Dear Members BUSINESS BREAKFAST 28/9/2016—circulated to members—refer statistics BPNG Monetary Policy statement 30/9/2016. PUBLIC SECTOR CAPACITY BUILDING Meeting held 28/9/2016 GROWING PNG ECONOMY Working Group held a meeting 18/9/2016 CIMC National Development Forum 18 –20 October 2016 Phil Franklin President—In Country 2016

ELECTED EXECUTIVE COMMITTEE

OFFICE BEARERS President-In Country : Phil Franklin Vice President: Richard Flynn Secretary: Jonathan Seeto Treasurer: David Guinn EXECUTIVE COMMITTEE MEMBERS James Kruse : Deloitte Touche Tohmatsu Mark Baker: ANZ Bank Steve Patrick: Gadens Lawyers Bruce Avenell: American Insurance Group Geoff Toone: Westpac Bank Mark Hitchcock : Rio Tinto Greg Worthington-Eyre: Trukai Industries Andrew Barry : Exxon Mobil PNG Geoff Scahill: Abt JTA Matt Lewis: Hornibrook NGI Ltd EX OFFICIOS Ex Officio : David Knapton Austrade Ex Officio : Bruce Davis Australian High Commissioner SECRETARIAT Corporate Services Manager: Nalini Nandanhallt Accounts Administrator: Naomi Stanley

Mess age from the P res iden t

MEETING SCHEDULE

4th Quarter Meeting

Executive Committee

Monday 12 December 2016

3pm followed by Christmas drinks

5pm AUSTRADE RESIDENCE

7 Feb 2017 - Q1 – APNGBC – PNG

Executive Committee Meeting Grand Papua Hotel. 3.00 pm

7 Feb 2017 - MEET and GREET-

Grand Papua Hotel. 6.00 pm

26 Apr 2017 - Q2 – APNGBC –

PNG Executive Committee Meeting PWC Board Room, PWC Haus, Waterfront. 3.00 pm

14-16 May 2017, 33rd Australia Papua

New Guinea Business Forum and Trade Expo Stanley Hotel

20 Jul 2017 Half yearly Meeting

PNG Exec Comm Mtg PWC Board

Room, PWC Haus, Waterfront. 3pm

20 Jul 2017 ANNUAL GENERAL

MEETING – APNGBC PNG PWC Board Room, PWC Haus, Waterfront. 4pm

24 Aug 2017 QUARTER 3 –

APNGBC – PNG Exec Comm Mtg PWC Board Room, PWC Haus, Waterfront. 3pm

7 Dec 2017—Q 4 – APNGBC – PNG

Executive Committee Meeting Austrade Residence 3pm

OCTOBER 2016 Volume 2, Issue 10

Presidents Report

Work Programe:

Business and Develop-

ment Round Table

Public Sector Capacity

Healthy Workforce /

communities Working

Group

Growing PNGs Econo-

my Working Group

EXTERNAL MEETINGS

Media Summary

Sponsors

Contacts

1

2—3

4

5-6

7-8

9

Contents

Page 2

Volume 2, Issue 10

PRESIDENTS REPORT The National Development Forum outcomes 18—20 October 2016 - To be included PROPOSED MEETING SCHEDULE FOR 2017 3.00 pm Tuesday, 7 February 2017 - QUARTER 1 – APNGBC – PNG Executive Committee Meeting Grand Papua Hotel.

6.00 pm Tuesday, 7 February 2017 - MEET and GREET (TUESDAY)- Grand Papua Hotel. 3.00 pm Wednesday 26 April 2017 - QUARTER 2 – APNGBC – PNG Executive Committee Meeting

PWC Board Room, PWC Haus, Waterfront. Sunday, 14 May -16 May 2017, 33rd Australia Papua New Guinea Business Forum and Trade Expo

“Navigating the Cycle: Creating Opportunities in Challenging Times”

The Stanley Hotel and Suites, Port Moresby, Port Moresby Papua New Guinea,

3pm Wednesday 20th July 2017 HALF YEARLY MEETING – APNGBC – PNG Executive Committee Meeting PWC Board Room, PWC Haus, Waterfront. 4pm Wednesday 20th July 2017 ANNUAL GENERAL MEETING – APNGBC PNG PWC Board Room, PWC Haus, Waterfront. 3pm Wednesday 24 August 2017 QUARTER 3 – APNGBC – PNG Executive Committee Meeting

PWC Board Room, PWC Haus, Waterfront. 3pm Wednesday, 7 December 2017 QUARTER 4 – APNGBC – PNG Executive Committee Meeting Austrade Residence

October 2016

Page 3

Volume 2, Issue 10

PRESIDENTS REPORT

WORK PROGRAM 2016 BUSINESS AND DEVELOPMENT ROUND TABLE The recent business breakfast held by BCPNG highlighted

the need to improve administration of Internal Revenue Commission to apply tax fairly across all companies

Increases in fees and charges specifically -port service fees and charges;

Support Ongoing Efforts on Public Service Reform

Businesses are keen to discuss payment schemes such as leases on various units for utilities and infrastructure expenditure.

Local Content Arrangements For Infrastructure Projects “ PUBLIC SECTOR CAPACITY” - WORKING GROUP Membership; Scott Roberts (lead), Nalini Nandanhallt, Penny Dennis (AHC lead), support tbc. Meeting held 28/9/2016. Terms of Reference defined. “HEALTHY WORKFORCE AND COMMUNITIES” —WORKING GROUP Next meeting to be advised “GROWING PNG’s ECONOMY” - WORKING GROUP Membership: Membership; Ian Clarke (lead), Greg Anderson, James Kruse, Chey Scovell, Simon Roz Simon Roz, AHC, Chris Gibson AHC, Dylan Roux AHC, James Kruse, Nalini Nandanhallt, Chris Gibson, Rabbie Namiliu, Ian Clarke— meeting held 9/9/2016. This working group will propose APNG Business and Development Roundtable Steering Committee (SC) a list of issues that the WG can devel-op into policy position papers, in consultation with key stakeholders, and that would be endorsed by the SC. Those policy position papers could then be used by APNGBC members as an advocacy and communications tool. Policy papers will be prepared for:-

SME POLICY

LAND

TRADE FACILITATION

TAX

ENERGY DATE OF NEXT MEETING

Phil D Franklin

October 2016

Quarter 4 Monday 12 December 2015 PLEASE NOTE REVISED DATE:

(Date change because Mining Con-ference is on 5 Dec 2016) 3pm at AUSTRADE RESIDENCE followed by Christmas Drinks

Page 4

Volume 2, Issue 10 October 2016

External Meetings

BUSINESS BREAKFAST—ECONOMIC SUMMIT— MONETARY POLICY STATS

Volume 2, Issue 10

GOVERNANCE

MEDIA SUMMARY

Each month the APNGBC NEWSLETTER provides a summary of local media and issues that we consider relevant news to our members . These Media Reports do not necessarily reflect the views of members.

THE 33RD AUSTRALIA PNG BUSINESS FORUM & TRADE EXPO MAY 2017

Page 5

October 2016

MAJOR REGIONAL MEETINGS:

Ela breach beachfront in Port Moresby will be redeveloped and showcased as a major tourist attraction to the visitors at APEC. APEC

Haus will be built at NCDC’s sea park land and after APEC will be used as a museum (Cardno are doing designs for the building

K45.23 million has been allocated to reconstruct Ela Beach Road and construct 300 parks. 7000 visitors are expected 3/10/2016 pc p3

A new treaty to improve regional trade that will cut trade time and costs in the Asia Pacific Region will open for signature on October 1

2016 at the UN. The Framework agreement on Trade Facilitation in Asia and the Pacific, ultimately supporting the development of cross

border e-commerce. The treaty will also support the coherent and harmonized implementation of the growing number of bilateral and

subregional paperless trade initiatives in the region, promoting mutual recognition of electronic data and documents and enhancing trade

connectivity. Open to all 53 ember states of the UN Economic and Social Commission for Asia Pacific. It will enter into force 90 days

after 5 countries have ratified the agreement. This agreement builds upon the WTO Trade facilitation Agreement and provides an impe-

tus to push the multilateral agenda forward in an area of E– Trade and the digital Economy. Research indicates that implementation of

this agreement could lead to export gains of US $256 billion annually. P Courier 3/10/2016 p 21.

North Coast Aviation based in Morobe has scaled down its operation due to a shortage of aviation Gas NCA operates from Nazdab

and has grounded 2 of its light aircraft due to avgas shortage. Island P2 ISM and P2 SAM had piston engines that used avgas,

which is not available in PNG and has bee sourced from Poland recently. Australasian Countries no longer use AVGAS.

AVIATION

The CIMC National Development forum (18-20 October was held at the Holiday Inn. Outomes will be detailed in the November News-letter.

Site confirmed - “Navigating the Cycle: Creating Opportunities”

The Stanley Hotel - 14 –16 May 2016. A draft program is being drawn up for discussion.

PNG has enough gas to support a 2nd standalone Lng Scheme led by Total. Kumul Petroleum MD Wapu Sonk advised that gas discoveries

outside PRL 15 has given them confidence for a separate project after the 3rd Train and the PNG Government’s position is to have 2 super

majors developing separate projects. 28/9/2016 pc

GE has announced an agreement with Clarke Energy to serve as Ge4’s authorized distributor of the company’s reciprocating gas and diesel

engines in PNG. 28/9/2016 pc

The full board of of Newcrest visited Lihir Island (New Ireland). PNG accounts for 40% of Newcrests gold production.

RESOURCES — GAS / MINING

OCTOBER 2016 Volume 2, Issue 10

CLIMATE CHANGE

The Worlds richest countries are on course to miss a targe to mobilize US$100 billion of climate funds a year by 2020. It indicates a total of US$93

billion will be delivered by the end of the decade to help poorer nations invest in green energy and prepare for future climate—induced events.

Last week UN chief Patricia Espinosa warned the worlds rich nations to come prepared with a plan to make good their 2009 promise to deliver

US$100 billion a year by 2020.

.

Each month the APNGBC NEWSLETTER provides a summary of local media and issues that we consider relevant news to our members . These Media Reports do not necessarily reflect the views of members.

MEDIA SUMMARY

Page 6

TELECOMMUNICATIONS

Digicel is now offering an international roaming bundle pc p29. 28/9/2016

Harwicks is a multi-services company, with expertise in a range of disciplines. Examples include:

Procurement & Logistics

Strategic Procurement exercises for

GoPNG Agencies.

Delivering outsourced procurement

for URS Australia with Strongim Pipol Strongim Nesen (SPSN) in a

number of provinces.

Project Management:

Managing projects for the Royal

Papua New Guinea Constabulary (RPNGC) under the Police Modernization Program throughout

the nation.

Design:

Produced designs for the different

centres including

Mt. Hagen, Lae, Madang Police Barracks for the Royal Papua New Guinea Constabulary (RPNGC).

Harwicks Limited P.O. Box 788

Gordons National Capital District Papua New Guinea

MANUS REGIONAL PROCESSING CENTRE

PNG Plans to be being deporting men from Manus at the end of October 2016.

This is the strongest indication that the camp will close soon. Iranians are the

largest cohort on Manus. 500 /850. Teheran is refusing to accept the forcible

return of its citizens by Australia.

POWER

A new USD30m DIESEL powered power station is being built in Munum out-

side Lae to help meet the shortfall in electricity supply in the city and the WAFI

gold mine. Construction is being undertaken by Dosan Engine PNG Limited

(subsidiary of Daewoo construction Limited).

All Domestic lending in Foreign currency such as trade finance have to

be approved b the Bank of PNG in line with Regulation 6 of the Foreign

Exchange Control Regulations. This is part of te new foreign exchange

directives the Bank o fPapua New Guinea released and issued on

September 30,2016 . Post Courier Wednesday Oct 19th 2016.

FOREIGN EXCHANGE / BANK INDUSTRY

ECONOMICS AND INFRASTRUCTURE

Volume 2, Issue 10 October 2016

Page 7

October 2016 Volume 2, Issue 10

PNG PUBLIC

HOLIDAYS— 2016

Christmas Day

Sunday, 25th December 2016

Boxing Day

Monday 26th, December 2016

Tuesday 27th, December 2016

( X MAS DAY ) PUBLIC HOLIDAY

Office closed from Friday, 16 December 2016 - Sunday 1st

January inclusive. Office reopens Monday, 2nd January 2017.

Page 8

Established in 1980 the Council is a non-profit association of Australia-based businesses with interests in Papua New Guinea. The management of the Council is vested under the constitution in an Executive Committee, headed by a President

and three Vice-Presidents, elected at an Annual General Meeting of members.

The Council’s goals are to advance the interest of Australia business in Papua New Guinea by:

1. increasing trade and investment between Australia and Papua New Guinea;

2. encouraging the further development and expansion of the Papua New Guinea economy;

representing Australian business interests to the Australian and Papua New Guinea governments;

providing a network of business people with shared interests in Papua New Guinea.

Australia Papua New Guinea Business Council PNG

PO Box 1621, Port Moresby NCD

Level 2, IPA Haus, Lawes Road, Konedobu

Phone: 321 0966/321 3057

Mobile: 7283 4313

WHAT IS THE AUSTRALIA PAPUA NEW GUINEA BUSINESS

COUNCIL?

HOW DOES THE COUNCIL ACHIEVE ITS GOALS?

The Council advances Australian business interests in Papua New Guinea through:

the holding of trade, investment and information seminars on Papua New Guinea:

participation in regular bilateral Ministerial talks to discuss major policy issues of concern to Australian busi-

ness;

submissions to government on policy matters affecting Australian business interests in Papua New Guinea:

the receiving and sending of trade and investment delegations between Australia and Papua New Guinea:

dissemination to members of information on current economic, political and social developments in Papua New

Guinea:

Have you visited

our website? www.apngbc.org.pg

We have a monthly

newsletter posted on site

mid month

Nalini Nandanhallt Corporate Services Manager Australia Papua New Guinea Business Council (PNG) Tel: + 675 321 0966 Mobile: +675 7283 4313 Email: apngbc@apngbc.org.pg Naomi Stanley Accounts Administrator Tel :+675 321 0966 Mobile: + 675 725 76047 Email: nstanley@apngbc.org.pg

Volume 2, Issue 10

Page 9