Contents · Kumul consolidated Holdings has received a feasibility study from Salini Impregilo (a global industrial giant) specialising in dams; hydro electric plants, hydraulic works,

We had a successful meet and greet—147 respondents and a total headcount of

115 on the evening. In this issue – Aid for Trade work plan. As at 16th February

2016 -Minister Rimbink Pato has recalled all Heads Of Missions (HOM) to brief them

on the government’s 2016 priorities. Business Council has been invited in a plenary

session to discuss with them on private sector engagement and outlook on the re-

gions and economies they administer.

Phil Franklin

President 2016

ELECTED EXECUTIVE COMMITTEE

OFFICE BEARERS

President: Phil Franklin

Vice President: Richard Flynn Secretary: Jonathan Seeto

Treasurer: David Guinn

EXECUTIVE COMMITTEE MEMBERS James Kruse : Deloitte Touche Tohmatsu

Mark Baker: ANZ Bank

Steve Patrick: Gadens Lawyers Bruce Avenell: American Insurance Group

Geoff Toone: Westpac Bank Mark Hitchcock : Rio Tinto

Greg Worthington-Eyre: Trukai Industries

Andrew Barry : Exxon Mobil PNG Geoff Scahill: Abt JTA

Matt Lewis: Hornibrook NGI Ltd

EX OFFICIOS Ex Officio : David Knapton Austrade

Ex Officio: Bruce Davis Australian High Commissioner

SECRETARIAT Corporate Services Manager: Nalini Nandanhallt Accounts Administrator: Naomi Stanley

Mess age from the P res iden t

Events Calendar:

3 March 2016

Ministerial forum Canberra

*2nd Quarter Meeting

28 April 2016

venue: INA Boardroom

32ND PNG AUST BUS FORUM

(CAIRNS) 15-17 MAY 2016

* 3rd Quarter Meeting Execu-

tive Committee 2016 —3 Au-

gust 2016

* 4th Quarter Meeting Execu-

tive Committee 2016 — 5

December 2016

FEBRUARY 2016 Volume 2, Issue 2

Presidents Report

Work Programe:

Business and Development

Round Table

TVET

TB

AID FOR TRADE

32nd PNG AUST BUS FORUM

CAIRNS

Media Summary

sponsors

contacts

2

2

4

5

6-7

Contents

Page 2

Volume 2, Issue 2

PRESIDENTS REPORT

QUARTERLY MEETING SCHEDULE—APNGBC (PNG)

Annual Meet and Greet—APNGBC (PNG) Wednesday, 3 February 2016

Phil Franklin President

Quarter 1 Wednesday, 3 February 2016 Q1 Meeting GRAND PAPUA HOTEL MEET AND GREET FUNCTION

Quarter 2 Thursday 28 April 2016 Q2 AGM INA Boardroom

Quarter 3 Wednesday 31 August 2016 Q3 Meeting Venue to be confirmed

Quarter 4 Monday 5 December 2015 Venue to be confirmed Xmas Drinks for the Exec Committee @AUSTRADE RESIDENCE

FEBRUARY 2016

Our Meet and Greet was successful, we had 147 respondents and 115 attended. As a re-sult we believe we have signed up 6 new members. We appreciate sponsorship from Cardno and ANZ Bank. The following firms have indicated an interest in joining 1. Twivey Lawyers– contact: Lata Milner/Cath Porter 2. Hawicks - contact: Neil Abel 3. PNG Air—contact Muralee Siva 4. South Pacific Airconditioning—contact Rob Doyle 5. Rhodes PNG—contact - Tracey Head 6. AGL Builders Ltd— contact Andrew Avenell Ministerial Forum Business Dialogue The Australian Minister for Foreign Affairs Julie Bishop will co-chair the Business from 5.30 to 6.30pm on Wednesday 2 March. Business participants will also be invited to a reception with Ministers, commencing at 7.00pm at Parliament House. Ministers Robb and Ciobo have agreed to attend. It is not yet clear which Papua New Guinea Minister will lead and which others will attend. A business caucus preparation meeting ahead of the actual Busi-ness Dialogue, will take place Wednesday 2 March 2016. National Press Club Address: Prime Minister Peter O’Neill Phil Franklin along with other representatives of the business community will be attending the Prime Minister Peter O’Neill address at the National Press Club on Thursday 3 March 2016. APNGBC (Australia) Meeting Executive Meeting Thursday 18 February 2016, Phil Franklin attended the APNGBC Executive Committee meeting with Australian aid sen-ior officials in Sydney, followed by the APNGBC Executive Committee Meeting. A presentation was made by Ms Carla Ewin, The Stakeholder Company, Singapore.

Page 3 Volume 2, Issue 2

WORK PROGRAM 2016

BUSINESS AND DEVELOPMENT ROUND TABLE TVET subcommittee Update Next meeting date to be advised. Mapping questionnaire circulated to members 16 Feb 2016. TB Subcommittee Update —No action this month AID FOR TRADE Subcommittee Update APNGBC (PNG) is preparing some agenda points for the next Aid for Trade meeting. Nalini attended the National workshop on WTO notification requirements Port Moresby 27-29 January 2016. The following questions were posed to the workshop facilitator Serafino Marchese Chief, Course Design and Training Section, Institute for Train-ing and Technical Cooperation WTO, Geneva Q1: What potential benefits there are for PNG if it were to bring up to date all its reporting obligations under the WTO? A1: If PNG were to meet its WTO notification obligations, it would definitely increase transparency of its trade policy and bring more predictability in business operations. Interested business would know in advance, for instance, which procedures are applied to check goods at customs, which customs and other duties are levied, how goods are valued for customs purposes, which sanitary and/or technical standards they have to meet, etc. Q2: What immediate resourcing is needed to address this area? A2: It is difficult to estimate the resources that would be needed because they will depend on whether there is a need or not to change the legislation that is in the books, adjust or not procedures and institutional settings, for ex-ample are there or not accredited labs to test samples for compliance with sanitary regulations?, etc. Once PNG is in compliance with WTO Agreements, the preparation and follow up of the mandated notifications should be part of the normal duties of a few professionals with the "right" background and experience in key ministries/agencies. Per-sonally, I would rather allocate any extra resources available to ensure the implementation of WTO Agreements, in particular the Trade Facilitation Agreement. Q3: How the private sector can support this endeavour in PNG? A3: In some countries there are trade committees where the private sector is asked to provide inputs for the nego-tiation and implementation of trade agreements. In this context, the private sector can also signal concrete situa-tions that need to be addressed, what needs to be done in order to benefit from specific negotiation results, etc. Capacity building—Trade function in Trade Division (Department of Commerce and Industry) The EU funded technical assistance to trade related assistance program in 2015 identified significant challenges arising from

lacking the requisite capacity to manage trade policy and trade activities

Lack of coherent trade policy framework

Weak institutional structure

Under capacity

Poor co-ordination The APNGBC needs to be part of the stakeholder co-ordination mechanism:

Trade working Groups

The Trade Policy Advisory Group

TRADE PASIFIKA Nalini met with Asif Chida (UNDP) and Alisi Tuqa, Pacific Islands Private Sector Organisation is liaising with Private Sector Peak bodies to prepare for a regional trade show to be held October 2016 (mid). The event is anticipated to cover 2-3 days, have a forum presentation with speakers and approx 40 trade booths. Speakers will be selected around the topics of SME development; Fair Trade; Women in Business in the Pacific and Youth entrepreneurship.

To download the full brochure for programme outline registration form to attend as a delegate, book a tradebooth, place an advertisement , please go to website: www.apngbc.org.pg

FEBRUARY 2016

Volume 2, Issue 2

Page 4

FEBRUARY 2016

Economic & Infrastructure

PNG Power network issues have contributed to the ongoing power outage in Port Moresby. Generation capacity for Port Moresby

has increased; it is the network through which the power supply is distributed that is affecting the electricity flow. The A$1 million

(K2million) Airborne Integrity Inspecting being carried out the Aeropower was to help address these issues on the transmission

lines. to check and verify the conditions of the lines and associated hardware. This will allow PPL to plan its resources to undertake

maintenance. PPL has started doing its ground work on the LNG 50 megawatt power plant, including the substation at Gerehu.

Source: The National, 10/02/16, p6

Kumul consolidated Holdings has received a feasibility study from Salini Impregilo (a global industrial giant) specialising in dams;

hydro electric plants, hydraulic works, railways and metro systems, railways and metrosystems.– covers dam construction, road,

bridge infrastructure (replacement of 42 bridges) between dam and Lae. 1800 mw dam is proposed expected to commence 2016

and completed by 2023.

PNG Chambers of Mines and Petroleum has expressed changes that are being proposed in the Mining Act as it could curtain future ex-

ploration and development activities. Greg Anderson-Executive Director stated that PNG was fortunate that some major advanced pro-

jects are still being considered for delveopment in the next 3-5 yeas at a time when many projects worldwide are losing money and shut-

ting down. Post CourIer 12/2/2016 p 27

An Australian has been appointed as the third Deputy Police Commissioner who will work alongside the two national appointees,

Raphael Huafolo and Jim Andrews. Alan Scott, who was the former assistant Commissioner of the Australian Federal Police Pro-

gram in the country was appointed by the National Executive Council. He is the third deputy Commissioner of the Royal PNG Con-

stabulary responsible for Reform, Training and APEC. Source: Post Courier, 10/2/16, p1

Manusupe Zurenoec has been appointed Chief Secretary—Post Courier page 3 8/2/2015

Food Safety—Professor Saverio Mannino EU funded trainer under Trade Related Asisstance Program (phase 2—K22 million)

Import Ban—PNGCCI has urged PM O’neill to lift the Import ban. Australia’s total vegetable export trade to PNG was worth $3.8m

(K8.2m in fin year 2014-2015) - if the ban remains the loss could add up to this value —Post Courier page 23 , 22/1/2016.

Page 5 FEBRUARY 2016 Volume 2, Issue 2

Bilateral Affairs, Trade & Investment

Each month the APNGBC NEWSLETTER provides a summary of local media and issues that we consider relevant news to our members . These Media Reports do not necessarily reflect the views of members.

MEDIA

Manus

5 refugees have found work with the assistance of JDA Wokman and Goodman Fielder and Lae Builders..

MINING ACTIVITIES MRA MD Philip Samar reported in the Post Courier Monday 1 Feb 2016. 2015 was a good year despite price slump and reduction in exploration spending

Simberi Production Increase of 100%

Kainantu and Tolukuma Mines New operations scheduled to commence commercial production within next 2 years.

Crater Mountain Commenced production 2015.

Ramu Reaching 90% capacity.

Porgera / Lihir Despite drought, landowner and safety setbacks are increasing production

Barrick Gold Concluded its strategic partnership with Chinese government Zijin Mining and commenced exporting Pryrite

Nautilus Progressing development of key infrastructure ie pivotal mining vessel) design and build contract workshops held in 2015. Wet testing planned for 2016. Integration of the sea floor equipment into the vessel planned for 2017 Com-mercial mining to commence 2018.

Freida River Pan Aust taken over by majority Chinese shareholder – this company will submit Mining lease application 2016.

Wafi / golpu deposit Newcrest and Harmony have settled on a 2 stage approach - . An SML application may be lodge this year.

Mining

The annual Operation Open Heart has started this week at the Port Moresby General Hospital. To support local doc-

tors and nurses, a team from Australia has returned to our shores to work towards restoring heart defects in patients,

some as young as two-years-old. Four small visits are planned for this year, this is the first visit with another visit

planned by Australian team in June and July and Singapore teams will visit in June and October. Australian co-

ordinator Dr Russell Lee said that no other country has embraced the Open Heart Operation like PNG. Source: Post

Courier, 10/02/16, p5

The firstever Women’s clinic is being set up by the National Capital District Health Services. Detection of cervical can-

cer will be undertaken via Visual Inspection with acetic Acid and also pap smear. Meripath, an Australian based non-

Government organisation had been doing pap smears for public health facilities throughout the country.

UPDATE ON PACIFIC LEADERSHIP PROGRAM The program is part of the Pacific Leadership & Governance Precinct under the partnership arrangement between the government of PNG and Australia and is focused on promoting value based and ethical leadership. Palladin are man-aging Contractors (Education Capacity Development Facility) —Bob Stanley Team Leader. The specific tar-geted beneficiaries of the program are the executive leaders at the departmental and within state agencies. A team from University of Queensland (UQID) that comprises of Australian and Papua New Gui-nean consultants who are now working closely with the DPM, UPNG and PNGIPA are consulting with other stake-holders eg APNGBC for input on the content of the program, selection of the participants and the drafting of the pro-gram - Dr Orovu Sepoe, Ms Wallis Yakam, Mr Anton Neinaka before 28 Feb 2016. NAQIA has a new managing Director Joel Alua (Biosecurity)

PNG Air Serivices Coporation has signed a K55 million contract for 2 projects 1) Secondary surveillance rada to replace the old one 2) Installation of a new dual high frequency radio facility at NAZDAB to improve clarity and range on the airspace. Contractor Indra—funded by ADB managed by—project duration 18month Link PNG has resumed serice to Girua Airport (Popondetta Oro Province) Pacific Helicopters has taken delivery of the first 3 H145 Helicoptors. (leased from Waypoint Leasing and reassembled at Air-bus Group Australia Pacific’s Sydney facility.

Chamber President—Alan McClay Lae CCI said the JICA k200M aid to PNG Power to strengthen the power transmission on teh Ramu Grid was vital to Lae. JICAs involvement in putting togheter a master plan for THE Lae—Nadzab Urbanisation is much needed as it has hitherto been unplanned, putting a strain on existing facilities.

JICA in collaboration with EDA RANU and Kumul Consolidated Holdings has started work on the sewerage system upgrading project—it is funded under a loan arrangement for K369 million - for the (Joyce Bay treatment plant + rehabilitation of 9 pump stations). Scheduled completion date is 2018. (NJS Consultants/Dai Nippon / Hitachi are project consultants.

MAY 2016 - 8TH African Caribbean and Pacific (ACP) Leaders summit scheduled for May 2016—Port Moresby - (Post Courer 12/2/2015).

2018 APEC Summit—Port Moresby— (Post Courier 12 Feb 2015 p 7.).

Page 6 Newsletter Title

Health

MEDIA SUMMARY

Goveranance

AVIATION

ELECTRICITY

MAJOR REGIONAL MEETINGS: ACP / APEC

SEWERAGE UPGRADE—POM—coastal area

Page 7 FEBRUARY 2016 Volume 2, Issue 2

Established in 1980 the Council is a non-profit association of Australia-based businesses with interests in Papua New Guinea. The management of the Council is vested under the constitution in an Executive Committee, headed by a President

and three Vice-Presidents, elected at an Annual General Meeting of members.

The Council’s goals are to advance the interest of Australia business in Papua New Guinea by:

1. increasing trade and investment between Australia and Papua New Guinea;

2. encouraging the further development and expansion of the Papua New Guinea economy;

3. representing Australian business interests to the Australian and Papua New Guinea governments;

4. providing a network of business people with shared interests in Papua New Guinea.

Australia Papua New Guinea Business Council PNG

PO Box 1621, Port Moresby NCD

Level 2, IPA Haus, Lawes Road, Konedobu

Phone: 321 0966/321 3057

Mobile: 7283 4313

WHAT IS THE AUSTRALIA PAPUA NEW GUINEA BUSINESS

HO W D OE S THE C OUNC I L AC H IE VE I TS G O ALS ?

The Council advances Australian business interests in Papua New Guinea through:

the holding of trade, investment and information seminars on Papua New Guinea:

participation in regular bilateral Ministerial talks to discuss major policy issues of concern to Australian busi-

ness;

submissions to government on policy matters affecting Australian business interests in Papua New Guinea:

the receiving and sending of trade and investment delegations between Australia and Papua New Guinea:

dissemination to members of information on current economic, political and social developments in Papua New

Guinea:

providing access to a network of Australian businesses with long experience in Papua New Guinea with whom

members can seek and share information.

PNG PUBLIC HOLIDAYS— 2016

New Year’s Day— Friday, 1st January

2016

Good Friday— 25th March 2016

Easter Saturday— 26th March 2016

Easter Sunday— 27th March 2016

Easter Monday— 28th March 2016

Queen’s Birthday—Monday, 13th June

2016

National Remembrance Day

Saturday, 23rd July, 2016

National Repentance Day

Friday, 26th August 2016

Independence Day

Friday, 16th September 2016

Christmas Day

Sunday, 25th December 2016

Boxing Day

Monday 26th, December 2016 Tuesday 27th, December 2016

(XMAS DAY)PUBLIC HOLIDAY Office closed from Friday, 16 December 2016 - Sunday 1st January inclusive. Office reopens Monday, 2nd January 2017.

Have you visited our website?

www.apngbc.org.pg

Nalini Nandanhallt Corporate Services Manager

Australia Papua New Guinea Business Council (PNG) Tel: + 675 321 0966

Mobile: +675 7283 4313 Email: [email protected]

Naomi Stanley

Accounts Administrator Tel :+675 321 0966

Mobile: + 675 725 76047 Email: [email protected]

Volume 2, Issue 2