JANUARY 2012

EDUCATION WINS IN PNG BUDGET

The PNG Government has passed its largest ever budget. The K10.5 billion 2012 Budget was passed in December and is 13 per cent larger than the previous year's according to news reports. Approximately 60 per cent of the budget has been earmarked for education, including K47 million for education. Primary education enrolments have been falling in Papua New Guinea over the past decade according to World Bank data. However, the adult literacy rate has been increasing. A number of aid agency reviews have emphasised the importance of increasing education spending in Papua New Guinea

WET WEATHER WARNING

Disaster officials have issued a wet weather warning for PNG for the next four months. The National Weather Service has told the media that the current wet weather pattern is expected to last until April and could bring tropical cyclones, flooding and landslides. The Weather Service has asked people to be cautious when travelling during rainy periods. Two people were killed over the Christmas-New Year period after heavy flooding caused rivers to burst their banks. Approximately 11,000 villagers in Oro Province affected by floods and heavy rainfall have received supplies and assistance from disaster authorities this month.

INTEROIL SECURES SALES DEAL

InterOil has secured a preliminary deal with Chinese company ENN to supply around 20 million tons of liquefied natural gas over the next 15 years. According to news reports, the deal could finally make InterOil's US$6 billion LNG project with Pacific LNG a reality. If successful, the project will be yet another in a string of major LNG projects in PNG, including the ExxonMobil LNG project and the Wheatstone joint venture.

LEAGUE GURU GIVES PNG TEAM THUMBS-UP

The executive producer of Sky Sports' rugby league coverage Neville Smith has given the thumbs up to a PNG franchise in Australia's National Rugby League competition. Smith, who has been Sky Sports' rugby league chief for the past 25 years gave the endorsement during a press conference about an expanded international competition for the code. Smith said that expansion into PNG "would bring passion, entertainment, flair and TV revenue. The game is huge in PNG. It is a national sport. It would also strengthen their national side. Look what has happened to the New Zealand national side since the Warriors came in. They are reigning world champions. It would do the same for PNG."

UK FILMMAKER CATCHES PNG PACU

UK filmmaker Jeremy Wade recently visited Papua New Guinea to capture the Pacu fish for his new documentary series 'River Monsters'. The Pacu fish was introduced to PNG in the early 1990s from South America. The fish has been blamed for a number of fatal attacks on local fishermen. According to locals, the fish bites wading fishermen on the testicles, which can lead to massive blood loss and death. "The bleeding was so severe that they died," Wade told UK newspaper The Sun. "The locals told me that this thing was like a human in the water, biting at the testicles of fishermen. They didn't know what it was." River Monsters is currently screening in the UK.

NOVEMBER 2011

KEY MINISTERS ATTEND THE AUSTRALIA-PNG MINISTERIAL FORUM

The O'Neill Government has sought to strengthen ties with one of its closest regional partners at the sitting of the 20th Australia-Papua New Guinea Ministerial Forum in Canberra recently. The major highlight of the forum was the formal endorsement of the 'Partnership for Development' schedules. The Partnership schedules are based on a repositioned Australian aid program, which is reportedly more closely aligned with PNG development priorities in the sectors of education, health, transport infrastructure and law & justice.

USAID OPENS PACIFIC ISLAND REGIONAL OFFICE IN PNG

PNG has welcomed the opening of the United States Agency for International Development's (USAID) new Pacific Island Regional office in Port Moresby. The formal opening, which represents a significant development in relations between the United States Government and the region, was attended by PNG ministers, UNDP program leaders and the U.S. Ambassador. During the event, US Embassy representatives announced a raft of new spending in the region including US$21 million in climate change funding and US$5 million per year to increase awareness about HIV/AIDS in Papua New Guinea.

PACIFIC ISLAND FORUM OVERSEES NEW FUNDING COMMITMENTS

The fortieth meeting of the Pacific Island Forum (PIF), held recently in Auckland New Zealand, was notable for a raft of new international funding commitments made to programs in the Pacific Island region. Leading the way, Australia's Prime Minister Julia Gillard, pledged AUD200 million to Pacific Island nations to tackle education, health and environmental issues. The European Commission (EC), which has already contributed some 80 million Euros to address climate change in the Pacific, followed Australia's announcement by pledging another 10 million Euros to the region.

UNDP HUMAN DEVELOPMENT REPORT RANKS PACIFIC ISLANDS

The United Nations Development Programme released its Human Development Report 2011. Nine Pacific nations were ranked among the 187 countries in the report. While some (Palau - 49, Tonga - 90) had impressive rankings, other nations including PNG (153), East Timor (147) and the Solomon Islands (142) received less positive assessments. The report notes that Pacific island countries generally have higher than average life expectancy and better-funded health care programs. However it singles out climate change, pollution and rising sea levels as key threats to development in the lowest ranked Pacific nations.

CHINESE AMBASSADOR CELEBRATES 35 YEARS OF PNG-CHINESE RELATIONS

The Chinese Ambassador to PNG, HE Qiu Bohua, recently celebrated the 35th anniversary of the establishment of bilateral relations between China and PNG. In a brief media statement, the Ambassador stated that PNG has become China's biggest trade partner and investment destination among Pacific Islands. He noted that the total volume of bilateral trade recorded had risen from just 140 million USD in 2001 to 1.13 billion USD in 2010, while cooperation in regional affairs and people to people exchanges had also grown exponentially. China is now the second largest economy and largest trading economy in the world.