Frieda November APEC Announcement

Make us a better offer than China, PNG tells Australia
Ben PackhamSeptember 28, 2018

PNG’s Minister for APEC, Justin Tkatchenko.
Papua New Guinea says it is willing to work with Australia on its domestic internet cable network if it offers a better deal than China’s Huawei, declaring the matter “a business situation” and dismissing Australian security concerns over the telco’s involvement in the project.

PNG’s Minister for APEC, Justin Tkatchenko, told The Australian that Australia “will always be our key partner” but urged policymakers in Canberra to rethink the delivery of aid to PNG and “do it better” by observing China.

Saying PNG was “APEC-ready”, Mr Tkatchenko flagged major announcements under Chinese President Xi Jinping’s Belt and Road Initiative during the November summit in Port Moresby, including the development of the Frieda River mine — one of the world’s largest untapped gold and copper deposits — by Chinese-owned PanAust Ltd.

He said the proposed Wafi-Golpu goldmine, which is under pressure from the PNG government to take power from China’s proposed Ramu Two hydro project, was also likely to get the green light during the Asia-Pacific Economic Co-operation meeting.

The Australian revealed last week that Malcolm Turnbull and PNG Prime Minister Peter O’Neill had discussed Australian involvement in PNG’s domestic internet cable project to shut out Huawei, amid fears it could allow eavesdropping on communications between PNG and Australia.

A taskforce from the Department of Foreign Affairs and Trade is working on plans to finance the network from a new trilateral infrastructure fund with the US and Japan, while the Huawei option would involve a $274 million loan from China’s Eximbank.

“It’s all a business situation,” Mr Tkatchenko said. “I know Australia is against Huawei in many situations, thinking they are going to spy on everybody and take all their information.

“But we will work with Australia, with China, with Huawei, in that regard, to get the best possible outcome for our people and for communications domestically as well. It’s up to everybody to be competitive, and give us the best options.”

Australia’s push to fund PNG’s domestic cable network follows a $136m investment in a 4000km international cable to PNG and the Solomon Islands, which was also set to be built by Huawei until Australia intervened.

Mr Tkatchenko said Australia — PNG’s biggest aid donor — should consider winding back its use of consultants and “boomerang aid” in PNG, and follow China’s example by focusing on infrastructure projects.

Australia needed “to maybe advance themselves and take note of what China is doing. Not to out-do China, not to have a race with China, but more, to do it better.”

The Australian revealed yesterday that China was pushing PNG to sign off on the $1.25 billion Ramu Two deal by November’s APEC conference, amid warnings the project would cripple the Pacific nation’s state-owned electricity company and drive up power prices.

Mr Tkatchenko said the plant — another BRI project — was yet to be agreed by PNG’s national executive council.

He said the country would sign only beneficial deals. “We want to make it clear that any aid or development deal or infrastructure … is done on the merits of the project, and not compromising at all the country’s sovereignty or assets.”

https://www.theaustralian.com.au/na...a/news-story/1c5295a76d4f79e3e24f4be2a935b23f