AGP Executive Report

Fiscal Discipline: Prime Minister James Marape says Cabinet has ordered cuts to non-essential travel, conferences and programmes, as El Niño, high living costs and economic pressures strain public finances. Australia–PNG Ties: Ministers meet in Port Moresby to turn the Pukpuk Treaty into practical cooperation, including on trade, telecommunications and critical infrastructure. Education Costs: The Government will cover 70 per cent of fees for students under TESAS, with parents paying the balance; the HELP scheme may assist families unable to afford it. Energy Investment: Papua LNG’s Tier 1 agreement has been signed, with remaining benefit-sharing talks due in November, as ExxonMobil takes over as project operator. Capital Markets: Parliament has unanimously passed securities market legislation, which Marape says can channel domestic investment into the economy and support a K200 billion target by 2029–30. Business Partnerships: PNG LNG has joined the PNG Chiefs as a major sponsor, with plans for school engagement, mentoring and employment pathways alongside the team’s 2028 NRL launch.

Economic Pressure: Prime Minister James Marape ordered a freeze on non-essential government spending as El Niño, high fuel prices and rising import costs squeeze households. Domestic Investment: Securities-market reforms passed Parliament 76–0. Marape says they can direct local institutional savings into productive businesses and support the target of a K200 billion economy by 2030. Papua LNG: A Tier 1 benefit-sharing agreement is signed, with talks on royalties, equity, infrastructure, jobs and local content due to continue into early November. Tourism: MRDC’s Kutubu Heritage Hotel is due to open in November. Faster digital visa processing and payments are also being promoted to attract visitors and support local operators. Energy Exploration: Larus Energy is seeking a partner and funding to drill its offshore Gulf of Papua prospect, targeting a well in about a year. Corporate Deal: AkzoNobel agreed to sell its decorative-paints business in PNG and six other markets to Nippon Paint in a deal valued at about US$1.35 billion.

Economic Outlook: Prime Minister James Marape warned that high fuel prices, rising import costs and El Niño will keep pressure on households, urging people to save and prioritise essentials. Papua LNG: A Tier 1 benefit-sharing agreement has been signed, with talks on royalties, equity, jobs and other benefits due to continue through October and conclude in early November. Tourism Investment: Minister Belden Namah called on businesses to work with government and local communities to turn PNG’s culture and natural attractions into economic opportunities. Digital payments and faster visa processing could also make the country more accessible to visitors, NuiPay said, noting that 95% of eligible visa applications can be processed in about four minutes. Business Digitisation: BSP is offering eligible business banking customers a digital package valued at more than K20,000, including a tablet, router, data plan and business email. Corporate Deal: AkzoNobel agreed to sell its decorative paints business in PNG and six other markets to Nippon Paint in a deal valued at about US$1.35 billion.

Corporate Reshuffle: AkzoNobel agreed to sell its decorative paints business in seven markets, including PNG, to Nippon Paint in a deal valued at about US$1.35 billion. It will retain its coatings operations. Energy Investment: ExxonMobil has taken over as operator of Papua LNG, with partners still targeting a final investment decision later this year. Power Infrastructure: A Japan-funded K270 million upgrade to the Ramu transmission system is complete, adding 134 kilometres of lines and expected to reduce outages in Lae and the Momase region. Small Business: Sixty-two Morobe entrepreneurs graduated from a US-funded programme covering bookkeeping, quality control and market access. Tourism: Tourism Minister Belden Namah called for visa reform, better connectivity and private investment to expand jobs and income. Climate Finance: PNG joined five other countries in backing a proposed US$500 million fund to provide rapid support when climate shocks strain national finances.

Energy Markets: Santos shares briefly reached a more-than-decade high, supported by rising oil prices, new projects and its increased stake in Papua LNG. Power Infrastructure: PNG and Japan marked completion of the K270 million Ramu transmission upgrade, which is expected to cut transmission-related outages in Lae to about a quarter of previous levels. Climate Finance: PNG joined five countries in endorsing a proposed US$500 million fund for rapid financial support when climate shocks strain economies; the endorsement is non-binding. LNG Investment: ExxonMobil has taken over operatorship of Papua LNG, with the project’s partners still aiming for a final investment decision later this year. Small Business: Sixty-two Morobe entrepreneurs completed US-funded training in bookkeeping, quality control and reaching new markets. Agribusiness: Simbu entrepreneur Betty Higgins was named among the FAO’s 100 women heroes for building a trout-farming and ecotourism business that supports local jobs and smallholder farmers.

Climate Finance: Papua New Guinea has joined Ghana and four other countries in endorsing a proposed US$500 million fund for rapid financial support after climate shocks. The facility aims to ease balance-of-payments pressure and could grow to US$1.6 billion. Power Infrastructure: PNG and Japan have marked completion of the K270 million Ramu transmission upgrade, adding 134 kilometres of power lines and strengthening electricity supply to Lae and the Momase region. Energy Investment: ExxonMobil has taken over as operator of the Papua LNG project, with the partners still targeting a final investment decision later this year. Agribusiness: Simbu entrepreneur Betty Higgins has been named among the FAO’s 100 Women Heroes for building a business combining trout farming, hospitality and ecotourism, while creating jobs and markets for local growers. Small Business: Sixty-two Morobe entrepreneurs have completed US-funded training in bookkeeping, quality control and customer service, aimed at helping their businesses grow and reach new markets. Tourism: Tourism Minister Belden Namah is calling for simpler visa processes, better connectivity and more private investment to boost the sector.

Papua LNG: ExxonMobil has formally taken over as operator, with co-venturers targeting a final investment decision later this year. PNG’s resources industry welcomed the move as a milestone for the gas sector. Tourism: Minister Belden Namah called for simpler tourist visas, better connectivity and infrastructure, and more private investment to turn the sector’s potential into jobs and local business income. Small Business: Sixty-two Morobe entrepreneurs completed US-funded training in bookkeeping, quality control and customer service, with the programme aimed at helping firms grow and reach new markets. Mining: Nickel 28 expects US$12.6 million from the Ramu nickel-cobalt project through a cash distribution and debt repayment, though it warned higher costs and softer metal prices may weigh on earnings. Connectivity and Power: Digicel PNG and Telikom agreed to share tower infrastructure, while Lae businesses say continuing blackouts are forcing greater reliance on costly diesel generators.

Energy Investment: ExxonMobil has taken over operatorship of Papua LNG, with the project’s partners still targeting a final investment decision later this year. Small Business: Sixty-two Morobe entrepreneurs completed US-funded training in bookkeeping, quality control and reaching new markets. Capital Markets: Parliament passed landmark capital-markets legislation 76–0, aimed at mobilising domestic investment and strengthening financial markets. Connectivity: Digicel PNG and Telikom will share tower infrastructure, while a separate BSP–Digicel partnership promises SMEs better access to digital tools and banking. Mining Returns: Nickel 28 expects US$12.6 million from the Ramu nickel-cobalt project, including a cash distribution and debt repayment. Business Costs: Lae firms continue to face prolonged blackouts and rising generator costs despite a new transmission line.

Mining: Nickel 28 expects US$12.6 million from its 8.56% stake in the Ramu nickel-cobalt project, but warned that rising costs and softer metal prices could weigh on second-half earnings. Energy: ExxonMobil has taken over operatorship of Papua LNG, with partners targeting a final investment decision later this year. Capital Markets: Parliament passed landmark capital-markets legislation 76–0, which the Government says will help mobilise domestic investment. Telecommunications: Digicel PNG and Telikom will share tower infrastructure, potentially extending network reach while keeping their operations independent. Power Supply: Lae businesses continue to face prolonged blackouts and rising generator costs despite a new transmission line, the chamber of commerce says. Trade: PNG and Fiji business councils are seeking to grow SME exports and narrow a K15 million trade gap, with PNG’s exports to Fiji below Fiji’s sales to PNG last year. Tourism: MRDC is urging more investment in tourism to diversify an economy heavily reliant on oil, gas and mining.

Papua LNG: ExxonMobil has formally taken over as operator, with project partners targeting a final investment decision by year-end. The move brings Papua LNG under the same operator as PNG LNG. Mining: Augustus Minerals is preparing gold exploration plans for Mt Kare and Vanapa while awaiting licence decisions. Its Mt Kare application is contested, and neither project is approved. Trade: PNG and Fiji business councils want to lift SME exports and narrow a K15 million trade gap: Fiji sold PNG K52 million in goods last year, while PNG exported K37 million to Fiji. Border Links: Work is set to begin on a K50 million PNG–Indonesia border post in Western, aimed at improving access to trade and supplies. Living Costs: A World Vision report says people in PNG and Solomon Islands must work more than four days to afford a basic food basket, highlighting the pressure of food prices on household incomes. Digital Investment: Telikom PNG has secured a K27.2 million Australian grant for digital transformation, supporting efforts to improve services and connectivity.

Papua LNG: ExxonMobil has assumed operatorship of the project, which must reach a final investment decision by December 15. The change brings it under the team running PNG LNG, with partners aiming to share construction and operating efficiencies. Regional Trade: PNG and Fiji business councils are targeting stronger SME exports. Fiji shipped about K52 million in goods to PNG in 2025, while PNG exports to Fiji totalled K37 million, leaving a K15 million gap. Tourism: PNG is targeting more than K3.6 billion in annual tourism output by 2028, up from an estimated K1.2 billion economic impact in 2025. MRDC is urging investment incentives for community enterprises and small businesses. Digital Investment: Telikom secured a K27.2 million Australian grant to modernise its systems and expand digital services. Power: After a K263 million Ramu grid upgrade, Prime Minister James Marape urged private investors to build new generation capacity, particularly renewable projects.

Disaster Relief: MPs say districts cannot access K304 million in El Niño aid because funds held in an NBC account conflict with payment instructions requiring BSP accounts, risking delays to relief work. Tourism Investment: PNG is targeting K3.6 billion in annual tourism output by 2028, up from an estimated K1.2 billion in 2025. MRDC is urging tax and investment incentives for landowners, community ventures and small businesses. Digital Services: Telikom secured a K27.2 million Australian grant to modernise its business systems and support expanded digital services. Power Supply: After the Ramu Grid upgrade, the Government is seeking private investment in new generation, including renewable projects, to meet rising demand. Agriculture: Bogia cocoa farmers received community water tanks as a reward for meeting quality and export-volume targets, while a local company registered its first cocoa export this year.

Tourism: PNG is targeting more than K3.6 billion in annual tourism output by 2028, up from an estimated K1.2 billion in 2025. MRDC is urging tax and investment incentives for landowners, community ventures and small businesses. Power: After the Ramu Grid upgrade, Prime Minister James Marape called for private investment in new generation, especially renewable energy, to meet rising demand. Digital Services: Telikom secured a K27.2 million Australian grant to modernise its business systems and expand digital services. PNG-founded NiuPay is also growing into Fiji, building on its government and border-processing platforms at home. Agriculture: Madang cocoa farmers earned a community bonus for quality beans and export volumes, as buyer Kamapim registered its first cocoa export this year. Transport Security: Marape ordered stronger patrols on the Highlands Highway, a key economic route supporting about 60 per cent of PNG’s population and economic activity.

Papua LNG: The project faces a December 15 deadline for a final investment decision after a revised gas agreement and transfer of operatorship to ExxonMobil. Gulf and Central provinces have also agreed on K6.6 billion in benefit-sharing figures. Public Finances: An IMF staff-level deal could unlock about US$189 million for PNG, while a separate analysis warns the Kina remains under pressure as foreign-exchange outflows exceed inflows. Infrastructure: Work is starting on the K25 million Aitape wharf redevelopment. PNG Ports says the facility could handle 25,000 tonnes of cargo a year and support about K101 million in annual economic activity. Tourism and Skills: MRDC is urging targeted incentives to attract tourism investment, as businesses are encouraged to promote PNG to international visitors. Industry leaders also say sustained training and clearer career pathways are needed to prepare Papua New Guineans for major projects.

Tourism Investment: MRDC managing director Augustine Mano is urging targeted investment and tax incentives to grow tourism, while PNG businesses are being encouraged to promote the country’s culture and attractions to draw international visitors. The opening of the first Sheraton in Port Moresby adds new capacity for business and leisure travel. Papua LNG: The US$14.5 billion project faces a 15 December deadline for a final investment decision, after a revised gas agreement and transfer of operatorship to ExxonMobil. Skills and Jobs: Business leaders say PNG needs sustained training and clear career pathways for nationals as major projects approach; experience from PNG LNG shows localisation can grow with long-term investment in skills. Trade Links: A K25 million Aitape port redevelopment aims to restore reliable sea access. PNG Ports says the wharf could handle 25,000 tonnes of cargo a year and support about K101 million in annual economic activity. Digital Services: Australia has granted Telikom PNG K27.2 million to improve operations and support more reliable services, including planned digital wallet platforms.

Digital Infrastructure: Australia has committed K27.2 million to help Telikom PNG improve operations and expand digital services, including plans for a national e-wallet. Transport Links: A K25 million redevelopment of Aitape Port aims to restore a vital route for cargo and cash crops, cutting reliance on flood-prone roads to Wewak. Power Investment: A Japan-funded K236.7 million upgrade to the Ramu transmission system has been commissioned, with the Government urging more private investment in electricity generation. Fisheries: PNG is pursuing tuna processing, state investment and policy reforms to keep more value and jobs at home, as El Niño threatens to shift fishing grounds through 2027. Public Finance: PNG shared its fiscal reform experience at an international forum as it reviews how government funding reaches provinces and districts. The IMF has also reached a staff-level deal that could unlock about US$189 million. Financial Crime: The central bank says PNG remains at high risk of money laundering and is calling for stronger enforcement, prosecutions and recovery of criminal proceeds.