AGP Executive Report

PNG–Taiwan LNG spat: Taiwan’s CPC Corp has suspended PNG spot LNG purchases (about 500,000 tonnes) after Port Moresby moved to close Taiwan’s representative office, with long-term LNG contracts still in place but retaliation now on the table. Diplomacy in the spotlight: Nauru’s plan to open an embassy in Jerusalem is framed as part of a wider Pacific trend that’s reshaping foreign policy choices for small states. Pacific influence race: A Lowy Institute review says Australia has overtaken China as the Pacific’s biggest development lender, while China shifts toward smaller, visible projects. Trade & investment push: PNG is seeking new investment after Chinese property heavyweight R&F’s Zhang Li visits Port Moresby; meanwhile PNG’s government takes a 13% stake in the Central Lime Project for US$16.3m. SEZ momentum: Bougainville and Morobe are both pushing Special Economic Zones, aiming for jobs and new industry. Banking & community: BSP backs the Lealea Early Learning Centre with a new double classroom under its 50for50 Givim Bek drive. Security & governance: Police in Lae link rising crime to poverty, while commentary argues PNG should restore constitutional independence for provincial and local governments.

Special Economic Zones Push: Bougainville is seeking national backing for the Soraken Integrated SEZ, with Minister Richard Maru planning an August site visit and urging a detailed proposal under PNG’s SEZ Act, including ideas like a fish cannery, international wharf and fuel depot. Jobs & Investment Pipeline: Morobe is moving to develop the 1,400-hectare Wawin Integrated SEZ, targeting 4,000 direct jobs and downstream processing, with eight investors already showing interest. Mining Finance: PNG has taken a 13% stake in Pacific Lime and Cement’s Central Lime Project for US$16.3m via Kumul Mineral Holdings, with options for further participation and first quicklime production forecast for Q1 2027. Property & Tourism Inbound: Chinese developer R&F Group co-founder Zhang Li is in Port Moresby exploring major investments in housing, tourism, hospitality and real estate, as Maru signals government support. Energy Trade Tension: Taiwan’s CPC will suspend spot LNG purchases from PNG (about 500,000 tonnes) after PNG moves to close Taiwan’s representative office, while long-term contracts remain in place. Maritime Security: A US Coast Guard cutter arrived in Honiara ahead of the Solomon Islands–US Shiprider maritime law enforcement agreement, amid sovereignty concerns. Local Business & Tourism: A new multi-million kina eco-tourism lodge opened in Mt Hagen, while East Sepik cocoa farmers received organic Ferti-Bio fertilizer after training to lift yields. Governance & Digital Access: Parliament launched a new official website with Australian and UNDP support to improve public access to laws, committee work and reports.

ICT & Digital Governance: Timothy Masiu handed over the ICT portfolio to Robert Naguri, marking the end of nearly seven years that delivered major reforms including the Digital Government Act 2022 and national cloud and cyber security policies. Women & Economic Empowerment: Australia’s Gender Equality Ambassador Michelle O’Byrne is touring PNG to back women’s leadership, business participation and safer communities, including visits to women’s business and support centres. Border & Trade Connectivity: Western Province plans three border posts to boost PNG–Indonesia connectivity, aiming to strengthen trade, security and movement. Maritime & Energy Infrastructure: ABL won the marine warranty survey contract for PNG’s first offshore FSO facility supporting the Kutubu Pipeline System and PNG LNG operations. Ports & Fleet Modernisation: Steamships will invest K100m in Pacific Towing tugboats and training to improve port resilience and maritime skills. Tourism & Aviation: PNG won Best Booth at Manila’s Travel Madness Expo, while Jacksons International Airport redevelopment is framed as a boost for aviation, tourism and trade. Digital Public Infrastructure: SevisPNG’s SevisPass mobile wallet is positioned as a foundational DPI for government services and bank eKYC. Local Business & Agriculture: East Sepik cocoa farmers received organic Ferti-Bio after training to lift production. Governance & Accountability: A commentary urges urgent action over alleged extortion at Gordon Market, calling for security, audits and transparent fee systems.

Market Security Call: An adviser urges NCD Governor Powes Parkop, police and market authorities to crack down on unauthorised extortion at Gordon Market, calling for security upgrades, transparent fees, CCTV, digital vendor registration and a confidential complaints system. Public Finance & Demographics: A commentary argues PNG’s free education and child tax rebates are being driven by politics and are also squeezing government revenues, pushing borrowing and worsening an already high public debt risk. Maritime Investment: Steamships announces K100m for Pacific Towing fleet renewal (two new tugboats plus drydocking and upgrades) to boost safer port operations and maritime training. Women in Business: Westpac PNG honours seven women at the 2026 Outstanding Women Awards, with Stella Ipang taking overall winner status. Agribusiness Support: East Sepik cocoa farmers begin receiving organic Ferti-Bio fertilizer after training, aiming to lift soil health and yields. Parliament Digital Access: PNG Parliament launches a new official website with Australian and UNDP support to improve public access to legislation, committee work and reports. Mining Connectivity: Misima Minerals signs an MoA to lease and operate Misima Aerodrome, targeting upgrades before end-2026 to restore commercial flights. Tourism Push: PNG wins Best Booth at Manila’s Travel Madness Expo, backed by Air Niugini and PNGTPA. Regional Defence Cooperation: PNG and New Zealand sign a 2026-2029 defence cooperation statement focused on maritime surveillance, training and disaster response. Diplomacy Watch: PNG’s closure of Taiwan’s representative office continues to draw international attention, with China praising the move under the One China framework. NRL Chiefs Funding: Australia’s $600m, 10-year support for the PNG Chiefs is framed as partly aimed at keeping kids in school, with debate over tax treatment and how much goes to the club versus grassroots. Infrastructure & Property: Work begins on the BAOSEN Chinatown apartment phase in Port Moresby, using the SEZ policy to drive construction jobs and investment. Digital & Cyber Skills: PNG’s digital transformation push continues with new initiatives and calls to ensure no citizen is left behind in access to services.

Women & Finance: Westpac Outstanding Women Awards (WOWA) in Port Moresby honoured seven leaders, with Stella Ipang taking the overall 2026 prize plus a K5,000 grant and mentorship, highlighting business and public-sector impact. Education & Youth Pipeline: City Pharmacy Limited (CPL) Foundation expanded its Rise Empowerment Programme for girls in grades 11–12, funding leadership, wellness and career readiness with over K180,000 in support. SME Integrity: Commerce Minister Wake Goi suspended most SME funding transactions amid allegations involving about K200 million, while opposition leader James Nomane called for a full independent investigation. Public Sector Pay Reform: Government payroll operations moved back under the Department of Personnel Management, upgrading the Alesco system to improve transparency; Finance Minister Thomas Opa said public servants’ salaries cost the state over K6 billion annually. Investment & Property: Marape broke ground on the BAOSEN Chinatown apartment phase (K2 billion), pitching Special Economic Zone policy as a jobs and construction driver. Sports & National Branding: Cricket PNG launched the Boroko Motors Women’s ISUZU 50-over tournament to sharpen the PNG Lewas ahead of Thailand, while the PNG Chiefs NRL funding debate continues to frame sport as “nation building.” Digital Economy: WPU students won major prizes at PNG’s National Digital ID Hackathon, building tools linked to SevisPass and SevisPay for jobs and birth registration.

Public Finance & Payroll: PNG is upgrading its public service payroll system, moving the payroll office back under the Department of Personnel Management and upgrading Alesco from version 12 to 24 to improve transparency and accountability in payments. Budget Pressure: Finance Minister Thomas Opa says 140,000 public servants take more than K6 billion a year—about a quarter of the national budget—prompting calls to minimise inefficiency during the payroll transition. SME Funding Probe: Commerce Minister Wake Goi has suspended most SME funding transactions worth about K200 million while allegations are investigated, with Opposition Leader James Nomane urging a fully independent inquiry. Digital Economy & Jobs: Western Pacific University students won major prizes at PNG’s National Digital ID Hackathon, building tools linked to SevisPass and SevisPay to help match jobseekers with employers and improve birth registration access. Immigration Reform: Deputy PM John Rosso says the passport backlog has been cleared and new digital systems expanded services nationwide before handing over the Immigration and Border Security Ministry to William Bando. Energy & Industry: Misima Minerals has signed an MoA with Milne Bay to operate the Misima aerodrome, aiming to restore commercial flights after safety upgrades before end-2026. Trade & Diplomacy: PNG’s closure of Taiwan’s representative office continues to trigger diplomatic reactions, including comments from China’s ambassador and foreign minister Wang Yi. Business & Inclusion: Westpac’s Outstanding Women Awards recognised seven PNG women across entrepreneurship, public and private sectors, sustainability and young achievers, highlighting leadership tied to stronger economic outcomes.

Public Finance & Payroll: PNG is upgrading its public service payroll system, moving the payroll office back under the Department of Personnel Management and upgrading Alesco from version 12 to 24 to improve transparency and accountability; Finance Minister Thomas Opa says 140,000 public servants cost the government more than K6 billion a year (about K280 million every fortnight). Governance Crackdown: Prime Minister James Marape has suspended 70-plus public service chiefs for missing mandatory reporting deadlines, warning the purge is non-discriminatory and targets serial non-compliance. SME Funding Probe: Commerce Minister Wake Goi has suspended most SME funding transactions amid allegations involving about K200 million, while Opposition Leader James Nomane calls for a full independent investigation. Immigration Reform: Deputy PM John Rosso hands over the Immigration and Border Security Ministry after clearing the passport backlog, expanding regional services, and rolling out new digital systems. Digital ID & Jobs: WPU students win big at PNG’s National Digital ID Hackathon, building tools that use SevisPass for identity checks and SevisPay for secure payments. Energy & Power Costs: PNG Power Limited’s financial troubles remain tied to structural issues like tariff freezes, weak revenue collection, losses and debt, not just US-dollar PPAs. Trade & Diplomacy: PNG’s closure of Taiwan’s representative office continues to ripple through regional politics, with China and others weighing in. Aviation & Mining Logistics: Misima Minerals will operate the Misima aerodrome under a lease, aiming to restore commercial flights before end-2026. Women & Community: Westpac Outstanding Women Awards recognise seven PNG women across entrepreneurship, public sector, private sector, sports & arts, sustainability, not-for-profit and young achiever categories.

NRL & PNG Chiefs: Melbourne coach Craig Bellamy has backed Cameron Munster to negotiate a move to the PNG Chiefs for the club’s inaugural NRL season, with the veteran five-eighth potentially chasing a tax-free windfall as he nears retirement. Banking & Women’s Economic Power: Westpac says its WOW Awards are a direct investment in women leaders driving stronger economic outcomes across Papua New Guinea and the Pacific. Labour & Skills: Trade union reps from across the region, including PNG, completed a four-day labour law and dispute resolution training focused on grievances, collective bargaining and arbitration. Digital ID & Jobs: Western Pacific University students won major prizes at PNG’s National Digital ID Hackathon, including a platform to connect jobseekers and employers using the national SevisPass system. Public Sector Pay Reform: Government has upgraded the Alesco payroll system to improve transparency as the payroll office moves under the Department of Personnel Management, while Finance Minister says public servants’ salaries cost the state over K6 billion a year. SME Funding Probe: Commerce Minister Wake Goi has suspended most SME funding transactions amid allegations involving about K200 million, with opposition leader James Nomane calling for an independent investigation. Mining & Aviation: Misima Minerals will operate the Misima aerodrome after signing an MoA with Milne Bay, aiming to restore commercial flights before end-2026. Energy & Power Woes: Commentary highlights PNG Power’s ongoing financial troubles, pointing to structural loss-making and long-running tariff and collection issues. Geopolitics & Trade: China commended PNG for closing Taiwan’s economic office, as diplomatic tensions continue to ripple through Pacific economic ties.

Critical Minerals Research: University of Delaware geographer Saleem Ali won a Humboldt Research Award to keep working on critical minerals and inclusive energy transitions, backing deeper supply-chain research that matters for PNG’s resource economy. Digital ID & Jobs: Western Pacific University students swept PNG’s National Digital ID Hackathon, building WokKonek (job matching using SevisPass/SevisPay) and SevisBirth (offline birth registration), showing how SevisPass can move from policy to real services. Public Sector Pay & Reform: Government payroll operations moved back under the Department of Personnel Management, upgrading Alesco from version 12 to 24 to improve transparency; Finance says 140,000 public servants cost the state over K6b a year. SME Funding Under Scrutiny: Commerce Minister Wake Goi suspended most SME funding transactions after allegations involving about K200m, while Opposition leader James Nomane calls for an independent investigation. Power & Business Risk: Commentary highlights PNG Power’s unsustainable model—losses driven by tariffs, collection issues, theft and ageing infrastructure—warning that financial strain keeps hitting service reliability. Mining & Aviation Access: Misima Minerals will operate the Misima aerodrome after Milne Bay signed an MoA, aiming to restart bigger commercial flights before end-2026. Connectivity Bottleneck: Lightspeed says reliable electricity, not satellite access, is the main barrier for remote communities, pushing solar-plus-Starlink solutions. Geopolitics & Trade: China commended PNG for closing Taiwan’s economic office, while PNG’s Taiwan decision continues to ripple through regional diplomacy and trade ties.

Public Finance & Payroll: PNG has begun upgrading its public service payroll system, moving the payroll office back under the Department of Personnel Management and upgrading Alesco from version 12 to 24 to improve transparency in payments. Budget Pressure: Finance Minister Thomas Opa says public servants’ salaries cost the government more than K6 billion a year (about K280 million every fortnight), pushing reforms to cut inefficiency. Governance Crackdown: Prime Minister James Marape has suspended 70-plus public service chiefs for missing mandatory reporting deadlines, warning there will be no exceptions. SME Funding Probe: Commerce Minister Wake Goi has suspended most SME funding transactions amid allegations involving about K200 million, with the opposition calling for a full independent investigation. Digital ID & Jobs: Western Pacific University students won top honours in PNG’s National Digital ID Hackathon, building tools to link jobseekers and employers using the national digital ID system. Cybercrime & AI: A new push to tackle AI deepfakes and digital impersonation is being debated, with critics warning the wider enforcement package may be broader than needed. Energy & Trade: PNG’s mining and LNG outlook remains in focus as Santos narrows 2026 production guidance, while PNG Ports declares an interim dividend of K22.5 million for FY2025. Mining Investment Rules: PNG is rolling out regulatory, legislative and digital reforms to attract long-term mining investment and improve community returns. Regional Security: New Zealand and PNG signed a 2026–2029 defence cooperation plan to expand training, exercises and personnel exchanges. Diplomacy Shock: China commended PNG’s closure of Taiwan’s economic office, while Taiwan and the US have raised concerns about the move’s economic and political fallout. Local Business Spotlight: A family-run Oro Craft Chocolate business in Northern Province is turning local ingredients into a growing small enterprise.

Public Sector Crackdown: PNG PM Marape has suspended 70-plus public service chiefs for missing mandatory reporting deadlines, warning the purge is “non-discriminatory” and targets serial non-compliance. Power Sector Reality Check: A fresh look at PNG Power Limited’s finances says the problem is arithmetic—tariff freezes, weak revenue collection, theft, ageing assets and high losses—so political reshuffles won’t fix losses without structural change. Mining & Infrastructure: Misima Minerals has signed up to operate the Misima aerodrome, aiming to upgrade it to CASA PNG standards before end-2026 to restart commercial flights and boost services. Oil & Gas Delivery: ABL has been appointed to oversee marine warranty survey work for PNG’s first offshore FSO installation under the PNG Oilfields Project, with marine operations spanning PNG, India, Indonesia and the UK through 2028. Trade & Investment Signals: PNG is pitching “open for business” reforms to attract long-term mining investment, including an appeals court and international arbitration/mediation mechanisms. Diplomacy With Economic Fallout: PNG’s closure of Taiwan’s economic office draws China praise and raises Taiwan’s review of LNG purchases, a potential hit to a major export revenue stream. Regional Connectivity: Air Niugini has restored direct Port Moresby–Tokyo (Narita) flights, aiming to lift tourism, trade and business travel. Community & Safety: East Sepik is rolling out province-wide youth registration under the National Youth Engagement Strategy, while a boat disaster in ENB has left eight dead and 19 missing after capsizing.

Mining Investment Push: PNG unveiled regulatory, legislative and digital reforms to attract responsible long-term mining investment, aiming to lift investor confidence while ensuring communities benefit from resource projects. Ports Dividend: PNG Ports declared an interim K22.5m dividend for FY2025, citing disciplined operations and efficiency gains. Oil & Gas Update: Santos reported higher 2Q26 sales revenue on stronger LNG and crude/condensate prices, with Barossa and Pikka ramp-ups driving production. FSO Project Contract: ABL won an FSO installation-related job for PNG’s first offshore floating facility tied to the Kutubu pipeline system and PNG LNG operations. Digital Growth Drive: DTS26 in Port Moresby put AI, cybersecurity and digital infrastructure at the centre as PNG seeks faster digital-economy investment. Security Cooperation: New Zealand and PNG signed a 2026–2029 defence cooperation Statement of Intent covering dialogue, training, exercises and personnel exchanges. Governance Training: MRDC strengthened directors’ governance skills through PNGID training for trust company directors and senior executives. Local Skills & Jobs: PNGDF expanded skilled carpentry testing via NATTB trade certification. Regional Diplomacy: China praised PNG’s closure of Taiwan’s economic office, while Taiwan signalled it may review LNG spot purchases. Sports & Community: PNGDF and police actions featured alongside a crackdown on illegal gambling and calls to speed up swearing-in of the Electoral Commissioner.

PNG–Solomon Economic Push: Prime Ministers James Marape and Matthew Wale met in Honiara to deepen cooperation in mining, fisheries, trade and investment, with talks set to continue in August and PNG firms flagged as major investors in Solomon Islands banking, telecoms, hospitality and agriculture. One-China Diplomacy Fallout: China praised PNG for closing Taiwan’s Port Moresby economic office, while PNG PM Marape rejected claims of coercion, stressing the decision is sovereign. Defence Deals: New Zealand and PNG signed a 2026–2029 defence cooperation statement covering dialogue, training, exercises and personnel exchanges as Pacific security ties tighten. Digital Growth & Cyber Risk: PNG’s DTS26 summit pushed AI and digital public services, while a cybersecurity expert warned ransomware and phishing are rising as digital systems outpace protection. Food Security Drive: Agriculture officials urged PNG to produce more of its own food to cut import dependence and stabilise prices. Energy & Jobs: Santos reported higher Q2 revenue on stronger LNG and crude prices; ABL won work tied to PNG’s first offshore floating storage and offloading facility. Governance & Integrity: Police froze K4m in suspected stolen DDA funds, pushing restrained assets above K200m, and Parliament launched a new website to improve public access to proceedings and legislation.

Digital Economy Push: PNG’s Digital Transformation Summit 2026 (20–22 July, Port Moresby) is positioning AI, cybersecurity and digital government as the next growth engine, with DICT signing MoUs to strengthen the digital ecosystem. Mining Benefits in Focus: Morobe and Madang leaders visited Ok Tedi to study how mining can deliver stronger landowner participation and local business opportunities. FSO Contract for PNG LNG: ABL won an Oil Search (PNG) job to support installation of PNG’s first offshore floating storage and offloading facility at the Kumul marine terminal, backing the Kutubu pipeline and PNG LNG operations. Governance & Integrity: Police froze K4 million in suspected stolen DDA funds, pushing total restrained assets above K200 million, while a separate commentary argues corruption persists due to weak compliance and enforcement. Cyber Resilience: A cybersecurity expert warns PNG’s digital push is outpacing protection, with ransomware and phishing flagged as growing risks. Elections Timing: Opposition leader James Nomane calls for the immediate swearing-in of new Electoral Commissioner Prof Nicole Haley ahead of 2027 election preparations. Community & Finance: BSP Life named winners in its Movement is Medicine challenge, and an NDB-backed loan story shows how financial literacy can help small entrepreneurs expand. Regional Security: New Zealand and PNG signed a 2026–2029 defence cooperation statement, deepening training and exercises.

Anti-Money Laundering Crackdown: Police have frozen K4 million in suspected stolen DDA funds held by a foreign-owned company, pushing total restrained assets in PNG probes to over K200 million. SEZA Leadership: Kikila Yavase has been appointed permanent CEO of the Special Economic Zones Authority after four years as acting boss, with more SEZ licences expected soon. Digital Push: NICTA launched an integrated regulatory database and outlined progress toward 5G as PNG hosts the Digital Transformation Summit and Pacific Cyber Week, with ICT Minister Robert Naguri stressing equal access and trust in online services. Power Bills Pressure: Outgoing PNG Power minister William Duma says government agencies owe nearly K200 million in unpaid electricity bills, worsening the utility’s finances. Aviation & Trade Links: Air Niugini is restoring direct flights to Japan (Narita) and Auckland, with Japan and NZ flagged as key markets for business, tourism, education and cargo. Resource Investment Momentum: Westpac points to the US$14bn Papua LNG project as a major growth driver ahead of a likely Final Investment Decision later in 2026, while Marape frames PNG’s next resource phase as higher national returns. Diplomacy Shock: PNG has announced closure of Taiwan’s representative office in Port Moresby, reaffirming One China; Taiwan rejects the move and says it will reassess ties. Cyber Scams Warning: PNG faces rising AI-driven impersonation and deepfake scams, prompting calls for stronger community awareness alongside new laws.

One China, Taiwan ties: Papua New Guinea will close Taiwan’s trade mission in Port Moresby, saying it no longer needs the presence as it reaffirms its One China policy—prompting Taipei to protest and review LNG economic links. Digital economy push: At the Digital Transformation Summit 2026, ICT Minister Robert Naguri says no Papua New Guinean should be left behind as NICTA launches an integrated regulatory database and updates progress toward 5G. Power sector cash crunch: Outgoing PNG Power minister William Duma says government agencies owe nearly K200 million, warning unpaid bills and power purchase agreements are blocking the utility’s path to profit. Resource returns: PM James Marape says PNG is entering a new phase of resource development, seeking stronger national returns while keeping investor confidence. Aviation connectivity: Air Niugini resumes the Port Moresby–Tokyo route twice weekly, and PNG Air launches a new Moro–Mt Hagen–Port Moresby service to restore regional links. Banking leadership: TISA Bank appoints Luke Kaul as substantive CEO as it moves into disciplined growth and stability. Mining update: St Barbara reports an 8% rise in gold production at New Simberi for the quarter ended June 30. Security and governance: A Milne Bay report says gangs target workers’ homes for daily rations, while another commentary calls for ministers under investigation to step aside.