Air Niugini has announced that it will recommence its jet services to Port Vila, Vanuatu on the 03rd of August 2024. It’s a weekly service that departs Port Moresby every Saturday to Port Vila via Honiara, Solomon Islands. These flights will be operated by Air Niugini’s Boeing 737 aircraft. Air Niugini’s Acting Chief Executive Office, Mr. Gary Seddon said the Port Moresby/Port Vila flights provide an opportunity to reconnect businesses in the two Melanesian countries and introduces seamless flight to Vanuatu and Asia and Vanuatu and Cairns via the Port Moresby gateway. He said this flight between Papua New Guinea (PNG) and Vanuatu, and the various sectors promotes understanding, partnership and ideals of the Melanesian countries. “In addition, the flight also provides excellent connections between Vanuatu/Manila, Vanuatu/Hong Kong and Vanuatu/Cairns, Australia.” Air Niugini previously operated to Port Vila until 2020 when operations were suspended due to the COVID pandemic. Vanuatu and PNG form part of the Melanesian countries, the others include Fiji and Solomon Islands. Air Niugini also operates a weekly flight to Fiji and five flights per week to Solomon Islands.

Prime Minister (PM) James Marape and his entourage arrived back in country this morning, touching down in Port Moresby satisfied with the outcomes of his visits to both Indonesia and Japan. At a press conference shortly after landing, Marape said the trips to both countries was a successful one, having signed agreements and strengthening trade, investments and political ties. He said Papua New Guinea’s relations with Indonesia is now at its highest-level following talks of trade and the signing of four Memorandum of Understanding (MoU), two for the transport sector between the two countries, one for education and another for health. Marape said the MoU for the transportation sector should enable ease of vehicles, vessels and aircrafts to move between the two countries, while the MoU for health should boost assistance to improve PNG’s health sector. He further stated that the MoU for Education should see some great assistance from it, with Indonesia offering 2, 000 spaces for PNG students on scholarships to study in universities and colleges in Indonesia. He said Indonesia is a big importer of PNG goods and is also big on downstream processing, something which PNG can learn from their various models and apply in the country. “They have advised us to pick up their business model. They have 51 to 49 percent equity arrangements in most of their large-scale investments in Indonesia,” said Marape. “Indonesia market is ready for our produce, like wise Indonesian businesses have offered to come for a shared partnership with us in business.” Meanwhile, for the Japan visit on the back of the 10th Pacific Islands Leaders Meeting (PALM), further trade talks where hosted which PNG further strengthened its trade ties with Japan. “Conversation for PNG context, we talked around how Japan as a partner nation, can partner small island nations to ensure their resources are harvested properly and benefits go back to the countries concern.” He said this covers all resources, including fisheries like tuna which PNG is one of the big exporting countries in the pacific. Climate change mitigation was also on the agenda where Japan assured the pacific leaders that it is taking measures to prevent further impacts, including the release of the Fukushima Niuclear Wastewater into the Pacific Ocean, of which the Japan PM Fumio Kishida assured the pacific leaders that the discharge was being conducted in compliance with international safety standards and practices. Meantime, PM Marape said that PNG is now looking forward to the 2025 Osaka Expo in Japan where PNG aims to further market itself to the Asian markets.

Empowering provincial centers to improve tax collection and compliance efforts was the objective of the Internal Revenue Commission Annual Provincial Managers meet in Lae this week. Commissioner General, Mr. Sam Koim emphasized the need to treat provincial centers as effective operational centers, separate from headquarters in the city of Port Moresby. "The goal is to make provincial centers more active in terms of ensuring tax compliance and, in doing so, improve tax collection efforts and ultimately increase tax revenue," he said. "The meeting is designed to help us understand the challenges faced by provincial managers and allocate resources to address those challenges to boost compliance efforts in the provinces," Koim added. Meanwhile, Commissioner of Tax, Mr. Samuel Loi highlighted the success of the taxpayer mapping initiative, which has already led to a 60% increase in active taxpayers. "The IRC expects GST tax revenue to grow substantially, potentially allowing for reductions as part of the overall fiscal reforms in other taxes such as Salaries Wages Tax or even Corporate Income Tax to attract foreign direct investment and address issues affecting businesses, contributing to overall economic growth," Loi stated. The IRC is committed to improving its operations at the provincial level and reducing non-compliance through better taxpayer data and targeted compliance efforts. That is why this annual meeting is crucial for aligning the IRC's strategy across its nationwide network.

The country’s consumer watchdog, the Independent Consumer and Competitions Commission (ICCC) has stated that Air Niugini increasing its domestic airfares is a bad idea that will only lead to more pain on the already struggling airline company. The ICCC Chief Executive Officer (CEO) and Commissioner, Mr. Paulus Ain in a statement said that the decision by Air Niugini to increase domestic airfares to cover cost and sustain its operations, is a misleading one and will see the airline losing more loyal clients and customers, resulting in the airline continuing to experience low revenue to sustain its operations. Air Niugini on Monday 15th July advised its valued customers that it was adjusting its domestic airfares effective on the day due to significant increase in the cost of fuel incurred in the last twelve months, and the substantial increased cost of airline supply chains both within the country and globally. According to the Air Niugini statement on Monday, passengers travelling on mid- range and full fare economic tickets will see increases between 15% and 25% with Business Class airfares also increasing. Mr. Ain said that under the current challenging economic environment, most people would not be travelling if the airfare is increased, which will see reduced volumes and revenues for the airline and decline in the operations of the airline. “Currently, our people do not have the purchasing power or disposable income to meet increase costs and they do not have the luxury of travelling unlike before,” said Mr. Ain. The ICCC is advising Air Niugini to reconsider its decision to increase the domestic airfares and look internally and identify cost- effective alternatives where it can utilize so to avoid losing customers.

The bilateral relationship between Papua New Guinea (PNG) and Indonesia has diversified from border relations to broader areas since the inception of the Annual Leaders’ Dialogue in 2022. Prime Minister (PM) James Marape made this known at the two leaders' joint press conference after the 3rd Papua New Guinea - Indonesia Leaders' Dialogue held at Bogor Presidential Palace in Jakarta, Indonesia before jointly signing a Memorandum of Understanding (MoU) to further expend that relationship. He said the PNG-Indonesia relations have diversified over the last three years since the inception of the Annual Leaders’ Dialogue, which has shifted the focus from just border relations to business, trade, investment, agriculture, economic infrastructure development, information communication and technology and energy, which has increased the opportunity for PNG in benefiting more from this bilateral relationship. He added that business-to-business cooperation has also intensified between the countries' chambers of business, synergizing efforts to increase trade, while adding that it was under President Widodo's leadership that the first PNG-Indonesia Leaders' Dialogue was initiated in 2022 in Jakarta. The PM said the Annual Leaders’ Dialogue has been an effective mechanism to coordinate and measure progress of the existing bilateral relations that continues to foster business, trade and commerce, and socioeconomic development, riding on Indonesia’s positive economic growth and PNG’s potential to harness and trade its vast renewable and non-renewable resources. Marape said as a part of policy reforms in both countries to grow the business-to-business and people-to-people relations, both governments have officially signed four Memorandum of Understanding to progress these areas further. Those four MoUs which were formalized are, • MoU on Cross Border Movement for Commercial Buses and Coaches, • MoU on Cross Border Transport of Goods by Motor Vehicles, • MoU on Cooperation in the Field of Education, and • Renewed MoU on Cooperation in the Field of Health. PM Marape later thanked President Widodo for continuing to foster relations with PNG even while preparing to hand over the reign of the presidency of the Republic of Indonesia to his successor, H.E Prabowo Subianto. Marape also thanked President Widodo for the bilateral relations he has fostered with the people and the government of Papua New Guinea during his tenure as the President of the Republic of Indonesia.

The Minister for Provincial and Local-level Government Affairs, Soroi Marepo Eoe, MP, today in a statement announced that the Local-Level Government (LLG) Elections scheduled for July, has now been further deferred to September. The LLG Elections, scheduled to be conducted on the 25th of July 2024, has been further deferred to 26th September 2024 based upon advice from the Papua New Guinea Electoral Commission (PNGEC), due to some issues and challenges that are beyond its control. Minister Eoe said whilst the National Government is committed to support the conduct of LLG Election 2024. There are certain issues and challenges that compelled the PNG Electoral Commission to seek deferral. These issues are very genuine and cannot be overlooked. The minister said the main reason for the deferral is due to the on-going 2024 National Census exercise, which affected the LLG Election preparation. He explained that the LLG Mangers appointed to be Assistant Returning Officers (AROs) for the LLG Election are currently becoming Coordinators of the National Census. Eoe said both the National Census and LLG Election are important National Events that cannot be conducted simultaneously at the same time. “National Statistical Office is currently utilizing Public Servants at the Provincial, District and LLG levels to conduct the Census. These are the same people PNG Electoral Commission will use to conduct the LLG Election. Since the National Census is still in progress, it is only proper that the LLG Election be delayed,” Minister Eoe said. Another reason which the minister said led to the decision to further defer on the LLG Elections, is the issues relating to proclamation and gazettal of new Wards and LLGs because the PNGEC need ample time and resources to do voter identification, movement and registration in those newly created LLGs and Wards. Minister Eoe stressed that given these challenges, it is only proper that the LLG Election be delayed and conducted after the National Census and issues highlighted are addressed. Minister Eoe said, “I am satisfied with the reasons for the deferral of the LLG Election. With the powers bestowed upon me by the relevant laws governing the LLG Election and acting on advice of the PNG Electoral Commission; I now approve and announce the following new LLG Election Dates. · Issue of Writs: Thursday, 26th September 2024 (4pm) · Nomination Close: Thursday, 03rd October 2024 (4pm) · Polling Starts: Saturday, 23rd November 2024 · Polling Ends: Friday, 6th December 2024 · Return of Writ on or before: Friday, 27th December 2024 Minister Eoe encourage PNGEC to work closely with all relevant stakeholders to ensure all pending issues are addressed amicably to allow for the election to be conducted in September. As a key stakeholder in the elections, Ministry and Department of Provincial and Local Government Affairs will continue to provide support to PNGEC for it to deliver a free, fair and safe 2024 LLG Election that meets the election standards.

Both Port Moresby and Lae cities will play host the annual joint military exercise ‘Tamiok Strike’ which will be conducted from Monday 15th of July to Monday 26th of August, to enhance combined interoperability between military organizations and stakeholders. Tamiok Strike is a land-oriented exercise between the United States (US) Army and the Papua New Guinea Defence Force (PNGDF) through support from the United States Pacific Partnership Program through the United State Pacific Army Command (USARPAC). The exercise will involve mainly elements from the PNGDF Force Support and Engineer Battalions, Department of Defence, USARPAC 8th Theatre Sustainment Command (8TSC), Institute for Security Governance (ISG) and the Australian Defence Force Corporation Program. External stakeholders who will participate in this exercise include the United Nations Development Program, The National Disaster Centre and the PNG Red Cross Society. Sixty personnel from the PNGDF and 60 personnel from the US Army will take part in this exercise. The exercise comprises of four separate activities which would be conducted concurrently. The Engineer training will be conducted in Igam Barracks in Lae city over seven weeks while the logistics training, logistics staff exercise and military police will be conducted in Murray Barracks in Port Moresby city over two weeks. The Engineer activity will focus on the construction of 1x bunkhouse utilizing PNGDF Equipment and Operators. The bunkhouse will assist the Unit in accommodating military personnel in transit through Igam Barracks. The logistics training will cover Ammunition Safety Supervisor training, Loads and Lashing Training and Basic Military First Aid. The intent of this exercise is to enhance combined interoperability capabilities through training, skills sharing and cultural exchanges. This Bilateral exercise is in line with PNGDF’s Five Lines of effort specifically Line of Effort 3 on Operational Proficiency, which emphasizes the importance of Operational Excellence across all domains, supported by effective and efficient logistics and other enablers. This will be the third year for exercise Tamiok Strike to be held in PNG. It was first held in August 2021.

Unregulated mining activities pose a threat to the overall performance of the mining sector and the economic performance of the country, something the PNG Extractive Industries Transparency Initiative (PNGEITI) has raised concern about. The Executive Director for PNGEITI National Secretariat, Mr. Lucas Alkan in a recent statement said that one such mining activity is alluvial mining, which he stated that they are largely unregulated activities. “Unregulated mining activities leaves authorities and stakeholders with limited information about this segment of mining industry, and this is a concern,” said Mr. Alkan. The concerns from PNGEITI over alluvial mining follows comments by PNG Chamber of Resources and Energy (PNGCORE) President, Mr. Anthony Smare that there is a problem on how alluvial gold is produced in the country. The recent PNGCORE summit heard that bigger mining companies operating in the country are subject to PNG Mining Act and even international laws on mining and they are obligated to comply, but the problem exists with alluvial gold producers who may underreport the quantity of the minerals produced. Mr. Alkan expressed similar concern that the sector (alluvial mining) is largely unregulated that there is limited information about its magnitude and the scope of its activities. The PNGEITI Report of 2022 raised similar concerns, strongly calling for proper coordination and regulatory mechanisms to keep track of opportunities and challenges that someone engaged in alluvial mining is faced with. “Alluvial mining and associated activities contributed to economic well-being of a good number of people living in remote parts of the country. Taking an inclusive government approach in regulating different facets of the mining industry is important. In this way we can give every participant a fair share.” The Mining Act of 1992 allows people to mine for alluvial minerals on their land by using non- mechanical means without the need for a mining licence and this activity can be categorised as an informal activity that involves millions of kinas. The Mineral Resources Authority (MRA) of Papua New Guinea reported that K640 million kina was made from alluvial mining in 2022 and estimates this figure to increase in the coming years. Mr. Alkan further said alluvial mining activities will continue to increase and therefore, it is important that the Government takes stock of the magnitude of this informal activity and consider formalising this activity by putting in place proper coordination and regulatory mechanisms to keep track of this segment of the mining activity.

It has been six months since the Black Wednesday Riots in Port Moresby city that saw the destructions of major supermarkets and warehouses, but things are starting to pick up in terms of these businesses rebuilding from the ashes all thanks to government support. That support through the government relief assistance package for the affected businesses, recently saw the Chief Secretary to Government, Mr. Ivan Pomaleu on Monday July 1st presented cheques for the Phase 2 (debris cleaning) for several businesses affected by the January 10th riots. The Port Moresby Chamber of Commence and Industry (POMCCI) President, Mr. Rio Fiocco, said the cheques totalled K17 million, which included a few Phase 1 claims for the employee retention scheme. “I was pleased to see the government releasing those payments to enable businesses to clear the burnt buildings and to start rebuilding,” he said. “Papindo’s Gerehu store is being rebuilt and they expect to reopen this October.” Meanwhile, the Commission of Inquiry (COI) into the Royal Papua New Guinea Constabulary’s role in the January 10th civil unrest will commence soon. Mr. Fiocco added that the COI Commissioner and Chairman, Justice Ellenas Batari announced that the enquiry will commence its hearings on July 15th at the APEC Haus, Port Moresby.

Road infrastructures are vital for both service and development to reach the people, and for the residents of the city of Kokopo in East New Britain (ENB) province, they can expect just that with a new road upgrade project underway. This road project is the K221 million, 17km Tokua-Kokopo four-lane road construction which was launched by Prime Minister (PM) James Marape on Wednesday, July 10th. He said this long-awaited project is part of the ‘Connect PNG’ programme focused on building economic corridors for the benefit of the people. “By enhancing connectivity, this project can potentially boost local commerce, improve transportation efficiency, and contribute to the overall economic growth of the province and region, as a whole,” Prime Minister Marape said. The Connect PNG programme aims to comprehensively enhance the nation's infrastructure through a coordinated, multi-modal approach. This ensures that various infrastructure components—be it roads, airports, wharves, schools, hospitals, and agricultural facilities—are developed at the same time to create an integrated and efficient network. “Infrastructure projects like these often bring a range of benefits, including improved access to services, job creation, and enhanced opportunities for business and tourism,” Marape said. “As highlighted by the Minister for Works and Highways, Solan Mirisin, road projects are currently in progress across the country. More work is being planned and will commence soon.” “It is my privilege to officially launch the project for the design and construction of a new 12km, four-lane road between UMW Roundabout and Tokua Airport Carpark and the rehabilitation of the 5km existing four-lane road between Kokopo Secondary School and UMW Roundabout, he said.

Five new State Ministers appointed by the prime minister have been officially sworn in by the Governor General on Tuesday 9th July. Prime Minister (PM) James Marape announced the appointment of the five new ministers following recent political developments in which a number of ministers defected to the Opposition. He announced the appointments at Government House in Port Moresby after the five ministers were sworn in by Governor-General H.E Sir Bob Dadae. The newly appointed ministers are: · Tewai-Siassi MP Hon. Kobby Bomareo, reappointed as Housing Minister, · Vanimo-Green MP Hon. Belden Namah, appointed as Culture and Tourism Minister, replacing Isi Henry Leonard, · Unggai-Bena MP Hon. Kinoka Feo, appointed as Higher Education Minister, replacing Don Polye, · Kerema MP Hon. Thomas Opa, appointed as Energy Minister, replacing Robert Naguri, and · Wapenamenda MP Hon. Miki Kaeok, appointed as Finance Minister, replacing Rainbo Paita. Marape announced that Minister Namah will also take control of tourism, policing and border security, while Minister Opa will also take charge of Petroleum after Esa’ala MP Jimmy Maladina stepped down from the position. He said he would maintain responsibility over Mining Ministry until the election petition case of the former minister, Muguwa Dilu, was dealt with. PM Marape noted that appointments bring the number of ministers up to 37, with two more positions to be filled. “We will also be bringing in new blood into our vice-ministerial portfolios,” Prime Minister Marape said. “I thank our seniors like Enga Governor Sir Peter Ipatas, Gulf Governor Sir Chris Haiveta, Deputy Prime Minister John Rosso and others for their support. Our nation is approaching its 50th anniversary of independence and we are timebound to carry out certain things, including our government’s core policy focus on laws that will ensure securing more for our country." “This is evident in Porgera where we get 51 percent of benefits. We have no time to waste on destructive politics and want to focus on productive work." “We took office in 2019 with a focus on getting more from our forestry, fisheries, agriculture, mining, and petroleum for our people.”

The Internal Revenue Commission (IRC) of Papua New Guinea has discovered a concerning pattern among Papua New Guinea's leading mining companies that has raised a lot of red flags and questions about the performance of these mining operations. A review from 2013 to 2023 revealed that none of the five major operational mines examined have paid any Dividend Withholding Tax (DWT). Despite a significant increase of over 20% in mineral export receipts, from K9,071.2 million in 2013 to K44,216.6 million in 2022 as reported in Bank of Papua New Guinea's Quarterly Economic Bulletin Reports, there has been no dividend paid to the shareholders of these mining companies. The DWT, mandated at 15% on dividends distributed to shareholders, serves as a crucial indicator of corporate profitability and investor returns. The IRC Commissioner General, Mr. Sam Koim expressed serious concerns, questions if these companies are truly profitable. “How can investors derive returns if dividends are non-existent? It defies logic that mines continue to operate while failing to compensate shareholders for their investments over the past decade. Or if they are paying their shareholders, how are they paying them, because it's not paid as a dividend?" This discovery raises questions about the financial health and transparency of these mining companies. He said the lack of DWT payments suggests that either the companies are not generating sufficient profits to distribute dividends, or they are finding ways to avoid this tax obligation, potentially depriving the government and shareholders of crucial revenue. Meanwhile, the IRC is auditing several mining companies to ensure compliance with the country's tax laws.