Page 37 - IB AUG 2018

Business Intelligence - PNG

China to fund cable project

THE Exim Bank of China will finance the construction of the
K661 million (US$200 million) PNG Kumul domestic submarine
cable project, says Minister for Public Enterprises and State
Investment William Duma.
He said this was being done in preparation for the Coral Sea
submarine cable from Australia in order to distribute increased
internet capacity nationwide. The Kumul cable will run from
Port Moresby, Alotau, Popondetta, Lae and Madang.
“We would like to thank the people of China, who through
the Exim Bank of China have agreed to fund this important
domestic project to the tune of US$200 million,” Duma said.
“Huawei is the company appointed to help us construct this
important project.”
The landing point is the Kila Police Barracks in Port Moresby.
Construction would be completed towards the end of the year.
Infrastructure will come under PNG DataCo as the internet
wholesale arm of Kumul Telikom Holdings.
“This is the construction of the landing site for both the Coral Minister for Public Enterprises and State Investment William Duma.
Sea submarine cable from Australia all the way to Papua New Photo: postcourier.com.pg
Guinea, and the Kumul domestic submarine cable that we are
embarking on,” Duma said. Meanwhile, the PNG Government has considered geopoliti-
“The Australian government has agreed to help the Govern- cal tension in the region as it partners with nations to build
ment of Papua New Guinea by funding most of the cost of the telecommunication infrastructure, says Duma.
cable from Sydney to Port Moresby. I have been advised that the “The risk is always there, but as a country we have systems
Australian government has selected a company called Vocus, in place to minimise them,” Duma said. “They are inherent in
which will be responsible for the construction of the cable to everything that you do, particularly to do with communications.
PNG as well as to Solomon Islands. We are grateful to Australia The communications industry has that issue of people playing
for continuing to help us when we need them.” with other systems. They want to check and see what others
Papua New Guinea is expected to contribute 10 per cent of the are doing and it is up to us as a country to develop systems to
total cost for the construction of the Coral Sea submarine cable. protect our sovereignty.” - Pacnews

Currency shortage persists He said the wants to be in the country for the long term for
DESPITE various interventions by the government in the foreign further cooperation and development in wider areas.
exchange market, the shortage continues to persist. This was
according to Bank South Pacific’s economic and market insight Bad tuna dumped
report for the June quarter. It noted over the past three months,
the PNG kina depreciated against the USD by 1.1% to 0.3040. RD FISHING Ltd in Madang has admitted it has been dumping
tuna not fit for human consumption. Vice-president and general
Against the Australian dollar, the kina appreciated by 3.2 per cent
to 0.4144, reflecting broader based weakness for the Australian manager Arnel Gonato confirmed a Facebook post regarding
dollar. “Year on year, PGK/USD has depreciated 4.3 per cent or the dumping of hundreds of tuna near the company facility at
105 points while the PGK/AUD cross is 1.2 per cent or 50 points Vidar outside Madang. “The fish were discomposed and not fit
stronger. Foreign exchange market turnover of K8.8 billion for for human consumption,” he said. Gonato said disposal of the
decomposed tuna was part of normal operation processes of the
the second quarter was 26.9 per cent higher than the first quarter.
Turnover of K3.6 billion (US$1.10 billion) in June was the largest company which were approved by National Fisheries Authority.
month since May-13 when K3.7 billion (US$1.13 billion) was
recorded towards the end of the LNG construction phase.” Gas project in BP deal
AN ExxonMobil-operated gas project in Papua New Guinea has
Ramu Nico’s well placed agreed a deal to supply liquefied natural gas (LNG) to a unit of
The Ramu NiCo Project in Madang Province is strategically British oil giant BP (BPL), said Australia’s Oil Search Ltd (OSH.
located for the growing economic relationship between China Ax), a partner in the development. The agreement, starting this
and PNG. This was pointed out by chairman of Ramu NiCo month, will provide BP with about 450,000 tonnes of LNG an-
Management Limited Zong Shaoxing during a luncheon with nually over an initial three-year period, rising to about 900,000
the project’s landowner representatives and the company man- tonnes for the following two years, Oil Search said in a statement.
agement in Madang. Zong said with China’s “One Belt, One It did not give any value for the deal. “(The move) takes the total
Road” initiative now in place, relationship between countries contracted volumes from the Project to approximately 7.5 MTPA
are becoming more interactive, and Ramu NiCo being the larg- (million tonnes per annum),” said Oil Search Managing Director
est Chinese investment in the Pacific region, the company is Peter Botten. The agreement comes a month after Oil Search an-
obligated to enhance the relationship between China and PNG. nounced a similar deal with PetroChina Co Ltd.

Islands Business,August 2018 37