By CYRIL GARE
PAPUA New Guinea has been busy “playing politics” over the last 48 years and had lost grip and focus on building the economy instead, Prime Minister, James Marape has said.
He was commenting in light of the re-opening of the New Porgera mine on 22nd December 2023 after it was closed in 2020 following the expiry of its 30 years development lease.
Porgera’s first gold pour was on 20 September, 1990 and the mine was officially opened by then Prime Minister, late Sir Rabbie Namaliu on 20 October, 1990.
A new lease was finally issued to New Porgera Limited (NPL) in October 2023 under a new equity share regime; 51% owned by PNG stakeholders, including Kumul Minerals, local landowners and the Enga provincial government, and 49% by Barrick Niugini Limited (BNL) and Zijin Mining of China.
The New Porgera Limited leads the way for other multi-billion kina resource projects in the pipeline to come on board including the Papua LNG (K35 billion), Wafi Golpu (K20 billion), Pyn’yang gas (K38 billion), and Frieda mine (K6 bill) all set to pin PNG’s economy at a K200 billion mark as envisaged by the Marape-Rosso Government.
These ‘perfect five’ projects place Papua New Guinea on a top notch “resource boom” destination of the world which International Trade and Investment Minister, Richard Maru has described as “the PNG century” in the next 30 years.
“In politics we have formed government 18 times in the last 48 years so that’s like 32 months for every government on average.
“Apart from Somare’s 2002 to 2007 and O’Neill’s 2012 to 2017 where full five-year terms were served out, rest of governments were two years to four year Governments.
“Simply put, we had more political instability in the years when we were supposed to be stable to grow our country.
“It cost us dearly though as seen here on the United Nations’ Human Development Index (HDI) rating of PNG:
- 1975 PNG ranked 77th;
- 2004 PNG dropped to 139th place;
- 2008 PNG plummeted to 149th placing;
- 2012 PNG further plummeted to 156th placing;
- 2018 PNG shrinking further to 178th placing.
“In 1975, our economy was K2 billion. In 2002 our economy was K17 billion. In 27 years in the hands of 12 of the 18 Governments, we have only able to grow the economy by a mere K15 billion.
“No wonder we were unable to educate more skilled people, fix law and order, build health and education facilities, develop enabling infrastructures, etc. Some 37 countries had passed us on development ratings.
“We were simply playing politics and not growing the economy. Stable politics, stable policies and positive economy. Compare China and the ‘Tiger Economies’ in the ASEAN.
“In PNG we saw only a snippet of this stable politics and policies that lead to economic growth. We envy it but never achieve it.
“When Somare came back in 2002, he took over an economy that was in recession. Inflation was in double digits, Forex was in the negatives and Kina was selling at 0.16 cents to name a few macroeconomic indicators.
“How can a government work constructively in 2 or 3 or 4 years? Somare was just settling in after 1977 General elections and Chan took over in 1980.
“What much can Chan do in 1981 because he was facing 1982 elections which saw the return of Somare after the General Elections. Pangu Pati under Somare won 82 of 109 seats in this election and formed a one-party Government then.
“But Somare was revived by Wingti only 2 years after in 1985 and Wingti would have been busy defending his government’s survival because vote of no confidence was allowed every six months back then.
“Wingti may have won 1987 National General Elections but lost to Namaliu in 1988, so you ask yourself whether it’s fair we blame him for not doing much for the country.
“Political instability via Votes of No Confidence (VoNC) has cost us dearly and impact with serious ramifications today,” Prime Minister, James Marape said.
