Economic activity to rise: BSP

ANNOUNCEMENTS by investors in Papua New Guinea and the South Pacific have demonstrated strong international investment intentions that will lift economic activity for the country and the region this year, according to Bank South Pacific Financial Group Ltd (BSP).
BSP general manager corporate bank Peter Beswick said according to the BSP Pacific economic and marketing insight for last December quarter, the improvement in business confidence for this year was due to business investments, mergers and acquisitions in PNG and the South Pacific.
“The mining companies continue to be an attractive investment destination,” he said.
“Growth in the mining industry is estimated to be 5.4 per cent, which reflects the expected recommencement of the Porgera and improvements in Ok Tedi production and Wafi-Golpu this year.”
Beswick said the merger of Australia’s Santos with local explorer Oil Search and the reopening of the Porgera mine, coupled with the Government’s commitment to accelerate and support opportunities and development outcomes of the Wafi-Golpu mine in Morobe would deliver significant investments with landowners and local businesses.
He said telecommunication companies were also anticipating investment opportunities in Papua New Guinea and the Pacific.
The Telstra AU$2.1 billion (about K5.2 billion) acquisition of Digicel Pacific, and also the Vodafone PNG – Amalgamated Telecom Holdings Ltd which operates across Fiji, Samoa, American Samoa, Kiribati, Cook Islands and Vanuatu have started operations as the third mobile operator in PNG anticipating investment exceeding K1.4 billion.