Nov 15, 2018 Last Updated 8:49 AM, Nov 15, 2018

Unconfirmed reports have emerged that the Grand Pacific Hotel (GPH) in Fiji is now fully owned by the Fiji National Provident Fund (FNPF).

The historic building, local landmark and well known icon of South Pacific tourism has been the subject of months of negotiation among its three shareholders – the FNPF (25%), Papua New Guinea’s National Superannuation Fund (NASFUND - 50%) and PNG-based property development firm Lamana Development (25%).

It is understood the PNG partners were divesting, barely 10 years after they bought into it and that FNPF was in talks with them for a total buyout.

Although no official word has been issued, sources close to the negotiations informed Islands Business that the deal had closed and that the PNG partners were treated to a farewell dinner. All three parties remained tightlipped on the development and questions sent to them remained unanswered.

NASFUND had bought into GPH in 2010 for a reported F$90 million (USD42.23m), which included 50 per cent of the businesses and refurbishing the building, which had remained derelict and empty ever since the Nauru Government, which had previously owned it via its Nauru Phosphate Royalties Trust, bought it in 1988 but could not keep up with the deterioration until it had to close it in 1992.

The Fijian Government of 2000, under Prime Minister Mahendra Chaudhry expropriated the property just before the coup of that year.

The plan to restore the then derelict building was taken up by successive governments, which finally led to FNPF’s involvement in its ownership in 2005, when the property was bought by a joint venture between the now scrapped FNPF Investment Ltd (80%) and the now disbanded Fiji Investment Corporation Ltd (20%), a former government investment vehicle operational under Laisenia Qarase’s prime ministership.

It is not known how much the PNG owners have now sold their shares for and if they have managed to recover their investments.

Now redesigned and refurbished, the ‘Grand Ole Lady’, as the GPH is more commonly referred to, was built in 1914 by Union Steamship Company and sits on a portion of over two hectares of land along the foreshore of Suva harbour.

PORT Moresby, Papua New Guinea - Only four Observers have been reported missing in foreign fishing vessels and not 18 says the country’s fisheries and marine resources minister, Patrick Basa. He made the clarification in response to assertions by East Sepik Governor Allan Bird that up to 18 Papua New executive Mike Johnston says. Johnston said that the company was working with its financial advisers to find the additional financing.

During a recent meeting with the Mining Minister Johnson Tuke, Johnston said: “For the project, the final capital we need to raise an additional roughly about US$250 million. And then there is working capital and exploration that we intend to do which brings it up to about US$300 million. That’s the final capital,” Johnston said. Meanwhile, the company is confident that the Solwara 1 project will go ahead as planned. Johnston said the project is set for production next year.

Fiji retired teachers off to Kiribati Suva, Fiji - Ten retired teachers will soon leave for Kiribati to work for two years under the Fiji Volunteer Services Scheme. This is after the signing of a memorandum of agreement between the Fijian government and the government of Kiribati last month. read more buy your personal copy at


Bougainville says no

The Bougainville Autonomous Government has rejected the Bougainville Copper Limited (BCL) Panguna mining license bid following divisions among landowners. According to BCL company secretary Mark Hitchcock, the Bougainville Government said “it was a tight split between approval for mining and non-approval for mining and as it was too close, they felt that it might lead to conflict.”

“There are small groups of opposition but there is always mining and those opinions have to be listened to and understood, but as a general rule we see strong support for mining and for Bougainville Copper,” Hitchcock said. The Bougainville Government also recently imposed a moratorium on any company restarting mining at the site. Hitchcock said BCL would continue discussions with the Bougainville Government and wouldn’t abandon plans to restart the mine. He said it was up to the landowners, who have the final and ultimate say on whether they go for mining and who they go mining with. read more buy your personal copy at

Fiji airport disruptions

Nadi, Fiji - Ground-handling of aircraft at Fiji’s largest airport Nadi were disrupted a week before Christmas (and disruptions continued as we went to press) following a dispute between workers and the groundhandling company. National airlines, Fiji Airways had to deploy its own staff to meet and service its fleet of aircraft, including checking in outbound passengers.

Management of Air Services Terminal – the ground handling contractor at Nadi International Airport accused its workers of staging a lightning strike when they walked off their jobs on 16 December, a charge employees rejeted.

They said those who left work were also shareholders of the company and they had gone to attend a shareholding meeting. On their return two hours later, management had locked the main gate to their office and attempted to serve them with suspension letters.... read more buy your personal copy at

Fiji’s government of Frank Bainimarama is continuing with its expansionary economic policy in the $3.3 billion (US$1.69 billion) budget for 2015 it handed down in Fiji’s Parliament on November 21st. Its capital budget of U$S687m makes up 41 per cent of the total budget. More roads and bridges will be upgraded or constructed and more people will be connected to the water mains. Investment on infrastructure has been the hallmark of the Bainimarama administration in the past seven years.

This expansionary economic strategy has inflated the country’s debt to record levels. From a debt of little more than US$1.4b when it took over power in 2006, public debt has mushroomed to US$2.086b by 2014. This represents 48.3 per cent of GDP, one of the largest in the region. Comparably, PNG claims a 35.5 per cent ratio and Australia, 16.6 per cent. Heavy spending on capital works should help grow the island economy, the Fijian Government said. It is giving itself a 4 per cent growth rate for 2015, a bit slower though from the 4.2 per cent growth rate estimated for 2014. Total revenue is projected at US$1.58b, with net deficit projected at 2.5 per cent of Gross Domestic Product. Bulk of the revenue will be generated from indirect taxation with valued added tax expected to raise US$419m, or 68.9 per cent of projected operating revenue.

The country’s foreign reserves is said to be healthy, currently at US$938m, enough to cover 4.6 months of imports. Consumers of alcohol and tobacco will dig deeper into their pockets as import and excise duties on these copped a 10 to 20 per cent increase for the new year. Patrons of nightclubs and large restaurants will also have to pay service turnover tax from 2015. Tax amnesties formed part of Fiji’s national budget targeting undeclared overseas assets as well as repayments of tax liabilities both for individuals and companies. Sale of Airports Fiji Limited will be finalised in the new year as well as the corporatisation of the country’s electricity and seaport utilities. read more buy your personal copy at

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