The Reserve Bank’s Loi Bakani says managing a depreciating kina is ‘very difficult’, Canadian court to hear appeal against InterOil buyout, and Coffee Industry Corp steps up rehabilitation program. Your weekly digest of the latest business news.
The kina has depreciated by almost 36 per cent against the United States dollar since 2012, Bank of PNG Governor Loi Bakani says. The National newspaper reports he told the Consultative Implementation and Monitoring Council’s development forum in Port Moresby that managing the situation is very difficult. ‘We have to maintain the level of reserves, the level of exchange rate that is conducive to everybody to operate efficiently and continue to do their business.’ He added that the country’s reserves in 2012 were US$4 billion (K12 bn) in 2012. ‘It is now US$1.7 billion (K5 billion).’
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The proposed US$2.5 billion (K7.9 billion) acquisition of InterOil by Exxon Mobil has been stayeduntil the completion of a Court hearing on 31 Oct0ber, in Canada. Former InterOil President Phil Mulacek is appealing against the proposed takeover. Meanwhile, the PNG Independent Consumer and Competition Commission (ICCC), has told PNG Loop it will seek legal advice if the proposed acquisition of InterOil by ExxonMobil proceeds.
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Oil Search MD, Peter Botten, has told PNG Loop he is looking forward to constructive dialogue with partners to develop the PRL 3, the PRL 15 and the PNG LNG project. Oil Search believes there is sufficient gas resource in the Elk-Antelope and P’nyang gas fields to underpin possibily three trains if planned appraisal and exploration drilling is successful. Talks are due to begin if the Canadian court rejects a bid to overturn the proposed acquisition of InterOil by Exxon Mobil.
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CIC’s Charles Dambui. Credit: PNG Loop
The Coffee Industry Corporation will engage over 15,000 more households in coffee rehabilitation work following a recent announcement of 19 new partnership agreements totalling K32.2 million, according to CEO, Charles Dambui. (Read our latest feature on PNG’s coffee industry here.)
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Prime Minister Peter O’Neill says his government will deliver a ‘measured’ and ‘cautious’ 2017 budget next week. The Post Courier reports O’Neill as saying the global economic downturn has reduced national income, but he also won’t follow past governments and attempt to ‘buy re-election’.
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Alluvial mining contributed K356.3 million in revenue to the Government in 2015, and has vast potential to grow, says the Mineral Resources Authority’s Margaret Aulda.
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Credit: Cruiseline.com
Prime Minister Peter O’Neill says the budget for the 2018 APEC Leaders’ Summit are expected to be about K120 million. The funds will be expended on building APEC House at Ela Beach. O’Neill indicated that the cruise ships would be paid for by visitors. Three major cruise liners will anchor on Port Moresby’s shores during the APEC 2018 Economic Leaders meeting in PNG. APEC Minister, Justin Tkatchenko, said the cruise liners will provide accommodation for guests.
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PNG Power has reportedly signed a Memorandum of Understanding with the East New Britain Provincial Government and a US-based contractor, Lenape Development Group to carry out a study for a proposed 20 MW solar farm project in Bitapaka, East New Britain. The solar farm project aims to provide power to a proposed 400-room resort, with surplus power to be offered to PPL.
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Three major cruise liners will anchor on Port Moresby’s shores during the APEC 2018 Economic Leaders meeting in PNG. APEC Minister, Justin Tkatchenko, said the cruise liners will provide accommodation for guests.
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Construction of 35 of the 48 houses in the joint venture housing project, “Gobuta Street Estate” in Port Moresby is nearing completion. The K35 million project is run by the National Housing Estate and Berkeley Capital. Almost all the houses have been presold to PNG owners for between K560,000 and K600,000, reports EMTV.
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The Solomon Islands’ Ministry of Forestry will not issue any more felling licenses to newly registered foreign companies intending to carry out logging activities in the country. A Government statement said this is to control the influx of foreign logging companies to control illegal entry into unlicensed forest concession areas.
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The film crew setting up a shot underneath the largest Bougainvillea tree in Konnou. Credit: World Bank/Alana Holmberg
And finally, the producers of PNG’s first virtual reality film say they want it to highlight the importance of supporting post-conflict societies. Shot in the remote south of the Autonomous Region of Bougainville, the film is the second in the World Bank series, The Price of Conflict, the Prospect of Peace and was produced in partnership with VR filmmakers S1T2 and photo journalist Alana Holmberg.
