Page 33 - IB September 2018 Edition

Business Intelligence - PNG

Chinese influence a ‘wake-up’ call

CHINESE signs on Port Mores- to develop.”
by bus stops are one indication This time last year, Chinese investments in PNG reached
of Beijing’s growing influence more than US$1.9 billion. Beijing recently committed about
and investment in the country US$4 billion to build a road network connecting PNG’s capi-
and should be a wake-up call tal Port Moresby to its economic hub Lae. This is critical as
for Australia, warns the head there is currently no significant road connection between
of a major oil and gas company. these cities.
Oil Search chief executive Papua New Guinea signed up to China’s Belt and Road
Peter Botten said China had Inititative in June this year, and the country owes China
been investing in Australia’s nearly US$2 billion arising from concessional loans, accord-
nearest neighbour as part of ing to the ABC - nearly a quarter of its total debt.
its global US$1 trillion Belt and While Australia is still the number one provider of foreign
Road infrastructure (BRI) building programme. The BRI aid providing US$390 million in 2017, a recent Deakin
involves hundreds of infrastructure projects co-funded and University paper noted that Papua New Guineans viewed
mostly built by China in 70 or more countries. “Chinese aid as more effective.”
He warned that China’s increasingly heavy investment “Australia needs to recognise reality: China is rising,”
there risks Australia missing out on PNG’s rapid develop- the paper stated.
ment. This was supported by the Lowy Insitute’s Pacific Islands
“China has stepped up their support and this has been project director, Jonathon Pryke, who said Australia needed
welcomed by the Papua New Guinean government. They’ve to reassess its relationship with PNG, which was a former
built new roads and schools, they’ve spent substantially. colony of Australia.
It’s a new dynamic in the country,” Botten said. “Whereas in Australia the perception of our relationship
“This is a reasonable wake-up call for Australia, and with PNG has been a challenge, China is viewing it as an
they should look at how they can help Papua New Guinea opportunity,” Pryke said.

Air Niugini mounts Japan to Micronesia service the output from those funds.”
AIR Niugini has started a direct flight from Narita in Japan to PNG raises bar in APEC visa
Chuuk in the Federated States of Micronesia. Sixty passen- THE Peter O’Neill Government has raised the bar for an APEC
gers, mostly Japanese tourists, boarded the first flight from visa with its most efficient e-visa processing system for the
Narita this month. On arrival, another 60 passengers joined 2018 APEC year. APEC economies attending the women in
the flight to Port Moresby. Most passengers continued to other economic forum have shared their sentiments about the new
Air Niugini destinations in PNG and Australia. Air Niugini system with one of the officials saying: “Chile will now have
general manager Commercial Services Dominic Kaumu said to live up to this standard.” Chief migration officer Solomon
the inclusion of the route was a strategic move as it provided Kantha told the Post-Courier that there was no need for APEC
an opportunity not only for Japanese divers and visitors, but delegates to walk into one of our overseas diplomatic missions
also for those in Europe and North America to travel to the or to travel to a country which has a PNG mission to get a
region. “This service also feeds our regional network includ- visa prior to traveling to PNG. “As long as the delegates have
ing Honiara in Solomon Islands, Nadi in Fiji and Port Vila in gone through the necessary checks and accreditation process,
Vanuatu as well as destinations in Australia,” Kaumu said. they instantly receive an e-visa travel authority in their email
“This flight also provides convenience for the Japanese divers, and get on a plane to PNG right away.”
tourists and even business people from both Japan and FSM
to fly direct instead of going via Guam. Australian SAS for APEC summit
SPECIAL Forces soldiers have quietly been deployed to Papua
Questions on Bougainville funds New Guinea as part of a massive Australian military and
PRIME Minister Minister Peter O’Neill says they have no re- policing effort to help secure Port Moresby ahead of Novem-
cord of how the Autonomous Bougainville Government had ber’s APEC meeting of world leaders. Senior Defence sources
spent US$61 million of its Special Intervention Fund (SIF). have confirmed elite Australian Army personnel are “on the
“That’s why we are withholding the balance of K300 million ground” amid concerns the PNG military is not adequately
and spending it on infrastructure projects on Bougainville,” equipped to control the large event. World leaders including US
he said. “One of the projects that we had used the funds on Vice President Mike Pence, Russia’s President Vladimir Putin,
was the reopening of the Aropa Airport.” O’Neill said he Chinese Premier Xi Jinping and Australian Prime Minister
did attend the joint supervisory meeting in Arawa and Port Scott Morrison are all expected to attend the two-day summit.
Moresby but could not recall agreeing to a commitment of “We have Australian Army and Australian Special Forces as-
US$134 million. “I’m aware of the ongoing projects. The only sisting the PNGDF (Papua New Guinea Defence Force), mak-
commitment I’m aware of was in 2010 which the US$153 ing sure the counter-terrorism provision of services is first
million was committed to. “I think the first K200 million was class,” a senior member of the Special Forces Command said.
passed through to the Autonomous Bougainville Government “We’re standing ready to support PNGDF to secure the APEC
and ABG managed those funds for projects on Bougainville. meeting and help PNG showcase the country to the world,”
Unfortunately, the national government did not see much of he added.

Islands Business, September 2018 33