Confidence In Economy

Bank South Pacific Group Chief Executive Officer, Robin Fleming, says there will be confidence in the PNG economy by the end of 2021.

He says this is attributed to recent developments in the resource sector which several major projects.

BSP Group CEO Robin Fleming, says a higher level of confidence in the PNG Economy is expected by the end of 2021.

This follows developments in key resource projects such as the Fiscal Stability Agreement signed between the Government and Total and Joint Venture Partners of the Papua LNG Project, as well as the Environmental Permit awarded to Wafi-Golpu Joint Venture for the mine negotiations to gin on the Wafi-Golpu Mine.

“Certainly we feel that by the end of this year there is going to be far more confidence within the economy. The Wafi-Golpu Mine, and there is a much higher level of confidence within Lae as well, that the business community is looking at further expectations of growth.

Fleming said the Governments on-going investments in infrastructure will assist this growth.

He added that improvement to State Owned Entities; especially in the utilities, space was vital.

“The Government has indicated in its Budget that it’s looking to continue with some of the development of the road construction, for the business community as they know they (PNG Power) got the capability to put their capital to investments which are revenue generating and not just investments which are protecting their own infrastructure.

According to the World Bank Groups Papua New Guinea Economic Update of January 2021, the Papua LNG Project and the speedy resolutions to tensions related to key mining projects, especially Wafi-Golpu and Porgera, will ensure higher inflows of foreign currency and taxation revenue, supporting a stronger economic recovery.

Cedric Patjole