K3.4 Billion Pledged to Electrify PNG by 2030: PM’s Back to Business Breakfast

This morning’s Prime Minister’s Back to Breakfast session, hosted by the Business Council of Papua New Guinea, was a great chance to gain insight into the road ahead.

With Papua LNG, P?nyang, Wafi Golpu and PNG LNG on the cards, the room was abuzz with anticipation about what lies ahead and keen to hear Prime Minister Peter O?Neill’s take following last year’s APEC Summit.

Papua LNG & Wafi Golpu:

In the resources space, the Government is looking to take a 20% equity stake in Wafi Golpu, which is inclusive of a 5% landowner carried equity (ie: ?free carry? equity). On the Papua LNG front, the Government plans to settle the first equity payments following the project’s first gas export shipment from the country.

PNG Electrification Partnership:

The most significant announcement from this morning was in regards to the Papua New Guinea Electrification Partnership, with K3.4 billion pledged by Australia, New Zealand, USA and Japan. This alliance aims to support the PNG Government and PNG Power to provide access to 70% of the country by 2030 ? a multi-billion Kina pursuit.

PNG’s Economy:

From an economic standpoint, PNG is still receiving fiscal support from the International Monetary Fund and Asian Development Bank in light of conservative GDP growth and the depreciation of the Kina. Though currency reserves have increased since 2017, the current reserves cover just under 8 months (up from 5.5 months in 2017).

In line with the Government’s proposed strategy to support SME throughout the country, amendments to IPA legislation are planned to be introduced in addition to the development of an Independent Foreign Review Board.