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apua New Guinea (PNG) is a nation like no other. Home to nearly 1,000 tribes–each with their own language–this often unheard-of country is the most culturally diverse place on earth. Occupying the eastern half of New Guinea, the world’s second-largest island, PNG

bridges the frontier between Asia and Oceania. Boasting eve-rything from impenetrable, dense rain forest to blonde-sand coral islands to snow-capped mountains, PNG has something for everyone.

For visitors to the country, it is hard to know where to start. PNG is broadly divided into four major areas. The Papua Region sits on the southern coast. This seashore is, like the rest of the land, immensely varied; tourists trek to Milne Bay to see its dazzling wood carv-ings and ornate waga canoes, while guests in the west enjoy the unre-strained freedom of wandering across its vast grassland plains. The north

coast is known as the Momase Region and is home to the world-famous Sepik River mask makers, as well as the occasional crocodile. The High-lands is located down the island’s spine and offers relief from the relent-less heat of the seaside areas. With peaks as high as 14,793 feet (Mount Wilhelm), the Highlands is the perfect region for intrepid eco-tourists who don’t object to rock climbing. The Islands Region, to the northeast of the mainland, is unbeatable for swimmers, divers and sunbathers alike.

Anthropologists and adventurous travelers are not Papua’s only visi-tors, however. Scientists and eco-tourists both flock into the country to

see almost 800 types of birds, 200 species of mammals and 21,000 plants on offer. With the certainty of undocumented organisms nesting deep in the island’s core, these numbers grow every year. The Wildlife Conservation Society Asia Program discovered 80 new species on a single four-week expedition in 2013, among them carnivorous plants and a giant rat. While PNG hosts 7% of the world’s flora and fauna and 12% of its natural rain forest, it is also immensely rich in natural resources like oil, copper, gold and even rare earth metals, which is encouraging news for investors.

There is also huge industrial potential in other sectors–notably, through the vast quantities of both unharvested timber and fish around the coast. Coffee, which is mostly grown in the Highlands, remains one of the country’s largest agricultural exports; in 2011, PNG produced nearly 85,000 tonnes, placing it at 15 on the list of most prolific coffee-growing nations worldwide. PNG also has large quantities of palm oil, cocoa, tea, copra, sugar and rubber, among other resources. As a country with several as-yet-uncharted areas, it is possible that there are large reserves of other minerals up in the Highlands, particularly near the Indonesian border. Additionally, many resources have not yet been harvested effectively due to the country’s extraordinarily rugged terrain. The more investment comes in, however, the more the infrastructure will develop, creating smoother working conditions for industries of every type.

Fueling the Asian Century With Asia–the global epicenter of economic growth and leader of the new century–just across the border, and Indonesia on its western frontier, PNG is directly connected to a trillion-dollar economy. The International Monetary Fund (IMF) predicts that PNG will double its GDP by the end of 2015, to $24 billion, and will register the second-fastest growth in the world—21%, according to the Asian Development Bank, predominantly driven by the commencement of multibillion-dollar gas exports. According to the World Bank, PNG is the only country on earth that has seen steady

PAPUA NEW GUINEA

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The Best of Both WorldsFor the largest economy of the Pacific, strategically nestled at the crossroads of Asia and Australia, the future is bright.

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Photo:© KirKlandPhotos.com 2008

Peter O’NeillPrime Minister

“Our country is waiting to take its deserved position in the world.”

Peter O’Neill, Prime Minister

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income-per-capita growth for 20 years. Additionally, international analysts predict that by 2050, the Asian financial landscape could grow to be more than four times the size of the American and European economies combined. Being the largest country and economy in the Pacific region and with Asia at its doorstep—what better place to turn to than PNG?

With Asia’s gas consumption expected to account for 29% of the world’s total by 2040, Exxon established PNG’s first liquefied natural gas project (PNG LNG) in 2008. Its pioneering $19 billion investment seems to be paying off, both for the local communities and for the country as a whole: Analysts predict that this venture will double PNG’s GDP and triple its export revenue in the years to come.

Perhaps more important PNG LNG has set a sterling precedent, as other international investors have followed Exxon Mobil’s lead. French-based world-class oil and gas company Total has entered into a strong joint venture with local companies to connect PNG’s biggest gas fields to Asia, the world’s fastest-growing market.

A Unique Developmental Strategy PNG’s Prime Minister, Peter O’Neill, has also demonstrated an acute understanding of his country’s immense potential through implementing policies designed to promote both international business and sustain-able socioeconomic growth. Political stability and predictability, strong macroeconomic and fiscal management, together with an emphasis on transparency and accountability, are the guiding principles of the nation’s leader. Under O’Neill’s leadership, profits from external investment into nonrenewable resources are being used to develop a variety of state-build-ing sectors, and it seems to be working: Governmental spending in 2014 on health care, law and order, education, agriculture, small business and infrastructure has increased by more than 20% for the second year

in a row. The administration recently established a commission against corruption, demonstrating a commitment to ending the fiscal irregularity that so often plagues developing nations. It has also expanded links with Europe through the E.U.—Pacific Development Partnership and with the rest of Oceania and Asia by agreeing to host the 2015 Pacific Games and the 2018 APEC summit.

“Our country is waiting to take its deserved place in the world,” O’Neill claims. As the international community finally starts to dispel the redundant image of PNG as Australia’s colonial playground and accepts the enormous economic contribution it can make on the world stage, O’Neill’s wait may be shorter than expected.


Papua New Guinea Tourism Promotion Authority

www.papuanewguinea.travel

Come to the land where

nature makes beauty and people make

your stay

A world away from the daily stresses and strains,

Papua New Guinea, with its stunning surroundings, crystal-clear waters

and hospitable people, should feature on every traveler’s wishlist.

Luxury Residences in Airways Hotel, Port Moresby. www.airways.com.pg/residences


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he international sporting spotlight will focus on Papua New Guinea when thousands of athletes showcase their physical talent and skills at the XV edition of Pacific Games in 2015. Just three years later, some of the world’s most powerful leaders will arrive for

the region’s showpiece economic event, the Asia-Pacific Economic Corporation Summit in 2018.

Minister of Sports, Pacific Games and National Events, Justin Tkatchenko (JT) tells Business Outlook (BO) why the officials’ confidence in Papua New Guinea is justified.

BO: As an introduction, please discuss the differences between the international perception and the reality of Papua New Guinea:

JT: Reactions from around the world to Papua New Guinea being granted the right to host the 2018 summit have been mixed. While some nations support us wholeheartedly, others are not as forthcom-ing with their support. I believe that some of the negative reactions originate from the stereotyping that surrounds Papua New Guinea and from a lack of information about us, rather than from tangible evidence or fact-based information. For whatever reason, some countries do not want to see us prosper and have their own agendas when it comes to our future.

In my capacity as Minister-in-waiting, I also look after all of the VIPs and heads of state when they come to Papua New Guinea. My goal is to have them depart as ambassadors of my country.

In the short space of 12 months I have looked after many guests such as Prince Charles, all of the Australian Prime Ministers including Tony Abbott, and many others. I consider all of these recent high-profile visits to be nothing short of a great success. Our country and our peo-ple are uniquely hospitable.

Together with my colleagues from government, we have been voted in to be leaders of this country to make the necessary changes that will give Papua New Guinea a brand new day, a new beginning, and a new start. As a first-time politician, I am working with my Prime Minister, Peter O’Neill, to ensure that his vision, and the government’s vision, are implemented.

BO: The uniqueness of the XVth edition of the Pacific Games lies in the date, which coincides with Papua New Guinea’s 40th anniversary of independence. How confident are you in your country’s ability to host a truly-successful Pacific Games?

JT: I am totally confident our government will produce one of the best games that this region has ever seen. On the infrastructure side, we are spending close to one billion kina [£240 million]. We will have some of the best facilities in the southern hemisphere. We want to ensure that these games, and sports in general, unite the country and build a lasting legacy.

We inherited this project two years behind schedule. I took over this Ministry from the former government, knowing very well that a great deal of work needed to be done. As of today, I am pleased to say that major projects in infrastructure will be ready by March 2015. International contractors, applying the best in quality standards, are

completing them.For Papua New Guinea the Pacific Games are not only

about infrastructure and facilities. Sports are also crucial to the process of nation building. We want to show the rest of the Pacific that we know what we are doing and that we are here to win.

The Sports Enhancement Program, which is a project I oversee personally, focuses on locating talents, identifying them and looking after them during their formative years, to help them become the champion athletes of the future and leaders of our nation.

The largest challenge we have encountered throughout our preparations has been getting the bureaucracy to understand that their normal processing speed is not sufficient and that I am running a ministry that is time bound.

The Prime Minister himself declared the Pacific Games a matter of national importance which prompted the public servants to wake up and prioritize the Games. To date, over 90% of all works have been tendered out and started. We now have the rest of 2014, and the beginning of 2015, to implement the different projects.

BO: Are you concerned about safety during the Pacific Games?JT: Not at all. You should be more worried about being in Sydney,

Queensland, New York City or Washington D.C. As in any country, you stay away from certain places and use common sense while in oth-ers. The lack of safety is another negative perception that has spread worldwide.

Our economy will triple in size over the next decade. Moreover, cer-tain mining projects rolled out over the next 10 to 15 years will cause the economy to double again. We must lay the foundations correctly now to be able to sustain our development in the time to come. This is why safety is of paramount importance.

We want to be able to say to the world that we are host to investors from America, Australia, New Zealand, Japan, China and elsewhere, who are here to benefit and contribute, and that safety is not a con-cern.Ultimately, we want visitors, be they tourists or businesspeople, to come to Papua New Guinea and experience what our country has to of-fer. The Kokoda Trail, for instance, is attracting more visitors every year. These visitors then leave and become ambassadors for our country.

BO: What factors do you believe led your country to be granted the honour of hosting the APEC summit in 2018?

JT: First, it was our great potential for economic growth. Papua New Guinea will be the place to be over the next 30 years, for investors and

“It is an honor for me to serve Papua New Guinea and to have the opportunity to change it for the better.”Justin Tkatchenko, BEM, OL, MP Min. of Sports, Pacific Games & Natl. Events

Brand New Day for Sports and Economic GoldPapua New Guinea is confident its capital, Port Moresby, will be a proud and successful host of the 2015 Pacific Games and the prestigious 2018 APEC Summit.

Justin Tkatchenko BEM, OL, MP Minister of Sports, Pacific Games and National Events

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businessmen. Our Prime Minister has promoted our country very well. The Foreign Affairs Minister, too, has taken the lead to promote Papua New Guinea. We are the only APEC country that has not hosted an APEC meeting. I think a big factor in the decision process was also the hint of the unknown: what is Papua New Guinea? Where is it? What does it have to offer? How has it become one of the richest Pacific nations?

BO: What strategies should Papua New Guinea deploy to correct its image internationally and to begin branding itself?

JT: We must base any communication campaign on the nation’s 700+ cultures, languages and people. We must show who we are, how we live, describe our day-to-day lives, our cultures and traditions. We need to invite audiences to be part of our rich culture, biodiver-sity, unique flora and fauna, our beautiful river systems, white sandy beaches, the best fishing in the world, dive sites, coral reefs, surfing, sailing, and so much more.

We must improve on service delivery. People must know we have world-class lodging facilities and properly trained tour guides. The management and administration must be revamped, which is why we welcome international guidance and expertise. Fiji plays the winning card as the tourism Mecca. They have the expertise in the tourism industry. If they can do it, so can we; we have hundreds of different cul-tures and peoples, from one mountain to another mountain you will come across a huge mix of cultures.

BO: What other areas should Papua New Guinea focus on in the immediate future?

JT: Education is the single most important element of the develop-mental puzzle. We need facilities and qualified teachers. Once we have an educated population, the sky will be the limit. Some of my children are being educated in Australia. Once they are done with their studies, they will return to PNG, set up their own business practices and give back to the community. We need our educated citizens to come here and contribute.

We are still a very young nation and have a great deal of planning to do. I realize that it might take another generation or two to get things right, but we must begin now.

BO: How can Papua New Guinea and the U.K. work together to form a truly mutually beneficial partnership?

JT: We would first need to know what kind of expertise our British partners have and how it can best be applied in this country to build a win-win arrangement. My discussions with Minister Hugo Swire [Britain’s Minister of State at the Foreign and Commonwealth Office] were fruitful and multifaceted. On the economic front, we focused on human-resource development and possibilities for collaboration. We aim to become a knowledge-based economy and this is where I see the British coming in to assist. Our mining sector and various industries are also all-open to partnership. On the sports side, during one of my recent trips to the U.K., I toured certain sports venues to better understand how to develop, maintain and create integrated and self-sustaining sporting facilities with various add-ons. We now look at the Pacific Games differently, not just as a one-time sports event, but

as an opportunity to create lasting sustainable businesses around our stadiums and sports infrastructure and to engage all the stakeholders. The British are explorers by nature—I therefore invite them to come here to discover for themselves what we have to offer, be it for tourism or business.

BO: How would you like to be remembered and what kind of legacy would you like to leave behind?

JT: I would like to conclude my mission by leaving behind a well-developed city and country, with good infrastructure, hospitals, schools and facilities for our people. I would like to see it become a wealthy na-tion that uses its natural riches in an intelligent way, and capitalizes on its culture, traditions, and its identity. We are one of the last frontiers, so we must strive to protect our natural resources, our fauna, our flora, while modernizing the country and giving our people the basics.

BO: What is your final message to the readers of TIME Magazine, British Isles edition?

JT: Papua New Guinea is a place of a million journeys and a million ideas. This country will give you something that no other country can. Look at me—I came from Melbourne when I was 18 years old and settled here permanently in 1993. I have five children and a beautiful wife. I owe PNG for giving me the chance to become who I am today. When given an opportunity, one should demonstrate responsibility, commitment, respect, and make something of it, for the country, and for oneself. It is an honor for me to serve PNG and to have the opportunity to change it for the better.

Ministry of Sports, Pacific Games and National Events Office of the Minister, PO Parliament, Waigani, National Capital District, Port Moresby, PNGTel: +675 327 7368 | www.portmoresby2015.com/

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ndustry and commerce, tourism, fisheries, down-stream resource processing, and industrial and free trade zones are just some of the buzzwords around Papua New Guinea today. Maru (RM) explains to Business Outlook (BO) how his country is open to genuine partners and investors and eager to enter

into win-win partnerships.

BO: What is the difference between the international community’s perceptions of Papua New Guinea and the reality?

RM: First, in contrast to how certain media portray us as a nation, our people are some of the friendliest in the world. Although we have over 1,000 different tribes inhabiting our country, we are a unified nation and have learned to embrace diversity and each other, and, of course, that extends to all those who visit our country.

We are well aware that we live in a global village and that we must work in partnership with genuine investors to build mutu-ally beneficial arrangements, and we acknowledge that in order to progress we need to embrace change.

The capital, Port Moresby, is not a good reflection of Papua New Guinea as a whole. We are a country of vast forests, rivers, pristine environments and a melting pot of rich cultures, where over 800 languages are spoken.

These are the unique features of Papua New Guinea that we will safeguard in the future. We are blessed with fertile agricultural lands, which we aim to develop to achieve food security, as well as for export purposes. We are a country with unlimited potential within the tourism sector, as well as in the fisheries sector. Our waters are home to around 18% of the world’s tuna stocks.

BO: What are the positive aspects of setting up a business in Papua New Guinea?

RM: Let me begin by saying that Papua New Guinea is not only a politically stable country but also a politically predictable country, with no social unrest on the horizon. The O’Neill-(Leo) Dion govern-ment is wholeheartedly committed to investing in the infrastructure sector so as to provide a backbone of support to all of our indus-tries. Secondly, the returns on almost any investment in Papua New Guinea are considerably higher than in other countries in the world, thanks to our very attractive fiscal regime. And third, we have dem-onstrated that, as a country, we always honor our agreements with international companies and partners. Not once have we gone back

on any of our contractual obligations, and we go above and beyond to help our partners.

The amount of interest and inquiries we have been receiving proves that we are an exciting new destination for foreign direct investment. While we encourage invest-ment across a wide range of sectors, we are particularly keen to see international partners develop our hydropower infrastructure and our electricity-generation capacity. Investors should be aware that we are looking at strate-gies to drive the costs of doing business down, to develop supporting infrastructure, to grow our small and medium enterprise sector, and to facilitate investment in strategi-

cally important areas.

BO: Please tell us more about your efforts to develop the industrial sector throughout Papua New Guinea.

RM: We want to develop industrial centers in every province where there are market opportunities. Manus will be developed into Papua New Guinea’s first free-trade zone. We will also be develop-ing a new industrial zone in Lae, one in Port Moresby, and others in Purari, Wewak, Madang and other provinces as market opportu-nities arise. The Gulf Province, which is home to the PNG LNG 2 project, will also have an industrial zone.

Next year we will be compiling Papua New Guinea’s first manufacturing policy framework, which will serve as a guide to help us become a manufacturing- and industry-oriented country. We can and we will become an industrialized nation if we are able to develop our own downstream processing facilities in the fisheries sector, and for raw materials. I would even go as far as penalizing domestic companies that export semi-processed, and not fully processed, goods.

We must, if we are to achieve middle-income nation status by 2030, generate more value from our activities and create more em-ployment. Currently, despite our natural wealth, 66% of our youth remains unemployed.

BO: Are you confident that all Papua New Guineans will benefit from the projected growth of the economy?

RM: You cannot have a country where 90% of the formal economy is owned by 2% of the companies operating in Papua New Guinea, which are also foreign-owned. It is our prerogative to empower our people to ensure that the nation’s wealth is spread in a more equitable manner.

Our goals are to innovatively fund our people into business and give them funds at low interest rates. Various institutions are already working hard to empower our people and provide the loans. The infrastructure will be there, the supporting structure and the funds, too. It is now up to our people to make a step in the right direction.

I would also like to tell foreign direct investors that our people must benefit from any project undertaken in the country.

Doing business in Papua New Guinea should not be viewed purely as an opportunity to make profit. We encourage win-win

“We are well-aware that we live in a global village and acknowledge that to progress we need to embrace change.”

Richard Maru, Minister of Trade, Commerce and Industry

Come to the Land of the UnexpectedWith industrial zones springing up around the country and business costs going down, PNG’s Minister of Trade, Commerce and Industry Richard Maru is confident investors will be impressed.

Richard MaruMinister of Trade, Commerce and Industry

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agreements and genuine partnerships, in which the investor, and also our people, benefit.

BO: How do you foresee Papua New Guinea and the U.K. working together in the future?

RM: The British High Commissioner in Papua New Guinea has invited me to lead an investment road show in the U.K in 2014. I encourage all the interested industry and business representatives to come and see what Papua New Guinea has to offer. I also en-courage U.K.-based financial institutions to offer us soft loans. They should bear in mind that we have never defaulted on a loan.

Papua New Guinea has a privileged trade relationship with the European Union, particularly in the fisheries and tuna sector. I would like to see this relationship expanded to encompass other areas of trade. I would also like to say that we are open to further European and British investment and that we will welcome all visi-tors with open arms.

As a rapidly growing country, we can benefit from the experi-ence of our European friends. We are open to new business models and concepts, such as private airports, shipping ports and other. We must reinvent ourselves and think outside the box. We must cut costs and be more efficient and the U.K., as a fellow member of the Commonwealth, can be a great partner for us.

If we are to be a big player in the region and if we aspire to challenge the status quo in the region, we have to modernise.

BO: As a first-time member of parliament and a cabinet minister, what legacy would you like to leave behind?

RM: Firstly, I would like to see growth of the formal economy. At the moment, our people head 10% of the formal economy. I would like to see this number rise to at least 70% in the foreseeable fu-ture. Driving the cost of doing business in Papua New Guinea down is another one of my priorities.

The cost of airfares, Internet, utilities, as well as increasing com-

petition levels will also be on my to-do list. If we succeed, Papua New Guinea will rise on the global competitiveness index, which in turn will attract even more investors.

I also want to shift the focus from the extractive sector [miner-als, oil and gas] to renewable sectors, such as tourism, agriculture, fisheries, and other sustainable sources of revenue.

While non-renewable energies will continue to provide us with a steady income, we will act with care to avoid catching the Dutch Disease and reinvest those revenues into sustainable sectors across the economy.

BO: Please share your final message with the businessmen and -women, politicians and investors who make up the readership of Time’s British Isles Edition.

RM: My message to all readers and investors is that Papua New Guinea is a nation in the Pacific with a most exciting future. Although we have our challenges related to law and order, we are becoming a stronger economy with a budget that consistently pri-oritizes the sectors that really matter to the people of the country—education, health and infrastructure.

We are future-minded and will do everything in our power to support major investors in our country.

We value win-win arrangements, and Papua New Guinea is a land that is ripe with opportunities across various sectors—tourism, fisheries, industry, power and many more. We think that those who come sooner, rather than later, will have an advantage and stand to gain the most.

We are looking for the early birds! I will personally support any genuine investor who comes to Papua New Guinea and will do eve-rything in my power as Minister of Trade, Commerce and Industry to cut through the red tape and make doing business in Papua New Guinea an efficient and easy process.

So my message is this: “Please knock on our doors! We are always happy to assist.”

Ministry of Trade, Commerce and Industry – Investment Promotion Authority PO Box 5053, Boroko, NCD 111, Port Moresby, NCD, Papua New Guinea | Tel: +675 308 4444 / 321 7311 | Fax: +675 320 2237 / 321 2819 | [email protected] | www.ipa.gov.pg/

Minister Maru visits a processing factory in Indonesia At the SME Expo in Malaysia

Ministry of Mining

Office of the Minister for Mining, Private Mail Bag,Port Moresby NCD, PAPUA NEW GUINEA

Tel: +675 325 9800 | Fax: +675 325 8164

[email protected]

One of the main pillars of Papua New Guinea’s economic development, mining is a booming in-dustry, and the government is particularly inter-ested in expanding the downstream processing and manufacturing of minerals.

Boasting gold, copper, silver, natural gas, and oil, this well-endowed country provides some of the world’s most demanded and lucrative resources.

As a result of this, moves are currently under way to ensure industry players are properly regula-ted and working to enhance and add value to the local economy, as well as taking care of the environment, thus building a better and more sustainable future for everyone.

With this in mind, the Ministry of Mining is calling on the British to bring their substantial expertise, skills and capital to our shores.

Opportunities abound in downstream

mineral processing



apua New Guinea woos eco-tourists, anthropologists, historians and thrill-seekers alike. With the world’s largest rain forest after the Amazon and the Congo, the likelihood of uncontacted tribes residing in the island’s heart, and unparalleled adventure-sport potential, PNG is truly one of a kind.

PNG is one of the most alluring places on earth. Occupying only 0.3% of the world’s land surface, it hosts around 7% of the planet’s biodiversity, including more than 3,000 types of orchid—two-thirds of the world’s documented species.

Among ornithologists, the country is famous for its 38 species of birds of paradise and close to 800 other bird species. In the High-lands, Mount Hagen’s Rondon Ridge and Tari’s Ambua, two lodges operated by TransNiugini Tours, offer visitors excellent conditions for bird watching and serve as ideal launch pads for expeditions into the country’s interior.

The coastal areas host twice as many marine species as the wa-ters of the Red Sea and up to 10 times as many as the Caribbean. From tiny pygmy seahorses to majestic whale sharks, dolphins and manta rays, these are just some of the common sights for divers in the pristine waters of the Solomon, Bismarck and Coral seas.

PNG‘s cultural diversity is unmatched. Despite its immense internal variety in art, music, clothing, dance and architecture, the state is unified through a lingua franca: Tok Pisin. In the southern Papua Region, the national capital of Port Moresby hosts the Hiri Moale Festival, where up to 100 Lakatoi canoeists race as local women sing and dance.

To Moresby’s east lies Milne Bay Province, a luscious collection of islands and reefs fanning out from the diving town of Alotau. Tawali Resort, beautifully perched atop a reef, is a diver’s paradise. With the region’s designation as a tourism hub and frequent visits by cruise ships, Alotau and its surroundings will be abuzz with activity. Among the province’s most renowned destinations are the Trobriand Islands, known for their matrilineal social structure, the amorous yam festival and a gladiatorial variant on cricket.

Farther out to sea from the shores of Milne Bay lies the Conflict Islands atoll. This pristine, undeveloped and uninhabited 21-island paradise is making a name for itself. Panasesa Resort gives the discerning traveler access to the best diving and fishing, turquoise waters, sandy beaches and a rich ecological marine habitat. Pri-vately owned plots of land, and even whole islands, are now up for sale and development. The U.K.-based Australian owner is keen to work closely with interested investors to develop the islands, while also safeguarding the environment and contributing to PNG’s socio-economic development.

The northern coast, known as the Momase Region, hosts New Guinea’s longest river the Sepik. The tribes along its banks are well known for producing incredible works of art. Among these, the Kaningara in East Sepik Province are particularly renowned for their unique skin-cutting rituals that leave the tribe’s males with marks on their backs resembling a crocodile’s scales.

The backbone of New Guinea island is provided by a chain of mountains. The Highlands were the last to be explored and certain tribes were still uncontacted as late as the 1970s. With soaring mountains sprinkled over vast alpine meadows, the area is home to hundreds of tribes, many of whom flock to the Eastern Highlands’ provincial capital of Goroka each year to participate in the Sing-Sing Festival, an opportunity to show off traditional dances and costumes in front of the country’s media.

The Islands Region is located northeast of the mainland. New Ireland’s Nusa Island Retreat is renowned for surfing and diving. Scuba Ventures Kavieng has been operating there since 2000 and offers guests unique diving.

The island of New Britain saw action in both world wars but is particularly noted for battles fought between Japan and Australia in the 1940s. History enthusiasts should not miss out on the diving opportunities there, as many war wreckages are still accessible by sea. Walindi Plantation Resort is the province’s best dive shop and has even hosted National Geographic crews filming Kimbe Bay’s underwater world.

Ambua Lodge, near Tari in Southern Highlands, offers breathtaking views PNG has some of the best diving in the world

Active volcanoes, unrivaled biodiversity, 800 languages, 600 islands on turquoise-blue seas, rain forests and icy mountaintops—could a traveler wish for more?

The Land of a Million Journeys

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apua New Guinea’s journey to global competitiveness begins with the restoration and renovation of its rural airstrips. And, as Steven (DS) tells Business Outlook (BO), from there, the government will focus on revamping and upgrading its

international gateways.

BO: How important is civil aviation to the government’s developmental road map?DS: Civil aviation has played a key role throughout our country’s history. During the 1930s and 1940s, Morobe Province expe-rienced a gold rush. During that time, civil aviation records show that there was more cargo carried between Lae and the surrounding mining towns than the volume of all of the world’s aviation cargo put together. This nation was built on a base of civil aviation, which remains a prior-ity area for the government today.

Around the time of independence, we had an effective rural airstrip network, which was amongst the best in the world. We had about 700 rural airstrips, which were performing very well. Ten years after independence, however, the decline began. Today, we have only 200 working airstrips. Given the remoteness of many of our provinces and towns, we recognize the pressing need for developing our rural airport infrastructure.

Our nation’s economic vision, our plans for a broad-based economy, development of the agricultural sector, and social service improve-ment all dictate the urgent need for a major improvement of our civil aviation sector. We are now fine-tuning our transport sector plan, which stipulates the need to connect and coordinate health care, education,

agriculture and, of course, transportation. Our policy for civil aviation is almost complete and will be launched in 2014.

We received a large allocation from the budget—around 1.2 billion kina—for the upgrade of our airstrips. One of my acts as Minister was to centralize the supervision of airstrips to ensure they are never again neglected. The Na-tional Airports Corporation, the Civil Aviation Safety Author-ity and PNG Air Services Limited are now also working to ensure that our national airstrip network will be sustainable and well taken care of.

BO: Can Papua New Guinea become a viable aviation hub for the region?DS: Yes. The dynamics are there, the strategic position is there and the opportunity is there. We have 22 airports, of which 16 are ICAO-certified and meet all international standards. My plan is to have the remainder certified by the end of 2014. All provincial centers will have an airport with international safety standards applied. The stra-tegic plan foresees our airports becoming modern and self-sustaining institutions.

As for our national capital, and Jacksons International Airport, we are developing an airport city concept; a runway extension and inter-national terminal modernization, along with many other improvements, are planned. Hotels, shops and restaurants will follow. The same plans are in store for the airports in Lae and Mount Hagen.

Connectivity between the whole of Papua New Guinea and our neighbors is about to drastically improve. A link between Rabaul, our designated tourism hub, and Australia is already operational. I foresee Australian flights coming in from Brisbane and Cairns into Lae, Mount Hagen and Milne Bay, aside from Port Moresby and Rabaul. We also have great potential as a transit hub for the South Pacific Island coun-tries. My vision is to build the infrastructure to make Jacksons an efficient and commercially viable port, through which passengers can connect and journey onto the many Pacific Island states. I have already received support from my counterparts throughout the Pacific region, who would also like to see Papua New Guinea be used as a transit hub.

“PNG was built on a base of civil aviation and it remains a government priority.”Davis Steven, Min. of C.A.


Air Niugini, the flagship of Papua New Guinea

Managing Change and Rethinking the Future “We are moving from airstrips to airports!” says Minister of Civil Aviation davis Steven as he prepares his country to one day launch itself as a regional aviation hub.

Davis StevenMinister of Civil Aviation

Department of Civil Aviation - The Civil Aviation Safety Authority (CASA)P O Box 1941, Boroko, Port Moresby, National Capital District 111, Papua New GuineaTel: +675 325 7320 | Fax No(s): +675 325 1789 | [email protected] | www.casapng.gov.pg

P

PHOTOCREdIT- PNG TOuRISM PROMOTION AuTHORITy



The O’Neill-Dion government has demonstrated many times its ambitious plans for PNG’s future. From the improvement of education and health services and the maintenance and construction of hard infrastruc-ture such as roads, ports and airports, through to the development of more power plants and the curbing of

bureaucracy, it is bringing the country closer to the goals outlined in the national “Vision 2050” plan.

What also stands out about this administration is the emphasis it has placed on ICT as a means to an end. To this government, and to Minister of Communication and Information Technology Jimmy Miringtoro, ICT is the most effective and efficient means of implement-ing and achieving change—in fact, many of the government’s plans and much of its vision are entirely underpinned by the rolling out and developing of a modern, affordable and far-reaching ICT infrastructure.

In an unprecedented move in the country’s history, the government has allocated a significant amount to the Ministry of ICT for the 2014 fiscal year.

In the past, Telikom PNG, a state-owned company, had the market monopoly but failed to roll out adequate infrastructure and engage the population. Since market liberalization began in 2007, however, the ICT landscape has changed dramatically, and there have been a number of new entrants, including Digicel.

“Digicel came in with know-how, technology and capital, and today they are regarded as a highly successful company,” the Minister says. “I therefore encourage more international companies to come and grow their businesses here.”

One of the main projects Miringtoro and his team are working hard to develop is an integrated information system to assist the government in its day-to-day business. “The system will connect all government departments to one central database,” he says, “providing them with accurate and timely information and facilitating intragovernmental communication.”

Other projects in the pipeline include a high-speed fiber-optic broadband network, done jointly with technology partner Huawei, which will go some way to fulfill Miringtoro’s plan to see the whole country digitally connected. “PNG’s terrain—its mountains, forests and atolls—certainly make the provision of ICT services a challenging task,” he says. “For this reason, I am a strong supporter of satellite

technology. We are seeking ICT-advanced part-ners to help us make this dream a reality.”

A New BougainvilleThe Minister is also championing an ICT-focused approach for the development of Bougainville, the island from which he hails. Named after French navigator Louis Antoine de Bougainville, the island is the largest within the autonomous region of Bougainville, which has a rich and, at times, tumultuous history.

In 2020 the people of this region, which changed hands many times before independence to ultimately be incorporated into PNG in 1975, will be asked through a referendum if they wish to remain part of PNG or form their own island-state. Minister Miringtoro is convinced that ICT can tap into the potential of different sectors of his island and is advising the President of the autonomous government to invest 20 million kina every year for five consecutive years in an ICT infrastructure platform for the island.

The solutions that a sophisticated ICT platform will bring can be applied to develop Bougainville’s agricultural, mining and tourism potential, he says, adding that “if Bougainvilleans harness the power of ICT and utilize it wisely, they will one day outperform mainland PNG!” Meanwhile, Miringtoro urges companies and partners from around the world, and Britain in particular, to be part of PNG’s transforma-tion. “The nation is about to receive a sizeable ROI on its LNG project, which will be reinvested into strategic sectors, including ICT,” he says. “I would like to see U.K.-based partners become part of this growth, help transform our ICT sector and connect us to the world.”

Connecting Papua New Guinea to the WorldFor the first time in its history, Papua New Guinea gives information and communications technology (ICT) due recognition with unprecedented development funding.

Jimmy MiringtoroMinister of Communication & Information Technology

Ministry of Communication and Information TechnologyTropicana Building, Gordons Industrial Area, P O Box 1122, Waigani, Port Moresby, National Capital District, PNG Tel: +675 325 7615 / 3819 | Fax: +675 3257615 | Email: [email protected] | Website: www.nicta.gov.pg

Play-back: Papua New Guinean performers watch themselves on screen

“I would like to see U.K.-based partners become part of this growth and help transform our ICT sector.”

Jimmy Miringtoro, Minister of Communication & Information Technology



With steady and consecutive rising gross domestic product figures and tourism num-bers, and with two major events being hosted by Papua New Guinea within the next five years, air traffic to the beautiful South Pacific Islands is set to increase exponentially

over the coming years.An integrated multimodal transportation system is essential for

any growing and emerging economy, but in this respect, Papua New Guinea is facing challenges that foreign investors can easily turn into opportunities. The country’s aviation infrastructure is currently under-going a major expansion and renovation process in order to cater to the 2015 Pacific Games and the APEC summit in 2018. Both events will thrust Papua New Guinea into the international spotlight as people responsible for more than 60% of the world’s gross domestic product pass through Jacksons International Airport.

National Airports Corp. (NAC) is therefore determined to enhance the existing international gateways to the country and develop new ones in order to satisfy the demand as the airports are put to the test. NAC owns and operates 22 airports throughout the country’s main provincial headquarters and is regulated by the Civil Aviation Safety Authority. Located in the National Capital District, Port Moresby’s Jacksons International Airport is the gateway to the whole of Papua New Guinea, and as such it is likely to be the first and last place visi-tors set foot during a trip to the country’s shores.

The leaders of the country, through NAC and its current manage-ment, have set the bar high: They want to establish an integrated commercial and community hub around the airport that will be diversified, vibrant, iconic, secure and will add great value to the sus-tained growth of the airport and the capital. A runway extension and modernization of the international terminal are just two of the major

improvements in the pipeline, while exciting and world-class hotels, shops and restaurants will follow.

Jacksons International Airport, also known as Port Moresby Air-port, is located five miles from the capital. It is the largest and busiest airport in the country and the main hub for national airline Air Niugini, as well as the main hub for Airlines PNG.

Other airports throughout the country will also be enhanced, with the aim of attracting more international flights, visitors and investors to their respective regions. These include Lae, Madang, Tokua (Rab-aul), Kargan, Gurney in Milne Bay Province (which is scheduled to be-come PNG’s second international airport), Wewak and Goroka. Mount Hagen Provincial Airport has now been declared an international port of entry because of the mining activities in the Highlands provinces.

Looking Ahead With “Every day take a step ahead to succeed” as its motto, NAC over the next 10 to 30 years, in line with the national “Vision 2050,” will focus on improving safety, security and convenience for users of airport services and the traveling public. It will also invest in capacity building, modernization and growth. Once the basic infrastructure is in place, given Papua New Guinea’s strategic geographic location be-tween Asia and Australia and in proximity to the Pacific island states, the country will make a huge stride toward becoming an aviation hub.

PNG deserves international attention. It is positioning itself to engage with the international community and investors. It is a country that is increasingly engaging in global issues, business, commerce and trade, and it is ready to break loose and go forward. British and international investors are encouraged to engage with the country, to be part of a wave of transformation, and to assist it in the further development of a sophisticated and technologically advanced airport infrastructure throughout.

The Sky Is the Limit for Airport CorpSuccess looms on the horizon as Papua New Guinea’s aviation industry moves up a gear.

National Airports CorporationPO Box 684, Boroko, National Capital District, Papua New Guinea, Level 1, Domestic Terminal, Port Moresby International Airport, 7 Mile, Port Moresby, NCD, PNGTel: +675 324 4753 | Fax: +675 325 0870 | www.nac.com.pg

Rising up—Jacksons International Airport transformsAir Niugini has rapidly expanded in recent years



ith more than half a million inhabitants, the Southern Highlands Province (SHP) is not only the most populous and culturally rich province of PNG, but it is also home to a large part of Exxon Mobil’s pioneering PNG LNG project, which has seen $19 billion invested in the country and rep-

resents the largest sole investment in its history. Furthermore, Prime Minister O’Neill, along with many other high-ranking officials, hails from SHP, making this centrally located area both an economically and politically critical province of the Pacific island nation. SHP is also a nature lover’s paradise, with new species of fauna and flora regularly being discovered in the more remote mountainous and rain forest-covered areas.

The province entered the spotlight in 2012, when three of its districts were joined to form the new Hela Province and when William Powi became SHP’s governor. Powi set out on an ambitious restructuring program to make the provincial government more cost-effective and efficient and ensure sustained government service delivery.

Under Powi’s guidance, officials crafted the “Master Development Plan”—a 20-year vision setting out policy priorities and targeting pro-

vincial administration structure, law and order improvement, social sector development, youth empowerment, and physical and financial infrastructure development. It was so effective that the province almost immediately noted significant improvements in the provision of health care and education services and a general improvement in government efficiency.

As SHP continues to develop, new opportuni-ties for entrepreneurs and the private sector are emerging. Governor Powi is particularly eager to collaborate with international experts and inves-tors in the area of oil and gas investment. “There

is tremendous potential for U.K.-based private companies in the energy sector,” he says. “We have the land and the resources; we now need com-panies to develop them.” Furthermore, having recognized the importance of education in the socioeconomic development of the country, the Governor is also eager to collaborate with international partners to improve the quality of education in SHP and the rest of PNG. He also underscores the critical role of government in laying the foundations for growth and development: “I welcome expert guidance and invite all those interested to consult with us on government transformation and reform,” he says. Powi explains that development in SHP and PNG will be attained through “a holistic transfor-mational change designed to build the necessary structures and equip the people with the capabilities required to achieve their maximum potential during their lifetimes.” He is committed to ensuring that SHP develops to become an economic pillar of PNG as it continues to thrive.

Forward-thinking and Full of Great PotentialFollowing a series of critical reforms and the launch and gradual implementation of a master development plan, the Southern Highlands Province’s future is bright.

Ugia Kembo- Acting Provincial AdministratorWilliam Powi - Governor Southern Highlands Province

SHP Government P.O. Box 247, MendiSouthern Highlands Province, PNG | Tel. +675 7108 2509

Building a Strong and Prosperous

Southern Highlands

William PowiGovernor, Southern Highlands Province

W

apua New Guinea’s rain forest is the third largest on the planet after the Amazon and the Congo. Its size, and the richness of its fauna and flora, can perhaps only be compared with the diversity of the 800-plus languages spoken by the 1,000-plus

tribes living throughout the country. These tribes have, for thousands of years, consid-

ered the rain forest a natural supermarket, one that continues to provide them with fruit, vegetables, clean water and other foods. On top of it all, the forest has some 15 million hectares of high-quality hardwood, suitable for development, processing and export.

The leadership of the country, with the PNG Forest Authority at its helm, is eager to capitalize on this precious resource and invites investors to consider setting up shop in PNG.

The forestry sector is already a major contributor to the coun-try’s GDP. The Forest Authority, and its managing director, Kanawi Pouru, are sculpting a legal framework that will accommodate

more market entrants—all of this, of course, while applying the most stringent policies to ensure that the forest is preserved and lasts for generations to come.

“I want to be sure that PNG has appropriate policies and legal framework in place. Forestry laws need to keep up with the fast pace of change occurring all around us and must safeguard sus-tainability,” Pouru says.

Since 2007, PNG exports of processed wood products have increased by over 200%, and they are expected to continue growing. Raw logs, sawn timber, veneer sheets, plantation logs, plywood, processed timber and woodchips are highly sought-after

and have made PNG the second-largest exporter of tropical logs in the world.

“At the moment, our forestry products are destined mostly for Asia and the Oceanic regions, while our European market share is small,” Pouru says. “I look forward to growing it. We would like to enter into a free trade agreement with the European Union and the United Kingdom for our timber products, much like we did for our fisheries exports.”

Rising to the ChallengeEnsuring the sustainability of PNG’s forestry activities

may seem like a challenging process but Pouru is certain it will be relatively simple.

“We will plant trees,” he says, “and once we are able to implement this approach, we will move businesses away from the natural stock into plantation stock, which will in turn preserve our rain forest. With high rainfall and a lot of sunshine, our forests and plantations are able to replenish after six months.”

The future for PNG’s forests and the forestry sector is bright, and the PNG Forest Authority is developing 240,000 hectares of commercially viable forest plantations, due to be completed by 2030. As many as 4,000 hectares are expected to be developed by foreign investors, who will also be encouraged to invest in downstream wood processing, thereby creating jobs for the people and adding value to the country’s forestry sector.

Juggling the demands of the people of PNG for development, service delivery and progress while the international community calls for preservation of the world’s third-largest rain forest is without a doubt daunting. Yet the Forest Authority and the country’s leadership are implementing a plan that is set to satisfy both sides.

“We are a big island with a great deal of diversity in our people and our culture,” Pouru says. “We are implementing a balanced plan that will allow the bulk of our population to take advantage of the changes that come with progress, while also preserving the heritage and the rainforest for future generations.”

“Forest laws need to keep up with the fast pace of change occurring all around us.” Kanawi Pouru, MD, Forestry Authority


84% of Papua New Guinea’s landmass is covered by forest.

A Sustainable Forest, a Sustainable Future With 30 million hectares of its total land area covered by forest, Papua New Guinea is eager to develop this natural resource sustainably.

Kanawi PouruMD, PNG Forestry Authority

Papua New Guinea Forestry AuthorityP.O. Box 5055, Boroko, NCD, Papua New GuineaTel: +675 327 7841 | Fax: +675 325 4433 | Email: [email protected] | www.forestry.gov.pg

P

PHOTO: ESTEFANIA MEdINA ClEMENT




There is much excitement in Papua New Guinea today. The nation continues to register high-growth figures, which, for the most part, are attributable to the PNG LNG project now completed, as the first LNG cargo was exported to Asia ahead of schedule, in May 2014.

Agriculture, in the meantime, continues to add quietly to the nation’s growth, engaging an estimated 82% of the country’s people and contributing 25% to the country’s gross domestic product. There is a saying among locals that goes: “Drop anything in the ground and it will grow.” So it comes as no surprise that in the past, the Papua New Guinean economy was underpinned by the agricultural sector. PNG’s climate and high seasonal rainfall, good-quality soil and low-intensity farming methods make for a favorable environment for agricultural activities.

Over the past decades, the sector has been neglected, however, and the new O’Neill-Dion administration, with Tommy Tomscoll steering the Ministry of Agriculture and Livestock, plans to conduct a complete review and revitalization of the sector. While achieving food security will be the long-term goal of the changes to come, the Minister foresees increased yields, more employment opportunities for the country’s citizens and the introduction of business-venture-like management methods in the immediate future.

Tomscoll’s first reforms have targeted the organizational struc-ture. He began by reducing the number of regulatory boards from 12 to seven, to ensure a more coordinated approach and to promote what he calls connectivity. “There were no links between the farmer and buyer, the buyer and exporter, the exporter and the market, and there was almost no government involvement,” he says.

Other Tomscoll initiatives include the introduction of crop-stabilization funds, a change from grants to input subsidies and a reform of credit facilities. The Minister has also prepared a tailored approach for each of the country’s present and potential cash crops. While the investment opportunities are diverse and include projects in rubber, tea, cardamom, vanilla, chiles, spices and many varieties of tropical fruits and vegetables, the Minister has earmarked several areas for overseas investors, as described below:

COCOA: Now that the Agricultural Research Institute of PNG has reen-gineered the cocoa pod to be resistant to the pod borer, a pest which has caused PNG’s cocoa output to fall from a peak of 20,000 tons to 4,000 tons today, Minister Tomscoll is planning a mass initiative to plant tens of thousands of trees in 2014. The sector is set to take off and slowly but steadily, to reach and surpass its former output peak.

COFFEE: There has not been a new entrant into the coffee market in PNG in 20 years, due to entry barriers and export bans. One of Minis-ter Tomscoll’s first moves was the removal of these entry barriers and bans—and the opening of the market to international companies, to encourage competition, bring in technology and maximize the potential of farming this lucrative crop.

LIVESTOCK: With steadily rising domestic meat consumption, and a comparatively-low disease risk, PNG is ready to develop its local beef farming industry. While the poultry and pig industries are well estab-lished, opportunities also exist in sheep, goat and rabbit farming.“I wholeheartedly encourage international investors to consider PNG’s beef sector,” the Minister concludes.

MAIzE: Galvanizing one of the world’s most popular crops, the tender to develop PNG’s first maize plantations was released at the end of 2013. Minister Tomscoll has high hopes for this commodity as produc-ing it locally will reduce the price of stock feeds, which account for a staggering 60% of the price of milk in PNG.

RICE: Although many say that PNG will never become a rice-produc-ing nation, Minister Tomscoll ardently argues that it will. As the cost of labor in PNG is high, he plans to develop mechanized rice farms and is convinced that within a decade, PNG will evolve from a rice importer to an exporter.

PALM OIL: Palm oil is the country’s most valuable export crop. The government is determined to make the most of its ideal geographic position to meet the rising demand in Asian markets and Australia and New Zealand. New Britain Palm Oil is the largest producer in the country and is listed on the London Stock Exchange. “I invite more interested companies to enter PNG’s oil palm sector,” Tomscoll says.

Watering the Nation’s RootsPapua New Guinea is going back to its roots and turning the agricultural industry up a notch. With barriers lifted and new reforms, there has never been a better time to grow your business.

Tommy TomscollMinister of Agriculture and Livestock

Department of Agriculture and LivestockP O Box 2033, Port Moresby, National Capital District, PNGTel: +675 321 3302 | Fax: +675 321 1387 | www.agriculture.gov.pg

A copra farmer hard at work on his small-scale farm.

Political stability, a judicial system

based on English common law, a

favorable fiscal landscape and Com-

monwealth membership, together

with an abundant supply of natural

resources, all render Papua New

Guinea an ideal investment destina-

tion for British businesses looking for

opportunities in the oil and gas sector.

Thus far, only the Papuan Basin, a

section of the Northern Region Ba-

sin, and the Highlands have been

opened for exploration and de-

velopment. The remainder of the

Northern Region, the Highlands,

Bougainville Island, the border areas

between Papua New Guinea and

Australia, together with the offshore

territories, have yet to be explored.

Papua New Guineans value honesty

and trust above all else. Any foreign

visitor or company in the country

is treated with the utmost respect

and appreciation and it is part of the

country’s DNA to wholeheartedly

embrace all those who set foot here.

In light of the global demand for

LNG and oil, we invite our highly

regarded British partners to join us

in more strategic energy partners-

hips and look forward to a mutually

beneficial, sustainable future for all.

A resource rich nation

Ministry of Petroleum and Energy Papua New Guinea P.O. National Parliament Waigani, NCD

Port Moresby, Papua New GuineaTel: +675 327 75 05 | Fax: +675 327 74 80

www.petroleum.gov.pg

hrewd investors have long understood that places change. Papua New Guinea’s outdated reputation as an unsta-ble business destination has haunted the immensely resource-rich nation for far too long, and a remolding of its international image is long overdue.

With vast quantities of gold, oil, copper, coffee, cocoa and copra, the tropical seaside state has traditionally punched beneath its weight due to a perceived level of social instability, an obsolete analy-sis perpetuated by certain biased media. Papua New Guinea faces the standard set of issues that developing nations grapple with—sanitation, infrastructure, environmental protection and more—but suffers addition-ally from its relative invisibility on the world stage.

Contrary to popular opinion, the country’s growth is only partially attributable to its exports of resources and minerals. Papua New Guinea should, however, stand out as a cornucopia for extraction sectors and a golden frontier for the tourism, agriculture and fishing industries. There is a real potential for PNG to become a food basket for Asia and Australia. While the reasons behind the positive results are many, the government is credited for its adherence to prudent fiscal policies and good macr-oeconomic management.

The country is fortunate to have a well-regulated, robust and rapidly developing financial services sector that is expanding into rural areas and developing products to encourage the financial inclusion of the urban poor, of whom 85% remain unbanked. To ensure that his country contin-ues to grow sustainably, the governor of the Central Bank, Loi Bakani, is keen to see fiscal and monetary policy carried out in a planned manner in line with the country’s needs and in a way that safeguards macrosta-bility while ensuring minimal inflation and maintaining price stability.

Looking ForwardThings are not how they used to be, and in 2014 the future is looking bright. Over the years, however, numerous international institutions have doubted the country’s growth potential, and in doing so, hindered the process.

In 2003, Papua New Guinea’s government appealed to the IMF and the World Bank for developmental funds and was turned down by both. “International institutions did not believe in us, nor did they want to help us finance our development strategy,” explains James Marape, Minister for Finance.

With Papua New Guinea’s inflation rate being 31% at the time, the economic organizations’ reluctance to bankroll a state notorious for instability was justifiable, but the country’s immense progress over the last 11 years demonstrates both a willingness to change and the potency of Moresby’s policies.

Under step one of “Vision 2050,” called Medium Term Development Plan, the government has pledged to unlock useful land, improve con-nectivity between rural communities and markets, tackle problems of law and order, enhance health care and education, and help provide clean water for all the country’s citizens.

The state is also negotiating directly with private enterprises in order to further long-term development. In March 2014, the government took on the lucrative business venture of purchasing a 10.01% stake in Oil Search Limited (OSL) with a 3 billion kina (AUS$1.239 billion) loan

from Swiss bank UBS. This renders the state the second-largest investor in the company, which could be great for the whole nation’s population.

“This loan was obtained so our people, through the government, can own a part of this strategic company Oil Search, and be a direct player in the development of our vast petroleum resources,” O’Neill explained. OSL is currently working closely with a number of international busi-nesses—such as Exxon Mobil, Santos and Nippon Oil—on the PNG LNG project, of which it owns 29%.

The venture is predicted to double the country’s GDP and triple its export revenues. “What we have done is simply position ourselves to benefit from the growth of Oil Search and the continued development of our petroleum resource into the future,” the Prime Minister disclosed. “Papua New Guinea cannot remain to be a bystander while others con-tinue to reap the benefits of our resources. We must have the full benefit at every opportunity.”

PNG‘s deal with OSL, which has been negotiated with an unprec-edented degree of transparency and endorsed by international financial institutions, demonstrates that the country is committed to fighting its corrupt image and to attracting more international world-class inves-tors. The first cargo of LNG departed PNG’s shores for Japan ahead of schedule. This milestone in PNG’s post-colonial history is symbolic of many achievements, but perhaps most significantly it demonstrates that the country is capable of exceeding expectations and delivering a world-class product. “This is the defining moment to show the world just what



Emergence of the Last Frontier The O’Neill-led government is encouraging the international private sector to take a closer look at what makes this Pacific island nation a hot spot for investment.

Natural gas from Hides has started to flow to the LNG Plant in Port Moresby

Ex

xON

MO

bIl

PN

G l

IMIT

Ed

S

“Through hard work, we set out to prove the international community wrong and nurture a better image of our country.”

James Marape, Minister of Finance



Papua New Guinea is capable of,” says Peter Graham, managing director of Exxon Mobil PNG Ltd., the operator of the project. Once running at maximum capacity, PNG LNG is set to produce a colossal 6.9 million tonnes of gas a year. With numbers like that, it looks as if O’Neill’s move will pay off even before the end of his administration. While the whole world applauds PNG’s impressive economic feats, the country is also making a name for itself as an advocate of human rights as outlined in the UN Convention Relating to the Status of Refugees, to which it is a signatory. The Australian-run asylum-seeker processing center in Manus is cause for concern for the nation’s leaders, while its harsh detention-

like conditions are the subject of nationwide debate. In a letter to PNG’s Minister for Foreign Affairs and Immigration, the Governor of the National Capital District, Powes Parkop, urged the government to adopt a more human and morally superior approach at the center. He argued that “it is not a crime or offense to migrate,” that “many great nations of the world are enriched by immigrants” and that “it is human nature to seek better life for oneself.” In an impassioned appeal, he urged the country’s leader-ship “not to allow Australia to wash its hands of this matter and leave the burden to us [PNG’s people].”

The colonial days of exploitation are eroding away, and the country is finally crafting its very own unique identity on the world stage—not only one of an economic heavyweight, but also of a compassionate nation that respects the rights of all people. PNG is today entering an era of co-operation with foreign powers, organizations and companies, ultimately a win-win for everyone involved.

Geopolitically ImportantBridging Asia and Oceania, Papua New Guinea is of immeasurable strategic importance. To its south lies Australia, its former colonizer and the 12th-largest economy in the world. Across its western border is Indonesia, founding member of ASEAN and 16th on the list of global GDPs. PNG, together with Fiji, is part of the E.U.-Pacific Development Partnership, and through hosting the Pacific Games in 2015 and the 2018 APEC summit, the country is sending the clear message to the world that it is rightfully a regional leader.

July 2014 will see Prime Minister O’Neill lead a high-ranking delega-tion to Brussels, the heart of the E.U. Talks with newly elected E.U. leadership are to focus on trade and private-sector development, water and sanitation, education, rural development, job creation, infrastructure and, most important responsible sustainable development, which is a common pillar in both parties’ growth agendas. Perhaps the fact that the PNG delegation will be one of the first to meet the new E.U. parliament and its president is no coincidence, but rather a sign of Papua New Guinea’s rise on the geopolitical stage and a signal to the world that the Pacific island nation is ready for mutually beneficial partnerships across various economic and political fields.

Papua New Guinea is also reaching out to the U.K. as an economic partner. The countries’ ties span more than a century, and they are

Gulf Province was the first in Papua

New Guinea to put in place a blueprint for

growth in line with National Development plans. With

long-term investment in key areas as our mission, we welcome

foreign partnership in many

different areas. As home to the main industrial and commercial port in PNG and a third of the Great Barrier Reef, the opportunities for trade and tourism are as endless as our shores.

Gulf Province opens up to investment, opens up to the world

Government of Gulf ProvincePO Box 2013, Port Moresby

National Capital District, PNG Tel: +675 323 8034 / 7270 1177

Fax: +675 323 [email protected]

“This is the defining moment to show the world just what Papua New Guinea is capable of.”

Peter Graham, Managing Director of Exxon Mobil PNG Ltd

particularly close today; both are part of the Commonwealth, share H.M. Queen Elizabeth II as head of state and are governed under English common law. “The rule of law under British common law continues to be supreme in Papua New Guinea today, after 39 years of political inde-pendence,” says Sumasy Singin, the country’s Consul General in Sydney. And finally, one cannot forget that Papua New Guinea’s national sport is the English game of rugby league.

In 2012, Prince Charles visited Port Moresby, even learning enough TokPisin to impress the locals. The following year, British Foreign Office Minister Hugo Swire addressed the nation from the Royal Papua Yacht Club, stating: “Papua New Guinea already has the largest economy of any of the Pacific islands and has the resources and the potential to grow even more rapidly. A partnership with the U.K. will help to drive this long-term economic growth—offering trade links, access to European markets, increased foreign investment and world-class expertise in the protection and sustainable development of natural resources.” Over the last five years, PNG has seen a 70% increase in the number of registered British companies operating in the country, and the enthusiasm goes both ways. “The U.K. is a natural partner for trade and cooperation with Papua New Guinea,” explains the country’s High Commissioner in London, Winnie Anna Kiap.

Papua New Guinea is still seen by some as a volatile and precarious investment destination, but companies that insist on holding onto this view might miss the boat. “Through hard work, we set out to prove the international community wrong and nurture a better image of our coun-try,” Marape explains. “It is a long process and we are still improving, but I believe that soon the whole world will look at our country in a better way.” As colonial prejudice fades away, the true potential of the land of the unexpected might eventually be appreciated by the world.

With such a great abundance of natural and cultural riches, an ocean of investment opportunities for the savvy businessman and -woman, and a genuinely friendly population, one cannot help but won-der if Papua New Guinea is the best of both worlds or, perhaps, just the best in the world.

If there were one solution to the obstacles on Papua New Guinea’s journey to socioeconomic development, it would be education. From problems relat-ing to law and order to unemployment and many others, the government is putting its faith in future generations of educated Papua New Guineans to tackle the nation’s issues head-on. It has allocated more than 20% of its 2013 and 2014 budgets for the improvement of education provision and standards throughout the country.

While the government currently enjoys a steady revenue flow from its mineral and resource extraction projects, it is conscious that it must reinvest this wealth into other sectors and ensure a qualified and capable human resource base available to run and administer them.

Former Education Minister James Marape, who is also at the helm of the country’s Finance Ministry, is a man with a critically important mission. Twice he has assumed the government’s education portfolio and been responsible for the development, improvement and oversight of the country’s basic education sector.

Marape knows that education is power and convincingly affirms that it will bring a “river of change” to Papua New Guinea. He is also the country’s No. 1 advocate for technical and vocational education and training.

During Marape’s previous tenure as Education Minister, the country saw school enrollment rates rise from 53% in 2008 to 74% in 2012. Today, roughly a quarter of the country’s children remain outside of classrooms, and those who are enrolled in schools rarely have access to appropriate learning tools and materials, such as books or an Internet connection. “We may be faced with significant challenges, but the government has recognized education as a vital driver of change in this country,” he says.

Marape is also aware that in 2015, when PNG is due to benchmark its performance against the targets set out by the United Nations Millennium Development Goals, his country will fall short of the 100% basic education enrollment target. Nonetheless, he is enthusiastic that PNG’s recent move to make basic education free for all children will bear fruit in the future. “We should reach enrollment rates of between 85% and 90% by 2015, and, thanks to compulsory and free education policies now being rolled out to the islands’ most remote communities, 100% by 2017,” the Minister says.

There may well be obstacles along the path to PNG’s soci-oeconomic development, but the government is dedicated to this mission. “We must have a healthy, wealthy and educated PNG,” the Minister passionately concludes. “And without education, that is impossible to achieve.”

Free Education Will Bring “River of Change”

James MarapeMinister of Finance

Papua New Guinea Department of Education Fincorp Haus, Waigani, Port MoresbyNational Capital District, Papua New Guinea Tel: +675 301 3555 | Fax: +675 325 4648Email: www.education.gov.pg/email_us/index.htmlWebsite: www.education.gov.pg

We would like to thank the government of Papua New Guinea for continuously supporting and believing in this promotional cam-paign, and the locals, as well as the expatriates, who have helped make this project a reality.

Written and compiled by Estefania Medina and Robert RomaniukWith contributions from Sam Nallen Copley and IMPS Research



Prince Charles on his fourth visit to PNG in 2012

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Department of Treasury of Papua New GuineaDepartment of Treasury, P.O. Box 542, Waigani, N.C.D, Port Moresby, PNG

Tel: +675 312 8817/8811/8812 | Fax: +675 312 8844/[email protected] | www.treasury.gov.pg

B u s i n e s s i n p a r a d i s e

papua new Guinea may be on the other side of the world, but growing global interest in this resour-ce-rich land and a business-friendly landscape make it seem much closer to home. With precious minerals, gas, fisheries and a host of other solid investment opportunities, the proud nation’s time has come. as it focuses on building a sustainable future, the department of Treasury is helping the government achieve its economic and investment objectives by providing prudent management of the economy, and timely and influential advice that establishes an enabling environment for the effective implementation of policies. pnG invites foreign investors and public-private partnerships

to help this natural paradise develop in its own unique way.

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