Tree | Political impediments are not unique to IOC’s project. Key is to identify the challenges and respectfully work through the process. Investment seeks PNG opportunities and the remedy can be accessing available legal protections. EU trade mission visits PNG this week for talks of a trade agreement. JP signed a bi-lateral investment treaty with PNG last year. We see soon if front door bidders from protected donor nations can compete with SM’s for a chunk of IOC’s project and leases. ********** Politicking threatens investments in PNG
Source:
The National, Monday 20th Febuary 2012
INVESTORS are viewing with concern continued politicking on projects in Papua New Guinea.
The games being played over the Middle Ramu forest concession have raised questions in the business community about whether the political risk to investing in the country is getting too high.
The efforts to use court proceedings to derail the Ramu NiCo nickel project in Madang, despite strong support for the project by local people and after hundreds of millions of kina had been invested, remains fresh in mind.
The use of court proceedings to challenge the awarding of the Middle Ramu forest concession has similarly delayed implementation of an important project and left the investor stranded.
As executives of Timbers PNG Ltd have explained, the company in good faith, started major upgrades to local infrastructure as it promised to do in its project agreement.
The company has already spent millions of kina on bridges and other infrastructure, which will greatly assist the people and facilitate development and supply of basic services.
The timber permit was granted in 2007. The project included upgrading of roads and construction of important bridges.
Unresolved legal proceedings have stalled the project.
As one prominent business figure in PNG observed, the industry does not object to people exercising their legal rights in law, but it is reasonable to expect government authorities to act expeditiously to resolve problems which impede projects.
A forest industry representative has pointed out that five years after the timber permit was granted and significant expenditure to improve infrastructure was incurred, the project was stalled and remains stalled.
No government keen to promote economic development would allow that to happen.
One business figure pointed out that while there was a great deal of investment interest in PNG today because of the global minerals boom, all investors had choices.
PNG officials need to be aware the country is already on an investment watch-list because of its high global risk rating for foreign investors. |
