Bank South Pacific (BSP) is partnering with the Bank of Papua New Guinea (BPNG) to carry out the Microfinance Expansion Project (MEP).
During the signing of a memorandum of agreement (MOA) yesterday, BSP general manager retail Paul Thornton said with BSP’s experience in carrying out its banking education with its customers, the bank would extend that by partnering with the Central Bank in rolling out the project. “We’ve been doing banking education for a little while now … we go throughout Papua New Guinea to train customers. “The impact on the people is to make better and informed decisions on how they use their money or how they can save.” Bank of Papua New Guinea Deputy Governor Benny Popoitai thanked BSP for the strategic alliance. “We must empower the majority of our people to become active participants on when they should spend their money on and when not to spend, and to budget and to save. It’s an important aspect.” BSP aims to train 60,000 people, 40% of which will be women. Bank South Pacific will use its own resources, to rollout the project with the MEP team to assist in areas of training and materials. BSP manger, banking education Cynthia Asi said BSP – in consultation with the MEP team – will customise and deliver training on modules in savings, budgeting and mobile money. The project will end next August. BSP will start in the National Capital District(NCD) and then roll out to areas outside Port Moresby where its sub branches, agents and registered small and medium enterprises (SMEs) are located. Meanwhile, BPNG has other partners who have been assisting in carrying out the project throughout the country in terms of awareness campaigns and financial literacy. MEP aims to reach up to 120,000 people by 2017. THE Government’s US$47 million loan with China’s Exim Bank for the K280 million Pacific Marine Industrial Zone project in Madang will enable work to begin in the next eight weeks.
Commerce, Trade and Industry Secretary John Andreas told people living in the impacted areas of the project in Kananam, Rempi and Baiteta that the Government would contribute US$21 million. It means that K95 million is required to start the project. He said the $47 million loan had to be frozen after some project landowners took the Government to court over environment issues. They later withdrew the case. Andreas said the Government had applied for the loan through the Ministry for Finance and Treasury in 2011. “It is a soft loan that carries 1.5% to 2% interest to be repaid in 20 years,” Andreas said. He said it was a requirement from the bank that a Chinese company would carry out the major construction work of the project. Therefore a Chinese geo-technical team will arrive in Madang in eight weeks to carry out the technical study. “The report of the study is expected to be submitted to NEC for approval and work should begin by March 2015,” Andreas said. He said a requirement was for the project to be developed within five years. Because three of the five have lapsed, the project must be completed within two years. THE Chinese company, Hailisheng Group (PNG) Ltd and the Government have finally signed an agreement to set up a US$22 million (K53.73 million) on-shore tuna processing facility in Lae, Morobe.
Two previous attempts to sign the agreement had to be aborted after public servants failed to turn up at Government House. Fisheries Minister Mao Zeming said the project at Malahang was expected to generate US$65 million (K158.75 million) annually in export sales. He said the facility at Malahang would have an estimated production capacity of 120 metric tonnes per day. This is expected to increase to 300 metric tonnes per day, providing 1200 direct jobs and 1000 indirect ones for locals. “We would like to encourage our investors to go into downstream businesses so that it can help our domestic processing, so that fish that comes out of our exclusive economic zone and the archipelagic waters have maximum benefit to our people,” he said. “Hailisheng will invest substantial amount and this facility when in full capacity will earn US$65 million in the export market per annum.” He said the European Union remained PNG’s main market. “We recently had some issues with EU regarding yellow flagging because of our weakness to implement some of the stringent (EU) regulations,” he said. “The NFA is already reviewing the fisheries and management development plans, fisheries policies and looking at the Act of 1998. “We want to show them that we are complying with measures so that our market in EU is secure.” Morobe Governor Kelly Naru thanked the Group for its confidence in investing in the province. He said four tuna processing plants were already established – IFC, Frabelle, Nambawan Seafood and Majestic Seafood. “We are expecting more investors to Morobe, it is healthy for the economy and we will make sure this project gets off the ground,” Naru said. Hailisheng Group’s vice president Jiabin Wang said work on the project should start in the next six months. THE recent move by the Bank of Papua New Guinea (BPNG) in controlling the exchange rate is affecting smallholders, Hoskins Oil Palm Growers Association said.
Chairman Patrick Reu said a special meeting held last month by the association resolved that the national government should urgently review the recent valuation of kina against the US dollar. “Our 12,189 growers were anticipating increase in prices of our agricultural commodities such as oil palm, cocoa, copra, and coffee,” Reu said. “Unfortunately, the sudden move by the Governor of the Central Bank to increase the valuation from 0.35-0.41 cents has resulted in a drop in commodity prices. “The move by the Central Bank only serves to promote misery to our rural industries and must be immediately reviewed,” Reu said. According Reu, if price of oil palm goes down, then the price smallholders get for their fresh fruit bunch goes down. And since oil palm is being sold in US dollars on the world market, if the kina becomes stronger against the US Dollar, the price smallholders get for their FFB goes down. New Britain Palm Oil Ltd chief executive officer Nick Thompson said the issues raised by the smallholders were valid. “This is a very damaging move to fix exchange rates at such high levels, not only oil palm growers are suffering as a result but, copra, cocoa, coffee, spice and every other export crop is suffering. “Unfortunately the rural sector has suffered from a total lack of consultation on the effects of this highly damaging shift in policy.” BPNG early last month gave directive to all licensed Foreign Exchange Dealers, to restrict trading the kina within a 150 bps band (75bps each way) on a reference rate of 0.4130. Kina Securities Ltd has opened a new centre in Lae to service the Highlands regions.
Bank of PNG Governor Loi Bakani opened the new complex last Friday. Kina Group chairman Sir Rabbie Namaliu said the new facility was a firm indication that the continuing growth of enterprises and financial opportunities in PNG required significant back-up resources. He said: “The new Lae complex that opened today (last Friday) in Lae provides a centre for business and commerce in the region as well as for individuals to receive expert advice and service from a fully equipped and staffed financial services centre. “As PNG continues to grow economically, we must keep pace with what the people of the 21st century expect in terms of the various demands for financial services.” The new facility is located at the premises developed by Nambawan Superannuation Fund. Kina Group chief executive Syd Yates said: “Kina is proud to be associated with Nambawan in this project, which demonstrates the financial commitment to growth and opportunity,” Yates said. “Kina understands the need of Papua New Guineans to have access to good financial services and in this centre, we can help our customers satisfy their financial needs. “People can now come to the centre to buy and sell shares, discuss investment alternatives and opportunities, make investments and apply for business, personal and home loans and for other personal financial management needs.” |
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