehu, and also on individual
He sees potential for PNG’s superannuation funds to blocks.
partner with the State to develop more such housing, One beneficiary of this trend has been housing and
given the State possesses land in prime locations but steel fabrication company, Atlas Steel.
doesn’t necessary have available capital to develop it.
Business beneficiary
Savings generation “About five years ago, we morphed into housing
PNG now has a generation of workers reaching construction. Prior to that, we were mainly a materials
retirement after a period where superannuation has provider to industry and we still do that,” says the
been both compulsory and well-managed. The deposit company’s Port Moresby branch manager, Peter Browne.
for a home loan often comes out of that superannuation Atlas now has around 750 workers manufacturing 10
payout. to 20 homes monthly. Prices range from K45,000 up
“There is a strong middle market demographic here to K500,000 for a five- or six-bedroom home, with the
that’s continuing to grow,” observes Greg Pawson, CEO average spend around K250,000.
of Kina Bank. “We’re seeing that through the demand “This is all about individual people wanting to move
for home lending.” into the housing market. A lot of those people are bank
In addition, says Sayer, “we’re seeing people saving employees, or employees of other larger companies
more and getting into a savings culture.” where they have home ownership schemes,” says
All of these factors are combining to drive more Browne.
led Papua LNG project, ExxonMobil’s LNG Plant at Caution of China’s Guangdong Province.
Bay would – pending a successful Final Investment Decision
(FID) – see its production capacity increase to accommodate Uplift
increased volumes associated with Papua LNG. While the big spending won’t start until some final
With rising demand for LNG as a replacement fuel investment decisions are made, there was a noticeable lift in
for coal in Southeast Asia, construction of ExxonMobil’s business activity in the second half of 2023.
next project, P’nyang, could quickly follow the four-year “The investment we’re seeing is really about preparing
construction of Papua LNG. A more recent and very ourselves for that growth and we’re seeing the early signs of
promising discovery from ExxonMobil, Wildebeest, could it,” observes Greg Pawson, CEO of Kina Bank. “2023 was a
further extend PNG’s decade of construction out to 13 years. record year for us in lending.”
Finally, the permitting of two new major mining projects Optimism aside, the general sentiment among business
is expected to progress this year, according to Mineral leaders is that PNG’s government also needs to do its part to
Resources Authority’s Managing Director, Jerry Garry (see ensure that a positive signal is communicated to investors:
page 36). by improving enabling infrastructure, making the regulatory
The first is the Wafi-Golpu copper-gold project in environment more conducive to investment, boosting
Morobe Province, a joint venture between Harmony Gold education and training, and improving PNG’s law and order
and, following its November 2023 acquisition of Newcrest situation.
Mining, Newmont Corporation, now the world’s largest gold That latter task was made harder after looting and rioting
miner. The second is the Frieda River gold project, which has in January 2024 resulted in significant damage to both
lately received increased interest from its developer, PanAust property and business morale in PNG’s capital, Port Moresby

ECONOMIC UPDATE
– not to mention loss of life. Although the declaration Fund, focusing on fiscal repair, addressing foreign exchange
of a two-week state of emergency in the capital and the shortages, and reforming the operation of the Bank of Papua
appointment of a taskforce to examine the causes helped New Guinea, PNG’s central bank.
to restore order in the short-term, affected businesses were “This is not a typical IMF program in the sense that,
understandably seeking more tangible in the past, countries will wait to get
assistance from government. into a crisis then they’ll come and seek
Ironically, the unrest was preceded assistance from the IMF,” explains Sohrab
just weeks before by the announcement Rafiq, the IMF’s Resident Representative
in the 2024 National Budget of a 9.5 in PNG. “In this case, there’s no crisis.
per cent increase in funding for the FOREIGN EXCHANGE The government just wanted help with
law and justice sector, including the REMAINS A SIGNIFICANT their reform agenda, and that’s what we
recruitment of an additional 500 police are here to support and provide assistance
per year, which will be underpinned CHALLENGE FOR to.”
by a new bilateral security agreement GOVERNMENT TO RESOLVE “In that sense, from our perspective,
signed with Australia. their borrowing has been prudent, within
GOING FORWARD. the limits set by the IMF program,”
Government finances says Rafiq, who notes PNG successfully
Improved receipts from the resources completed its first review under the
sector are one of the reasons the program at the end of 2023.
national government was able to
announce record expenditure in the 2024 National Budget. Forex a continued constraint
This increase in spending was also underpinned by a PNG’s long-term shortage of foreign exchange (forex) has
projected 14.5 per cent increase in tax receipts, and an 8.9 been another focus of the program, with the Bank of PNG
per cent increase in donor grants. being encouraged to release more exchange to the market to
With its debt rising to 60 per cent of GDP due partly address ongoing strong demand.
to the economic shock of COVID-19 as well as natural “The Bank of PNG significantly increased the amount of
disasters, the government has taken steps to ensure its currency available in 2023, injecting over US$1.5 billion into
finances are under better control. the market, but even that was not enough to satisfy demand,”
A key step in this process has been the commencement admits central bank Chairman David Toua.
of a three-year program with the International Monetary “Foreign exchange remains a significant challenge for
government to resolve going forward,” notes Ces Iewago,
Managing Partner of KPMG in PNG. “Business investment
Papua New Guinea in brief remains stifled, with supply chain and missed growth
Population 11.8 million (National Statistical Office) opportunities evident across the economy.”
Capital Port Moresby For example, PNG’s largest fuel supplier, Puma Energy,
took up around a third the Bank of PNG’s forex allocation in
Surface area 463,000 sq km
2023. In February 2024, it announced that it would reduce
People Melanesian, Papuan, Negrito, Micronesian, its PNG operations, partly due to the difficulty of obtaining
Polynesian
sufficient forex, with a consequent impact on fuel supply.
Time zone GMT +10 hrs Ultimately, the answer to PNG’s forex problem appears
Business language English to be twofold: a gradual adjustment in the value of the kina,
Political status Parliamentary democracy now under way (the IMF considers it over-valued by around
Nominal GDP US$28.25 billion (2023, IMF) 13 per cent), and more investment dollars, which the new
resources projects should bring.
GDP growth 5 per cent (2024 forecast, IMF)
“The only way this will change is if we are able to
Inflation 4.0 per cent (2024 forecast, IMF) significantly increase economic activity in Papua New Guinea
Currency PNG Kina (PGK) and stop the outflow of currency,” observes David Toua.
Major industrial Mining, petroleum/energy, palm oil, forestry,
sectors coffee, fisheries, construction, manufacturing, Non-resources economy
tourism Aside from the resources sector, PNG’s economic
Exports LNG, crude oil, nickel, logs, gold, copper, palm oil, performance has been uneven as PNG entered 2024. Retail
coffee, cocoa, copra has been flat, with ongoing inflation affecting grassroots
Major export markets Australia, China, Japan, Singapore, Chinese consumer spending. But there are some positive signs.
Taipei, South Korea “The good news is that we have seen the property market
Imports Refined petroleum, excavation machinery, crude come back to pre-COVID levels,” notes Nasfund’s Rajeev
petroleum, food Sharma. “We’re looking at some investments in that area. We
Major import markets Australia, China, Singapore, Malaysia, Japan don’t have a lot of vacancies in our residential sector.”
“The property market has had a strong rebound post-
COVID and we’re expecting it to continue to strengthen,”

Credit: Getty Images ECONOMIC UPDATE
PNG is exposed to the volatility of global prices, and the

potential impact of the drier El Nino weather pattern in 2024.
“If you look at PNG’s inflation performance, historically,
it’s been quite closely correlated with climate developments,”
observes Rafiq.
Then there is PNG’s own political cycle. PNG’s Organic
Laws guarantee political stability after each national election
by forbidding a vote-of-no-confidence against the incoming
government for a grace period of 18 months. At the time
of writing, that grace period had expired. While a robust
democracy is a feature of PNG’s political life, business is
hoping that disruptions to key projects and policy decisions
In February 2024, PNG’s Prime Minister James Marape became the can be kept to a minimum this year, with so much at stake.
first Pacific leader to address a joint sitting of Australia’s Parliament.
Australia remains PNG’s largest trading partner and aid donor. At the level of individual businesses, many told Business
Advantage PNG that the ‘war for talent’ which started at the
agrees Rupert Bray, Managing Director of Steamships end of 2022 is starting to heat up, with many employers
Trading Company, another member of the PNG Property strengthening their focus on staff retention strategies,
Developers Association. especially of key skilled workers. 
Steamships is behind the 38-acre Portside Business
Park adjacent to Port Moresby’s international port and
Harbourside South, which features the country’s first
Marriott-branded residences (see page 22), as well as the new
Wonye Dobel development in Mt Hagen.
The government’s policy of encouraging special economic
zones, while nascent, is also starting to galvanise interest
from anchor investors, such as Kumul Petroleum Holdings’
fabrication facility at Caution Bay and a recently announced
Raddison Blu resort at Paga Hill in the capital.
Infrastructure
Meanwhile, infrastructure investment continues, with the
next phase of the fibreoptic National Transmission Network
aiming to bring broadband internet to all 22 of PNG’s
provinces by 2027, while retail telco Vodafone PNG, which
launched in 2022, is continuing to build out an all-new
mobile tower network to compete with market leader,
Telstra-owned Digicel PNG (see page 43).
The Asian Development Bank’s US$680 million
Sustainable Highlands Highway Investment Program,
underpinning the government’s 20-year Connect PNG
roadbuilding program, is just one of a number of programs
funded by international development organisations aimed at
strengthening PNG’s infrastructure (see page 41).
“We have a portfolio of about US$1.1 billion in the
country, covering roads, civil aviation, energy and other
key sectors,” notes the ADB’s PNG Country Director, Said
Zaidansyah.
While some work has been done to strengthen PNG’s
power and water utilities, business leaders tell Business
Advantage PNG these are two areas where improvement
is still urgently needed, especially if PNG is to meet its
ambitions of providing 70 per cent of the population with
electricity by 2030 (see page 32).
Upside, downside
If PNG’s pipeline of promising resources projects represents
a positive upside risk for investors, there are also some
downside risks to note.
As an exporter of mineral and agricultural commodities,

ECONOMIC
OPINION
UPDATE
Perspectives Business and government leaders provide their

personal takes on Papua New Guinea’s economy.
We’re seeing With There is

an exponential resources going to be
growth in new projects eight years of
investment starting, we see sustainable
in the the outlook is growth. What
construction very positive that means
industry, followed closely by the here in PNG. In a three- to five- for us is that we have to prepare
mining and petroleum sector, and year horizon, we do see that the ourselves. We need to achieve
wholesale and retail coming third. prospects should be quite positive. operational efficiencies to be
We expect that trend to continue Looking beyond that, over the next ready to fund the next era of
over the next few years and we’re 10 years, there’s great opportunity growth. We’re looking at a lot of
hoping that more foreign direct for Papua New Guinea to really set training for our employees, we’re
investment will come in to make a very strong and stable economy. looking at digitisation, and we are
the most of the opportunities from Something we talk about in our looking at systems upgrades.
the major projects that are coming organisation is sustainable growth. Are we ready for the next phase?
online. There’s a big opportunity for the If we have 100,000 extra members,
Clarence Hoot PNG economy to stably grow for we need to be able to service
Managing Director, Investment Promotion
Authority of PNG many years into the future. them. There are big challenges and
Brett Hooker opportunities ahead.
Managing Director, Westpac PNG
Rajeev Sharma
CEO, Nasfund
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ECONOMIC
OPINION
UPDATE
I think the PNG Steamships

future is in must adopt continues its
agriculture international focus on large
and tourism, ESG and projects at
because they’re sustainability scale, has a
underdeveloped. standards number of new
The MRDC has gone into aviation, and comply with its international projects under development and
we’ve gone to infrastructure and agreements to remain competitive is expanding its logistics capacity
construction, but there’s now and attract foreign direct investment. to meet the Papua LNG demand
competition in those spaces. Its resources developers have and, longer term, the anticipated
But agriculture and tourism are already begun to maintain and report economic growth that will come
two sectors where there’s so higher standards of transparency and from the resumption of Porgera,
much potential if the supporting governance in their operations. the commencement of Papua LNG
infrastructure is there. I think those PNG presents unique challenges in and then FEED work for P’nyang
are areas where the MRDC can dealing with social license to operate, – and hopefully Wafi-Golpu,
find its space in terms of making owing to its diverse cultural heritage Wildebeest and Twinza Oil’s Pasca
funds available because we can and land tenure practices. Sound A project.
manage the risk better than external and practical government policies Rupert Bray
Managing Director, Steamships Trading
investors. will underpin future growth and Company
Augustine Mano sustainability.
Managing Director, Mineral Resources
Development Corporation (MRDC) Ces Iewago
Managing Partner, KPMG PNG
CONNECT
We are connected
with our members Ready for tomorrow
TRUST
We are open,
transparent and
communicative
RESPONSIBLE
We act within
the standards and
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of our members
GROWTH Nasfund, open to citizens and non-citizens,

We strive to offers superannuation and financial protection,
maximize returns serving over 600,000 members with assets surpassing
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ECONOMIC
INVESTMENT
UPDATE
Investing in PNG: five

things to watch in 2024
Credit: BAI
Investors talk with PNG’s Minister
for International Investment
and Trade, Richard Maru, at the
2023 Business Advantage PNG
Investment Conference. The 2024
conference will take place in
Brisbane on 12 and 13 August.
PNG IS A YOUNG
It’s an interesting time to COUNTRY AND PEOPLE the Marape government just as it is
entering the period of the electoral
contemplate investing in PNG. On ARE LOOKING FOR cycle when it can be subject to a vote
the one hand, the country is on the
OPPORTUNITIES TO GROW of no-confidence. They also increased
cusp of a resources boom expected the perceived risk of doing business
to last over a decade. On the other, THEIR WEALTH. in PNG.
Investors will be hoping for
law and order issues and a fuel political and policy stability in 2024,
supply crisis in the first quarter of as well as an absence of shocks such
2024 highlighted the social and as the 2020 closure of the now
economy and accelerate overall reopened Porgera gold mine (see
economic challenges the country is investment. page 36), or the higher corporate tax
currently facing. Rupert Bray, Managing Director rate introduced on bank profits in
Here are Business Advantage of Steamships, one of PNG’s largest 2023.
PNG’s five key factors currently investors, typified local sentiment 3. Geopolitics. A new report by the
when reporting on the progress of Lowy Institute, Geopolitics in the
shaping PNG’s investment climate. their major Portside Business Park Pacific: Playing for Advantage,
1. The Final Investment Decision (FID) project in Port Moresby: suggests that “geopolitical jostling
on the Papua LNG project. This is “We’ve got very strong indications in the Pacific has never been more
now expected in the second half of from a raft of customers, both Papua intense and aid levels never higher”
2024. Investors of all stripes will LNG-linked and more broadly … as “traditional donors … now
be hoping any further delays are FID will be the catalyst for some compete with China for geopolitical
minimal; not only is the project very rapid progress.” influence in the Pacific Islands.”
massive in its own right but it will 2. Domestic politics. Law and order Exactly how this increased
stimulate demand across the entire issues are increasing pressure on attention translates into investment

INVESTMENT
Credit: BAI/Stefan Daniljchenko

can be hard to predict, as the 5. Capital Market reform. US mining
surprise purchase of telco Digicel by giant Newmont Corporation listed
Australia’s Telstra in 2022 – which on PNG’s stock exchange in late
was assisted by both Export Finance 2023 in what was PNGX’S first-ever
Australia and the US Development listing of depository interests.
Finance Corporation – demonstrates, Rajeev Sharma, CEO of
but it is certainly providing a boost superannuation firm Nasfund, told
to PNG’s economy, especially the 2023 Business Advantage PNG
investment in essential infrastructure. Investment Conference that, while
4. National content. The size of PNG’s the spate of high-level state visits
economy trebled in the decade after PNG received last year underscored
Elizabeth Genia, the first woman to be
2011, largely as a result of the last appointed Governor of the Bank of Papua its position as by far the largest
LNG boom, but critics maintain New Guinea. Foreign exchange availability regional economy, its stock exchange
will be high on her agenda this year.
that it did little for the population at was still less active than that of
large because local skills and capacity neighbouring Fiji.
were lacking. It is likely to be There are already encouraging He has high hopes for reforms
different this time around, with local signs. Kumul Petroleum’s fabrication that will encourage more local
participation across the economy plant at Caution Bay, currently and overseas companies to list
very much government policy: under construction, will take onshore on PNGX and improve the
“The government’s national processing to another level (see page liquidity of the exchange, as well
content policy is becoming a daily 28). Meanwhile, large-scale, high- as the establishment of Real Estate
conversation,” observes Clarence quality projects like Lae’s Nadzab Investment Trusts (REITs) and the
Hoot, Managing Director of PNG’s Airport redevelopment (funded by issue of PNG’s first corporate bond.
Investment Promotion Authority. Japan) and Steamships’ and Tininga’s “Papua New Guinea is a young
“That is to ensure Papua New Wonye Dobel mixed-use property country and people are looking for
Guineans are given an opportunity development in Mt Hagen suggest opportunities to grow their wealth
to participate in what happens in the that large-scale development is also but returns on bank term deposits
economy.” no longer confined to the capital. are low,” he says. 

PAPU A N E W G U I N E A
The potential for tourism to be a leading economic sector contributing directly
to national economic growth and for sustaining the wellbeing of thousands of
Papua New Guineans for employment and income is immense.
Tourism Promotion Authority is committed to revive and grow a resilient, inclusive and sustainable tourism
sector in Papua New Guinea and make the tourism sector a lead contributor to the national economy and preserve
Papua New Guinea’s history, living cultures and natural environment for future generations.
We invite both local and international investors, with ties to segments: cultural tourism, birdwatching, soft
adventure tourism, historical tourism and diving; to connect with TPA and unlock the potential of niche markets.
www.papuanewguinea.travel
ECONOMIC
SURVEY
UPDATE
The 2024 PNG 100

CEO Survey
in association with
Since 2012, the data collected by the PNG 100 CEO Business impediments
Survey has revealed trends in business confidence Each year, we ask CEOs to rank the key impediments facing
among PNG’s business leaders. Analysis of the survey their business. As the table indicates, respondents rated
data by Westpac has led to the creation of PNG’s first foreign exchange availability as the top impediment, as it was
in last year’s survey as well.
Business Confidence Index, which is now tracked Notably, telecommunications in PNG have improved
annually against other key metrics on PNG’s economy. since the last survey 12 months ago, as far as our CEOs are
So, how confident are businesses as we enter 2024? concerned, falling from second place last year to eighth this
year. Or, at least, some other issues have taken precedence.
Profit performance in 2023: the reality Chief among these are security/law and order (the number
The 2024 survey asked CEOs how profits had performed in two issue this year), unreliable utilities, lack of government
2023 compared to their expectations. The responses suggest capacity, shortage of expertise/skills, and regulatory
2023 was disappointing for many, with 46 per cent saying that uncertainty. 
profits had fallen short of expectations. This is almost double
the number recorded in last year’s survey, when only 24 per The 2024 PNG 100 CEO Survey was conducted by Business Advantage
cent said the same thing. On the positive side, 36 per cent of International between November 2023 and January 2024. The survey
respondents said profits were higher in 2023 than expected. included senior executives from a representative sample of PNG’s largest
companies, across all sectors of the economy. For the full survey report,
Profit expectations for 2024 visit businessadvantagepng.com.
What profits do our CEOs think 2024 will bring? Overall,
the majority (55 per cent) were still expecting their profits in
2024 to exceed those of 2023, although this is 20 per cent What are the critical impediments facing
lower than last year’s responses, but on a par with the result your business right now?
in 2022. Meanwhile, 31 per cent predicted profits would Foreign exchange 4.64
Security/law and order 4.39
meet expectations, while 14 per cent thought profits would Unreliable utilities 4.26
be lower than in 2023 (about the same as last year). Lack of Government capacity 4.18
Shortage of expertise/skills 4.09
Investment intentions Regulatory uncertainty 4.00
Inflation 3.71
The survey asked respondents for their capital expenditure
Unreliable telecommunications 3.71
plans for 2024. While still positive, the responses were less Corruption 3.62
bullish this year. Overall, about two-thirds of respondents Logistics 3.47
(65 per cent) expect to spend more on capex this year than Work permits and visas 3.38
Supply chain constraints 3.32
last, which is slightly lower than the 72 per cent in last year’s
High employment costs 3.30
survey. Last year, just 10 per cent were expecting to reduce Lack of market research/intelligence 2.82
their capex in the year ahead. This year, that figure rose to 17 High real estate rental costs 2.71
per cent. Competition 2.65
Access to overseas markets 2.09
Lack of available office/warehouse space 1.94
Recruitment intentions Access to capital 1.91
The survey asked respondents to indicate their recruitment Lack of available land 1.88
intentions for 2024, compared to the previous year. The 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
results suggest this is one area where confidence has been

maintained. Most (63 per cent) were still planning to boost See page 20 for analysis of this year’s survey results
their headcount this year, a similar result to last year’s survey. from Westpac’s Senior Economist, Justin Smirk.

ECONOMIC
SURVEY
UPDATE
THE SURVEY ASKED RESPONDENTS FOR THEIR CAPITAL

EXPENDITURE PLANS FOR 2024. WHILE STILL POSITIVE, THE
RESPONSES WERE LESS BULLISH THIS YEAR.
Looking back on your business’s performance in 2023, In 2024, do you anticipate your profits will …
did your profits …
Substantially fall short of expectations? Be substantially less than 2023?
Greatly exceed expectations? Be slightly less than 2023? Substantially exceed 2023?
Fall slightly short of
expectations? Slightly exceed
expectations? 6% 11%
8% 14% 8%
Q2. In 2024, do you anticipate that your profits will
Answer Choices Responses
Substantially exceed 2023? 11%
Somewhat exceed 2023? 44%
Be about the same as 2023? 31%
38% 22%
Be slightly less than 2023? 8%
Be substantially less than 2023? 6% 31%
44%
19% Be about the

same as 2023? Somewhat
exceed 2023?
Meet
Q4. What level of recruitment are you planning in 2024, expectations?
compared to 2023?
Answer Choices Responses

A substantial increase in staff 22%
A slight increase in staff 41%
Enough to maintain current staffing levels 30%
A slight reduction in staff 8%
A substantial reduction in staff 0%
How much investment (e.g. in plant, equipment, land What level of recruitment are you planning in 2024,
or other assets) are you planning in 2024? compared to 2023?
Substantially less than 2023
A slight reduction in staff A substantial reduction in staff
Slightly less than 2023 A substantial increase
on 2023 0% A substantial
increase in staff
3%
8%
14%
22%
38%
30%
19%
41%
27%
About the
A slight increase
same as 2023
A slight increase in staff
Enough to maintain
on 2023 current staffing levels

ECONOMIC
ANALYSIS
UPDATE
What does the 2024 From the 2024 survey, we have identified five key highlights:
1. Profits are expected to grow but expectations have
PNG 100 CEO Survey moderated.

While CEOs tell us their profit outlook remains positive,
it has taken a hit from the difficulties experienced in 2023,
tell us? resulting in a muted outlook for 2024.
The Profit Expectation Index, which tracks CEOs’ profit
While business confidence is largely sustained in this expectations, eased back to 47.2 in 2024, down from 77.8
year’s PNG 100 CEO Survey (see page 18), there are in 2023. This is below the longer-term average of 65.8. Our
rising concerns about several business impediments. Profit Outcomes Index, which measures what CEOs tell us
By Justin Smirk actually happened with their profits, fell to 5.4, below its
Senior Economist, Westpac long-term average of 7.5.
2. Despite lower-than-average profit expectation, recruitment
W
hile profits in 2023 fell short and investment confidence held up.
of expectations for PNG’s The Recruitment Expectations Index eased back to 75.7
leading companies, CEOs are from a historical high of 84.6 last year, with the share of
nevertheless expecting profits to those expecting either a substantial or slight increase in staff
improve in 2024. Meanwhile, recruitment falling slightly from 64.1 to 62.1 per cent. Nevertheless, at
and investment expectations for this year have held onto 75.7 the index is well above the long-run average of 47.9,
most of their 2023 improvement. consistent with non-minerals employment growing in 2024.
This year’s survey was conducted from November 2023
to January 2024, with most CEOs surveyed before the 10
January civil unrest in Port Moresby. Despite that, 88 per
cent of CEOs said security/law and order isues were either
mission-critical or very important to them (up from 65 per
cent last year). It is not unreasonable to think firms would be
THE BUSINESS CONDITIONS INDEX
even more concerned if the survey was re-run after January. SOFTENED IN THE 2024 SURVEY,
Concerns about inflation lifted to the highest level in the FALLING BACK FROM 2023.
history of the survey, suggesting inflation is a significant issue.
Investment might be a bit softer than it was in 2023,

when the Investment Expectations Index rose to 97.4, the
highest since 2019 and well above the long-run average of
65.0. This year, it fell to 83.8.
3. The Business Conditions Index is positive but not as strong
as in 2023.
Westpac combines the expectations for profits, investment
and recruitment into a single index, the Business Conditions
Index. The Business Conditions Index softened in the 2024
survey, falling back to 68.9 from 93.3 in 2023 (which was
the strongest result since the first survey in 2012). With the
index holding above its long-run average, we believe this to
be a positive sign, particularly for non-minerals growth.
4. The lack of foreign exchange is back as the top impediment.
CEOs’ forex concerns lifted to 4.6, the highest reported level
of concern in the history of the survey – 93.9% reported
forex was a mission-critical or very important concern.
5. Security/law and order, unreliable utilities and the lack of
government capacity are all significant hindrances.
Security/law and order has been a consistent issue. Even
before the recent Port Moresby riots, the level of concern
lifted to 4.4, on par with the previous high in 2013. Since
2019, the concern about unreliable utilities has been high
but relatively stable. However, in 2024, it jumped to the
highest level of concern in the history of the survey. Likewise,
concern about a lack of government capacity jumped to 4.2,
also the highest level in the survey’s history. 

Advertisement
STATE ASSETS
TARGETING PRIVATE
SECTOR INVESTMENT
Kumul Consolidated Holdings (KCH), acting
as the Trustee of the General Business Trust
representing the Government and people
of Papua New Guinea, is embarking on
a strategy to attract private sector investment
in certain state assets. These assets, which
encompass vital sectors such as water,
power, ports, airlines, telecommunications,
postal services, logistics, agriculture, and
development finance, are being revitalized
under the guidance of KCH.
As part of its broader responsibilities of
managing and supervising the country’s
non-mining and non-mineral state en-
terprises, KCH is actively pursuing the
redevelopment of dormant state assets, the planned Paga Hill special economic Cape Rodney is currently the site of a rubber
including the former Port Moresby port
tourism zone (with its planned Radisson plantation and factory but also has vacant
site. The aim is to leverage private sector
Blu resort). land suitable for a variety of crops, including
involvement in the redevelopment process cocoa and palm oil.
and unlock the potential of these strategic KCH is considering a number of rede-
assets for the benefit of Papua New Guinea. velopment options for the site, aligned
with the National Capital Development INVESTMENT MODELS
In so doing, according to Managing Director Commission’s Urban Development Plan. While KCH will hold onto an equity interest
Professor David Kavanamur, it is hoping to These include developing the precinct into in these redevelopment projects in return
work more closely with private investors. a commercial and residential area, a tourism for making the land available, Kavanamur
‘We are moving away from one hundred per destination and mixed-use development. says it is looking to the private sector to in-
cent state ownership and working on strategies vest capital to finance these projects and is
to improve state-owned enterprises’ (SOEs’) AGRICULTURE one to exploring different investment models.
contribution to GDP: to sweat the assets, to KCH is also looking to attract private sector ‘We are looking at different modalities to
improve returns,’ he told the 2023 Business investment in two of its large agricultural partner with the private sector: franchises,
Advantage PNG Investment Conference. assets: the 2300-hectare Dylup Plantation public private partnerships, build-own-
‘Now for the first time, you’ve got an investment in Madang Province and the 1089-hectare operate-and-transfer, joint ventures, consortia
strategy – and clear strategic asset allocation Cape Rodney Estate in Central Province. and so on,’ says Kavanamur.
built into the investment strategy – to guide Dylup, about an hour north of Madang, has KCH already has a track record in this area,
the government’s investment.’ a mix of existing cocoa and copra plantations with minority stakes in two established joint
and undeveloped land, some of which has ventures with Innovative Agro-Industry:
REVIVING ASSETS reverted to forest. a 20 per cent stake in the Ilimo Dairy Farm
While the partial privatisation of Telikom According to KCH, there is potential for outside Port Moresby, and a 43 per cent
Limited is an ongoing project (PNG’s two hemp and tropical fruit growing, as well as stake in Sepik Agro Industrial Centre Ltd in
major super funds made an offer), KCH is also downstream processing of our core crops East Sepik.
now seeking to partner with the private sector including coconut and cocoa at the site. Kumul Consolidated Holdings (KCH) was established
to redevelop some of its land-based assets. A US-based agricultural consultancy has under the Kumul Consolidated Holdings Act 2002.
The big-ticket item is undoubtedly Port been engaged to develop a business plan for KCH is the Trustee of the General Business Trust
Moresby’s old port site – vacant since 2018, the plantation. on behalf of the Government and people of Papua
when the port relocated to Motukea Island. New Guinea.
‘With that business plan, we’re going to
KCH and its SOEs, hold the backbone infrastructure
The waterfront site offers the opportunity go back to market, and you can bid for for PNG in water, power, ports, airlines, telecommu-
to connect the busy suburb of Konedobu the opportunity to partner or invest in the nications, postal services, logistics, agriculture and
with Port Moresby’s Downtown CBD and plantation,’ said Kavanamur. development finance.
PO Box 320 | Port Moresby | NCD | PNG

Stanley Esplanade | 2nd & 3rd Floor | Harbour Side West Building
(675) 309 6700 www.kch.com.pg
PROPERTY
Here for the long stay: Hilton,

PNG’s property developers have
Credit: Pacific Palms Property

been busy renovating properties
and putting the finishing touches
to new projects, including Marriott-
and Hilton-branded executive
apartments, as the sector gears up
for greater economic activity.
By Tony Jordan
O
ccupancy and room rates at
Papua New Guinea’s premier
hotels and apartments have
already bounced back from
their COVID slump, and property
managers are preparing for a fresh surge
in demand as major resource projects
ramp up.
In Port Moresby, the developers of the
Marriott Executive Apartments at the
new Harbourside South building and
the Hilton Residences at Star Mountain
Plaza are expecting strong demand
when they welcome guests in the second
quarter of this year.
“The retail units are close to fully
tenanted and we have very strong
indications for the Marriott Executive
Apartments,” says Rupert Bray,
Managing Director of Steamships
Trading Company, the company behind
Harbourside South.
While demand will be spurred by a
final investment decision (FID) on the
TotalEnergies-led Papua LNG project,
expected later this year, hotel operators
say they’re already moving beyond the
boom–bust of previous resource cycles, by
refining the types of rooms they offer and
injecting fresh energy and local character
into food-and-beverage options that Inside the new Marriott Executive Apartments in downtown Port Moresby.
appeal to PNG’s growing middle class.
“FID is going to have a positive Star Mountain Plaza development in the consortium of landowner funds
impact, not just for Marriott but for Port Moresby’s Waigani administrative behind the project.
every other provider of hotels, offices, or district, has started welcoming long-stay “The vision for Star Mountain Plaza is
industrial spaces. But what’s interesting guests to its 180 rooms, which range that you’ll be able to enjoy the same level
this time is that there is also some from studios to one-, two- and three- of services as in a mall in Brisbane, Cairns
post-LNG growth,” says Russel Sy, bedroom apartments. or Singapore,” says Augustine Mano,
Chief Executive Officer of Steamships The project’s third phase will include Chief Executive Officer of MRDC.
subsidiary Pacific Palms Property, which a four-level retail mall with restaurants, Marriott and Hilton will provide
is managing Harbourside South. cinemas and an additional 10 storeys competition to popular long-stay
for accommodation, according to the properties including the Crowne
Retail, Restaurants head of state-owned Mineral Resources Plaza Residences, managed by
Hilton Residences, stage two of the Development Corporation, which fronts InterContinental Hotels Group (IHG),

ECONOMIC
PROPERTY
UPDATE
Marriott and more

The Hilton Residences, stage two of
Star Mountain Plaza, is now welcoming long-
stay guests.
Occupancy at the Crowne Plaza, in

Port Moresby’s CBD, exceeded 90 per
cent in 2023, and Leone says “there’s a
waitlist of people wanting to stay.”
The company is due to commence a
K30 million, 18-month renovation of
152 rooms in the two oldest sections
of sister property, the Holiday Inn and
Suites, in early 2024.
Meanwhile, Pacific Palms Property is
renovating its Whittaker and Windward
apartments in Port Moresby, and
refurbishing its Blaikie Apartments in
Lae.
Huge investment
PNG’s largest hotel, The Stanley
Hotel and Suites, which offers over
400 hotel-style rooms and apartments
in Port Moresby’s Waigani district, is
planning a ground-floor renovation
that will include a refurbished lobby,
reflecting the character of local areas and
traditions. Further ahead, plans have been
announced for a K840 million Raddison
Blu resort, mall and residences in Port
Moresby’s planned Paga Hill tourism
precinct.
Smaller property companies have
also added serviced-apartment options,
including Credit Corporation, the
finance company that also owns the
premium Era Matana Estate and family-
oriented Era Dorina Estate in Port
Moresby.
“The board was thinking of selling
these properties in 2022, but have since
changed their mind,” says Brent St
THE VISION FOR Credit: Godfreeman Kaptigau
Hill, the company’s General Manager,
STAR MOUNTAIN PLAZA which hosts residents on 6- or 12-month Properties. “Now we are looking at a
IS THAT YOU’LL BE ABLE contracts while also maintaining an huge investment in 2024, including K10
inventory of short-stay rooms for million to be spent on Era Dorina.”
TO ENJOY THE SAME members of its IHG Rewards loyalty While Credit Corporation is among
LEVEL OF SERVICES AS program. many property owners that count
“We don’t sell all our rooms because we TotalEnergies as a client, St Hill echoes
IN A MALL IN BRISBANE, have so many guests that need short-term the view of other industry players, who
CAIRNS OR SINGAPORE. accommodation,” explains Mauro Leone, see long-term growth coming from
Augustine Mano, CEO, MRDC Area General Manager at IHG PNG. “It across the economy: “we are not entirely
would be very easy for us to lock it up but dependent on the mining-and-petroleum
then we’d have so many IHG Rewards sector, nor are we hanging our hat on the
members that wouldn’t be able to get in.” next boom”. 

PETROLEUM & GAS
Papua LNG early works on the Purari River in

Gulf Province.
Papua LNG progresses towards

investment decision
A final investment decision on downstream work is being finalised, he government and local business are
the Papua LNG project remains tells Business Advantage PNG: keen to see more of the US$10 billion
on the agenda for this year. “We are now in a clarification project budget spent locally.
negotiation, potentially reviewing
Managing Director of project lead some of the items which are costing Environmental
TotalEnergies E&P PNG, Jean-Marc more than we planned, to try to find Meanwhile, the environmental impact
Noiray, walks Business Advantage alternatives,” he says. study and management plans are in
PNG through the milestones ahead Regulatory approvals the final process of review by PNG’s
Conservation and Environment
for the US$10 billion-plus gas project. Noiray describes the process of Protection Agency. This will culminate
permitting new projects within in the award of the Level 3 permit
By Tony Jordan the framework of PNG’s laws and required for the granting of PDLs.
W
hile several factors have regulation as “highly sophisticated and
delayed the final investment demanding.” It requires the completion Social
decision on Papua LNG, of four processes to obtain the required TotalEnergies’ Social Mapping &
Papua New Guinea’s second Petroleum Development Licence Landowners Identification (SMLI)
gas project, Jean-Marc Noiray, soon-to- (PDL): technical, national content, plan was submitted in 2022, and
depart Managing Director of project environmental and social. A review of PNG’s Minister for Petroleum
lead TotalEnergies E&P PNG, says he’s technical documentation of the project formally issued a determination
“confident” the project will reach that is in progress by the Department of confirming the clans who are
landmark this year, “with all the lines Petroleum. legitimate landowners in late 2023.
of activity progressing well: technical This is a key step towards the
optimisation, regulatory permitting, gas National content development forum in preparation,
marketing and project financing.” With capabilities, capacity and where the different benefits stated in
The front-end engineering and workforce within PNG more the laws and agreements are shared
design phase for the upstream part developed than for the country’s first between entitled parties in a formal
of the project is complete, and gas project a decade ago, the PNG Benefit Sharing Agreement.

PETROLEUM & GAS
Credit: TotalEnergies
THE INSIDE VIEW: TERA SHANDRO, CHAIRPERSON AND

MANAGING DIRECTOR, EXXONMOBIL PNG
As the single largest business
investment in the country, the
ExxonMobil-operated PNG LNG
project has not only helped forge
a new industry that directly and
indirectly employs thousands
of Papua New Guineans; it has
also provided valuable insights
into how resource development
companies can partner with the
country to unlock the possibilities
of tomorrow.
Since achieving first gas in
2014, the PNG LNG Project has
withstood challenges surrounding
market downturns, the devastating
THE FINANCING 2018 Highlands earthquake and
the global COVID-19 pandemic to
MARKET IS BECOMING build a resilient, industry-leading
MORE DEMANDING IN reputation.
PNG LNG routinely produces
TERMS OF COMPLIANCE, well above its nameplate, is among supplement the existing PNG LNG
WHICH IS the industry’s leaders in energy gas production.
emissions intensity, and has Using PNG LNG as the guide –
A GOOD THING. achieved over 100 million hours combined with growing regional
of work to deliver more than K24 natural gas demand – Papua LNG
billion back to the state and its is primed to build on its success
landowners through various tax to unlock more direct and indirect
and royalty streams. benefits for PNG. Currently,
Gas marketing ExxonMobil’s partnership ExxonMobil is working alongside
Another prerequisite for FID is locking mindset has seen more than K15 its project partners to ensure all
in customers for the 5.6 million billion spent with Papua New key stakeholders are engaged and
tonnes of gas the project is set to Guinean businesses, while a further regulatory permitting is awarded.
produce annually. Noiray tells Business K1 billion has been invested into Our team is progressing plans
Advantage PNG negotiations for the strategic community programs to expand infrastructure at our
sale of gas on long-term contracts that are building the capacity Caution Bay Plant to support the
are “progressing well,” with several of individuals and community almost 6 million tonnes of gas to be
interested buyers. institutions. processed per year.
Between the PNG LNG Project
Financing Angore Project marking a decade of production,
Papua LNG must also meet its Part of the original PNG LNG the start-up of the Angore Project
financing requirements, which include development plan, the Angore and the Papua LNG roject, 2024 is
complying with the International Project’s wells and pipeline already shaping up to be another
Finance Corporation’s strict standards represent K5 billion of new defining year. At the same time,
set out in the Equator Principles when investment. Leveraging the existing teams continue to focus on
assessing the potential impact of new infrastructure footprint, the P’nyang LNG and working with
fossil-fuel projects. Angore resource will be developed the government to advance other
“The financing market is becoming and connected to the Hides Gas exciting potential developments
more demanding in terms of Conditioning Plant in Hela Province. such as the Wildebeest prospect.
compliance, which is a good thing, As Papua New Guinea’s only If successful, Wildebeest has
and helps us to achieve our goal of significant gas development the potential to expand the
exemplarity,” notes Noiray, who says currently under construction, it development window for LNG in the
measures are in place to mitigate is expected to bring on additional country to 13 years of continuous
emissions and manage the project’s gas volumes later this year to construction activity.
social and biodiversity impact. 

ECONOMIC
PETROLEUMUPDATE
& GAS
Santos focuses on supporting next wave

Santos Limited will continue to optimise its Papua New
Guinea assets and improve the reliability of its facilities
as it prepares for the liftoff of the Papua LNG project,
expected later this year.
By Tony Jordan
“T
he enormous resource base in PNG has meant
the country is a reliable provider of low-cost
LNG to Asian markets, and at Santos our
intent is to keep it that way with continued
investment,” says Brett Darley, Executive Vice President for
Eastern Australia and PNG at Santos.
Following its 2021 merger with Oil Search, the company
operates the Kutubu, Agogo, Moran and Gobe fields, which
provided 22 per cent of PNG LNG’s raw gas supply last
year. Santos has a 42.5 per cent working interest in PNG
LNG, and a 22.8 per cent interest in Papua LNG, the
TotalEnergies-led project that’s expecting a final investment
decision in 2024.
“We’ll also add reserves, delivering on our remaining infill
drill program, and we’ll continue to evaluate the option of
having a floating storage and offtake solution to replace the Gas leaders: (from left) Santos’ Brett Darley with TotalEnergies E&P
ageing Kumul Marine Terminal,” Darley says. “This would be PNG’s Thomas Maurisse, ExxonMobil PNG’s Tera Shandro and Kumul
Petroleum Holdings’ Wapu Sonk
WE AIM TO FOSTER
TECHNICAL PROWESS AND CREATE
NEW JOB OPPORTUNITIES THAT
ALSO POSITION THE COUNTRY WELL
FOR GROWTH OPPORTUNITIES.
Brett Darley, Senior VP for
Eastern Australia and PNG, Santos
the very first facility of this kind in PNG.”

While Santos is gearing up to support expected future
demand from the Papua LNG project, it also has a key role
in the restart of the Porgera gold mine in Enga Province.
“Our Hides gas-to-electricity commitment and project
is ready for export to support the Porgera mine reopening,
and in addition Papua LNG is scheduled for FID in 2024,”
Darley says.
The company also plans to use PNG as a base for its
“service centre of excellence”, which will not only provide
technical support for local assets but will be responsible for
reliability and maintenance planning for all of Santos’ assets
in eastern Australia.
“By consolidating this expertise within PNG we aim to
foster technical prowess and create new job opportunities
that also position the country well for growth opportunities
on the horizon,” Darley says. 

PETROLEUM & GAS
Credit: KPHL
Fabrication nation The site of KPHL’s new

fabrication facility.
Work has begun on Kumul local manufacturing, the second plans “Our ultimate vision for this
Petroleum Holdings’ US$100 million to go even further. project is for our own LNG train to
steel fabrication plant outside Port It will involve creating the capacity be fabricated at this facility by Papua
to produce the actual modules that New Guineans who have been trained
Moresby. Managing Director Wapu LNG and similar industrial projects next door,” says Wapu Sonk. “And once
Sonk talks exclusively to Business require in their construction phase we can do that, we can fabricate for
Advantage PNG about this visionary (these are typically pre-fabricated, then anything else, e.g. for mining, ship-
project. delivered to the actual project site). building, general construction.”
Appropriately, that would also
A
ccording to Kumul Petroleum’s include the components for Kumul Caution Bay SEZ
Managing Director, Wapu Sonk, Petroleum’s own e-train (to process The fabrication plant will also provide
the plant will initially have the gas from its own licences), to be the anchor investment for a new Special
capacity to manufacture 20,000 constructed as part of the forthcoming Economic Zone at Caution Bay, which
tonnes per annum of steel fabricated Papua LNG project. has already been granted a licence.
piping and related products required by PNG has had limited success
the resources sector. with the SEZ concept in the past
The rationale behind the project, but a survey conducted by the Japan
he tells Business Advantage PNG, is Development Institute in late 2023
value-adding onshore so that PNG can identified Caution Bay as a prime
realise greater returns from its natural candidate.
resources: And it’s not hard to see why.
“The national content component It is located in a highly strategic
of the PNG LNG project was less location, between Port Moresby and
than anticipated, mainly because we ExxonMobil’s PNG LNG plant (where
were not ready. This project will help the Kumul Petroleum-operated LNG
prepare PNG for the Papua LNG train will be located), and close to the
project and other major projects that capital’s main port of Motukea.
follow it.” WE WILL EXPAND OUR There are already two gas-fired
Significantly, it will also create more FACILITIES INTO A LARGER power stations in the area (Niupower
than 1,000 skilled jobs, with additional and Dirio) along with other key
flow-on economic benefits for local ENERGY PARK THAT infrastructure such as roads, water and
communities, whose business interests WILL ALSO INCLUDE telecommunications.
are represented by their landowner “We will expand our facilities into a
company, Laba Holdings. A training AN IMPORT–EXPORT larger energy park that will also include
facility will be constructed next door to TERMINAL AND FUEL an import–export terminal and fuel
ensure adequate supply of people with storage facilities,” says Sonk. “We want
the requisite skills.
STORAGE FACILITIES. to attract service providers into the
Wapu Sonk, MD, Kumul Petroleum industry and there will be tax incentive
Vision packages for companies that set up
While this first stage of the project there, based on what has worked before
already represents a breakthrough for in other countries.” 

PETROLEUM & GAS
THE INSIDE VIEW: ISIKELI TAUREKA, CEO, LABA HOLDINGS
Landowner companies are a standards of

feature of the business landscape governance,
in PNG, especially in the decision-making
resources sector, with almost all and discipline. We
projects sited on customary land. also have a joint
Isikeli Taureka, Chief Executive venture company,
Officer of Laba Holdings, speaks Turra Holdings, with
to Business Advantage PNG fellow landowner
about the company’s aspirations. company, Hides Gas
Development Co,
Laba Holdings is the umbrella Laba Holdings recently entered a partnership agreement doing engineering,
with Steamships Trading Company to create a new logistics
landowner company down at business, Hebamo Transport. procurement and
ExxonMobil’s LNG plant at Caution construction work.
Bay. The company is owned by the our goal is to participate as much as We do have a significant amount
four villages there, 25 per cent each. we can, helping the project meet its of land as well. We’re developing
It was set up to participate in the national content provisions. a new township and we’re also
previous PNG LNG project. After construction, there will be looking to develop egg and livestock
We now supply about 350 people a scale-down. By that time, we hope production.
with various skills inside the fence of to have established enough value in We want to be good enough to go
the plant. the company to invest outside of our and compete in the region because
I joined in February 2022 to reset dependency on the LNG footprint we’ve built the organisational
Laba again. Our vision is to be more and diversify. capability. Get the little things right
than just a landowner company. With We have joint venture partners, and then people will come to you and
the next construction contract to for instance, like Steamships and GCC say, “Hey, we want to do business
expand the LNG plant for Papua LNG, Services: they bring international with Laba.”

KSCN-2 (2026)
MANUS LORENGAU
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AN
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AR Kumul Submarine Cable Network-1
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ENERGY
The 50 MW Edevu hydro

project outside Port
Moresby is now operational
(see page 34).
Green power to underpin growth

in electricity
PNG Power is overhauling ageing from five independent power producers Naris also notes PNG Power hasn’t
infrastructure and encouraging (IPPs). been allowed to increase its tariff to users
investment in renewable energy Naris is leading efforts to stabilise for more than a decade. In the short
operations and manage an expansion term, he’s encouraging a “collaborative
to meet rising demand. Business of capacity, helped by an increase approach” on tariff reform with the
Advantage PNG speaks to Acting CEO (from K756 million to K1.2 billion) regulator, the National Energy Authority.
Nehemiah Naris about the plan ahead in government spending on power and “We need to have a transparent tariff
for the state-owned utility. water in the 2024 national budget, mechanism that is fair on the utility
as well as concessional loans and provider and consumers,” he says. “The
development aid from international current tariff is all about cost recovery;
By Tony Jordan agencies. it’s not about profitability.”
N
ehemiah Naris was appointed Longer term, a transition to cleaner
late last year to tackle the Cross-subsidy energy, including solar and wind, would
nation’s most intractable PNG Power uses its profitable operations bolster reliability and support the
problem: providing enough in Port Moresby and Lae to subsidise the government’s goal of reducing emissions.
reliable, low-cost electricity to meet cost of its social obligation to supply the “In our Powering the Pacific report,
demand from PNG’s expanding rest of the nation. published with the support of the
economy and population. “It’s our community obligation to governments of Australia and New
Peak demand for power often continue to keep those towns supplied,” Zealand, we highlighted PNG’s
outstrips the company’s 600 megawatts Naris says. “It comes at a huge cost for tremendous potential in solar and
(MW) of installed capacity, which is us. PNG Power is heavily exposed to all wind – the country has some of
distributed across three main grids and price movements, because we use a lot of the best wind speeds in the region,”
17 mini-grids, supplemented by output diesel.” Markus Scheuermaier, PNG Resident

ENERGY
Credit BAI
Representative at the International Consolidated Holdings to build the
Finance Corporation (IFC, a member 180 MW Ramu 2 hydropower project,
of the World Bank Group), tells Business which would supply the Wafi-Golpu
Advantage PNG. “Geothermal is another mining project in Morobe Province.
possibility.” “If we can bring large volumes of
cheap hydropower into the grid, it will
Mixed sources bring reliability and it will underpin
PNG’s two major grids, Port Moresby energy demand for the next 30 to 50
and Ramu, will still require mixed- years.”
generation sources for redundancy, The utility also plans to modernise
and the company is also looking at its transmission and distribution assets,
rehabilitating older generating units to including a new connection from
ensure stability of supply. Caution Bay to the industrial hub of
“We don’t want to get caught out in
IF WE CAN BRING Motukea. A separate project to link two
a situation like a prolonged drought, LARGE VOLUMES OF IPPs to the larger grid will help reduce
where we lose capacity,” he tells CHEAP HYDROPOWER the need for load-shedding, Naris says.
says. “We need to have cost-effective PNG Power will also soon be able
redundancies in place to replace the INTO THE GRID, IT WILL to draw on the National Energy Access
hydros.” UNDERPIN ENERGY Transformation Project, financed by the
PNG Power is planning to rehabilitate World Bank. The project will include
the Ramu 1 hydropower project by DEMAND FOR THE NEXT grid rehabilitation and modernisation,
2026 with funding from the Australian 30 TO 50 YEARS. on-grid electrification, and a pilot
Infrastructure Financing Facility for Nehemiah Naris, acting CEO, public-private partnership for several
the Pacific. It’s also in discussions with PNG Power provincial centres, for which IFC is the
the PNG government and Kumul transaction advisor. 
CASE STUDY: HYDRO PROJECT BRINGS STABILITY TO PORT MORESBY’S GRID

PNG Hydro Development Company’s new Edevu Niño [to bring less rain].” The floating solar, which will
Hydro project is the latest project to address the be increased to 5 MW, is one way of keeping the lights
long-term investment deficit in Port Moresby’s on if water volumes are lower than expected.
energy grid. Paul Chai reports.
First approved in 2015, the Edevu hydropower plant Untapped potential
was built to generate 50 MW for the overloaded Port Guo’s experiences have convinced him that
Moresby grid. hydropower has huge untapped potential in PNG.
The new facility came online at “If you look at the World Bank
Credit: BAI
the end of October 2023 with a 20 Report in 1994, it says PNG has about
MW test and has coincided with 20,000 MW of potential hydro power.
PNG Power’s upgrading of grid Right now, including Edevu, we have
infrastructure – new express feeders, used about two per cent of that
poles and upgrades to existing hydro potential energy,” he says.
projects like Rouna 1 – a program that “In PNG, we are tropical, we have
is supported by US$66.7 billion from a lot of rainfall and we also have a lot
the Asian Development Bank. of forest coverage – which is a natural
Edevu is the latest of eight energy reservoir for hydro, to regulate the
projects so far undertaken by PNG flows.”
PNG Hydro Development’s Allan Guo.
Hydro Development Company, a PNG Hydro has identified several
subsidiary of Chinese-owned AG sites with similar potential to Edevu,
Investment Limited. Managing Director Allan Guo says including in Enga (20 MW), Finschafen District in
Moresby should expect “more, better power” as a Morobe Province (20MW) and on the Purari River (25
result. MW) in Gulf Provi nce.
He adds that the group is supporting the hydro with The company is also looking at new products in the
a renewable-based back-up system: green energy space.
“We are installing a 1 MW solar floating on the “Capturing CO2 and hydrogen, which is made
reservoir,’ he told the 2023 PNG Mining and Petroleum from our hydro, we can produce hydrogen and green
Investment Conference. “This year, we are expecting El methanol, so that’s our next plan,” says Guo.

MINING
Credit: Barrick Niugini
Porgera reopening gives

mining sector a lift
The Porgera mine is now back open.
The resumption of production at

NPL expects Porgera to hit full
the Porgera gold mine has reignited production throughput by the third
confidence in Papua New Guinea’s quarter of this year, and says the mine
mining sector, bolstering hopes will employ about 3,200 people by
that two new major projects, Wafi- the end of 2024. Export revenue from
gold sales this year is estimated at K1.8
Golpu and Frieda River, may receive billion, providing a welcome boost
permitting approval in 2024. to PNG’s flagging foreign exchange
reserves.
By Tony Jordan “We know that we will take Porgera
P
orgera officially reopened at far beyond 20 years,” NPL Chairman
the end of 2023 under a new Sarimu Kanu says. “It will be a long-life
ownership structure. New project.”
Porgera Limited (NPL) is 51 NPL plans to spend K2.7 billion
per cent owned by PNG stakeholders (about US$750 million) at Porgera this
including Kumul Minerals, local year, including more than K600 million
landowners and the Enga provincial on PNG-sourced goods and services.
government, and 49 per cent by Barrick WE KNOW THAT WE WILL Royalties, to be paid to landowners and
Niugini Limited (BNL), a joint venture the Enga provincial government, and
between Barrick Gold and China’s Zijin
TAKE PORGERA FAR a production levy paid to the Mineral
Mining. BEYOND 20 YEARS. IT Resources Authority, will amount to
The new corporate structure aims WILL BE A LONG-LIFE K63 million.
to divide the economic benefits more NPL will also contribute to local
evenly between local and overseas PROJECT. projects in health, education, roads, and
interests, with a 53 per cent share New Porgera Chairman, Sarimu Kanu, law and order, as part of the project’s
flowing to PNG shareholders. At an who is also Managing Director of Kumul Community Development Agreement.
assumed gold price of US$1,800 an Minerals Holdings. The company will also soon begin
ounce, local shareholders would receive negotiating long-term compensation
almost K28 billion over the mine’s new agreements with representatives of local
20-year operating lifespan. landholders, Kanu says. 

ECONOMIC
MINING
UPDATE
Underground,
Credit: PanAust
overground
With the Porgera gold mine
reopened, eyes are now turning
to two other long-awaited mining
projects: Wafi-Golpu and Frieda River.
By Tony Jordan
M
ineral Resources Authority
Managing Director, Jerry
Garry, expects major progress
this year in the permitting
of the Wafi-Golpu copper-gold
project in Morobe Province, a joint
venture between US-based Newmont Frieda River is an integrated mining and infrastructure project.
Corporation (following its acquisition
last year of Newcrest Mining) and
South Africa’s Harmony Gold. The underground-mining project and Commercial at PanAust.
The Wafi-Golpu Joint Venture comprises three major deposits, Wafi, “We’ll be seeking the mining licence
has already applied for a special Golpu and Nambonga, with initial – right now, we’re estimating in 2026
mining lease for the project and its plans focused on the Golpu deposit. but that may be brought forward,
environmental impact statement is The project’s total resource is estimated depending on the government’s
under regulatory review by PNG’s at 11 million ounces of gold and requirements,” Kort says. “Once those
government. 4.9 million tonnes of copper, with a are finalized, we’ll finalise the design
“The venture partners are very projected mine life of 28 years. and look at a seven-year construction
committed and want to see the cycle.”
negotiations concluded,” Garry tells Frieda River The open-cut Frieda River mine
Business Advantage PNG. “They will Garry also expects progress on in PNG’s rugged Sepik region would
be seriously pushing to build Wafi permitting for the Frieda River produce 175,000 tonnes of copper
because, apart from the gold, there is gold and copper project, which has and 230,000 ounces of gold annually
also significant copper.” received increased interest from its for at least 33 years, according to its
Garry believes the remaining developer PanAust, a Chinese state- feasibility study.
legal barriers to the project “can be owned company with headquarters in PanAust’s development plan
easily overcome” and says that “once Australia. also calls for construction of a 490
the mining development contract is The project’s environmental impact MW hydroelectric project and 400
approved, we will be in a better position statement is currently being reviewed. kilometres of transmission lines to
to know how much benefit will return “We are expecting a decision in power mine operations and provide
to the provincial government, local 2024,” says Jonathan Kort, Interim electricity to local communities. 
government and the landholders.” CFO and General Manager of Strategy

MINING
SHIFTING FOCUS TO EXPLORATION AND RARE-EARTH MINERALS

Papua New Guinea’s Mineral Sarimu Kanu, Managing Director
Credi: BAI Stefan Daniljchenko

Resources Authority and Kumul of Kumul Minerals, says “there is
Minerals Holdings, the state’s a huge potential for unexplored
critical minerals” including lithium,
nominee company for holding
graphite and rare-earth elements.
shares in mineral projects, are both Kumul is also re-evaluating existing
encouraging more exploration in exploration data to identify new
PNG to increase the country’s future minerals for development, he says.
reserves. Kumul Minerals has a 67 per cent
stake in Ok Tedi Mining and 36 per
The MRA has made all of its cent in New Porgera Limited, and is
historical geological data publicly in negotiations to acquire a 20 per
available to explorers in PNG, which cent stake in the Wafi-Golpu project.
has more than 120 identified mineral Global demand for rare earths is
deposits, primarily copper, nickel, expected to reach 466 kilotonnes by
gold and associated metals. 2035, up from 170 kilotons in 2022,
The PNG government is Mineral Resources Authority’s MD an 8 per cent compound annual
particularly interested in finding Jerry Garry. growth rate, according to a Boston
reserves of rare earth elements, Consulting Group study published
such as neodymium, dysprosium of the older rocks down in Western last year. The report warned that
and terbium, which are critical Province,” says MRA Managing more than 20 new projects would
components in devices such as Director Jerry Garry. “And our need to be launched to avoid a
electric-vehicle batteries and geologists have already done some shortage of rare earths by 2030,
smartphones. preliminary work in this area. We are with an additional 10 projects
“We potentially have some of still waiting for the results to come needed by 2035.
those rare earth elements in some in.”

INFRASTRUCTURE & TRANSPORT
Ports anticipate lift restore weekly sailings between Lae

and Port Moresby, Daniells tells
Business Advantage PNG. It used the
in freight volumes
dip in demand in 2023 to focus on
maintenance programs for its vessels
and fleet of trucks, and invested in
quality improvements at its workshops
New ship-to-shore cranes have driven greater in Port Moresby and Lae.
productivity at PNG’s busiest port in Lae. Meanwhile, ICTSI South Pacific
(operator of PNG’s two international
ports, Motukea and Lae) has also
focused on efficiency gains. Additional
ship-to-shore cranes in Lae are reducing
discharging and loading times,
achieving faster vessel turn-around
times, and improving safety, according
to CEO Robert Maxwell.
“This is evidenced by an increase
in trans-shipments, with Lae starting
to become a trans-shipment hub for
the region, particularly for cargo going
to and from the Solomon Islands and
Vanuatu,” says Maxwell.
He expects freight volume to
increase 5 to 6 per cent this year,
based on the commencement of Papua
LNG, the restarting of Porgera and the
beginning of Wafi-Golpu.
Efficiency and emissions

Credit: ICTSI
Maxwell also notes ICTSI is committed

WE’RE RELATIVELY to reducing emissions by deploying
After a challenging 2023, Papua New CONFIDENT ABOUT THE solar panels, converting terminal
lighting to LEDs, and using of rain-
Guinea’s port and road transport MARKET COMING BACK … harvesting technology in Lae.
operators are preparing for a MARKET SENTIMENT IS “In terms of emissions, the big one
for us is efficiency within the terminal,”
significant recovery in demand this MORE POSITIVE THAN IT he said. “Ship-to-shore cranes in Lae
year. HAS BEEN FOR A WHILE. can lift two twenty-foot containers
Chris Daniells, COO simultaneously, instead of one at a
By Tony Jordan time, which reduces the net emissions
P
Steamships
apua New Guinea’s logistics per container.”
companies made the most of a Lae is PNG’s busiest port, handling 54
quiet 2023 by doubling down per cent of PNG’s trade volumes, followed
on maintenance and investing of the [Papua LNG] final investnent by Port Moresby (21 per cent) and Kimbe
in new vessels and equipment, in decision [FID], but we’re confident of in West New Britain (7 per cent).
preparation for an expected increase in underlying volumes coming back in Meanwhile, ICTSI’s landlord, PNG
demand this year. 2024,” said Chris Daniells, Steamships’ Ports Corporation, has an extensive
Steamships Trading Company, Chief Operating Officer. “Market US$412 million investment program to
International Container Terminal sentiment is more positive than it has upgrade and expand PNG’s 15 major
Services Inc (ICTSI) and PNG been for a while.” ports, which between them handle
Ports Corporation have all made Steamships has added two vessels about 10 million tonnes of cargo a year.
significant investments to expand and three new tugboat and barge The largest of these is the US$176
services and boost efficiency ahead of combinations, increasing its mainline million phase 2 development of the Lae
the final investment decision for the capacity by 25% to prepare for growth. Tidal Basin “with the aim of developing
TotalEnergies-led Papua LNG project, the area into an industrial hub, ready
expected later this year. Additional capacity for the boom in the resource sector,”
“We’re relatively confident about the While it awaits FID, Steamships says Ian Hayden-Smart, Officer in
market coming back, not just because will use its additional capacity to Charge at the state-owned company. 

Time and tide: TWL Logistics

Credit: BAI
perfectly placed
By Paul Chai “You also have to be cautious but
T
WL Logistics is a marine-based we see ourselves as a partner to the next
services company founded in wave of development,” he says. “We have
2015, originally named Pacific a mixed strategy: we will bring vessels WE ARE NOT
Project Logistics. The company in under direct purchase, we will bring STRICTLY A SERVICE
brought on an investor in the form them in under a charter agreement and
of PNG landowner company Trans we will bring them in under partnership COMPANY ... WE ARE A
Wonderland Ltd (TWL) in 2019 and agreements. It keeps things flexible in PROJECT MARINE
rebranded as TWL Logistics. line with project demands.”
James Midgley, founder and
SOLUTIONS COMPANY.
Managing Director, has been focused on The future of marine logistics James Midgley, MD,
constructing an offshore marine services It has been involved in early works TWL Logistics
capability. TWL Logistics’ engagement for the project, which is based on the
with local partners and international Purari River in PNG’s Gulf Province.
technical partners has resulted in its The company first worked with navigate the river.”
current successful position. TotalEnergies back in 2015 and is now Midgley, who is also President of the
The company, like many other during a major supplier to the international oil PNG Coastal Ship Owners Association,
the pandemic, had a tough 2020 but has and gas company. says that the early works have been a
“grown exponentially” since, due in part Midgley says staff numbers have success but the marine solutions industry
to its strategy of being able to provide a grown from 75 in the early days to 230 in PNG may still be under-prepared
wide range of services. today, with significant growth expected should the Papua LNG project be fully
‘It’s a project-solution fleet,’ Midgley again if the Papua LNG project reaches approved later this year. This will require
says. “We are not strictly a service FID stage. active collaboration with industry
company; our approach integrates Running the sea route from Port stakeholders and regulators.
services with specialised assets for tailor- Moresby across the Gulf of Papua and He believes now is the time for
made project solutions. We are a project up the Purari River, where the Papua investment in this industry so that, when
marine solutions company. So, we have LNG camp is based, is not without its the work arrives, much of it can be kept
crew boats, landing craft, tugs, barges, challenges. onshore with local companies.
accommodation vessels and dive support.” “It is not widely understood that it is “There is always going to be a place
Midgley acknowledges that collecting a challenging body of water, particularly for internationals but how do you retain
this many marine assets and gear is with the contrasting season weather the experience in the country?” he asks.
challenging but says he has a lot of and tough river conditions,” Midgley “If your contract model is always foreign
confidence in where the marine services says. “So, you have to have a vessel that then you are not going to be able to
sector is heading. is both ocean-going and then able to build your own industry.” 

INFRASTRUCTURE GETS INTERNATIONAL BACKING

A coalition of international agencies is supporting the a bold initiative to bring electricity to 70 per cent of
much-needed upgrade of PNG’s infrastructure. PNG’s population by 2030, which was announced at
APEC 2018.
PNG’s ports, telecommunications networks, energy While there is still much to do if this ambitious
grids, airports, roads and airports have for years faced target is to be met, there is progress on the ground,
a backlog of investment. The good news is that there with USAID seeking to facilitate around 220,000
has been significant progress, thanks in no small part household connections, and financing solar mini-grids
to a coalition of international agencies. and off-grid renewable energy projects such as Santos’
The Asian Development Bank (ADB) is the single Markham Valley Solar Project and a biogas project
largest investor in PNG infrastructure, with its current with New Britain Palm Oil.
program worth US$1.38 billion. Outside of the PEP, World Bank member the IFC is
“Our main focus has been in roads and civil also supporting mini-grid development in Lorengau,
aviation,” Said Zaidansyah, the ADB’s PNG Country Wewak, Alotau, Kimbe and Kavieng.
Director, tells Business Advantage PNG. “We are trying
to do as much as we can to help the government Unlocking private investment
address their Connect PNG agenda, which would see Ultimately the long-term solution to PNG’s
the whole country connected by 2040.” infrastructure challenge is to unlock private sector
Initiatives such as the ADB’s Sustainable Highlands investment. PNG’s recently introduced Public Private
Highway Investment Program (which is supporting the Partnership Regulation 2023 and Public Private
rehabilitation and upgrade of 430 kilometres of roads), Partnership (Amendment) Act should make this easier,
and the Australian government’s Transport Sector by creating a transparent and robust process for
Support Program have given PNG’s government the infrastructure PPPs in PNG.
confidence to allocate 5.6 per cent of its annual budget “PPPs create opportunities for private sector
toward Connect PNG. involvement in service provision, which can lead to
The Australia Infrastructure Finance Facility for better service delivery, reduced costs for businesses,
the Pacific is also financing road construction, as well and improvements to government balance sheets,”
as the A$580 million program to repair and upgrade says Zaidansyah.
PNG’s major ports with PNG Ports Corporation. It is Such a framework should also make it easier
also providing a significant portion of the Australian for agencies such as the US Development Finance
government’s A$250 million commitment to PNG’s Corporation (DFC) to play a bigger role in PNG.
electrification. “Our mission is to catalyse private sector
investment,” the DFC’s Managing Director, Asia Pacific,
Electrification target Geoffrey Tan told the 2023 Business Advantage PNG
This latter support is being provided as part of the Investment Conference. “We’re very, very keen to
multilateral PNG Electrification Partnership (PEP), expand our footprint here.”
Managers of Mineral Resources

Regulators of Exploration and
Mining in Papua New Guinea
https://www.mra.gov.pg
info@mra.gov.pg
Mining Haus Poreporena Freeway

PO Box 1906 Port Moresby 121 NCD Papua New Guinea
Tel: +675 3213511

BEYOND TRADE
TRANSFORMATION
KOREA JAPAN
CHINA
PHILIPPINES
ICTSI South Pacific terminals are at the forefront in MALAYSIA
Papua New Guinea’s expanding global trade. INDONESIA
ICTSI SOUTH PACIFIC
PAPUA NEW GUINEA
SOLOMON ISLANDS
South Pacific International Container Terminal has redeveloped
the Port of Lae to support flourishing trade and the Province of FIJI
Morobe’s industrial base. In 2022, SPICT received two AUSTRALIA SOUTH PACIFIC
ISLANDS
state-of-the-art quay cranes, a first in PNG. The QCs will
accommodate bigger vessels and significantly improve
terminal productivity with faster and safer movement of cargo,
NEW ZEALAND
which will benefit PNG’s supply chain.
With ICTSI South Pacific’s long-term commitment towards

sustainable development, SPICT is shaping the Port of Lae to
WE SUPPORT THE
be future ready, geared up for transformative growth. NATION'S ASPIRATIONS
FOR INCLUSIVE GROWTH
ICTSI South Pacific Ltd. South Pacific International Container Terminal Motukea International Terminal
Porebada Rd., 121, Port Moresby P.O Box 3549, Lae Tidal Basin, Bumbu Road, Porebada Rd., 121, Port Moresby
NCD, Papua New Guinea 411 Lae, Papua New Guinea NCD, Papua New Guinea
+675 320 0881 www.ictsispl.com +675 472 8283 info@spict.com.pg +675 7190 0395 / +675 7190 0202
info@mit.com.pg
TELECOMMUNICATIONS
ECONOMIC UPDATE
The race to connect PNG

PNG’s telecommunications companies are on an
Credit: Vodafone PNG

aggressive push to bring connectivity to more of PNG’s
population in the face of surging demand for data-
based services.
By Tony Jordan
P
NG’s newest telco, Vodafone Papua New Guinea,
launched in the market in 2022. After initial delays, it
is now well advanced on its network rollout, with the
aim of matching that of market leader, Digicel PNG
(itself now part of Australia’s Telstra since 2022).
“What we are doing is building a robust network
around the country,” says Pradeep Lal, Chief Executive understandably wary of sharing facilities that have helped
Officer of Vodafone Papua New Guinea, a subsidiary of them achieve a strong market position, not every tower is
Fiji’s Amalgamated Telecom Holdings. “As we enter our suitable for the co-location of services anyway.
second year, I am pleased to announce that we’re on track to For this reason, state-owned telecommunications
establish 770 towers across 22 provinces. In addition to our wholesaler PNG Dataco is trialling “neutral” community
existing POM data center, we’ve have expanded with live data towers that would be open to any operator. Eventually,
centers in Lae, Mt Hagen and Kokopo.” up to 500 of these towers will be built, to service 500,000
Meawhile, Digicel has been upgrading PNG’s largest tower households and businesses around the country.
network to 4G for some time, and over 70 per cent of its “PNG’s plans for development require wireless; obviously
network is now capable of delivering the service. Vodafone’s 4G, maybe 5G as well. To make that work, and be accessible
network has been 4G+ enabled from the start, and it is now and cheaper, we need to be looking at models of sharing,”
working on raising awareness among Papua New Guineans to suggests PNG Dataco’s Managing Director, Paul Komboi.
upgrade to smartphones. “The players in the market are accepting to try this out, so
“In our recent campaigns, we introduced highly affordable we’re working closely with them.”
versions of popular smartphones such as Samsung, TCL,
and iPhone,” says Lal. “Devices need to be priced well and Fibre points-of-presence
customers should have a choice. While mobile networks will reach retail customers and
“Additionally, we’ve observed that small business, larger businesses
customers often begin with a basic and government need broadband
smartphone and, upon realising the connectivity. This too is rapidly
benefits and good experiences, they spreading across the country and is
naturally opt for upgrades. In the a key mandate of PNG DataCo.
upcoming year, I am confident that Its National Transmission
smartphone penetration in PNG Network now has fibre points-
will surge to an impressive 70 to 80 of-presence in 21 of PNG’s
per cent.” 22 provincial capitals and has
connected 44 of the country’s 96
Co-location districts. By 2027, according to
Vodafone is adding a 70 more DataCo’s 15-year plan, all of those
towers this year in Western Province districts will have internet access.
with a local partner. Lal sees sharing A key role will be played by the
towers as the quickest way of
I AM CONFIDENT extension of the Kumul Submarine
connecting the country. THAT SMARTPHONE Cable Network to more coastal and
“We are still continuing to pursue
discussions with competitors, Digicel
PENETRATION IN PNG WILL island communities by 2026.
Meanwhile, fibre connections
and Telikom PNG,” he says. “Initial SURGE TO AN IMPRESSIVE throughout PNG’s populous Highlands
talks were about co-locating on their 70 TO 80 PER CENT. region will leverage off the expansion
towers and building an equal number programs of the Connect PNG
Pradeep Lal,
of towers in the places we jointly roadbuilding program and state utility
CEO, Vodafone PNG
identify so that we are all able to cover PNG Power, whereby DataCo will use
the country.” roads and power pole routes to install
While the incumbents are fibre where possible. 

TELECOMMUNICATIONS
ECONOMIC UPDATE
THE INSIDE VIEW: PAUL KOMBOI, CEO, PNG DATACO

We are expanding our critical infrastructure for
transmission, data centres and cloud services, at the
same time making it safe, secure and reliable.
If we can do that, we will assist the other operators
as well and make it easier for them to continue to
develop the ICT industry in the country.
We’ve contributed immensely already, almost 12,000
kilometres of fibre cable – submarine and terrestrial
– already installed and operational. Two data centres
have been built for a range of services.
It takes a lot of leadership, organisation and learning
as well. It’s challenging but it’s happening. Progress is
being made.
I think, initially, we underestimated the demand,
so implementation took a bit longer than anticipated.
We’re doing the upgrade now. In terms of market
demand, it will pick up with the government starting to
realise its digital government plan.
Our international capacity has grown from 4 GB
to 60 GB over the three years since we took over We’re working with the cable operator to increase
the Coral Sea Cable Network’s PNG connection. Data its capacity further. In another five to six years, we
prices need to continue to drop because volumes are have to look at adding another international cable for
increasing. resilience.

Credit: TE (PNG) TELECOMMUNICATIONS
Ship-borne satellite receivers have proved a

gamechanger for those operating in PNG’s
coastal waters.
SO MUCH OF PNG
IS STILL NOT GOING
TO BE ON FIBRE.
Robbie Huxley,
MD, TE (PNG)
The eyes in the skies Meanwhile, retail telcos such as Digicel and Vodafone use
satellite as a complement to their existing networks.
A slew of new satellite technologies promise a future “Satellites only provide a certain amount of bandwidth,
but customers are now talking about needing terabytes
of faster connections and lower prices, especially in of data, not gigabytes,” says Pradeep Lal, Chief Executive
PNG’s most remote regions. Tony Jordan previews Officer of Vodafone Papua New Guinea. “Satellites can
what’s ahead. complement operations, but aren’t sufficient for customers on
their own.” 
P
NG’s resource companies have long relied on satellite
communication for mission-critical operations, but
the cost of the sophisticated systems has kept it out of
reach of consumers and smaller companies.
That’s quickly changing, with advancements in satellite
technology driving down costs and making satellite systems
such as SpaceX’s Starlink and Eutelsat’s OneWeb easier to
deploy, says Robbie Huxley, Managing Director of local
technology services provider TE (PNG) Ltd.
Starlink received a five-year licence to operate in PNG in
January 2024.
“Starlink is a game-changer, because everybody will be
able to have a fairly affordable package, and the equipment is
small, so you don’t have to be a trained technician to install
it,” Huxley tells Business Advantage PNG. “Removing that
cost barrier for the market is massive.”
“It should also allow the telcos to bring down the price to
the user, particularly in the remote regions,” he adds. “Dataco
have done a pretty good job with their fibre cable rollout, but
so much of PNG is still not going to be on fibre.”
Huxley says there’s no one-size-fits-all solution for PNG,
so the company now sells a mix of services – on C-band
(used for mission-critical tasks like air navigation), Ku-band
and Ka-band – that can also be knitted together to create
an overall network, providing higher speeds and greater
resiliency and redundancy. Such networks can also act as a
backstop for traffic if fibre-based connections are disrupted.
Infrastructure provider PNG Dataco, which also uses
satellite for redundancy, says it’s also considering partnering
with next-generation services like OneWeb and Starlink.

ECONOMIC
FINANCE
UPDATE
Digizen ID aims to address the lack of formal

Credit: Digizen
identification in PNG using biometrics and

social vouching. It is the first project to
graduate from the Bank of PNG’s regulatory
sandbox, set up to encourage innovation in
finance.
He tells Business Advantage PNG the

bank will roll out “the first electronic
Know Your Customer platform in
PNG”, which will let customers
onboard themselves without any human
intervention. The bank will also offer
virtual wallets and begin issuing virtual
cards.
Meanwhile, ANZ has implemented
FileActive, its global host-to-host
corporate banking platform, in PNG.
Strategic moves
PNG’s second-tier financial institutions
PNG’s banks embrace

are also investing heavily in digital.
Credit Corporation’s new core
banking system is “live and in
digital future
production” and the company is already
opening accounts for its employees
before expanding services to existing
customers.
Banks and finance firms are Halstead says. “It’s really refreshing to see “The next step will be to launch the
rolling out digital products to take the changes that are being introduced by full suite of lending products that you
advantage of increased connectivity the central bank.” would typically see from a bank,” says its
CEO, Danny Robinson.
across PNG, where about 75 per cent New systems Undeterred by the higher 45 per cent
of the population remain unbanked. This move is only possible due to the tax rate levied on banks from the start
massive investment in digital systems of 2023, Credit Corporation plans to
I
f there’s a milestone that really and services made by the country’s take advantage of its new full banking
illustrates not only how far PNG’s financial institutions. licence by expanding beyond SMEs and
banking system has come, but also The country’s largest bank, BSP commercial customers, although Danny
where it is heading, it is the official Financial Group, implemented a new Robinson notes “there are just a few
demise of the cheque book as of 31 core banking system in April 2023. more regulatory hurdles before we can
December 2023. “Following a period of post- begin to use the word bank.”
Last year, cheques accounted for implementation challenges, the system “We are going to be able to appeal to
just seven per cent of all transactions in is now operating in a stable manner,” those who are looking for a more digital
PNG, down from 44 per cent in 2015. advises CEO Mark Robinson. “The banking option,” he explains. “Our
The Bank of PNG has now hastened the implementation of our new system system will allow customers to open
switch to digital. No new cheque books has enabled us to focus on the an account with us online rather than
will be issued, and existing cheques can modernisation of our service offering.” needing to come into the office.”
only be used until the end of June 2024. Optimisation of BSP’s digital Another finance company, Moni Plus,
“Commercial banks are confident platforms will continue this year, with a will also begin using a new core banking
that payment alternatives to cheques will focus on “flexible banking arrangements system this year, a key component of its
result in a more efficient and enjoyable and targeted measures to address branch plan to pursue a local stock exchange
banking experience for all,” David queues.” listing in the next two to three years and,
Toua, the central bank’s Chairman, “Our digital channels have been the ultimately, a banking license of its own,
assures Business Advantage PNG, noting key story of our growth over the past says CEO Aho Baliki.
that government cheques will still be couple of years and continue to be so,” More immediately, Moni Plus will
processed for now. says Greg Pawson, CEO of Kina Bank, open new branches in Goroka and Buka,
Outlawing cheques “is a great step which has grown to become the country’s expand its asset-financing, equipment-
forward to digitisation,” says Lachlan second biggest bank in the nine years leasing and housing businesses, and
Halstead, ANZ’s Country Head for since its initial public offering in 2015. “focus attention on the growth of
PNG. “A lot of our customers are more “We’re doing quite a significant upgrade landowner businesses tied to the mining
and more interested in going electronic,” of our corporate online business .” sector,” Baliki says.

FINANCE
WESTPAC RECOMMITS TO PNG MARKET THE INSIDE VIEW: RAJEEV

Westpac plans to deploy digital wider community. We already have SHARMA, CEO, NASFUND
banking tools to expand its those tools, so it’s more about
reach and attract new small infrastructure expanding to a level We are seeing a lot of
business and retail customers, where we can start to deploy them young people coming into our
after recommitting to a long- in PNG.” membership. We are also looking
term presence in Papua New Westpac’s business has focused at prospective members – kids
Guinea’s banking sector. on established PNG companies and who are in grade 12, preparing for
multinationals, “particularly our employment or university. These
Westpac’s strategy in own institutional clients are the ones who are more tech
Papua New Guinea will out of Australia that have savvy.
be “underpinned by very long tenures here,” We have an app where you can
digital,” after the retail Hooker says. But the log in and see your balances and
and institutional bank lender hopes the shift transactions, or you can log in to
decided late last year toward digital banking will our membership portal and do
to re-commit to, and help it reach more retail the same.
expand, its presence in customers. On top of that, we are further
the country, says Brett Brett Hooker, Chief “There’s still a large automating our branches
Executive of Westpac
Hooker, Chief Executive PNG portion of the population with electronic queuing and
of Westpac PNG. that are unbanked,” he WhatsApp-based appointment
“Digital is at the forefront, and says. “That’s why we’re going to bookings because still we have a
we would like to accelerate that in focus on digital. We think that’s the large number of members who
our business,” Hooker says. “The way to get to people, as opposed don’t have internet access.
big opportunity is to take mobile to more bricks and more retail
phones and internet access to the outlets.”
Bank’s strategy, which involves

Innovation partnering with microfinance provider
If the Bank of PNG’s goals for financial MiBank, in which it also has a 15 per
inclusion are to be achieved, banking cent stake.
services need to be brought to the bulk “That partnership actually is
of Papua New Guineans, who currently working really well. MiBank have had a
have limited connectivity. tremendous year,” says Pawson.
“Our branch footprint, especially Closer to the grass roots market,
in rural and underserved areas, has MiBank has been able to build its
enhanced accessibility for people who own digital tools to solve problems
may face challenges in reaching urban unique to PNG. For example, its
centres,” says Mark Robinson, who notes Mobile Corporate service, launched
this work involves “a combination of last year, enables customers to authorise
technological innovations, community transactions on group accounts even if
outreach, and collaboration.” they have no access to the internet, and
Collaboration is also key to Kina regardless of the location. 

FINANCE
Driving force:
Credit: OTML
things. One of the biggest challenges
we are facing is to increase our
MVIL aims volumes,” says Makap. “It has never

gone above 110,000 vehicles. That’s
a total number of motor vehicles
to be first currently registered throughout the
whole country. It should be around
paperless 400,000 to 500,000.”
Technology is just one way MVIL
government is looking to improve its efficiency;

the other is early intervention.
entity Mining equipment at remote sites now falls

under MVIL’s CTP insurance mandate.
It is partnering with PNG Ports
Corporation to monitor vehicles from
the moment they set tyres on PNG soil.
By Paul Chai “This will incorporate everything “We’ve just opened an office at
A
new digital vehicle ID, beefed- that we do here, including vehicle Motukea,’ Makap says. “We will now
up customs cooperation and registrations, drivers’ licences, and capture every motor vehicle, every
increased reach are all set our own accounting systems, human piece of equipment that comes into the
to revolutionise how Motor resources and audits,” Makap says. “In country in our international ports, Lae
Vehicles Insurance Ltd (MVIL) handles early 2025, I think we’re going to reach included.”
car registration and insurance. It will the target to make us the first national The initiative is part of the overhaul
also make compliance and payment government-owned entity to have a of the CTP insurance system, which
easier for a lot of companies. paperless office.” was recently extended to include the
Michael Makap, CEO of MVIL, says Bringing licences, car registration fleets of vehicles operating on site in
that one of his key priorities has been and insurance online will make the petroleum, mining and agribusiness
to steer the government-owned entity, compliance easier. The new system will sectors.
which provides compulsory third party rely on a scanner to show instantly if a “The MVIL Act now gives power for
insurance (CTP) among other products car vehicle is registered MVIL to go out to the private areas, which
and services, into a digital future. “It will revolutionise the way we do we never had before,” says Makap. 
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ECONOMIC
MANUFACTURING
UPDATE
A lot of
bottle
Coca-Cola Europacific Partners (PNG) is experiencing
stronger demand for its popular drinks in smaller
bottles, as consumers pivot toward value.
By Tony Jordan
T
he biggest constraint to the Coca-Cola Europacific
Parters (CCEP) business in PNG is currently meeting
demand for its drinks in 300 ml bottles, according to
Sales and Commercial Director Tim Solly.
Because of PNG’s rising cost of living, “which is acutely
being felt in PNG, we’re finding a lot of our customers and
consumers are migrating to our 300 ml flavour range, and
we just don’t have the capacity at the moment to fulfil that
demand,” he says. MOVING OUT TO 2025 AND
Those constraints will ease once the company’s new K80
million PET bottling plant in Lae starts production later this BEYOND, I DO THINK THIS MARKET IS
year, he tells Business Advantage PNG. GOING TO GO THROUGH SOME FAIRLY
“Once we get this capacity, we’ll be able to service the full
demand across PNG.”
SIGNIFICANT AND POSITIVE GROWTH.
CCEP has the largest share in what is a highly competitive Tim Solly, Sales & Commercial Director, CCEP (PNG)
soft drinks market in PNG. In addition to Coke-branded
drinks, the company manufactures global beverages such as
Credit: BAI
PRUDENT AND PATIENT: SP BREWERY
READIES ITSELF
Business Alliance PNG speaks with SP Brewery
Managing Director Ed Weggemans about the
company’s sharp focus on its bottom line and
sustainability in tougher market conditions.
SP Brewery is looking to Papua New Guinea’s long-
awaited resource projects to boost its sales in 2024 after
its business was buffeted by tougher market conditions
over the past year.
“I’m quite convinced that, in the medium-to-long
term, the major investment projects are going to
happen,” Weggemans says. “Those projects put money
into workers’ pockets and that’s going to affect us in a
WE’RE READY FOR
positive way.” THE BOOM TO HAPPEN.
“We’re ready for the boom to happen,” Weggemans WE’RE JUST HOPING
says. “We’re maintaining our capacity, which is currently
over-capacity, because we have history from the THAT IT WILL HAPPEN
previous LNG boom. We’re just hoping that it will happen SOONER RATHER
sooner rather than later.”
In the meantime, SP Brewery will focus on supporting THAN LATER.
retail outlets that were forced to shut down because of the Ed Weggemans, SP Brewery
impact of rolling liquor bans, social unrest and inflation, he Managing Director
says, adding that the challenges of 2023 “taught us to be a
bit prudent and less optimistic about the future.”

ECONOMIC
MANUFACTURING
UPDATE
Sprite, Fanta, Solo, Schweppes, Minute Maid Refresh and

Nature’s Own Water in PNG. Meanwhile, its Bu Energy
drink is manufactured exclusively for the PNG market.
As consumer preferences change, Solly says more of
CCEP’s products are being purchased in cities and towns for
resale in remote areas.
“Our products generate economic returns for people,”
Solly says. “People can buy it and resell it to make a profit,
and that actually generates income for people. So you do find
that a lot of people want our products to make more money.”
CCEP is stepping up marketing efforts, “making sure
that we’re looking at pack sizes, we’re looking at flavours and
whether we need to introduce new products,” Solly says,
explaining that CCEP expects a “slightly better” year in 2024
as mine projects resume and preparatory work for the Papua
LNG project gathers pace.
“Moving out to 2025 and beyond, I do think this market
is going to go through some fairly significant and positive
growth,” he says.
In 2023, CCEP also launched PNG’s first PET bottle
recycling scheme with the ultimate goal of helping to collect
one bottle for every bottle it sells across the country.
“The scheme follows on the success of similar programs
around the world, including Australia, New Zealand and
Fiji,” explains Solly.
“Initially we will operate this in Port Moresby only, but
Coca-Cola is one of several soft drinks manufactured by CCEP in PNG, we will seek to expand this around the country, and request
and distributed carrying the Manufacturers Council of PNG’s ‘PNG
Made’ logo. support from our industry peers.” 
“When a liquor ban is announced we, of course, are

in full compliance, but that really restricts our ability to
trade,” he notes. “We have to protect the bottom line as
much as we can.”
One of SP’s biggest challenges is the rising supply
and popularity of unregulated spirits, which skirt the
excise taxes that account for about 46 per cent of the
price of a carton of beer, Weggemans says.
“You’ve got uneven business conditions, where one
part of the industry is heavily compliant and audited and
another part of the industry is not, and that’s obviously
problematic for a major investor in the economy.”
The current challenges haven’t stopped the
HEINEKEN-owned brewer from investing, however.
In September 2023, it opened a new state-of-the-art
waste water treatment plant in Port Moresby, part of its
commitment to minimize its environmental footprint.
A second treatment plant, in Lae, is set to follow early
this year, while the brewer is also embarking on a major
renewable energy project in 2024.
“We’re going to cover all the available roofing area
with solar panels in both Port Moresby and Lae,” says
Weggemans. “We have an ambitious net carbon zero
emission target for our prodcution facilities by 2025.”

AGRIBUSINESS ECONOMIC UPDATE
Morobe rice farmer, John Gaif, was an early

graduate of Trukai’s Smart Farmer scheme.
Credit: Truka
The rice stuff:

smallholders
the key to big
agriculture
Trukai has been growing rice in PNG since 1970 but its
recent Smart Farmer program may end up becoming a
blueprint for the future of rice farming.
By Paul Chai
R
ice grower Trukai has invested in PNG’s agricultural
Rice farmers attending Trukai’s Smart
sector for over 30 years but, Farmer program.
in 2022, it launched a new
program that aims to change the of Technology in Lae or the Pacific
way it does business. Adventist University in Port Moresby,
Its new Smart Farmer initiative where farmers are taught about crop
was designed to empower smallholder THE SMALLHOLDER management and harvesting.
farmers to consider the irrigation After two weeks, they return to their
farming of rice. Currently in PNG, 90
MODEL, IT’S A MODEL smallholder farm and, when they are
per cent of rice is farmed using the dry- THAT WORKS WELL. able to harvest more than 30 kilograms
land method, but irrigation farming is a Alan Preston, CEO, Trukai of rice from a 50 square metre plot, they
game changer, with immediate increases receive formal certification.
in crop yield. Trukai has so far trained 220 local
The first component of the program is farmers, with over 400 applying for the
on campus at either the PNG University scheme. The company’s goal is that,

ECONOMIC
AGRIBUSINESS
UPDATE
Credit: Truka
ENCOURAGING AGRICULTURE AT SCALE

By Paul Chai Meanwhile, PNG’s Mineral
Credit: BAI /Stefan Daniljchenko

Two state-owned organisations in PNG Resources Development Corporation
are working as catalysts to encourage (MRDC), which manages K8 billion
more private sector investment in in assets on behalf of landowners
bigger agricultural projects. hosting mineral and other industrial
Kumul Consolidated Holdings (KCH) projects, is looking to diversify into
subsidiary, Kumul Agriculture, already agriculture in partnership with the
has a track record in this area, with private sector.
minority stakes in two joint ventures “At the moment, we are starting
with Innovative Agro Industry: a 20 on a small scale,” Managing Director
per cent equity in the successful Ilimo Augustine Mano tells Business
Dairy Farm outside Port Moresby, and Advantage PNG. “For example, in
a 40 per cent equity in Sepik Fresh. Kikori in Gulf Province, we’ve started
It is now looking to attract private a cocoa project. Instead of waiting
sector investment in two of its large for the royalties that are paid once a
agricultural assets: the 2300-hectare Kumul Consolidated Holdings’ year, landowners can now grow cocoa
Dylup Plantation in Madang Province Professor David Kavanamur and empower themselves. We are also
and the 1089-hectare Cape Rodney looking at supporting the Hela Provincial
Estate in Central Province. Government in terms of coffee.
“We are looking at different modalities to partner MRDC has already shown it has significant financial
with the private sector: franchises, public–private muscle with its Star Mountain Plaza and Dirio Gas and
partnerships, build-own-operate-transfer, joint ventures, Power investments.
consortia and so on,” Managing Director Professor David “If we find the right partners and then the market,
Kavavamur told the 2023 Business Advantage PNG then we can go into this on a large scale because we
Investment Conference. have the capacity to do that,” says Mano.
by 2027, it will have 3100 trained farmers, across all 22 of

PNG’s provinces, and built rice yields up to 139,800 tonnes
of harvest per annum.
Small but perfectly formed

Alan Preston, CEO of Trukai, believes that the Smart Farmer
program is not just good for local agriculture workers but for
the industry itself.
“The smallholder model, it’s a model that works well in
industries like palm oil and poultry,” says Preston. “The
uptake by the farmers has far exceeded our expectations. The
Smart Farmer program also removes the problematic issue of
law and order because it is their land and they manage it; we
just enable them to manage it.”
For Trukai, the focus has always been on families and
this has become even more important with cost-of-living
pressures affecting PNG’s retail and wholesale sectors.
“Rice has become one of the cheapest carbohydrate
sources that people can buy,” says Preston. “It’s cheaper than
noodles, it’s cheaper than flour on a per-meal, per-gram
basis, so that is why the rice market has held its own.”
Preston expects a steady rice market for the next three to
five years in PNG, with any significant growth for Trukai’s
overall business likely to come from new investments.
“We plan some acquisitions because we know we have
such a strong base and we would like to leverage that,”
Preston says. “We are looking at building on our core, so
we are looking at adjacent product groups in food that ROAD REPAIRS | ASPHALT SEALING | DRAINAGE | RETAINING WALLS |
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complement us.” 

AVIATION
Credit: Air Niugini

Morobe set for take-off
The major redevelopment of the THE INSIDE VIEW: GARY SEDDON
airport that serves PNG’s second
Acting Chief Executive Officer increasing utilisation is the strategy
city, Lae, means the country now of Air Niugini talks to Business driving aircraft choice: instead of
has a second airport capable of Advantage PNG about its having one set of planes for our
welcoming international flights. US$650 million fleet upgrade. domestic service and another for
international, we’ll have a fleet that
By Robert Upe The airline has six state-of-the- can handle both.
The K692 million rejuvenation of the art Airbus A220s on order for The new fleet will also bring a
former Lae Nadzab Airport, about 40 delivery from 2027, with a further new level of passenger enjoyment
km from the capital of Morobe Province, five to be leased from 2025, and cabin comfort, as well as the
should provide a boon for industry, and two Boeing 787 extra degree of safety
commerce and tourism in the province Dreamliners due for that comes from new-
and wider Papua New Guinea. delivery in 2026. generation technology.
Prime Minister James Marape The A220 jets will The aircraft can also
officially opened the renamed Nadzab replace Air Niugini’s carry around 25 per cent
Tomodachi International Airport in late existing fleet of Fokker more passengers and 20
2023 and national airline Air Niugini aircraft. They will per cent more freight.
took up occupancy in early January primarily service our There are potential
2024. domestic routes, but also cost savings associated
have the flexibility to with an aircraft that
New gateway operate new regional international burns 27% less fuel, as well as
With the exception of charter flights, routes up to seven hours duration, supporting the government’s global
all international flights arriving and which will support the growth of carbon reduction targets.
departing PNG previously passed trade and tourism for PNG. We also hope the reduction of
through Port Moresby’s Jacksons The Dreamliners will replace our the aircraft operating expenses
International Airport. That is now Boeing B767 aircraft. will enable us to reduce the cost of
expected to change. These acquisitions will allow us to travel to our customers and offer
“The new terminal is a world class not only improve the reliability of our a greater spread of air fares with
facility. We’re looking forward to seeing service, but also allow us to expand our increased capacity. Greatly
the start of international flights,” John our schedule, increase frequency and improved reliability and reducing
Byrne, President of the Lae Chamber to look at new destinations. airfares are all good news for Air
of Commerce, tells Business Advantage Reducing aircraft type and Niugini’s valuable customers.
PNG.

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AVIATION
He notes that the works to upgrade

the 35 kilometre highway connecting Friendship
the airport to Lae City (part of the 700 The redevelopment of the airport
kilometre Highlands Highway, which
THE NEW TERMINAL IS A was jointly funded by the PNG
serves PNG’s populous interior), will WORLD CLASS FACILITY. Government and the Japan
complete the picture. International Cooperation Agency.
WE’RE LOOKING FORWARD The construction was led by Japanese
Expansion TO SEEING THE START OF contractor Dai Nippon-Nippo Joint
Construction work on the INTERNATIONAL FLIGHTS. Venture.
redevelopment started in 2016 and In Japanese, tomodachi means
John Byrne, President,
includes a new terminal for domestic ‘friends’ who support each other,
Lae Chamber of Commerce
and international flights, with 16 which is precisely what the new airport
check-in counters, two lounges, the represents.
latest airport systems, immigration and The redevelopment of Nadzab
quarantine facilities and aerobridges. and New Guinea Islands regions to fly Tomodachi is part of an ongoing
The project also includes the directly to Australia, bypassing the need program by the National Airports
expansion and reinforcement of runways to go through Port Moresby. Japan, Corporation to improve PNG’s
and aprons to international aviation which has close ties to the project and aviation infrastructure.s
standards, with big jets such as the wide- was PNG’s largest export customer in The Asian Development Bank-
bodied Boeing B777-200 now capable of 2022, is another market. supported Civil Aviation Development
landing in Lae. It will also be easier for international Investment Program, now entering its
Meanwhile, the airport’s old terminal business travellers to visit PNG’s major third tranche, worth US$213 million,
is being repurposed to handle increasing manufacturing and logistics hub, as well has been gradually improving the
volumes of air freight. as fostering greater labour mobility. safety and functionality of PNG’s 22
Additionally, international air traffic national airports since 2009. 
International connections in and out of Lae will be able to support
The obvious first market for the the Wafi-Golpu gold and copper mine Robert Upe is the Editor of Paradise, the inflight
revamped airport is Australia, enabling (65 kilometres south-west of Lae), which magazine of Air Niugini.
travellers from the Highlands, Momase is expected to open in the next few years.

DIRECTORY
Useful business contacts and information sources on PNG.
BUSINESS ORGANISATIONS
American Chamber of Commerce
(AMCHAM) Coral Sea
amchamcoralsea.org
Australia–Papua New Guinea Business
Council
apngbc.org.au
Business Council of PNG
+675 320 0700
bcpng.org.pg
Employers Federation of PNG
+675 325 8266
efpng.org.pg
PNG Institute of National Affairs
Industry-funded think-tank
+675 321 1045
inapng.com
Lae Chamber of Commerce & Industry
+675 472 2340
lcci.org.pg
Manufacturers Council of PNG
+675 321 7143
Papua New Guinea Chamber of
Commerce and Industry
pngcci.org.pg
Credit: BAI
+675 321 3057
PNG Chamber of Resources and Energy
+675 321 2988 Harbourside in downtown Port Moresby.
pngcore.org
PNG Institute of Directors
pngid.org.pg Useful online resources
Port Moresby Chamber of Commerce & Business Advantage PNG
Industry Business Advantage International’s
pomcci.org.pg online business magazine for PNG and
the region. Sign up on the site for free
INTERNATIONAL ORGANISATIONS email updates.
businessadvantagepng.com
Asian Development Bank (ADB)
+675 321 0400 PNG 1000
adb.org Papua New Guinea’s leading companies
and service providers
Australian Trade Commission png1000.com
(Austrade)
+675 325 9150 PNG’s two daily newspapers, The
austrade.gov.au National and the Post-Courier. EMTV
thenational.com.pg PNG’s largest TV broadcaster.
postcourier.com.pg emtv.com.pg

DIRECTORY
International Finance Corporation (IFC)

+675 321 7111
ifc.org
International Monetary Fund (IMF)
imf.org Doing Business
World Bank
+675-321-7111 in PNG
worldbank.org/en/country/png The ultimate guide to doing business in PNG,
produced by Business Advantage International
GOVERNMENT ORGANISATIONS and its content partners. Includes industry
sector profiles, legal and tax guides, business
Bank of Papua New Guinea (Central guides to PNG’s provinces and more.
Bank) doingbusinessinpng.com
Publishes up-to-date economic data.
bankpng.gov.pg
Investment Promotion Authority (IPA)
+675 308 4444
ipa.gov.pg
Kumul Consolidated Holdings (KCH)
KCH is the holding company for PNG’s
state-owned enterprises.
kch.com.pg Paradise magazine
National Trade Portal The inflight magazine of national carrier
A new ‘one-stop shop’ for business. Air Niugini, currently published quarterly.
nto.gov.pg airniuginiparadise.com
Sign up for free regular updates at

www.businessadvantagepng.com

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ANNUAL

2006. more people.

BUSINESS ADVANTAGE PAPUA NEW GUINEA 3

4 BUSINESS ADVANTAGE PAPUA NEW GUINEA

ExxonMobil PNG is not only building a pipeline of

Decade of growth begins

ExxonMobil’s Kumul Marine Terminal at Caution Bay

As part of our extensive in-country research for this

6 BUSINESS ADVANTAGE PAPUA NEW GUINEA

GROWING MIDDLE CLASS DRIVES HOUSING CONSTRUCTION

Credit: Atlas Steel

Why? Well, firstly there’s a growth in housing tied to

8 BUSINESS ADVANTAGE PAPUA NEW GUINEA

10 BUSINESS ADVANTAGE PAPUA NEW GUINEA

PNG is exposed to the volatility of global prices, and the

BUSINESS ADVANTAGE PAPUA NEW GUINEA 11

Perspectives Business and government leaders provide their

We’re seeing With There is

12 BUSINESS ADVANTAGE PAPUA NEW GUINEA

I think the PNG Steamships

GROWTH Nasfund, open to citizens and non-citizens,

BUSINESS ADVANTAGE PAPUA NEW GUINEA 13

Investing in PNG: five

14 BUSINESS ADVANTAGE PAPUA NEW GUINEA

Credit: BAI/Stefan Daniljchenko

16 BUSINESS ADVANTAGE PAPUA NEW GUINEA

The 2024 PNG 100

results suggest this is one area where confidence has been

18 BUSINESS ADVANTAGE PAPUA NEW GUINEA

THE SURVEY ASKED RESPONDENTS FOR THEIR CAPITAL

19% Be about the

Answer Choices Responses

BUSINESS ADVANTAGE PAPUA NEW GUINEA 19

PNG 100 CEO Survey moderated.

Investment might be a bit softer than it was in 2023,

20 BUSINESS ADVANTAGE PAPUA NEW GUINEA

PO Box 320 | Port Moresby | NCD | PNG

Here for the long stay: Hilton,

Credit: Pacific Palms Property

22 BUSINESS ADVANTAGE PAPUA NEW GUINEA

Marriott and more

Occupancy at the Crowne Plaza, in

BUSINESS ADVANTAGE PAPUA NEW GUINEA 23

Papua LNG early works on the Purari River in

Papua LNG progresses towards

24 BUSINESS ADVANTAGE PAPUA NEW GUINEA

THE INSIDE VIEW: TERA SHANDRO, CHAIRPERSON AND

BUSINESS ADVANTAGE PAPUA NEW GUINEA 25

Santos focuses on supporting next wave

the very first facility of this kind in PNG.”

26 BUSINESS ADVANTAGE PAPUA NEW GUINEA

Fabrication nation The site of KPHL’s new

28 BUSINESS ADVANTAGE PAPUA NEW GUINEA

THE INSIDE VIEW: ISIKELI TAUREKA, CEO, LABA HOLDINGS

Landowner companies are a standards of

BUSINESS ADVANTAGE PAPUA NEW GUINEA 29

30 BUSINESS ADVANTAGE PAPUA NEW GUINEA

NEW IRELAND LIHIR Economic map

Power zone substation

SO ARAWA Transmission lines

ISL Gas export pipeline

Hawaiki Nui Cable (2026)

PNG LNG Cable