Many variables: Page 34

With the ramping up of the PNG LNG project, the contribution of the resources sector will rise from 12% to 22% of GDP over the span of a year. Falling LNG prices, however, will affect returns in the near term. PNG is a resources-dependent economy and is set to become more so over time, but the development of other sectors is also key. The non-resources sector is expected to grow by 4% in both 2015 and 2016.

6 10 13 16 20 25 26 27 29 30 31 34 43 44 45 Papua New Guinea in figures Land of diversity: Cultural richness and forward thinking point to a bright future Papua’s got a brand new bag: Gas project is set to dramatically boost GDP and the economy Interview: Prime Minister Peter O’Neill Building momentum: There is cause for optimism despite persistent bottlenecks Viewpoint: Xi Jinping, President of China Interview: Josaia Voreqe Bainimarama, Prime Minister of Fiji All change: New developments could draw more international investors Interview: Miguel Arias Cañete, EU Commissioner for Climate Action and Energy Interview: Ivan Pomaleu, Managing Director, Investment Promotion Authority (IPA) National service: Concerns over protectionism have been stoked by recent legislation Many variables: The government is looking to stimulate growth, despite the challenges ahead Interview: James Marape, Minister of Finance Interview: Wapu Sonk, Managing Director, National Petroleum Company Adjusting to reality: A major LNG project is expected to significantly impact the economy 47 48 49 51 52 53 56 62 63 64 65 68 71 72 73 75 76 77 78 79 80 82 87 89 91 95 100 Viewpoint: Shinzo Abe, Prime Minister of Japan Interview: James Lau, Managing Director, Rimbunan Hijau (PNG) Group Budgeting down: Concerns over whether the 2015 budget reflects the state of the economy Interview: Ben Micah, Minister for Public Enterprises & State Investments Interview: Frederick Reiher, Chairman, Air Niugini Final tweaks: Sovereign wealth fund legislation set to be implemented by mid-2015 In the palms of their hands: Tech solutions extend banking services to remote areas Getting on board: Financial inclusiveness is a key governmental goal Interview: Loi Bakani, Governor, Bank of Papua New Guinea (BPNG) Interview: Robin Fleming, CEO, Bank South Pacific Digging up value: Banks use new methods to attract depositors Making the market: Expected reforms will restructure the exchange and bring more competition Interview: Richard Borysiewicz, General Manager, BSP Capital Viewpoint: Syd Yates, CEO, Kina Securities, In evolution: Developing the nation’s debt markets Stocks & bonds: Share analysis & data provided by BSP Capital Highlands Pacific: Mining InterOil: Oil and gas Newcrest Mining: Mining NGIP Agmark: Agro-industry Bank South Pacific: Finance Oil Search: Oil and gas Low base, high potential: Efforts under way to extend insurance to the general populace Risky business: Covering the nation poses challenges for international players Future promise: Moving past cultural barriers to focus on niche markets Interview: Philip Tolley, Managing Director, Capital Insurance Ready for the next step: Ongoing exploration and development projects are revealing numerous opportunities Interview: Grant Christie, Vice-President and Country Manager, Talisman Energy, Repsol Group Page 114 Long a mainstay of the economy, the mining sector has not been immune to global economic turbulence, but while revenues from new liquefied natural gas shipments may not be as much as initially hoped, they should somewhat offset declines in mineral exports that have hit copper producers particularly hard.

101 103 104 105 107 108 111 114 118 119 120 121 124 129 131 z Proof of concept: The LNG project appears to be only the beginning Interview: Philippe Blanchard, Managing Director, Total PNG Interview: Brent Emmett, CEO, Horizon Oil Keeping the lights on: New measures and investments to expand electrification Interview: Lesieli Taviri, General Manager, Origin Energy Continuing the search: Exploration, production and development are far from over The green and the blue: Renewable energy’s already big contribution is set to expand Weathering the storm: Regulatory efforts to improve sector efficiency and transparency Pushing the limits: New technology is being developed for underwater mine Interview: Greg Anderson, Executive Director, PNG Chamber of Mines and Petroleum Interview: Fred Hess, Managing Director, PanAust Soldiering on: Vast untapped mineral deposits continue to draw investors Packing a punch: Increased regulation is helping improve performance metrics Price perspectives: Mobile broadband is jumping ahead of fixed-line services Interview: Jimmy Miringtoro, Minister for Communication and Information Technology 132 133 134 135 139 144 145 147 149 151 154 158 159 161 162 164 168 169 170 174 175 176 180 184 185 186 Interview: Bhanu Sud, CEO, EMTV Driving convergence: Telecoms operators compete to deliver television content Interview: Reuben Kautu, Chairman, Dataco Help from above: Satellite technology creating solutions to logistical challenge Navigating their way: Sector players are well adapted to a varied geography Interview: Greyling Park, CEO, Post PNG Full steam ahead: The maritime segment is key to the nation’s future growth Driving demand: Extractive industries continue to generate growth in other areas Getting off the ground: International events are spurring airport expansion Maximising trade potential: Expanding transport projects to facilitate the flow of goods Clearing the obstacles: The production base is moving up the value chain, provided ongoing reforms continue to bear fruit Viewpoint: Somu Bhattacharya, General Manager, Coca-Cola Amatil Seeds of success: The fertile climate and agricultural programmes point to growth Interview: Michael Kingston, CEO, KK Kingston A helping hand: New legislation aims to overhaul SME culture A new direction: State spending to drive growth as sector looks for new revenue sources Interview: Marcelo Minc, Country Director, Asian Development Bank’s (ADB) Papua New Guinea Resident Mission Game on: Preparations for the 2015 Pacific Games created plenty of work for contractors Making space: Affordable housing schemes and the commercial and industrial segments are offering new opportunities for investment Up and away: Capital inflows and urbanisation are driving up rental rates Interview: Andrew Potter, General Manager, Pacific Palms Property A place to call home: Government efforts under way to build affordable housing On the upswing: Provided that development projects are rolled out successfully, the sector is on course to expand in the years ahead Sweet tooth: A revival of global cocoa commodity prices has been a boon for local growers’ efforts to increase exports Interview: Pedro Celso, CEO, RD Tuna Interview: John Nightingale, Managing Director, Agmark 187 188 191 195 203 204 205 208 212 213 214 215 218 222 223 228 236 238 245 246 248 249 251 252 Favourable conditions: Palm oil production is continuing to expand and serves as a crucial component of PNG’s diversification efforts Shiver me timbers: Raw logs are a key export commodity for the country Monitoring the catch: Sustainably managing key fishing sources is a state priority A whole new world: New efforts and investments are set to invigorate the sector Taking centre stage: Upcoming events will allow the country to showcase its strengths Interview: Richard Knight, Owner, Loloata Island Resort Sail away: The country looks to capitalise on growth in cruise tourism Collage of colour: The remarkable variety of the industrial heartland, Morobe Tensile strength: The dynamic between devolution of powers and central control Interview: Kelly Naru, Governor, Morobe Province Viewpoint: David J Alcock, CEO, Mainland Holdings Lae on industry: Manufacturing in Morobe’s capital city centres on fisheries Complex development: PPPs are helping to improve health care service delivery Interview: Dr Amyna Sultan, CEO, Pacific International Hospital Spaces needed: Growing demand for tertiary degrees sees expansion in higher education institutions PwC Duty to state: A run-down on taxation rules Viewpoint: Jonathan Seeto, Managing Partner, PwC Leahy Lewin Lowing Sullivan Lawyers Laws of the land: An insight into legislation affecting foreign enterprises A new authority: Self-funded environmental regulator to keep tabs on permits Similar but not identical: PNG currently has two business names acts Viewpoint: Brian Kelly, CEO, Black Swan International A good night’s sleep: Hotels and resorts Listings: Telephone numbers for ministries, services and more Facts for visitors: Useful information Page 139 With high mountains, dense tropical rainforests and around 800 islands, PNG has some of the world’s most difficult terrain to traverse. Expanding the transport network will do much to facilitate development and is high on the government’s list of priorities. New plans are being rolled out, with some of the state’s hydrocarbons revenues helping to fund a major infrastructure boost.

Page 180 Greater government funding for agricultural development is set to improve competitiveness, with growth projections of 3.6% in 2015. Alongside this, a revival of cocoa prices has helped local growers to increase exports following the devastating effects of the cocoa pod borer. Moreover, efforts are under way to improve the management of fisheries, thereby ensuring more sustainable stocks.

Page 164 Though the construction sector contracted in 2014 after a four-year boom from the PNG LNG project, growth is expected to pick up again in 2015, while real estate prices look likely to maintain their upward trajectory. With new revenues to support the government’s infrastructure investment programme, roads, ports and airports are all set for upgrades.

Page 195 Investment in infrastructure ahead of the Pacific Games and APEC summit is helping to diversify the sector beyond business tourism. Though not yet a major leisure destination, natural beauty and cultural attractions give PNG considerable potential. It is also likely to benefit from an uptick in cruise tourism.