Page 7 - IB October 2021

Briefs Briefs

and power company Tesla to supply 42,000 tons of nickel for administration information system, train staff, and deliver a
use in batteries. Prony plans to double its nickel output by public information campaign to increase taxpayer understand-
2024 to produce 44,000 tons annually. New Caledonia’s prov- ing and compliance.
inces have a majority stake in the company, and Swiss-based
commodity trader Trafigura is also a shareholder.
Tokelau
Tokelau has welcomed the landing of its new submarine cable
Niue which links the islands to the Southern Cross NEXT Cable. It
Niue Power expects to open its new power station at Tuila brings fast, reliable internet to Tokelau for the first time,
in early 2022. The $2 million (US$1.4 million) power station according to authorities. A domestic cable is also to be built
project is funded by the Australian government. Construction between Nukunonu, Atafu and Fakaofo, allowing all three
has been hampered by COVID-19 related border closures and atolls to benefit from increased connectivity.
supply chain issues.

Tonga
75 candidates have registered for the Tonga General Election
Palau on 18 November, and more than 64,000 voters have regis-
Palau’s new Value Added Tax (VAT) system will come into ef- tered to cast their votes for the 17 People’s Representatives.
fect in January 2023. “Our tax system was inherited from the Sixteen incumbent members are among the 75 candidates
United States and is now an outdated and inefficient method for the People’s seats. 12 of the candidates are women.
of assessing taxes, managing records, and measuring our eco- The Nobles will also choose their nine representatives on 18
nomic output. Most of our foreign trade and investment part- November.
ners already use a Value Added Tax system, and now we will
join those partners and many other Pacific Island nations in
adapting to a new tax system,” President Surangel Whipps Jr Vanuatu
told lawmakers. The new tax law imposes 10% on all imported The Vanuatu National Provident Fund (VNPF) intends to set
goods upfront with some exceptions.
up offices in Australia and New Zealand to serve employees
participating in the labour mobility schemes. The plan will
come before Parliament’s next sitting. VNPF is also consider-
Papua New Guinea ing offices in Fiji and New Caledonia.
The PNG Electoral Commission needs K400 million(US$113 mil-
lion) to run next year’s National General Election says Prime
Minister James Marape. “Having a free, fair and safe election
is better than thinking of the cost involved in running it,” he Region
said. Meanwhile PNG Parliament Speaker Job Pomat has sug-
gested the poll be deferred for a year. He said that the PNG Australian telco, Telstra has partnered with the Australian
Electoral Commission(PNGEC) is not ready and that COVID is government to buy Digicel’s South Pacific businesses for
still taking a toll on the country. $US1.6 billion, finalising negotiations that have been under-
way for some months. Telstra will contribute a fraction of the
purchase price, $US270 million of equity to the purchase price
but will be the owner and operator. The remaining US$1.33
Samoa billion will be fronted by the Australian Government, through
Seven Samoan by-elections have been scheduled for 12 No- Export Finance Australia, through a combination of non-
vember. The polls will be held in electoral constituencies that recourse debt facilities and equity like securities. Digicel says
were declared void after electoral petitions. Electoral Com- the transaction is expected to be complete in the first quarter
missioner Faimalomatumua Mathew Lemisio said there are of 2022 subject to regulatory approvals.
more than 16,800 registered voters in the seven districts. Digicel operates in Papua New Guinea, Fiji, Samoa, Vanuatu,
Tonga and Nauru. The sale will see no change to the Digicel
brand, and no changes to the management team, although
Solomon Islands Irish founder Denis O’Brien will join the Board of Directors of
Solomon Islands Prime Minister Manasseh Sogavare says Cabi- the newly formed holding company in order to provide some
net has set a target of 90% full vaccination coverage to reopen continuity.
its international borders.

Work is underway to overhaul Solomon Islands’ tax system. A
US$20.1 million, 5-year Domestic Resource Mobilisation Proj-
ect will restructure the tax administration, install a new tax

Islands Business, October 2021 7