Toksave - Allens PNG Monthly Regulatory Update - July 2020

ICT and telecommunications:

DataCo completes the domestic infrastructure for fibreoptic cables

On 2 June 2020, PNG DataCo Limited announced the completion of the laying of the Kumul Submarine Cable Network (KSCN) in PNG. The KSCN represents the domestic infrastructure of fibreoptic cables connecting all the major regional centres in PNG. 

With the completion of the KSCN, plans are now underway to connect the KSCN with the Coral Sea Cable to enable PNG's connectivity with the international gateway for data transmission. 

PNG DataCo Limited has advised it is currently in the process of integrating the systems of the two fibreoptic infrastructures, and plans to have both infrastructures in use in July 2020.

Agriculture:

US$13 billion agriculture project

The Eastern Highlands Provincial Government (EHPG) signed a PGK45billion (US$13 billion) agriculture and livestock project for the province. Although little is known about the project at this stage, it is understood the project will be delivered in two phases. The first phase will be a pilot project worth K6.9billion (US$2 billion), and the second phase will be the feasibility and construction valued at K37.9billion (US$11 billion). The dates for the commencement and ending of the project is still yet to be confirmed by the EHPG.

Competition and consumer protection:

Authorisation application for Link PNG Limited

On 10 June 2020, the Independent Consumer and Competition Commission (ICCC) completed its consultation with the public and relevant stakeholders in the authorisation review process of Link PNG Limited's proposed acquisition of shares in PNG Air Limited. The ICCC has 72 days to complete the authorisation review process and release its final determination. The ICCC's final determination on the proposed acquisition is expected to be released before 6 August 2020.

Certification and commencement of new legislations:

Changes to the Mining Act and Oil and Gas Act

On 10 June 2020, the PNG parliament passed several amendments to the Mining Act 1992 and Oil and Gas Act 1998. Our comments on these new amendments can be found here.

Our update on the new National Pandemic Act 2020 that was also passed by the PNG parliament will be discussed in a separate update to be released soon.

News & other developments:

State of emergency impact on employment

A number of PNG companies have announced the closure of factories and retrenchment of their employees during and post the period of the state of emergency. Companies that have retrenched their staff or closed some of their operational sites include Vitis Industries Limited, Barrick Niugini Limited and SP Brewery Limited. Other industries, meanwhile, have had to completely shut down during the state of emergency, with workers laid off for indefinite periods of time. Employees of such industries include tourism, hotels, gaming and betting, sports, and alcohol.

Increase in work permit fees and other fees

The Department of Labour and Industrial relations has gazetted amendments to the statutory fees and charges of a number of legislations that it administers, including fees for visa and work permits. Some of the new fees show a 100% increase in the initial fees. The legislations that now have new fees and charges are: Employment Act 1978; Employment of Non-citizens Act 2007 and Employment of Non-citizens Regulation 2008; Industrial Organisations Act Ch 173; Inflammable Liquids Act Ch 311; Trade Licensing Act Ch 96; Industrial Safety Health & Welfare Act Ch 175; and Explosives Act Ch 308. 

Introduction of climate levies on fuel products

The Climate Change and Development Authority has also gazetted new statutory fees and charges prescribed under the Climate Change Management Act 2015. These new fees apply to carbon levies for imported fuel products, nitrogen fertilizers and green fees.