LAE’S TURN TO SHINE?

New projects will involve major development of the country’s regions, which have arguably been left behind by Port Moresby in recent times.

This has been particularly so for PNG’S second city, Lae, in Morobe Province. With APEC out of the way, it may now be Lae’s turn to shine.

In December 2018, a memorandum of understanding between the PNG Government and developers was signed to pave the way for a final agreement on the Wafi-golpu copper/gold project, 65 km south-west of Lae (see page 32).

This joint venture, between Newcrest Mining and Harmony Gold, possesses enough copper and gold reserves for a 28-year mine. It is expected to be a major catalyst for economic development in Morobe.

For instance, the mine’s projected annual requirement for 110 MW of power should enable state-owned utility PNG Power to expand and upgrade its Ramu power grid. The construction of the mine will also create muchneeded jobs and demand for products and services from local business.

On top of this, PNG’S National Government has committed funds to upgrade Lae’s Nadzab airport and work has already commenced on expanding the road connecting the airport to Lae city itself, home to PNG’S busiest port. Work is also expected to start soon on the redevelopment of Coral Seas Hotels’ landmark Lae hotel, the Melanesian, in 2019.

Lae is also the terminus for PNG’S longest and most important arterial road, the Highlands Highway. This year, work will commence on the 10-year Asian Development Bank-funded project to upgrade the highway. It is a project that will especially benefit the Highlands region’s many smallholder farmers. (For more on agriculture, see page 49.)

Credit: BAI The central bank building under construction in Lae.