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US expert: PNG has a long way to go in battle against corruption

December 5, 2013, 1:58 pm
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By MALUM NALU

Papua New Guinea has a long way to go in the battle against corruption, according to a visiting American anti-corruption expert, Robert Cerasoli.
Cerasoli, an expert in anti-corruption, rule of law, ethics, and has experience serving as inspector general in the US government, said this during a public lecture at the Institute of Public Administration in Port Moresby yesterday on the topic "What does it mean to be an Ethical Public Servant?".
Robert Cerasoli

The objective was to discuss the importance of ethics and professionalism in public service and highlight the role civil servants play in advancing democracy at a crucial time for PNG.
“Resources to achieve the goals (of government) are limited,” he said.
“Public servants are stewards of these resources.
“And they must ensure that these resources are used to achieve the goals effectively and efficiently as possible.
“They are the ones to prevent fraud, misuse and squandering of the resources of their government, the squandering of resources of Papua New Guinea.”
Cerasoli said over the last few days he had talked to several people in government and media, and the general perception was that corruption was a problem in the country.
“And, like many nations that I go to in Africa, the people say, ‘there is a culture of corruption’.
“Well, I don’t believe that, I don’t think you believe that.
“I think it’s a more-complicated story.
“I don’t think the people here, by nature, are corrupt.
“It doesn’t work like that.
“If we believe that we have the original sin of corruption in us all, then all is lost.
“So what does that mean? Where do we go from here? How do you think corruption starts? How has it become so insidious?
“Many people, public administrators in the field, have a difficult time defining corruption.”
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PNG a nation with huge and diverse energy sources, low access to electricity

December 7, 2013, 1:34 pm
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Lighting up 70 percent of PNG households by 2030 is challenging, but achievable

World Bank/Asian Development Bank

Deliberations last Thursday at the stakeholder’s consultation workshop on the guiding principles for the Papua New Guinea national plan (NEROP) to electrify 70 percent of households by 2030, and consultations on the electricity industry ‘rules of engagement, under the Third Party Access Code and the Grid Code, ended on a positive note that these can be achieved.



The Third Party Access Code provides the terms and rules for private generators to connect to Power PNG Limited (PPL) transmission systems and sell power to PPL and other customers. The Grid Code specifies a set of technical rules that will govern the connection to, use and operation of the country’s transmission system, and sets performance and safety standards for transmission equipment and operation.



Participants at the consultation workshop unanimously acknowledged that PNG has broad and diverse energy options that if harnessed through the right approach and attitude, and with the right cost and investment structures in place, the goal to light up rural and remote parts of the country that had been in in dark for so long is possible.



Papua New Guinea Prime Minister, Peter O’Neill, when opening the consultation workshop on the National Electrification Rollout Plan (NEROP) Wednesday, admitted that the country had done very well on the energy sector in the last 40 years, but said it is time to turn things around.



The Government reiterated the importance of encouraging the participation of the private sector in delivering the vitally needed investments to deliver a reliable and high-quality electricity supply to all in PNG.



The workshop’s keynote speaker was Eddy Njoroge, a former Managing Director and CEO of Kenya Electricity Generating Company who oversaw key developments that now result in Kenya providing electricity connectivity from 8 percent in 2003 to 26 percent of its households in less than 10 years.



Sixty percent of households in Kenya have access to electricity, and the country is working to achieve a 100% electricity access rate by 2020.



The attendees and relevant sector institutions present generally voiced strong support on the way forward in respect of the proposed organizing principles to guide the preparation of the NEROP; as well as the proposed scope and detailed design of NEROP’s operational pillars required for implementation.



The attendees also welcomed the introduction of the Third Party Access Code and the Grid Code, which encourage private sector investment in the industry by setting out the rules for connecting to and use of the power grid by new generators and which, together, will bring about greater clarity and transparency for investment decisions by private sector participants and for third parties other than PPL wishing to supply customers.



Several other presentations were made on areas of interest and the kinds of options that can be considered for successfully rolling out the NEROP, including the options for sustainable financing lessons learnt from the 20 year experience of the State Government of Queensland.



Development partners, including the World Bank Group and the Asian Development Bank (ADB) are providing support to Government in the areas of policy development, capacity building, and improvement of the necessary generation and transmission infrastructure.



World Bank Director for Sustainable Energy, Vijay Iyer highlighted the importance for the Papua New Guinea people and government to own and drive the program together, adding that development partners like the World Bank Group and ADB stand ready to support national efforts.



Mr. Iyer congratulated the PNG Government for putting in place important policies for energy development and for strongly supporting electricity issues which will have huge development and economic impacts in the areas of education and health, especially for women and children.



He said there is strong evidence to show countries that moved up the energy ladder have improved outcomes in living standards.



ADB Country Director for Papua New Guinea Marcelo Minc said the active participation of attendees at the workshop reflected the high profile the energy sector has in the development of Papua New Guinea’s economy.



“As ADB’s activities in Papua New Guinea scale up, we look forward to expanding our support to the energy sector in close coordination with our development partners,” said Mr Minc.



Mr Minc also highlighted the importance of government ownership of NEROP which will deliver affordable, reliable energy to the people of Papua New Guinea. 


A communique summarising workshop discussions and outline a timeline for immediate next steps for implementing the NEROP, the Third Party Access Code and the Grid Code was released at the end of the three days consultation. It captures discussions and feedback from participants representing PNG’s national and provincial governments, civil society groups, development organizations, private sector, and the industry on key areas for the development and implementation of guiding principles for the NEROP.
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Growing ADB-PNG partnership supports service delivery

December 7, 2013, 1:43 pm
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ADB

The Asian Development Bank (ADB) and the Government of Papua New Guinea’s growing partnership is based on improvements in service delivery capacity, a forum was told in Port Moresby last Friday.
The event provided updates on ADB projects and programs in PNG and discussed potential challenges and opportunities that will be faced by the PNG Government and its development partners in 2014.
“ADB’s activities in PNG have grown considerably over recent years. ADB is now PNG’s second largest development partner with a portfolio of $1.1 billion with 22 active loans, 17 grants and 2 private sector loan and equity operations,” said Noriko Ogawa, Deputy Director General of ADB’s Pacific Department.
The forum was told that ADB assistance is supporting the PNG Government’s growing investment in transport and renewable energy infrastructure and is complemented by targeted interventions to support rural health delivery, public financial management, microfinance and private sector development.
With infrastructure recording a 46% increase in funding in the 2014 Budget, the real challenge for the next year will be one of implementation and delivery, the ADB said. In response to these implementation challenges, ADB is working with the Government to deliver its support through larger and longer-term approaches that help create predictable sources of finance for executing agencies, encourages long-term investment planning, supports higher quality project preparation and provides partner agencies with resources to recruit and build-up local staff capacity over an extended period.
As of November 2013, disbursements for ADB supported projects in PNG totaled $152.3 million, up from $91.7 million in 2012.
Papua New Guinea joined ADB in 1971. It is ADB's largest partner in the Pacific in terms of loans for public and private sector development.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2012, ADB assistance totaled $21.6 billion, including cofinancing of $8.3 billion.


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PM: PNG mourning Nelson Mandela's death

December 7, 2013, 4:28 pm
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Statement from Prime Minister Peter O'Neill
The Government and People of Papua New Guinea join with me in mourning the passing of the most influential and inspirational statesmen of our time, the first democratically elected President of South Africa, Nelson Mandela.President Mandela ended the cruel apartheid era in South Africa – an era during which he was unjustly and harshly imprisoned for more than two decades – and by his leadership and his example he unified a racially divided nation to create the modern, democratic and multiracial South Africa of today.
Of all his many qualities, it was perhaps his unlimited capacity for forgiveness that stands out most of all. And he especially forgave those who mistreated him most of all.
It was his absolute forgiveness of the apartheid government that imprisoned him, and treated him unjustly and harshly for so long, that laid the foundations for the transition from decades of undemocratic apartheid rule to a robust democracy in a very short period of time.
His influence for good on our World continued as strong and as wholesome as ever in his retirement from public life – and it will continue as strong as ever even after his passing, when we remember the struggles he endured, and his fellow freedom fighters endured, just to gain the freedom and democracy we all too often take for granted.
Under President Mandela’s leadership, South Africa returned to the Commonwealth of Nations, and provided ready leadership for the developing nations of the World.
We mourn his passing, but we will always be in admiration of his leadership, his courage under enormous pressure, and the wonderful inspiration he has provided for so many, for so long.
The World is a better place for the life and times of Nelson Mandela.
To his family, and to President Jacob Zuma and the People of South Africa, the Government and People of Papua New Guinea extend sincere sympathy at the passing of the founder of modern and free South Africa, and the finest statesmen of our time.
May his soul rest in eternal peace.

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Total agrees to pay InterOil up to US$3.6 Billion in PNG LNG Deal

December 7, 2013, 4:50 pm
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James Paton, ©2013 Bloomberg News


Total SA, Europe’s third-biggest oil company, agreed to buy a stake in InterOil Corp.’s assets in Papua New Guinea in a deal valued at as much asUS $3.6 billion as part of a plan to build a liquefied natural gas project.
Paris-based Total will acquire 61.3 percent of a license that includes the Elk and Antelope gas fields in Papua New Guinea and get the right to invest in further exploration blocks, InterOil said last Friday in a statement. The deal is valued at US$1.5 billion to US$3.6 billion, depending on the size of the gas resources in the region, according to the statement.
InterOil has been searching for an international partner to help fund a Papua New Guinea natural gas project since 2009 and said in May that it had started discussions with Exxon Mobil Corp. to develop the fields. Exxon is building a US$19 billion LNG project in Papua New Guinea scheduled to start in 2014 to meet rising Asian demand for the commodity.
Total will operate the proposed LNG project, which will depend on the gas resources being certified and engineering and design work, according to the statement. InterOil said it will keep a 30 percent stake in the LNG development.
Payments to InterOil include US$613 million on the completion of the transaction, expected in the first quarter of 2014, and US$112 million after a final investment decision for a new LNG plant, InterOil said. Total will pay a further US$100 million after the first LNG cargo, according to the statement. Variable payments will depend on the size of resources, it said.
InterOil is advised by Credit Suisse Group AG.





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InterOil stock collapses after agreeing to PNG gas-stake sale

December 7, 2013, 5:02 pm
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Joe Carroll and James Paton
Bloomberg

 InterOil Corp. lost more than a third of its market value after agreeing to sell Total SA a majority stake in its Papua New Guinea natural gas discoveries for a price that won’t be known for at least a year.
The shares tumbled 37 percent to $55.50 at the close in New York on Saturday, the biggest decline since 2002.
InterOil will divest to Total a 61.3 percent stake in an exploration license in the South Pacific nation that includes the Elk and Antelope gas fields. The French oil producer also will acquire rights to invest in additional exploration blocks and to develop a liquefied gas export terminal, InterOil said in a statement.
InterOil priced the deal at $1.5 billion to $3.6 billion, though it won’t receive a definitive price until at least 2015, Pavel Molchanov, an analyst at Raymond James & Associates Inc., said in a note to clients on Saturday. “There are some elements of uncertainty/ambiguity,” still to be resolved, he said.
InterOil, which has no reserves after more than 10 years of prospecting, has been searching for a major international partner to help fund a gas-export complex since Bank of America Corp.’s Merril Lynch quit the project in 2009. InterOil said in May that it was in discussions with Exxon Mobil Corp., which is already building its own $19 billion gas terminal in the country.
LNG Decision
Total will operate the proposed LNG project, which will depend on the gas resources being certified and engineering and design work, the Paris-based company said in a statement on Saturday. InterOil said it will keep 30 percent of an LNG development.
A final investment decision to develop the fields and build an onshore liquefaction plant on the Gulf of Papua may come in 2016, it said. Total also has an option to take an interest in three other exploration licenses in the area. This comes in addition to the stakes in other offshore and onshore permits it already holds.
The planned LNG development would follow Exxon’s venture in Papua New Guinea, which is proceeding along with seven others in Australia that are estimated to cost about $180 billion. Exxon said earlier this year that it was interested in InterOil’s assets to help expand its LNG project.
Total reached a deal last year with Port Moresby-based Oil Search, which owns a 29 percent stake in the Exxon project, to explore for gas in PNG, while Royal Dutch Shell Plc said in 2011 it would look at opportunities in the country.
Gas Discovery
Elk-Antelope is one of the largest discoveries in Asia in the past two decades, InterOil Chief Executive Officer Michael Hession said in the statement. Phil Mulacek, who founded the Papua New Guinea exploration company, retired as CEO in April.
“PNG has very substantial gas resources, and this brings in a world-class LNG operator,” Tony Regan, a Singapore-based energy consultant at Tri-Zen International Inc., said today in a phone interview. “This deal will give people confidence that these reserves can now be monetized as LNG.”
Mulacek founded InterOil in the 1990s when he disassembled an Alaskan oil refinery, refurbished it in Texas and shipped it to Papua New Guinea. The refinery gave Mulacek a foothold to acquire exploration rights in the Eastern Papuan Basin.
Payments to InterOil include $613 million on the completion of the transaction, expected in the first quarter of 2014, and $112 million after a final investment decision for a new LNG plant, InterOil said. Total will pay a further $100 million after the first LNG cargo, InterOil said. Variable payments will depend on the size of the resources, estimated at 5.4 trillion to 9 trillion cubic feet of gas it said.
InterOil was advised by Credit Suisse Group AG. In its separate statement, Total said it will pay $470 million for a 42 percent interest in the PNG gas fields. The French company noted that the size of its stake may drop from 61.3 percent should a “strategic partner” acquire up to 19.3 percent interest and even further to 32.5 percent should the government join the project.
Total would pay an additional contingent payment of “approximately” $590 million, it said.
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Further 12 Australian Federal Police officers to arrive in PNG on Monday

December 7, 2013, 5:42 pm
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A further 12 Australian Federal Police (AFP) officers  will arrive in Papua New Guinea on Monday December 9 to work alongside their counterparts to boost community policing operations in Port Moresby and Lae.

Their arrival will increase the number of AFP officers working as part of the PNG-Australia Policing Partnership to 59.

Commissioner of the Royal PNG Constabulary Toami Kulunga welcomed the news of the arrival of the additional AFP officers, saying the partnership of between the RPNGC and the AFP has been going from strength to strength.

He said many Papua New Guineans including the rank and file of the RPNGC have expressed support for the program thus far.

Head of the AFP contingent Assistant Commissioner Alan Scott, "The goal of our enhanced mission is, in partnership with the RPNGC, to continue to develop the capacity of the RPNGC to provide sustainable and quality policing to the people of PNG." 

Assistant Commissioner Scott said that the 30 AFP officers who arrived in November have been working very closely with their RPNGC colleagues.

"AFP officers have been out with local police in a number of locations across Port Moresby in the last few weeks and the feedback I have received have been very positive," Assistant Commissioner Scott said.

The deployment will see an additional 50 AFP officers in PNG by the end of this year. The AFP officers do not have policing powers in PNG, but provide advice, guidance and assistance for a range of day to day policing matters.

Specific areas which will be supported include community policing, station management and supervision, community liaison, traffic operations, criminal investigations and dealing with sexual offences.

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PNG-Taiwan Alumni Association formed

December 8, 2013, 4:24 am
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A PNG –Taiwan Alumni Association has been formed to strengthen relationships between the two countries.
It is made up of Papua New Guineans who have been recipients of training in Taiwan over the years.
Uvenama Rova of the United Church has been elected as president while Janet Kaule of the National Development Bank has been elected as vice-president.
Rova, Hu and Kaule with other association members at the first meeting last Friday.

Taiwan Trade Mission representative Daniel Hu said at the first meeting last Friday that the association would help Taiwan as a growing development partner for PNG.
“Taiwan is a donor country to PNG,” he said.
“But we are different from other donors, we don’t do what we want to do, we want to do something that is needed in this country.
“So we need your input to identify those projects of mutual interest.
“That’s why I’m very happy to see that this association is formed today.
“I hope in future we can have regular meetings, formal or informal, so if you have any ideas you’re always welcome in my office.
“You represent different sectors of PNG.
“For us, we only have three people from Taiwan, so it’s hard to cover all the needs of PNG.”
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The write stuff

December 8, 2013, 4:53 am
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A group of enthusiastic toddlers graduated in reading last Friday at Waigani Christian School in Port Moresby.
The 100-plus toddlers, aged four, five and six, are kindergarten students who underwent a reading readiness class to prepare them for higher grades.
Some of the toddlers who graduated last Friday.


“Reading is the key to everything,” said school founder Benjamin Mul.
“Reading is the key to knowledge and information.
“When a child reads, and he or she goes to school, it will be easy for him or her to understand.
“But if a child doesn’t read, when he or she goes to school, he or she will be confused.
“We have reading readiness classes, which prepare toddlers, aged four, five or six to read before they go up higher.”
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Basil demands release of Bulolo district funds

December 8, 2013, 11:38 am
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By MALUM NALU

 Bulolo MP and Deputy Opposition Leader Sam Bail last Friday led a small but vocal group of supporters to Vulupindi Haus demanding the immediate release of his people’s district support improvement programme (DSIP) funds for 2013.
In heated scenes outside the building Basil, backed by Huon Gulf MP Ross Seymour and rowdy supporters, accused Finance Secretary Dr Ken Nangan of telling blatant lies and denying the people of Bulolo what was rightfully theirs.
Basil addressing Nangan as Seymour (centre) and supporters look on.

Basil made the outburst after Nangan said not all government MPs had received their K10 million, which he said was not true, as all government MPs had received their K10 million.
Bulolo and Huon Gulf have not yet received K7 million out of the K10 million, which Basil said was by virtue of him and Ross being in opposition, and gave a deadline of Dec 31 to pay up or he would up on again on Jan 10, 2014, with even more supporters.
“Many government MPs have not got their K10 million yet,” Nangan said.
“What I’m told is that, eventually, all the money will be paid out to the districts.
“I can assure everyone that I will make sure that every MP gets their K10 million, but again, I’m subject to the government of the day.
“I can assure you that this will be before close of financial year.
“I’ll make it my business to deliver the K10 million.”
Basil, however, didn’t accept Nangan’s remarks.
“This is wrong,” he said.
“This money belongs to all the districts.
“I have friends on the government side.
“They showed me their K10 million cheques.
“Secretary, you are telling lies to me and the Huon Gulf MP.
“Cheques were written out and they have been paid K10 million already.
“You are telling lies by saying that government MPs have not received the K10 million.
“Mr Secretary, you are lying to an MP.
“I want you to go and get the cheque from (Finance Minister) James Marape.
“I want the cheque, Mr Secretary, now.
“This money belongs to Bulolo district.
“Why, Mr Secretary, are you treating MPs like plantation labourers?
“These funds are supposed to go out to every district through electronic transfer and divided into four quarterly payments: K2.5 million first quarter, K2.5 million second quarter, K2.5 million third quarter, K2.5 million fourth quarter.
“To date, government MPs have received K10 million, while we opposition MPs have received K3 million.
“There are only six MPs in opposition, we are no threat to government, and we should not be punished further.
“Mr Secretary, I’m giving you until Dec 31, and if I receive nothing by then, you will see my face again here with a crowd 100 times bigger.
“We will not care if the police arrest us, we will come here and demand for what is rightfully ours.”
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K9 million worth of projects grind to a halt in Bulolo

December 8, 2013, 11:50 am
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By MALUM NALU

Bulolo MP and Deputy Opposition Leader Sam Basil says projects totaling up to K9 million in his electorate had come to a standstill because the government has still not released his electorate’s district support improvement programme (DSIP) funds for 2013.
 “Everything,” he said.
“K9 million worth of projects has stopped.”
The projects which have grinded to a halt include  rural policing, road maintenance, foot bridges, honey,  rural electrification, Garaina road K5 million, support vehicles for each LLG, mobile health, Leklu Bridge and Latu bridges, Balob Teachers College corporate sponsorship for next year, road from Wagau to Bumatu in Labu, eye operations for people in all LLGs, Bulolo Technical College sponsorship, livestock, sponsorship of training for Wau Mining School,  fuel for machinery, foot bridges, Buang hydro power,  drugs and various others.
Basil said he had only received K1 million this year, K2 million was still to be cleared, and K7 million was outstanding.
Last Friday, backed by a rowdy crowd of supporters, Basil fired a broadside at Finance Secretary Dr Ken Nangan at Vulupindi Haus,
“You are the Secretary of Department of Finance,” he told Nangan,
“Bulolo is one of the 89 districts, which has two mines that pay taxes to the government.
“Bulolo has people who are into alluvial mining, coffee, is home to PNG Forest Products and Zenag Chicken.
“We play a big role in the development of PNG, unlike many other districts, in terms of our taxes.
“The government last year passed the Appropriation Act, which says that all 89 districts of PNG will receive K89 million.
“From January up till December, Bulolo district has received K1 million and I got another K2 million, which is yet to be cleared.
“Practically, we have K9 million yet to be received.”
Basil said legal action was being sought for immediate release of outstanding funds with orders that Finance Minister James Marape pay all costs.
“We are taking court action,” he said.
“Our lawyer will take out a court order before Dec 31 to James Marape and his Secretary.
“We won’t stop there.
“As soon as the order is released, we will go further.
“Damage has been done: 12 months no projects.
“We will seek further orders that no more DSIPs be paid out in cheques and all payments must be paid out electronically at the same time.
“Payments must be made quarterly.
“We will seek a court order in that regards and we will pass on all legal costs to James Marape, not the Independent State of Papua New Guinea.
“The minister himself misused his powers in terms of delaying and instructing his Finance Secretary to delay the payments.
“We will ensure that he pays the full legal costs that the opposition will pick up.”
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Company singled out in Lae roads report

December 2, 2013, 4:48 pm
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By MALUM NALU
A private company NME International (PNG) Ltd has been singled out in a damning Department of Works (DoW) report into rehabilitation and upgrading of Lae city roads, which shows that  there was massive foul play in awarding of contracts amounting to almost K200 million.
The report has been given to Task Force Sweep by DoW to investigate.
The report reveals that four contracts were procured for Stage 1 amounting to K24.4 million,  12 contracts were procured for Stage 2 amounting to K104.3 million plus variations, an additional K28 million was appropriated in 2012 to settle outstanding claims, and additional funding of K27.39 million is require to complete the remaining balance of works.
The government only transferred the administration and management of Lae roads rehabilitation and upgrading to DoW in August 2012 to ensure successful completion of ongoing works.
Stage 1 works commenced in 2009 with contracts given to Dekenai Construction, East-West 1 Ltd, FTM Construction and Lae Engineering Ltd.
“In line with the National Government’s aspiration to upgrade the Lae City Roads to a Standard Urban City Road status, K50 million was allocated in 2010 supplementary budget,” the report says.
“By the virtue of the appropriation bill, the funding was allocated to DoW,  however, the projects were hijacked at the central agencies and Central Supply and Tenders Board (CSTB).
“NME International (PNG) Ltd (NME) was engaged as State’s representative to manage all aspects (design, procurement, project management) of these projects.
“A detailed audit has been undertaken to establish the project financial and physical status.
“The audit reveals that 12 contracts were procured which equates to K104.3 million, including variations.
“The State erred from the beginning by awarding contracts above the K50 million funding appropriation.
“Additional K28 million was appropriate in 2012 to settle outstanding claims certified by NME as well as completing the outstanding works under Stage 2.
“Most of these projects were procured under certificate of inexpediency (COI).
“There was no justification for the expedited procurement for such important projects.
“Ample time should be given for proper planning and technical design necessary to make informed investment decisions.
“Consequently, lot of ambiguities and variations has surfaced, thus DOW is doing its best to address and conclude these projects.
“NME scoped for concrete pavement works, a highly technical task.
“There was no proper design to guide contractors.
“Most contractors lacked experience in such projects and were not familiar in executing it.
“Inefficiency of unskilled contractors in concrete pavement and buildable design resulted in poor performance and slow progress.
“Engineers’ estimates were unavailable to compare and review the contractor’s prices.
“All contracts were awarded as per contractor’s pricing.
“These prices were further inflated by variations due to poor scoping and design.
“Department of Finance (DOF) paid over K30million in advance to contractors to commence work.
“Some commenced as expected, however other did not commence until October 2012.
“Due to misprocurement, some contracts have been suspended awaiting further instruction from CSTB.”
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Lae roads cost K200 million for just 20km

December 2, 2013, 5:04 pm
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By MALUM NALU

A Department of Works (DoW) report into rehabilitation and upgrading of Lae city roads shows almost K200 million has been spent on just 20km of roads, some of which are incomplete and have already started falling apart, from 2009-2012.
In Stage 1 alone, more than K24 million was spent on a little over 4km of roads, while in Stage 2 more than K104 million was spent on a little over 15km of roads.
The rehabilitation and upgrading of Lae City Roads - Stage 1 commenced around 2009.
The DoW was involved in the supervision of the following projects through their provincial establishment in Morobe province:
·         A 1.496km section of Huon Road junction between Milford Haven /Huon Road junction to Huon Road/7th Street junction for K9, 118, 558.87.This project was undertaken by Dekenai Constructions Ltd. This project was physically and financially completed. This project involved reconstructing the road from the sub-base layer to surfacing with double seal coat with asphalt surface finish;
·         A 1.466km section of Huon Road between 7th Street/Huon Road to Huon Road/Markham Road junction for K10, 279, 659.16.This project was undertaken by East – West 1 Ltd and completed both physically and financially although there were some delays and got completed in early 2011.
·         A 1km section of Boundary Road between Highlands Highway/Boundary Road junction to Boundary/Huon Road Junction for K3 million.This project was undertaken by Lae Engineering Contractor Ltd. Although the payments were made in full, physical work was not completed. The work under this project is still outstanding; and
·         A 0.7km section of Huon Road from Boundary Road to Bumbu Road Junction for 2.1km.This portion of works was carried out by FTM Constructions Ltd under the close supervision of Lae City Authority and Gure Kule Konsultants. The supervision was changed to NME Internationals and then to DoW at its final stages.

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Anti-corruption public lecture today

December 4, 2013, 12:12 pm
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The U.S. Embassy will be hosting a visiting speaker from December 2-6, 2013.  
 His name is Robert Cerasoli and he is an expert in anti-corruption, rule of law, ethics, and has experience serving as inspector general in the U.S. government. 
Robert Cerasoli

He will be presenting a public lecture today on the topic: "What does it mean to be an Ethical Public Servant? 

Thursday, December 5, 2013

What does it mean to be an Ethical Public Servant? (1 hour 30 minutes)

Location:   PNG Institute of Public Administration

Time:         2.30PM to 3.30PM

Entry:         Free of Charge

Objective: To discuss the importance of ethics and professionalism in public service and highlight the role civil servants play in advancing democracy at a crucial time for PNG.
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JICA to start repairing rural roads

December 4, 2013, 12:43 pm
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Japan International Cooperation Agency (JICA) will start a K40 million four-year project with the Papua New Guinea government to start repairing selected rural gravel roads in 2014.
JICA chief representative Shigeru Sugiyama on Monday announced the start of the project in Morobe, East Sepik, West New Britain and Western Highlands at a meeting with Department of Works (DoW) secretary, David Wereh, and representatives of Japanese consultants Ingerosec Corporation and Oriental Consultants Co. 
Sugiyama and Wereh at the announcement of the four-year JICA rural roads project yesterday.-Picture by MALUM NALU

The project seeks to assistant PNG, which is facing problems in road maintenance, by carrying out capacity improvement on its implementing agencies.
Through this, it hopes to strengthen to project implementation capacity of the DoW in-house staff in areas where private involvement is not involved.
According to a project overview, of the 8, 738km of roads under the jurisdiction of the DoW, 64%, equivalent to 5, 590km are national gravel roads which are the target of this project.
JICA will provide K32 million which provides for heavy equipment to revive the once-thriving plant and transport branch (PTB) and road building, while PNG will provide counterpart funding of K10 million.
Road sections of 10-20km will be built in the four provinces, meaning up to 80km will be built over the four years.
Sugiyama said research had shown that because of the limited number and excessive costs of domestic private contractors, 90% of the national gravel roads had been left in disrepair in PNG.
“This project seeks to assist PNG in tackling such road maintenance issues by carrying out capacity improvement on its implementing agencies,” he said.
“With the rural communities at the highest disadvantage to date, this project aims to break the hindrances caused by missing links in the main highway networks, and upgrade and maintain deteriorated and impassable national roads.
“With four implementing agencies, four target provinces, this four-year mission intends to strengthen the project implementation capacity of the Dow in-house staff through several crucial activities.”
Wereh gave a vote-of-thanks for the JICA support.
“We appreciate and acknowledge the support that JICA is giving,” he said.
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Oil Search in talks to join InterOil, Total in PNG project

December 9, 2013, 12:03 pm
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Seeking Alpha

Oil Search International (OIS) says it is in talks about getting involved in development of the Elk and Antelope oil discoveries in Papua New Guinea, which may contain more than 5T cu. ft. of natural gas.
Just three days ago, InterOil (IOC) agreed to sell a majority interest in the discoveries to Total (TOT) in a deal worth up to US$3.6B, depending on how much gas is confirmed to be there.
TOT had hinted at a selldown when confirming the deal with IOC but didn’t name a prospective partner; one way to facilitate OIS’s entry into Elk-Antelope could be an equity swap involving part of its stake in the Taza oil and gas discovery in Iraq's Kurdistan.
IOC +4.8%, TOT -0.6% premarket.
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InterOil's PNG LNG project heats Up

December 9, 2013, 12:13 pm
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Energy and Capital

For the last two years, InterOil Corp. has been looking to tap into the liquefied natural gas reserves under Papua New Guinea which could yield more than 5 trillion cubic feet of gas.
Last week, the company agreed to sell a majority stake in the LNG development project to Total SA (NYSE: TOT) for an as-of-yet undetermined amount. The deal could be worth up to $3.6 billion, depending upon the fecundity of the fields in Papua New Guinea.
Australia's Oil Search is reportedly in talks with InterOil getting involved with the project as well. The company has been operating in PNG since 1929 and already works with Total on exploration projects there.
The development of LNG wells by Total and Oil Search is seen as a competitive move against ExxonMobil (NYSE: XOM), which operates a $20 billion liquefied natural gas facility in Papua New Guinea. ExxonMobil will begin shipping gas to Asia in 2014.

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Agwi's term as PNG Defence Force commander expires

December 9, 2013, 12:21 pm
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Prime Minister Peter O’Neill announced yesterday that Brigadier-General Francis Agwi will continue as commander of the Papua New Guinea Defence Force on an interim basis.

General Agwi’s term as Commander expired at midnight last night.

The process to appoint a new commander is currently underway.

“The appointment of Agwi on an acting basis is therefore necessary to fill the vacuum, and to maintain command and control in the force while the appointment process is completed.

“Agwi has shown professionalism and dedication in his years of service to the military and country. He led by example in maintaining stability in the force and I would like to thank him on behalf of the people of PNG for a job well done,” Mr O’Neill said.
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PM: Government is very much focused on priorities

December 9, 2013, 12:28 pm
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Media Statement

Prime Minister Peter O’Neill says the government is focused on increasing Papua New Guinea’s trade and investment opportunities in the world market.
He made this statement during an interview with the Asia-Pacific Economic Cooperation Media Manager, David Hendrickson, at this Parliament Office in Port Moresby recently.
“As the largest Pacific Island country, we look forward to sharing our experiences and natural resources with our neighbours.
“Since PNG has a vibrant economy, the future is looking very good for us.
“This government’s aim is to ensure that the future is right for our young men and women and we assure you, we are heading in the right direction.
“We are very much focused on increasing trade and investment with the rest of the world and other APEC member countries to enable quality standard of living,” he said.
Mr O’Neill said the APEC community can do more in taking the lead to address the issues of climate change appropriately and provide sustainable measures for the smaller island economies.
"Like the European Union, we are further encouraged to receive preferential treatment in the international markets.
“This government aims to improve our access to the world markets – and that is one of the most important things for us."
He told Mr Hendrickson, that the government is very much focussed on increasing our trade and investment with the rest of the world so as to improve our people’s standard of living. 
The Prime Minister also said the 2018 APEC summit in PNG will enable and encourage global leaders to experience PNG first hand. He said PNG has so much to offer and is in its planning stages of preparing for this international event. 
Mr O’Neill said PNG is currently in a very detailed planning phase to host the 2018 APEC Summit by building many new infrastructures.
"I am more than certain that we will host this summit successfully, just like other countries have previously," he said.
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Young PNG leaders return from USA, Taiwan

December 9, 2013, 12:38 pm
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By MALUM NALU

Three promising young Papua New Guinea leaders have just returned from a three-month training programme in the USA and Taiwan.
They are University of Goroka lecturer Jane Awi, Office of Prime Minister senior research officer Bill Minjikul, and Department of Health policy officer Clement Dusava,
Awi is a PhD candidate in Creative Industry at the Queensland University of Technology in Australia, while Minjikul and Dusava are former SRC presidents of the University of Papua New Guinea.
Dusava is also a member of UPNG Council. 
Dusava, Hu and Awi during a welcome luncheon last Friday.-Picture by MALUM NALU

They went to Honolulu, Hawaii and Taipei, Taiwan to participate the Pacific Islands Leadership Program (PILP) with Taiwan for three months.
Taiwan Trade Mission representative Daniel Hu welcomed the three young leaders back from abroad to join the country’s endeavors toward growth and success.
“PILP with Taiwan is a new initiative designed to provide opportunities to enhance the leadership capacities of individuals in the Pacific Islands region and build a network of young leaders who will contribute to lasting people-to-people relationships across the Pacific Rim,” he said.
“It’s satisfactory to us to note the three-month programme met all participants’ high expectation.
“They have gained knowledge and understanding of key economic, social, political, health, educational and environmental issues affecting the region, and thus been cultivated with leadership skills, innovative approaches and new networks to make meaningful contributions to the region in the years to come.
“Improvement in leadership standards and capacity is the most important remedy to service delivery to the people, Prime Minister Peter O’Neill said.
“We wish the three PNG young leaders all the best to fulfill their dreams and passions about service delivery to their fellow Papua New Guineans through their extended networking in the region.
“As the eligibility for the PILP with Taiwan is competitive, merit-based awards, we are seeking outstanding individuals from all walks of life - government, business, environment, NGOs, health, media, agriculture, education, and others - to apply.
“The mission calls on qualified PNG’s young leaders, with a minimum of two years of significant work experience, and who are committed to a career in the Pacific Islands region, to apply in 2014, irrespective of your respective status.”
Awi said: “We are mid-career young leaders.
“We are at the crossroads.
“The programme has really helped us to sharpen our leadership ability and skills, to think broadly, to think holistically of how we can contribute more meaningfully and effectively.”
Dusava said: “In PNG’s case we’ve seen reports many times that we suffer from a crisis in leadership.
“Some of the decisions being made are not in the best interest of our country.
“The key thing that we learned is our own leadership, where we are in our communities, our country, and our workplace.”
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