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Showing posts from December, 2012

Equitable distribution of proceeds

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AT the recent Sydney Mining and Petroleum Conference, Prime Minister Peter O’Neill promised a wide-ranging review into the current mining and petroleum fiscal regime. At about the same time, he blacklisted a big-name industry personality in Dr Ross Garnaut for comments he made which the prime minister found to be offensive. The prime minister has further called for a thorough review of the precepts that govern the PNG Sustainable Development Program and placed no less than the renewal of Ok Tedi’s mining licence on the line as a condition. The prime minister’s bone with the programme, which has culminated in the move against its chairman Dr Garnaut and the decision to review the programme, is the continued control of its welfare by BHP, the Australian multinational which exited the Ok Tedi mine many years ago. There is the presumption that Ok Tedi mine is fully nationally-owned but the prime minister quite rightly sees where the control comes from and that has raised his anger. Whateve

Equitable distribution of proceeds

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AT the recent Sydney Mining and Petroleum Conference, Prime Minister Peter O’Neill promised a wide-ranging review into the current mining and petroleum fiscal regime. At about the same time, he blacklisted a big-name industry personality in Dr Ross Garnaut for comments he made which the prime minister found to be offensive. The prime minister has further called for a thorough review of the precepts that govern the PNG Sustainable Development Program and placed no less than the renewal of Ok Tedi’s mining licence on the line as a condition. The prime minister’s bone with the programme, which has culminated in the move against its chairman Dr Garnaut and the decision to review the programme, is the continued control of its welfare by BHP, the Australian multinational which exited the Ok Tedi mine many years ago. There is the presumption that Ok Tedi mine is fully nationally-owned but the prime minister quite rightly sees where the control comes from and that has raised his anger.

West Papuan Refugees Hope for PNG Citizenship

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Access to citizenship could prove the best hope yet for thousands of West Papuan refugees living in Papua New Guinea (PNG). “I want citizenship. I’ve been here 28 years and want to get on with my life,” said Donatus Karuri, a 57-year-old father of six, outside the shelter he shares with five other families at the Hohola refugee settlement. It is one of four settlements for West Papuan refugees in the capital Port Moresby. Like most West Papuan refugees, he is unable to work legally and has only limited access to public services. According to the UN Refugee Agency (UNHCR), there are more than 9,000 West Papuan refugees in PNG today, many of whom have been in the Pacific island nation for over three decades. Others know no other home and can’t imagine living anywhere else. “I was born here. This is the only country I know,” said Dan Hanasbey, 27, another refugee wanting citizenship.   Flight From Indonesia Between 1984 and 1986, more than 11,000 West Papuans fled east into PNG from the w

West Papuan Refugees Hope for PNG Citizenship

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Access to citizenship could prove the best hope yet for thousands of West Papuan refugees living in Papua New Guinea (PNG). “I want citizenship. I’ve been here 28 years and want to get on with my life,” said Donatus Karuri, a 57-year-old father of six, outside the shelter he shares with five other families at the Hohola refugee settlement. It is one of four settlements for West Papuan refugees in the capital Port Moresby. Like most West Papuan refugees, he is unable to work legally and has only limited access to public services. According to the UN Refugee Agency (UNHCR), there are more than 9,000 West Papuan refugees in PNG today, many of whom have been in the Pacific island nation for over three decades. Others know no other home and can’t imagine living anywhere else. “I was born here. This is the only country I know,” said Dan Hanasbey, 27, another refugee wanting citizenship.   Flight From Indonesia Between 1984 and 1986, more than 11,000 West Papuans fled east into

Merry Christmas from PNG Blogs

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To our family of readers and supporters out there in the blogosphere, may you be blessed this Holiday season, have a safe Merry Christmas and happy new year. PNGBLOGS

Merry Christmas from PNG Blogs

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To our family of readers and supporters out there in the blogosphere, may you be blessed this Holiday season, have a safe Merry Christmas and happy new year. PNGBLOGS

The six billion kina question

By Graeme Smith To Treasury's consternation, during the course of the PNG election campaign Peter O'Neill announced he was negotiating a soft loan with China Exim Bank. It is worth in the region of K6 billion ($2.7 billion), with the potential for up to K10 billion to be drawn upon. It dwarfs the 2006 Soft Loan Facility of $375 million made to the Pacific as a whole. Pro-opposition blogs  have denounced the loan as 'sinister' and suggested that Treasury will be bypassed altogether. In the absence of any concrete details of the loan, which is currently being finalised, PNG's lively blogosphere has filled the vacuum. A  thoughtful anonymous post on Keith Jackson's blog  rightly points to the effect the loan will have on the ever appreciating exchange rate, which is set to face enormous upward pressure when Exxon Mobil's LNG project comes online. Perhaps the greatest concern is that the loan appears to be fragmenting (even before it is agreed) into a set of sma

The six billion kina question

By Graeme Smith To Treasury's consternation, during the course of the PNG election campaign Peter O'Neill announced he was negotiating a soft loan with China Exim Bank. It is worth in the region of K6 billion ($2.7 billion), with the potential for up to K10 billion to be drawn upon. It dwarfs the 2006 Soft Loan Facility of $375 million made to the Pacific as a whole. Pro-opposition blogs  have denounced the loan as 'sinister' and suggested that Treasury will be bypassed altogether. In the absence of any concrete details of the loan, which is currently being finalised, PNG's lively blogosphere has filled the vacuum. A  thoughtful anonymous post on Keith Jackson's blog  rightly points to the effect the loan will have on the ever appreciating exchange rate, which is set to face enormous upward pressure when Exxon Mobil's LNG project comes online. Perhaps the greatest concern is that the loan appears to be fragmenting (even before it is agreed) into

National Housing Estate Limited’s credibility dashed

Dr Kristian Lasslett – International State Crime Initiative Although it has been in the pipeline for months, last week the O’Neill government formally announced that the National Housing Estate Limited (NHEL) would be taking over large chunks of the National Housing Corporation’s assets, and presumably its functions too. Apparently this move was motivated by a desire “to provide affordable housing for Papua New Guineans”  Post-Courier (3/12/12) . If true, it deserves applause. However, we must now pause for thought following Sunday’s press statement by NHEL’s Executive Chairman, John Dege (see also  ABC Radio, 4/12/12 ). Among other things, Dege’s statement catalogues a number of housing projects the NHEL is about to embark upon. To this end, he remarks: “NHEL is…a major proponent in the Paga Hill housing development project undertaken by Paga Hill Development Company (PNG) Limited”. This is a startling admission for the NHEL to make. After all, the Paga Hill Development Company (PHDC)

National Housing Estate Limited’s credibility dashed

Dr Kristian Lasslett – International State Crime Initiative Although it has been in the pipeline for months, last week the O’Neill government formally announced that the National Housing Estate Limited (NHEL) would be taking over large chunks of the National Housing Corporation’s assets, and presumably its functions too. Apparently this move was motivated by a desire “to provide affordable housing for Papua New Guineans”  Post-Courier (3/12/12) . If true, it deserves applause. However, we must now pause for thought following Sunday’s press statement by NHEL’s Executive Chairman, John Dege (see also  ABC Radio, 4/12/12 ). Among other things, Dege’s statement catalogues a number of housing projects the NHEL is about to embark upon. To this end, he remarks: “NHEL is…a major proponent in the Paga Hill housing development project undertaken by Paga Hill Development Company (PNG) Limited”. This is a startling admission for the NHEL to make. After all, the Paga Hill Development Com

Local industry feels pinch, sends SOS to govt

By OSHEAH PHILEMON Papua New Guinea’s Prime Minister Peter O’Neill is upbeat about creating thousands of new jobs for Papua New Guineans in the coming years.He, according to the PNG’s private sector, seems think he has the right recipe to create more jobs for young Papua New Guineans leaving the school system. But the engine for growth—the private sector—is not so sure about the claim. Top private sector chiefs say the lack of government action to protect the local industry is posing a serious threat to thousands of jobs now held by Papua New Guineans in the private sector. Furthermore, it is stopping the creation of many new jobs for young Papua New Guineans leaving school and preparing to enter the work force. This is despite all the hype about the Papua New Guinea economy growing at a rapid pace and creating new jobs as a result of the billion dollar-kina liquefied natural gas project in the Hela Province. The reality is that many companies are finding it difficult to do business in

Local industry feels pinch, sends SOS to govt

By OSHEAH PHILEMON Papua New Guinea’s Prime Minister Peter O’Neill is upbeat about creating thousands of new jobs for Papua New Guineans in the coming years.He, according to the PNG’s private sector, seems think he has the right recipe to create more jobs for young Papua New Guineans leaving the school system. But the engine for growth—the private sector—is not so sure about the claim. Top private sector chiefs say the lack of government action to protect the local industry is posing a serious threat to thousands of jobs now held by Papua New Guineans in the private sector. Furthermore, it is stopping the creation of many new jobs for young Papua New Guineans leaving school and preparing to enter the work force. This is despite all the hype about the Papua New Guinea economy growing at a rapid pace and creating new jobs as a result of the billion dollar-kina liquefied natural gas project in the Hela Province. The reality is that many companies are finding it difficult to do bu

PNG Economy Strong, But Fiscal Pressures Growing

PNG maintained its position as one of the fastest growing economies in Asia and the Pacific, according to the latest edition of the Pacific Economic Monitor, issued today by the Asian Development Bank (ADB). The ADB report says preliminary GDP figures show growth of 9.2% in 2012, on the back of 11.1% growth in 2011. By June 2012 the number of private sector jobs in the economy had risen by 5%, building on a doubling of employment opportunities over the last decade. The Monitor notes that a number of factors point to a more challenging economic environment in PNG in 2013. In particular the 2013 $US6.5 billion national budget will be accompanied by a significant slowdown in government revenue growth over the medium term, as revenue from declining mining and oil output will offset modest growth in consumption, income, and company taxes. “As fiscal pressures emerge, it will be critical for the government to follow through with its 2013 Budget plan to wind back expenditure growth in 2014 an

PNG Economy Strong, But Fiscal Pressures Growing

PNG maintained its position as one of the fastest growing economies in Asia and the Pacific, according to the latest edition of the Pacific Economic Monitor, issued today by the Asian Development Bank (ADB). The ADB report says preliminary GDP figures show growth of 9.2% in 2012, on the back of 11.1% growth in 2011. By June 2012 the number of private sector jobs in the economy had risen by 5%, building on a doubling of employment opportunities over the last decade. The Monitor notes that a number of factors point to a more challenging economic environment in PNG in 2013. In particular the 2013 $US6.5 billion national budget will be accompanied by a significant slowdown in government revenue growth over the medium term, as revenue from declining mining and oil output will offset modest growth in consumption, income, and company taxes. “As fiscal pressures emerge, it will be critical for the government to follow through with its 2013 Budget plan to wind back expenditure growth in 2

Warning on fraud in PNG gas project

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By RICHARD BAKER THE economic benefit of Papua New Guinea's biggest natural resources project has been questioned, with a report warning that ordinary citizens risk missing out because of corruption and contracts that favour the lead proponent, ExxonMobil. A report by anti-poverty group Jubilee Australia, to be released Wednesday, examines the predicted economic benefit of PNG's liquefied natural gas project and the Australian government's provision of $500 million towards it. The report highlights endemic corruption in PNG and warns that a government sovereign wealth fund and other official bodies established to handle billions of dollars in revenues could be defrauded. ''The governance and public life of PNG are to this day beset by political intrigue, self-interest of politicians and gross misuse of public funds,'' the report warns. Scheduled to begin production in 2014, the LNG project is valued at $22 billion and predicted to double PNG's gross dome

Warning on fraud in PNG gas project

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By RICHARD BAKER THE economic benefit of Papua New Guinea's biggest natural resources project has been questioned, with a report warning that ordinary citizens risk missing out because of corruption and contracts that favour the lead proponent, ExxonMobil. A report by anti-poverty group Jubilee Australia, to be released Wednesday, examines the predicted economic benefit of PNG's liquefied natural gas project and the Australian government's provision of $500 million towards it. The report highlights endemic corruption in PNG and warns that a government sovereign wealth fund and other official bodies established to handle billions of dollars in revenues could be defrauded. ''The governance and public life of PNG are to this day beset by political intrigue, self-interest of politicians and gross misuse of public funds,'' the report warns. Scheduled to begin production in 2014, the LNG project is valued at $22 billion and predicted to double PNG's gro

Era of prosperity beckons PNG

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THERE can be no understating of the era of prosperity that beckons PNG. Since 1991, oil and gas investment is estimated to be more than K52 billion, making it the single largest contributor to national economic development. This year alone, led by the PNG LNG project, the sector has sunk K12 billion and predicts it will spend the same again next year, Oil Search managing director Peter Botten told the Sydney Mining and Petroleum Conference last week. And it is not only the PNG LNG project managed by ExxonMobil or even the second one proposed by InterOil. There are new oil and gas projects in the offing with the InterOil LNG development, projects led by Horizon, Talisman, Eaglewood and strong exploration in the Gulf of Papua and throughout the highlands. There are also very significant projects in the offing in the mining area which will help lay the foundation for growth and prosperity in PNG. Dr Ila Temu, President of the Chamber of Mining and Petroleum, told the same conference that

Era of prosperity beckons PNG

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THERE can be no understating of the era of prosperity that beckons PNG. Since 1991, oil and gas investment is estimated to be more than K52 billion, making it the single largest contributor to national economic development. This year alone, led by the PNG LNG project, the sector has sunk K12 billion and predicts it will spend the same again next year, Oil Search managing director Peter Botten told the Sydney Mining and Petroleum Conference last week. And it is not only the PNG LNG project managed by ExxonMobil or even the second one proposed by InterOil. There are new oil and gas projects in the offing with the InterOil LNG development, projects led by Horizon, Talisman, Eaglewood and strong exploration in the Gulf of Papua and throughout the highlands. There are also very significant projects in the offing in the mining area which will help lay the foundation for growth and prosperity in PNG. Dr Ila Temu, President of the Chamber of Mining and Petroleum, told the same conf

Heed PNG's plea to realign development focus

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By Sanjay Bhosale   Papua New Guinea Prime Minister Peter O'Neill's call for a thorough rethink of Australia's aid policy towards his country deserves serious consideration. On his first visit to Australia since his re-election in August, O'Neill delivered a thorough assessment of PNG-Australia relations and expressed his desire for a change in direction for AusAID. Addressing the National Press Club on November 28, O'Neill began with a complaint about the Australian media's coverage of PNG. ''It frequently disappoints me that journalists with most limited knowledge about Papua New Guinea describe my country as a failed state or a failing state. This is just simply, totally wrong,'' he said. ''I have no problems with journalists being critical of my government or my country. There are times when we deserve it … but such sweeping claims are harmful and quite frankly they are also very hurtful.'' O'Neill's grievance is just