By Leanne Jorari – Business PNG
The recent announcement by the Papua New Guinea Government of the issuance of Sovereign Bonds has received mixed reviews from the private sector and think-tanks.
While the private sector has welcomed this funds injection into the economy, hoping to see just how the Central Bank will use this to relieve pressures on the Foreign Exchange issues, think-tanks like the Institute of National Affairs has urged the government to show restraint with borrowing.
We speak to INA executive director, Paul Barker, who says the government can’t go on borrowing forever and advised not to let the country’s development depend on debt.
Also on this episode, the Independent Consumer and Competition Commission issue a license to generate electricity to renewable energy company, Markham Valley Biomass Limited for the Markham Valley Biomass Project; a first for the commission and the country.
The Markham Valley Biomass Limited is a subsidiary of Oil Search Limited and has a Power Purchase agreement with PNG Power Limited to generate 15 megawatts of power from biomass in Markham Valley, Morobe Province, supplying to PNG Power through its Ramu grid.
The construction phase will take place during a 33 month period and the company will begin supplying electricity to PNG power in 2021.