PNGBLOGS

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

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 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 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

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

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

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