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Development of MSME Incubation Centres
The Board and Management of SME Corporation, amongst other key policy and legislative forms, initiated the MSME Incubation Project in 2019 to support the Marape Government’s vision and priority on developing and growing the MSME sector.
BIC is one of SME Corporation’s flagship programs. The goal of BICs is to incubate and nurture the start-up MSMEs that normally fail in the startup phase. Following an extensive fact-finding study to India in 2019 and a comprehensive feasibility study, SME Corporation has embarked on a Regional BIC project development approach. The four ideal or strategic locations identified for the Regional BIC projects were: Kimbe to cater for MSMEs in the New Guinea Islands Region; Lae to cater for MSMEs in the MOMASE Region; Jiwaka to cater for MSMEs in the Highlands Region; and Port Moresby to cater for MSMEs in the Southern Region. These BICs will offer various business growth and acceleration services such as a space for creation of business ideas, coaching, business mentoring and advisory, specialized professional services, business match making, introduction to financial services and other external support, and market access amongst others
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Kimbe Business Incubation Centre - NGI Region
Kimbe BIC project is the first of our regional BIC projects. It is being developed through
a G2G Partnership with WNB Provincial Administration (WNBPA) under a 70-30 cost and risking sharing arrangement. The project is located on a state land with a clear title held by WNBPA. Kimbe BIC project will support citizens in the province as well as the neighboring provinces to tap into entrepreneurial opportunities created by a massive fortnightly injection of K14 million into the provincial economy by New Britian Palm Oil Limited.
The project involves a construction of a two-storey building which will have 40 incubation spaces for MSMEs. The building will also have additional spaces for the key MSME sector development partners such as IPA, IRC, NDB, NASFUND, and Professional Service providers. The initial total cost of the project stood at K4.76 million. The official.
launching of the BIC project took place on the 15th of December, 2021, coinciding with the unveiling of a project billboard and contract signing with the Contractor. Both WNBPA and SMEC made the contract mobilization payments to the Contractor, amounting to K1 million and K903,750.63 respectively. Since April 2022, the Contractor has assumed full control of the project, mobilizing equipment and materials to the project site. According to the project implementation schedule, the work should have been 100% completed by the end of FY2022.
However, to date, only preliminary siteworks, such as site clearance, foundational works, and the erection of steel and metal structures, representing 10-15% of the total work, have been accomplished. However, the progress has been hindered by a 63% cost variation order issued by the contractor. The cost variation was attributed to price escalations following delays by the Provincial Procurement Commission in tendering and awarding a contract.
n 2023, after several meetings, WNBPA agreed to address the inflation-related requests by offering a 40% counteroffer. Consequently, WNBPA secured K1.8 million, with SME Corporation agreeing to provide K650,000 for the construction of 12 additional rooms within the BIC facility. These revised arrangements of the variation costs were documented in a New Contract, based on an advice by OSS, since the existing contract expired on February 13, 2023, necessitating a new contract for the continuation of the construction phase.Â
Garment & Textile Centre Redevelopment - Southern Region
he Garment and Textile Center is our second BIC project. This project will address the high levels of clothing imports by PNG from Asia, Australia, and New Zealand. Currently, SME Corporation runs a Garment and Textile Training program focusing on women and a small male population in NCD. In 2023, the program expanded to include inmates from Bomana Correctional Facility as part of their Rehabilitation Program. Other participants from Central and Gulf provinces have even travelled at their own cost to attend this program. However, many graduates of this program struggle to start their complex tailoring businesses due to intense competition and high start-up costs. Most are opting for small-scale tailoring and sewing ventures that are cost-effective to manage. The demand for Garments and Textiles in Papua New Guinea is rapidly rising, overwhelming SME Corporation’s current facility.
SME Corporation has started revamping the Garment and Textile Training Centre located within Gordons Industrial precinct to transform it into a fully functional business incubation centre with increased capacity to meet the escalating demand for the garment and textile program. The redevelopment includes a front-end extension to accommodate new showrooms and sales office, re-arrangement of all existing design and production rooms within the current 20 new incubation rooms; and demolition of old and construction of new training and incubation rooms plus SME support function office spaces. The design for the redevelopment was completed and approved in 2023.
In the first quarter of 2023, SME Corporation received the final certified drawings and began the procurement process to select experienced contractors for demolition, project management, and construction.
Minj Business Incubation Centre - Highlands Region
Highlands Regional BIC is the 3rd BIC project that SME Corporation is developing
through a Government-to-Government strategic partnership arrangement with the Jiwaka Provincial Government (JPG). SME Corporation and Jiwaka Provincial Administration (JPA) entered into a G2G Partnership Agreement in September 2023 for joint
collaboration on the development and operation of the Highlands Regional BIC Project
for the Highlands region in Jiwaka province, given its centrality in location in that region.
This project is developed under a 50-50 cost and risk sharing arrangement. JPA has
provided a State-land for the project. The project involves construction of a main BIC
building to incubate and nurture MSMEs from the region and an Agro-processing project
to cater for supply and value chain opportunities for the MSMEs that are incubated and
graduating from the main incubation hub.
The Agri-Processing Project will involve multiple processing projects involving multi-years development and operation under both short- and long-term development phases. These projects will provide anchor industries for MSMEs that are exiting from the incubation hub through its creation of supply and value chain opportunities. The sub-component that will be developed concurrent with the Business Incubation Center is a Sweet potato processing hub. Both components of the project (BIC and Agri-Processing projects) will be accommodated within the same block of land that has recently been identified and located for the project. In the first and second quarter of 2023, SME Corporation had a series of discussions with the Jiwaka Provincial Government through the Provincial Governor to garner their interest.
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Incubation Centres
Kimbe Centre
In consultation with OSS, the WNBP Procurement Committee made a decision to invoke Section 68(7) of the National Procurement Act 2021 by making a decision to retain the current contractor in the new contract. This decision takes into consideration the huge amount of payments, and the solid progress, made to date on the project. The new service contract at the revised contract value of K5,409,376.56, pending clearance by the OSS, is expected to be signed in the first quarter of 2024. This will pave the way for
recommencement of the Kimbe BIC project.
Women Centre (WEDC)
ME Corporation aimed to provide equal opportunities to local MSMEs, selecting representatives from eight provinces across four regions. These 8 contractors were chosen based on their merits in terms of capabilities and proven experiences in building construction and work. The GTTP Redevelopment Project, which began in 2023, has progressed smoothly through various stages outlined in the Implementation Schedule. These include designing the Incubation concept note, Model, Project Implementation schedule, funding policies, architectural design, project procurement, groundwork completion, and building construction. The project is on track for completion in the first
quarter of 2024, with plans for an official opening and commissioning in the first or
second quarter of 2024.
Jiwaka For Sweet Potato
 On the 08th of September, 2023, the Highlands Regional BIC project was officially launched by the then Minister for Commerce and Industry, Hon Henry Amuli, and Governor of Jiwaka Province, Hon
Simon Kaiwe. SME Corporation and Jiwaka Provincial Administration signed a MOA to
commence the BIC project in the first quarter of 2024. Following the MOU signing, SME Corporation maintained ongoing consultations with JPG. In November 2023, the Master Planner of Minj Town Physical Planning Board incorporated both the BIC Project and the Kaukau Factory facility into the new Town Development Plan. The project team enlisted a surveyor to assess the factory site and determine the perimeter dimensions of the BIC
facility. Land title for the BIC project will be registered under project. SME Corporation
engaged a Design Team to immediately undertake the concept design for the project. The concept design will further lead to the full architectural, structural and engineering designs and the full costing of the project early 2024.
Business Incubation Centres (BIC)
The Services that will be provided by the BICs
Access to Trainings
Have access to Trainings below:
- Garment & Textile sewing Training (6 months for Certificate I & 18 Months for certificate ll)
- Start & Improve Your Business (SIYB) (2 weeks program)
- Machine Repair Training (Duration of 3 months)
Access to Facility & Resources
Use of facility and recourses such as:
- Incubation hub
- Internet & Printing services
- Sewing machines
- Guidance from SMEC Trainers
Access to Funding & Finance
Access to funding and finance such as:
- Incentives from SME Corporation and other partners stakeholdersÂ
- Government K200m SME Grant at NDB and BSP through SMEC guidance
Access to Business Development Services
Business Development Services (BDS) such as:
- Business formalisation (Registration with IPA & IRC)
- Creating Networking Opportunities
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Client results
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Frequently Asked Questions
SME Corporation is a government Agency under the Ministry of Commerce and Industry and responsible for the MSME growth and development in Papua New Guinea (PNG) through various programs and projects.
There are two methods SME Entrepreneurship training is delivered.
- Flexible mode,
- Cluster groups;
- out of school to general MSMEs in an organized group.
- in school delivers to TVET and secondary schools.
To take part in the training provided by SME Corporation write to SME Corporation and express interest or enquire for more information.
To take part in the training provided by SME Corporation write to SME Corporation and express interest or enquire for more information
The K200 million SME funds funded by government, K100 million was given to BSP and K80 million was given to NDB.
BSP services its existing SMEs whilst NDB disburse loans to both existing and start-ups. All MSMEs are encouraged to enquire at BSP and NDB for more information.
The difference between Business Name (BN) and Company is that Business Name is a Sole Proprietor (Individual). It is simple to start, less expensive and more suitable for micro businesses. A BN is selected when carrying on a business under a name, no legal entity is created and there is no limitation on liability.
The Company Name is selected upon incorporation and creates a special legal entity, distinct from its owners.
Business Registration is done at Investment Promotion Authority (IPA)
After IPA registration, then register TIN with Internal Revenue Commission (IRC)