History being rewritten with resumption of Air Niugini flights to Bulolo

By MALUM NALU

Many people who have been long fascinated by the story of the gold rush days of the 1930’s feel that history is being rewritten with the resumption of Air Niugini flights to Bulolo on Monday, May 16, 2011.

Arrival of Junkers G31 'Paul' at Wau, 23 April 1931.

The historical mining town of Bulolo, Morobe province, took another giant step forward on Monday, May 16, with the commencement of twice-weekly Air Niugini flights between Port Moresby and Bulolo.

Inaugural Air Niugini Dash 8 flight at Bulolo

The first batch of passengers on board the Dash 8 flight to Bulolo – led by Air Niugini CEO Wasantha Kumarasiri and Bulolo MP Sam Basil - was greeted by management and staff of PNG Forest Products, which owns the land on which the Bulolo Airport is built; Morobe Mining Joint Ventures; Bulolo administration; as well as hundreds of local people who braved pouring rain to be present for the occasion.
The 45-minute Bulolo service, which will be every Monday and Friday, promises to greatly boost business and tourism in Bulolo, as well as the surrounding electorates of Menyamya, Huon, Markham and Lae.
With excellent opening fares at K265 per person, I can easily take my kids there, spend some time with friends in Bulolo such as Basil or roving Wau-based reporter Sampson Bonai, and later get on a PMV or take a drive down to Lae.
Air Niugini’s introduction of flights follows on from Airlines PNG in 2009.
“Bulolo is a very ideal destination with a high demand for air transportation from the local communities,” Kumarasiri said as the inaugural flight landed.
“Due to the current activities in Bulolo, we consider it is our duty as the national airline to provide the air services to the local and business communities in Bulolo.
“Apart from the mining activities, there are also other operations and activities that certainly call for further air transportation.
“To name a few, we have the PNG Forest Products Ltd, BSP, Post PNG, Bulolo Forestry College, the Micro Bank, the district administration, which certainly demands for an increase in air transportation.
“As the national flag carrier, Air Niugini has a community service obligation to serve the people of Papua New Guinea.
“Therefore, Air Niugini’s operation into Bulolo also means that the local people of Wau/Bulolo can now travel direct from Bulolo to Port Moresby instead of travelling via Lae.”
Basil said history was rewriting itself as Bulolo was once one of the busiest airfields in the world during the gold rush days of the 1920s and 30s.
He said his joint district planning and budget priorities committee would commit K50, 000 subsidies for vegetable freight and return airfares.
“We would also look at building the staff quarters and ticket purchasing office for Air Niugini to be owned by the district administration, which will benefit from the rental proceedings,” he said.
“I also call on Menyamya people, Wampar people and people from my district to utilise this service because extra seats are now available.
“We do not have to drive all the way to Nadzab to catch a plane, as it is now at our doorstep.”
THE new look Bulolo Airport apron and 1,500m runway was officially opened by Basil in February 2009.
The upgrading work was jointly funded by Harmony Gold, PNG Forest Products and NKW Holdings at a cost of K500, 000 and took about six weeks from replacing the road-base with engineered fill and then resurfaced.
The airport was closed in 1990’s due to lack of economic activities, forcing the airline companies to withdraw vital air services into the area, and left people to rely heavily on the road network for the delivery of goods and services to Wau and Bulolo.
The greatest airlift the world had ever known started from Lae to the Bulolo goldfields in the 1930s.
Built in June 1930, originally the Bulolo strip was 1,150 yards by 120 yards.
Later it was expanded to 1,300 yards in length, covered with grass.
This airstrip was used in conjunction with flying supplies and equipment for gold dredging at Wau and Bulolo.
On January 21, 1942, Japanese Zeros and bombers attacked Bulolo.
At Bulolo, they set fire to three of the Junkers G31 tri-motors on the ground, destroying them.
Gold dredging work ceased as most of the men employed entered military service.
Five days, later, on February 5, 1942, Bulolo was bombed at 11am by five twin-engine bombers.
The discovery of gold at Edie Creek above Wau in 1926 sparked off a gold rush which led to the exploitation of the rich deposits of the Bulolo-Watut river system by large-scale mechanised mining.
The rigours and cost of the eight-day walk into the goldfields and the difficulty of building a road from the coast led to the early introduc¬tion of an aviation service.
 The driving force behind the develop¬ment of the goldfields was Cecil J. Levien, a former Morobe District Officer, who has been described as a “rare and formidable combina¬tion of opportunist, practical man and visionary”.
Levien persuaded the directors of Guinea Gold N.L. that startling profits would be made by any aviation company that could provide a service to eliminate the arduous walk between Salamaua and Wau.
He secured an option on a small DH-37 plane in Melbourne and engaged a pilot, E. A. ‘Pard’ Mustar, to bring it to New Guinea.
The aviation service was a success from the start.
After two unsuccessful flights around the mountains south of the Markham ¬no one knew exactly how to find Wau from the air.
Mustar landed at Wau for the first time on April 16, 1937.
He began the service the next day with a shipment of six 100 lb bags of rice, charging a shilling a pound, and, making two trips a day, five days a week, carried 84 passen¬gers and 27, 000 pounds of cargo in the first three months.
Rival aviation companies were not long in arriving to share the profits.
Ray Parer, the proprietor of Bulolo Goldfields Air Service who had been com¬peting keenly with Mustar to be the first to land at Lae, came from Rabaul after many delays, and A. ‘Jerry’ Pentland and P. ‘Skip’ Moody soon joined them.
There was ample business for all, and by April 1928, a year after the service began, Guinea Airways (the aviation company that grew from Guinea Gold N.L.) had acquired two extra planes and was employing three further pilots and two more mechanics.
Then in March 1929 a new company, Morlae Air¬lines, began a weekly Lae-Port Moresby run, meeting ships from Australia and bringing passengers and frozen foods across to Wau, Bulolo, Salamaua and Lae.
At first Bulolo Gold Dredging Ltd and its parent company, Placer Development Ltd, had thought of building a road to the goldfields, but the length of time it would take and the high cost of construction and maintenance persuaded the companies to accept Guinea Air¬ways' proposition that “skyways are the cheapest highways”.
On the advice of Mustar, Bulolo Gold Dredging purchased three all-metal, tri-motored Junkers G-31 aircraft from Germany, which Guinea Airways was to operate under licence for the gold mining company.
Guinea Airways also purchased a Junkers G-31 of its own.
They were huge planes, each capable of carrying a payload of 7100 pounds or 14 short tons together.
The airlift began in April 1931 and continued for eight years: the first dredge began work in March 1932, the eighth in November, 1939.
Another crane at the airstrip lifted the heavy machinery into the planes and a rail crane unloaded them at Bulolo.
Eventually operations became so efficient that nine round trips a day were possible.
The airlift was a remarkable undertaking.
It pioneered the use of aviation in the transport of heavy cargo and, in the words of one writer, “in every respect it constituted a world record”.

Papua New Guinea economy grew 8% last year

THE PNG economy is estimated by the Bank of Papua New Guinea (BPNG) to have expanded strongly by around 8.0% last year, in line with the projection made in the last September’s monetary policy statement (MPS), The National reports.

The growth is mainly attributed to increase in the building and construction, transportation, storage, communication, manufacturing and commerce sectors.

The increases in these areas were associated with the current construction phase of the LNG, which has affected the rest of the economy.

The increase in the building and construction sector was also associated with public investment on infrastructure and new building projects as well as those undertaken by the private sector.

Government funding has increased as well as the production of non-mineral export commodities due to increased prices.

The economy continued to expand rapidly in spite of the delay of the Ramu nickel-cobalt (NiCo) mine.

This year  the economy is projected to grow by around 9.5% , driven by increased activity in the mineral sector and a pick-up in the construction of the LNG project.

The manufacturing, commerce, transportation, storage and communication,  agriculture, forestry, fisheries,  finance and other service sectors are also expected to contribute significantly.

The growth in the mineral sector is anticipated upon  the commencement of the Ramu NiCo and increased production at existing mines, which would more than offset a decline in petroleum production.

The increase in the manufacturing and commerce sectors will be based on the pickup in construction activity and higher prices of export commodities, respectively.

The growth in the transportation, storage and communication sector is driven by the transportation sub-sector, reflecting increased activity in shipping, air and land transportation, associated with higher passenger travel and cargo haulage.

BPNG expects the economy to continue to grow next year and 2013, but at a lower rate.

This is due to the completion of the construction phase of the LNG project, especially in 2013.

The growth will be driven mainly by the full year production by Ramu NiCo and increased production of gold at the Lihir, Hidden Valley and Simberi mines.

High prices and production of non-mineral export commodities will also contribute to the growth.

 

 

Ban triggers fuel shortage

By PATRICK TALU

 

THE ban on heavy vehicles using the Poreporena Freeway led to a major fuel shortage in the National Capital District yesterday, The National reports.

Streets around service stations were jam-packed with vehicles, causing major traffic snarls around the capital city that turned rush-hour into a crawl.

The rush to fill up came about after major supplier InterOil said trucks contracted to distribute fuel from its Napanapa oil refinery would not use alternative routes into Port Moresby.

InterOil retail marketing manager Jimmy Son said last night its contractor, East West Transport, refused to use the alternative routes proposed by the police.

Son said its retail distributors around town, Koki and Ela Beach were not affected by the supply shortage.

East West Transport was contacted to comment but referred inquiries to Steamships Trading Company, adding that they do not talk to the media.

Attempts to check with Steamships were unsuccessful as no one was answering the phones.

However, operators of two service stations confirmed the shortage.

Their tanks were empty and their pumps locked, forcing frustrated drivers to join the gridlocked traffic.

Security guards at the stations said they had run out of supplies at 3pm.

Other fuel station like Lahara, Gordon and Hohola faced similar situation.

The worst traffic bottleneck was at the 5-Mile service station.

Vehicles queued from the 5-Mile roundabout towards Boroko and down Boroko Drive.

At the 4-Mile roundabout, vehicles were moving at snail’s pace.

Some commuters outside of Port Moresby like Tubusereia, Gaire and other places had long waits, with no guarantee they would get to fill up.

Others brought jerry cans and plastic drums to get extra supplies and added to the frustrating first come first served fight for fuel.

Attendants were overheard telling customers, “em laspla fuel nau. Em pinis, em pinis,” (this is last lot of fuel. When it runs out, this is it).

The ban also hit other major wholesalers and retailers in Port Moresby.

TST logistics manager Babu Muthaya said the freeway ban made it difficult for them to transport empty containers to the wharf.

 

 

Freeway ban on trucks lifted

By ANGELINE KARIUS

 

THE ban on heavy vehicles using the Poreporena Freeway was lifted at noon yesterday, The National reports.

The consensus was reached between transport operators, transport authorities and police in a stakeholders meeting.

Government sector agencies, including the Department of Transport, police, National Road Authority and the Department of Works met in a separate meeting.

All vehicles weighing more than 40 tonnes would now use the left lane.

Policy and planning deputy secretary Philip Habon said certain regulations would have to be met while accessing the Poreporena Freeway.

He said, for the meantime, operators were advised that trucks should carry a load limit of between 40 and 43 tonnes, maintain a speed limit of 60kph and 30kph downhill, erect road signs and establish media awareness.

“Any vehicles exceeding 43 tonnes will be taken off the road,” he said.

The long-term plan will be to buy a weigh machine station to ensure trucking companies and operators follow these rules.

“This would require sourcing of funds to bring in such machinery into the country,” Habon said.

He said all trucking companies should join the Road Transport Association so that such issues could be taken up by relevant authorities to address.

 “Driver behaviour, road designs and vehicle defects were the culmination of different factors that came into play,” he said.

“Police have a duty to protect lives and property over an extended period of time.

“They had every right to do what they did.”  

National Road Authority chief executive officer Roy Mumu said the reconstruction of the safety concrete slab by NCDC “will undergo review by NRA and Department of Works”.

He said he hoped that road signs would be re-erected along the Poreporena Freeway and that they would be observed and taken care of by road users and the public.

“More consultations with the industry and government agencies will continue in future,” he said.

Governor-General to okay by-election for Kundiawa-Gembogl

By ZACHERY PER

 

THERE will be a by-election for the vacant Kundiawa-Gembogl seat in Chimbu soon, The National reports.

The Electoral Commission will announce a tentative by-election schedule as soon as Governor-General Sir Michael Ogio’s consent is obtained.

Electoral Commissioner Andrew Trawen yesterday broke his silence over the Kundiawa Open seat left vacant following the death of late member of parliament Joe Mek Teine in April.

“Section 106 of the Constitution states that when an office of an elected member of parliament becomes vacant, an election shall be held to fill the vacancy,” Trawen said.

“For the vacant Kundiawa seat, I have to give enough time for the family and the people of Kundiawa to meet their customary obligations in mourning the death of the late member before I announce dates for a by-election as the mourning period has now lapsed,” he said.

Trawen was responding to media reports that certain community leaders in the electorate have urged acting Prime Minister Sam Abal not to conduct a by-election out of respect to the late member of parliament.

“This manner of requests and assurance is inappropriate and unconstitutional because any person deciding against the conduct of elections is, in fact, breaching the requirements of the Constitution,” Trawen said.

 “The seat does not belong to factional groups of people within the electorate; it belongs to the people of Kundiawa and there is no power given to any person to stop the conduct of elections as required under section 106 of the Constitution,” Trawen said.

He said for an election to take place, the vacancy must take place at a time outside of the 12-month period before the fifth anniversary from the time the writs were returned for the last elections.

Trawen pointed out that the writs for the last elections in 2007 were returned on July 27, 2007, but the Kundiawa Open seat became vacant in April 2011.

“We are not yet into the 12-month period, the seat has become vacant before the 12-month period and, therefore, a by-election must be conducted.”

 

Goroka’s maverick empowers Central province

By MALUM NALU


People from remote Kokorogoro village in Inland Rigo, Central province, were empowered in a big way when Goroka maverick Barclay Kaupa dropped in.
The Goroka-based soap maker was brought in by non-government organisation, ChildFund PNG, to teach the villagers about making soap at a weeklong workshop from May 22-27.



Barclay Kaupa and Fiona Fandim with happy and empowered villagers

 This was under ChildFund’s water and sanitation programme.
Kaupa, true to style, not only taught 25 participants from four villages about making soap but also showed them how to produce their own jam and peanut butter using local products, rebuild their inland fish farming project, and the gospel of self-reliance.

Empowered...Inland Rigo villagers washing their hands with soap they made themselves

I wasn’t surprised as Kaupa, a good friend of mine for many years, has always been a true champion of self-reliance and independence.
“Under ChildFund’s water and sanitation programme, we taught the villagers how to make soap using caustic soda, oil and water,” he says.
“We also taught the villagers how to make jam and peanut butter using local ingredients.

Pineapple and pawpaw being sliced to make jam

“I also told them about the self-reliance approach in community development.
“I told them that we are imprisoned by our attitude problem.
“This is the biggest problem affecting Papua New Guinea’s development.
“The government should step in and support such small initiatives.
“We are importing almost everything in this country.
“We can add value to many of our products, create jobs, and reduce poverty and law-and-order problems.
“The government has been preaching about downstream processing, but next to nothing has been achieved.”
Fiona Fandim, water and sanitation project officer with ChildFund, so was impressed with Kaupa for going that extra mile.
“We were so impressed,” she says.
“It was a very successful training and people were much empowered by it.
“We brought Barclay in specifically to teach people about making soap, however, he also taught them about making jam and peanut butter, inland fish farming, and self-reliance and community development.”
ChildFund is a children-focused NGO which has programmes in education, health, youth HIV/AIDS, food security and livelihood, water and sanitation, and community development.
I know Kaupa from my years in Goroka from 1998-2002, when my late wife and I were regular customers of his for fresh honey, as well as homemade soap and detergent for the house, and can vouch for their quality.
Despite being a Grade 10 dropout in 1984, Kaupa’s extensive use of the Goroka Public Library and the University of Goroka Library – through a lot of reading – helped him to start his honey and soap business.
Kaupa ran Jauka Honey, a small honey and soap-making set-up at Kama in Goroka, until business was affected by the bee mite about three years ago,
In May 2005, he was named as best small business by the Small Business Development Corporation at the PNG Coffee Festival and Trade Fair and pocketed the K800 first prize.
Reading was the secret to the sweet success of his honey and soap-making business.
Kaupa, from Lapeigu village outside Goroka, completed his Grade 10 at Asaroka Lutheran High School in 1984 – with no offers for further education or employment.
“When I left school,” he tells me in a 2005 interview, “I felt that I was helpless and hopeless.
“I felt out of place and I used to spend all of my time in the garden growing vegetables.”
In 1986, the disillusioned young man managed to secure a job with Lamana Wholesale in Goroka, a job he held until the company wound up in 1990.
“The little money that I saved, I used to buy off a couple of beehives from a wantok,” Kaupa says.
“This was a completely new area into which I was venturing.
“I went into libraries in Goroka, where I read a lot of books about beekeeping.”
He had a coffee plot at Lapeigu, and soon realised that he could have a sustained cash flow all year round, if he grew coffee and raised bees together.
Towards the end of 1996, the young beekeeper approached Benny Jauka, the owner of Gamesano Trading in Kama, for assistance to get the honey project off the ground.
“He saw that it was a good idea,” Kaupa says.
“I helped in the shop until September 1997, when with Mr Jauka’s assistance, the Westpac Bank approved my loan, which I used to buy honey-processing equipment from New Zealand through the Department of Agriculture and Livestock.
“We started honey production in December 1997.”
Jauka honey was distributed mainly in Goroka and Lae, where – through Rabtrad – was distributed by Andersons Foodland stores nationwide.
In August 1998, the innovative Kaupa ventured into soap production using bee wax.
It was trialed in the hauslains of Goroka by the people who mattered – mothers – and they gave it the thumbs up.
“It took us six months to carry out experiements to find out which soap was best for the hauslains,” he recalls.
Thus was born the Nokorowa Soap.
The soap proved to be a big hit in Goroka, and was distributed throughout the highlands.
“The bar of soap sells fast,” Kaupa says.
“People realise the quality; it lasts and it saves them a lot of money.
“One bar of Nokorowa Soap is equal to three of four bars of other soap brands that you buy in shops.
“However, we need money to improve the quality of our soap.“The vision is there, but we need help so that can go into mass production and supply the whole country.”
Towards the end of 1999, Kaupa ventured into yet another product, the Nokorowa Soap Powder.
The soap is ground up into fine powder, and then packed and sold as a grassroots alternative to the familiar Omo and Cold Power.
Nokorowa Soap Powder is now a familiar sight in the shops of Goroka.
Kaupa is a fervent believer in self-reliance and independence, and speaks out strongly against the handout mentality.
“We believe in self-reliance,” he says.
“We believe that we can do it ourselves.
“If our ancestors could survive for over 50,000 years doing things themselves, why can’t we do things ourselves?
“Be independent rather than depending on outside assistance.
“If we in PNG want to be really independent, why can’t we do things ourselves?
“Be independent rather than depend on outside assistance.
“If we in PNG want to be really independent, let’s do things ourselves; there is still hope.
“Our grandfather experienced real independence, not like these last 30 years.”
Kaupa says the education system, which makes dropouts out of young men and women, is largely to blame for many of the social ills of today.
“The system has created many of the problems we currently have, such as crime and poverty.
“However, I believe that without formal qualifications, you can succeed if you read a lot.
“I read a lot in the libraries, obtained more information, did more research on honey and that’s how it all started.”

Barclay Kaupa can be contacted on mobile 72486527.

Bougainville firm gets Canadians to develop oil and gas

CANADIAN petroleum company Morumbi Oil and Gas has entered an agreement to develop oil and with Bougainvillean landowner company Isina Holding Ltd, The National reports.

In a statement released at its website, Morumbi said its wholly-owned subsidiary Isina Mining & Development has executed a letter of intent (LOI) to become the development partners of choice of Isina Holding on the mineral rich island of Bougainville.

Isina Holding is a landowner company represented by 15 villages over traditional land on the island.

According a statement on Tuesday, it is the first time in the history of Bougainville that an area recently aggressively opposed to mineral explorations, had formed its own development company and invited a foreign partner to jointly explore and develop mineral resources located on their traditional land.

The company’s chairman Stephen Shefsky and chief executive officer Mark Brennan participated in the signing ceremony which took place at Tunania village on the Isina Lands on the east coast of Central Bougainville.

The current LOI covers about 5,000ha that extends from east coast up over and beyond the Crown Prince Range.

Bougainville, although long regarded as having great gold and copper potential based on early works done by German explorers, has a unique history with respect to mining in that no exploration has been carried out since the 1906s.

Morumbi said satellite imagery, together with results of a German government sponsored Aeromag geochemical survey over Bougainville carried out by the federal institute of geosciences and natural science in Hannover, Germany,  and published in 1990, together with the 2007 discovery of extensive alluvial fields in the creeks and river of Isina that were now being worked by villagers, singled out this area for high-priority exploration programmes for gold and copper epithermal and porphyry deposits.

Under the term of the LOI, IMD paid K10,000 on execution and has agreed to pay a fursther K3,000 per month to Isina Holdings help fund certain programmes.

 

Angry truckies

Freeway ban hitting city businesses hard

 

By ANGELINE KARIUS        

      

TRUCKING companies in Port Moresby reported yesterday that the move to stop heavy trucks using the Poreporena Freeway had adversely affected their operations, The National reports.

Several firms had told business clients they would discontinue services until an alternate route, free of obstacles, was found.

Representatives from trucking companies confirmed yesterday that most of their operations were affected as a result of the ban.

Deputy police commissioner and operations commander Fred Yakasa last week issued the ban following a spate of fatal accidents on the steep incline where drivers of heavy vehicles had lost control or where brakes had failed.

Most company representatives met with NCD traffic police after responding to a letter by Chief Sgt Philip Koliadi that measures would be taken according to the directive issued by Yakasa.

The letter, dated May 30, stated that NCD traffic division would carry out the awareness and enforce the ban by diverting all motor vehicles considered heavy or carrying loads.

The ban had meant diverting heavy trucks through the central business district creating considerable traffic congestion.

According to Koliadi, most (companies) said that alternate routes suggested including Gerehu to Baruni, 2-Mile and Kilakila were too long or the roads were in such bad condition.

He said the ban might force companies to increase their fleets and volume of goods transported.

“These could pose potential road hazards to public safety due to most residential houses along the 2-Mile and Kilakila roads while Gerehu and Baruni could prove vulnerable to criminal elements,” he said.

Koliadi said other factors needed looking into included driver inexperience and inattentiveness, overloading and vehicle defects (brake failure).

A meeting between all relevant transport stakeholders would be held today and would include Department of Transport, NCDC and police.

Physical inspections on the road showed a number of heavy vehicles was still using the freeway but a greater number was going through 2-Mile.

Motor Vehicle Insurance Ltd (MVIL) director Dr John Mua said the bottom line for the ban was to save lives.

He said police had the authority to impose the ban. 

He said MVIL was committed to paying compensation but had taken proactive actions to promote safety.

“The highest payment in compensation per annum was K24 million,” he said.

 

Abal explains MoA policies

By RONALD BULUM and GABRIEL LAHOC

 

ACTING Prime Minister Sam Abal yesterday said that legacy funds arising from MoAs with landowners of resource projects had to be administered properly, The National reports.

“To ensure it is paid – and paid properly – the money is put through an efficient process,” he said at the Lae International Hotel.

Abal was referring to a National Court order issued on Tuesday for him and Finance Minister Peter O’Neill to review the 1996 MoA between the state and Kutubu landowners of PDL 2.

PDL 2 landowners, including former Southern Highlands governor Hami Yawari, had applied and been granted orders to prevent Abal and O’Neill from putting landowner grants into the Mineral Resources Development Corporation (MRDC).

He said MRDC would then administer the grants to the landowners.

He said cabinet had approved K100 million for MoAs.

Not wanting to be caught sub-judice or in contempt, Abal said he respected Justice Ambeng Kandakasi’s order but added that there should be room for mediation outside of court.

He said government lawyers were looking into the matter.

He said when the MoA was signed, “it was for oil, not gas”.

But, when the Porgera gold mine needed gas for power, “some of it was supplied while the rest was burnt”.

He said the agreement was for the extraction of oil because high world demand had increased its price.

“That agreement for oil cannot be equated with those for the gas landowners,” he said.

Abal said he was trying to deter “the wastage of money by landowners”.

“When money is paid into a proper system, the benefits are better,” he said.

The Wabag MP said he personally took up the matter this year, but asked for understanding as he could not “do miracles”.

“The government is not here to approve cash deals going out, as we will always have landowners turning projects into cash deals,” he said, warning that with the general election next year, the government did not want funds to be abused and that leaders should cooperate with the government.

Abal was in Lae for the opening of the mid-year review of the Crowne Plaza Pronouncements.

 

IMF: PNG suffers from poor governance

PAPUA New Guinea has enjoyed a decade of solid economic growth but suffers from week infrastructure and problems with governance and crime, the International Monetary Fund (IMF) has reported, The National reports.

Following a May 18 visit to the country, the executive board of IMF concluded that the solid performance was supported by greater political stability, a sound fiscal framework, and a healthy banking sector.

Despite its commendable performance, PNG remains “a low-income country highly exposed to commodity price fluctuations”, the IMF said.

The report stated in part: “The economy has weathered the global recession relatively well and real GDP growth is estimated to have picked up from 5½% in 2009 to 7% last year.

“Higher commodity prices and the construction of a liquefied natural gas production facility (LNG) – a 190% of GDP project – have boosted the economy, while banks continued to provide finance, and agriculture production rebounded.

“However, the country’s infrastructure–roads, ports, and utilities–has shown signs of capacity constraints, and bottlenecks have appeared in the markets for skilled labour and land.

“Inflation has reached 7.8% at end-2010 and is increasingly driven by domestic demand.

“Higher commodity prices boosted revenues last year, at the same time spending from off-budget accounts slowed.

As a result, after the deficit had reached 9½% of GDP in 2009, a balanced budget was almost achieved in 2010.

“The Bank of Papua New Guinea has kept the policy interest rate at 7% since end-2009.

However, monetary conditions loosened as short-term interest rates declined to around 3% and the nominal effective exchange rate depreciated by more than 7% in 2010.”

Banks, although well capitalised and liquid are vulnerable to a possible correction in property markets, the IMF said.

Although commodity prices and exports recovered in 2010, the current account deficit has widened to 24% of GDP.

It was, however, largely financed by foreign direct investment related to the LNG project.

External debt declined to about 11% of GDP last year.

The IMF directors considered the near-term outlook to be generally favourable but encouraged the authorities to consider tighter macroeconomic policies in the face of rising inflationary pressures.

“Over the longer term, it would be important to reinvigorate structural reforms to support the development of the non-mineral sector, while ensuring effective use of mineral resources to sustain economic growth and raise living standards,” the report states.

The directors stressed the need for tight fiscal policy during the construction phase of the liquefied natural gas plant.

They welcomed the agreement on a balanced 2011 budget and recommended strict adherence to budget allocations and the limit on trust account spending.

The IMF advised that it would be prudent to save windfall mineral revenues and use part of such resources to reduce government debt.

Further the directors welcomed the government’s plan to manage resource revenues through a sovereign wealth fund (SWF).

They stressed that the SWF should be well governed and adhere to the Santiago Principles to ensure effective management and use of the resources.

They considered it important to integrate use of the resources in the SWF into the budget and macroeconomic framework.

 

Touch of Papua New Guinea

Pacific Partnership 2011 mission commander Capt Jesse Wilson (of the USS Cleveland) is given a last PNG traditional escort by a young highlands lass as he marches up to the podium for his final remarks about services provided to help improve the quality of life in Lae city, The National reports.

The US mission crew was in the Morobean capital for the last two weeks, providing humanitarian services to about 11,000 people.

They were farewelled at a closing ceremony at Igam barracks yesterday.

 

PNG ratifies interim EU pact

PAPUA New Guinea  has ratified the interim economic partnership agreement (IEPA) with the European Union (EU) giving effect to the full application of the partnership agreement which has been on a provisional basis, The National reports.

Minister for Foreign Affairs, Trade and Immigration Don Polye’s intervention for the parliament to waive the normal 10-day requirement for ratification process was granted last Tuesday.

Polye thanked the members of parliament for the foresight and cooperation to enable the legislative process to be secured which he said would ultimately benefit the people.

Polye said the government had achieved another historic milestone in its diplomatic relations to generate maximum impact and benefit for the people in the conduct of its relations with the EU.

“I am very satisfied that the MPs have given me the required support to meet our legislative requirements to effect this contractual obligation on our part as the European parliament had met its legal obligations in January.

“I had, therefore, sought parliament waiver of the normal 10-day requirement for ratification process for the interim EPA, between the Pacific Islands and the European Union ratified without delay. I am happy that parliament has granted its approval,” Polye said.

He said PNG signed the interim EPA in 2007 to continue to protect the preferential access for our substantial export interests of fisheries and other marine products, palm oil, cocoa, coffee and rubber to the EU markets.

He stressed that PNG-EU relations over the years had been governed by a series of conventions between the Africa, Caribbean and the Pacific (ACP) states and the European Union. 

The current convention is known as the Cotonou convention.

“These conventions over the years have provided for generous benefits including provisions on development cooperation and trade. 

“The trade provisions in the various conventions were particularly favourable to the ACP including PNG because of the preferential duty free market access ACP products enjoyed in the European market.  In that connection, it should be noted that the balance of trade has always been in PNG’s favour. 

“For instance, last year, it was  448 million euro in PNG’s favour at the exchange rate of 0.2910 to K1.”

 

Review memorandum of agreement, Abal and O'Neill ordered

National Court orders Abal and O'Neill to look into 1996 deal

 

By JACOB POK

 

ACTING Prime Minister Sam Abal and Minister for Finance Peter O'Neill have been ordered to personally take steps to review a 1996 memorandum of agreement signed between the state and Kutubu landowners of PDL2, The National reports.

The National Court yesterday said failure to do so could result in contempt charges against the state.

The state was given until June 17 to review the expired agreement.

Justice Ambeng Kandakasi then issued interim restraining orders stopping Mineral Resource Development Company (MRDC) from facilitating payments of MoA funds to Kutubu landowners.

The orders followed an application by the plaintiffs, including former Southern Highlands governor Hami Yawari and landowners of PDL 2.

The issue arose from a newspaper statement by Abal that all MoA payments would be facilitated by MRDC.

Lawyers for the plaintiffs opposed that and told the court that the 1996 MoA did not allow for MRDC to make payments of funds to the landowners of PDL2.

They said the payments were to be made directly by the state to landowner groups and companies.

The state lawyer told the court he had not received any instructions on the matter, but argued there was no evidence on the part of the plaintiffs to verify that MRDC would facilitate payment as who would facilitate payment was still undecided.

Kandakasi told the state lawyer there was a media article by Abal saying that payment would be made by MRDC.

He asked why the MoA of 1996 still had not been reviewed.

Kandakasi referred to earlier proceedings where state lawyers failed to turn up in court with state officials when instructed to do so.

"The defendants have shown no interest in the matter.

"It is time people are dealt with for contempt."

He said the state had provided MoA funds to MRDC without discussing the issue with landowners.

"These are all wrong and contemptuous," Kandakasi said.

He ordered Abal take personal steps to have the memorandum of agreement reviewed no later than June 17.

He said this was to maintain the status quo and failure to do so could result in contempt.

 

Atoi wins in Bougainville

By STEPHANIE ELIZAH

 

THE people of North Bougainville have elected their new national member of parliament. He is Lauta Atoi, a businessman of mixed Mortlock and Tasman parentage, The National reports.

Atoi, with 10,463 votes, won by 5,301 beating only female candidate Rachael Opeti Konaka, who completed the contest on 5,162 votes.

He now occupies the North Bougainville open seat left vacant by former member and Governor-General Sir Michael Ogio.

Bougainville Electoral Commissioner and North Bougainville by-election returning officer Reitama Taravaru, in thanking the Papua New Guinea and Bougainville electoral commission officers, police and the candidates and their supporters, said, generally, the election was peaceful and carried out with respect.

“Having being satisfied with the process on our part, that the by-election was fair and transparent, I have taken into account all the votes cast and I declare our new member-elect Lauta Atoi,” Taravaru officially declared in Buka yesterday.

Atoi, in accepting his new role, thanked everyone for their support and acknowledged members of the New Bougainville Party and churches in Buka for their prayers and assistance.

To all his voters and campaign team, he urged they stay focused on their primary reason for contesting the by-election.

“This win is just the beginning of our journey. Let us stay focused on the immediate needs of our people,” he said.

“We need to complete all incomplete projects of our former member like delivery of water tanks and assisting our people in the West Coast atolls.

“Let us concentrate on putting all monies into these immediate projects; 2012 can take care of itself.

“Our medium- and long-term plan is to boost economic growth in our region,” he said.

“There is no time to celebrate, we have six months to take care of our people. I stand with confidence, yes, I can lead, it is time for a change.”

He invited the candidates who lost and their supporters to work closely with him.

“I have seen your platforms during the campaign period.

“You have very good ideas which we can together work on and move Bougainville forward,” Atoi said.

 

Freeway ban ignored

By ANGELINE KARIUS

 

TRUCKS and semi-trailers are still accessing the Poreporena Freeway despite a ban imposed by police last Thursday, The National reports.

Deputy police commissioner and operations commander Fred Yakasa said roadblocks operated by his men appeared to have failed.

He said there were logistical problems involved in stationing his men at the designated Konedobu and Hohola roundabouts to divert trucks and semi-trailers using the freeway.

“It is not working. I will have to look into this and try to station officers at designated routes to continue monitoring the highway,” Yakasa said.

He said the ban imposed by police was over public safety fears and to protect commercial houses and properties along the roadside.

“I call upon respective transport operators to do something about it and impose measures for motorists and public accessing the freeway.

“Police have tried but it has not worked. We all have to do something.

“The Poreporena Freeway is a death trap. That is what everyone needs to understand,” Yakasa said.

It is understood that no formal meeting with transport operators had been held since the ban was imposed.

National Road Safety Council director Frank Aku had condemned the action by police.

He said the ban on the freeway needed to be approved by the relevant authority before it could be imposed.

“This is public road to be used by all vehicles,” he said.

 

Breakthrough against potato disease

Caption: Tubers of NP 02, one of the PLB-resistant varieties pre-released by NARI to the farming community early this month – Picture by ANTON KERRU

 

By JAMES LARAKI of NARI

 

THE farming community now has the opportunity to trial new potato varieties after the National Agricultural Research Institute (NARI) officially made a preliminary release of two varieties resistant to the late blight.

The varieties referred to as NP1 and NP2 (NP stands for NARI potato) were pre-released during the agricultural innovations show early this month along with a broiler feeding system and two cold-tolerant rice varieties for the highlands.

The preliminary release of the two varieties will be sigh of relieve to smallholder farmers who have been unable to grow the crop after it was completely wiped out by the potato late blight (PLB) disease in March 2003.

The potato industry worth about K25 million at that time has not recovered fully as the common variety Sequoia is still very susceptible to PLB.

After the outbreak caused by a fungal agent, Phytophthora infestans, the Sequoia variety could not be grown by ordinary farmers due to the cost of weekly fungicide treatments.

The Sequoia is highly susceptible to the late blight and potato production has been limited to a relatively small number of commercial farmers who could afford chemicals, backpack sprayers and seed potato.

Subsistence farmers, particularly in the highlands where the crop is usually grown rely on potato as an important crop.

Potato is not only a commercial crop but is also a source of food next to sweet potato (kaukau), particularly in the high altitude highlands where the choice of staple food is limited.

In a view to revive the industry, particularly the smallholder farmers in mind, NARI initiated a project in 2003 with funding support from the Australian Centre for International Agricultural Research to evaluate blight resistant varieties.

The objectives of the project were to introduce, multiply, evaluate and deploy late blight resistant clonal material into PNG and to develop safe, cost effective integrated late blight management strategies for existing and new potato cultivars and ultimately to rehabilitate potato production for smallholders.

Under the project, NARI sourced 59 International Potato Centre (CIP) clones in 2003 and evaluation work has been undertaken at various sites to asses late blight resistant and yield.

 Of the 59 clones, 12 clones where selected and further evaluated against Sequoia both on station and on-farm.

The two varieties pre-released have proven to be late blight-resistant, high yielding and have other favorable agronomic traits such as good taste and processing quality.

These were observed through on-farm farmer participatory trials covering some 15 sites over three seasons in Enga, Western Highlands, Simbu, Eastern Highlands and Morobe (Kabwum) provinces.

The pre-released varieties have been subjected to a wide range of farmers and general public for their comments and views, both at the growing and harvesting stages.

Many farmers have already shown their approval and are into growing them, including seed production.

The Enga rural potato project based in the Lagaip-Pogera district, an initiative of its local Member of Parliament has ventured into seed production with a view to reviving the crop in the district and the province as a whole.

This is seen as a good initiative as the adoption of new potato varieties by farmers depends on the availability of a consistent supply of quality seed potatoes.

The late blight disease remains a concern to the potato farmers, especially in the highlands where the crop is popular and usually grown.

The fungus is a specialised pathogen of potato and is an extremely-destructive disease of potatoes.

It attacks both tubers and foliage at any stage of development and is capable of rapid development and spread.

It was responsible for the devastating Irish potato famine of the 1840s and has continued to be important to the present.

Since the Irish famine, late blight became the most-studied potato disease in the world.

Previously free of the disease, PNG was one of the world's few remaining safe havens for growing potato until 2003.

The entire potato crop was wiped out in a matter of weeks after it was first discovered in the Sirunki area of the Enga province leaving a trail of destruction.

The blight is believed to have come across from the neighboring Indonesian province of Irian Jaya.

Yield losses caused many smallholders, who relied on potato as a valuable cash and food crop, to withdraw from production, leading to an increase in potato prices in the country.

Some breakthrough has been made to control PLB using fungicides, however, the extra input has been a burden to smallholder growers and identifying suitable varieties was the long lasting solution to revive the potato industry.

NARI with support from other partners have taken on this responsibility and the preliminary release of the two varieties is an outcome of the efforts to assist smallholder growers and to reviving the once-thriving industry.

It is now hoped that smallholder farmers will now be able grow their favourite crop once again with the preliminary released materials as additional inputs requirements associated with the Sequoia variety has denied them.

The preliminary release of the blight resistant varieties is a breakthrough against the devastating potato disease and it is now up to the farming community to try the varieties in their farms and adopt them from their own judgments.

Nature at your service

Tubusereia Primary School teacher Michael Tau was more than happy to get himself dirty while assisting PNG environment goodwill ambassador and Miss PNG Rachel Sapery James plant a mangrove seedling, The National reports.

Students, teachers and staff yesterday from the Central school off Magi Highway joined staff from the Department of Environment and Conservation and corporate partners Steamships Trading Ltd and Trukai Industries plant mangroves to launch World Environment Day. Centred on the theme “nature at your service”, this global event will be celebrated on Sunday. – Nationalpic by JASON GIMA WURI

 

Pacific countries ready to sign EU pact

PACIFIC countries in the  Pacific, African Carib- bean Pacific (ACP) group are ready to join PNG and Fiji in signing the economic partnership agreement (EPA) with the European Union (EU), The National reports.

Pacific ACP countries have again stressed their commitments to conclude negotiations on EPA with the EU by the end of the year, as reported by Solomon Star newspaper yesterday.

“However, that deadline could only be achieved, if there was flexibility from both sides,” the Pacific lead spokesperson on EPA negotiations and Tonga’s minister for trade, Lisiate Akolo said.

The deadline for negotiations was December 2007 but the Pacific region failed to meet the timeline because it was not able to strike an acceptable free trade deal with the EU.

Instead, Fiji and PNG signed interim EPAs with the EU in 2009.

“I am pleased to inform you that interim agreement was ratified by the PNG parliament last  Wednesday and the implementation of the agreement is well advanced,” Akolo said in his progress report to the ACP’s 93rd session of the council of ministers meeting underway in Brussels, Belgium.

After seven years of negotiating the EPA the region seeks to bring negotiations to a conclusion.

“We believe the region is now prepared and ready to do this.

“A recent meeting of Pacific ACP in Apia, Samoa, and ministers agreed that this would be the overarching priority for the region in 2011.

“But any conclusion will require all parties to show flexibility and be mutually committed to undertaking the work necessary to conclude the agreement,” Akolo said.

He said the rest of the 12 Pacific ACP countries reaffirmed their desire to conclude a comprehensive EPA as a single region.

The Pacific ACP EPA 2011 Strategy was adopted by trade ministers in Samoa, which outlined a work programme for the conclusion of the EPA.

For PNG, Foreign Affairs and Trade Minister Don Polye has completed their agreement with his EU counterpart in March.

 

Sleeping student hacked to death

By ANGELINE KARIUS

 

CLASSES at the Mt Diamond Adventist Secondary School in Central have been suspended following the brutal killing of a student, The National reports.

The Grade 10 male student, who was not named, was hacked to death in his sleep early on Sunday morning.

Central provincial education board chairman Titus Romano Hatagen said yesterday the student was attacked by a group of men on the verandah of his home, which is located along the road to the school.

His body was chopped to pieces, Hatagen added.

NCD metropolitan commander Supt Joseph Tondop confirmed the death yesterday but could not provide details.

The central education division was also not able to provide further details about the circumstances leading to the student’s death.

However, Hatagen said he had cancelled classes for three days until Thursday.

“Due to safety reasons and fear among the staff and students, the provincial education board has approved cancellation of classes,” he said.

He said the board expected students, who had left the school, to return tomorrow.

Hatagen assured parents that police were investigating the killing and were closely monitoring developments in the surrounding communities.

“I appeal to parents not to withdraw their children from the school and staff and students should not interfere with investigations,” he said.

The Mt Diamond Adventist Secondary School principal could not be reached for comments.

The boarding school is located in the Kairuku-Hiri electorate, inland from Tubusereia village, off the Magi Highway.

 

Bougainvillean local shot while visiting mother

By STEPHANIE ELIZAH

 

SOUTH Bougainville police commander Paul Kamuai yesterday said a civilian was shot and wounded on Sunday evening at Mongai village in Konnou, South Bougainville, The National reports.

Kamuai said Isaac Malabus, 24, of a mixed Muisuru and Mongai parentage, was recovering at Buka General Hospital after he was rushed to Buka from Buin at 3am yesterday.

“Malabus went to Mongai to vi-sit his mother when he was confronted by five former Mekamui combatants who are now followers of former commander and gang leader Damien Koike,” he said.

“The criminals ordered Malabus to sit down and questioned him on the whereabouts of freedom fighters in the area.

“When he said he did not know anything, he was shot below the knee and stomach,” Kamuai said.

He said tension among communities in the Konnou constituency was high.

“Criminal elements do not normally go to Mongai because the area is known to have its own home guards.

“The villagers are living in fear because the criminals crossed into Mongai territory deep in the night, searching for the village chief and his home guards,” Kamuai said.

In a related incident, Kamuai reported Buin police had received reports that a former police scout was killed in Konnou last Wednesday.

“Our local sources said the alleged murder occurred deep inside Koike’s territory, next to Siniminoi alluvial gold mine, Koike’s economic base,” Kamuai said.

He said the victim was known to police because, during his time as a home guard at Mongai, he was a police scout helping the South Bougainville police.

“In 2008, he was wounded by an AR15 at Mogoroi, got treated at the Buka hospital and, on discharge, went deep into Koike’s territory.

“I cannot confirm if the former scout was killed,” Kamuai said.

 

Milne Bay starts operations to rid illegals

MILNE Bay provincial government last week started a special operation to remove all foreigners illegally working and living in the province, The National reports.

Customs commissioner Gary Juffa, who was in the province for the start of the operation, said the exercise was targeting people who breached Papua New Guinea’s migration and labour laws.

“The aim of the operation is to scrutinise foreign workers living and working in Milne Bay and also to ensure they comply with labour and migration laws,” he said.

“Time and time again we hear and read of illegal foreign business and foreigners illegally living in and working in PNG,” Juffa said.

“We must protect the interests of PNG and its people,” he said.

The two-week operation was spearheaded by the provincial administration, customs, police and the office of labour and migration.

Juffa commended the Milne Bay provincial administration for its initiative, saying customs would work closely with the administration to ensure the exercise was a success. 

He said a number of foreigners had already been deported from the province after they were found to be illegally working and living there.

He said, so far, Milne Bay and East New Britain were the only provinces who were actually removing illegal foreigners and business working or operating there.

While in the province, Juffa attended a gathering hosted by the Border Development Authority to discuss trans-boundary issues.

 

Hijacked highway?

Transparency International PNG is concerned with the state-sanctioned construction of the Kiunga-Hiritano Highway through immense tracts of Western province land covered by the controversial special purpose agriculture business leases (SABLs).

Chairman of TIPNG Lawrence Stephens was commenting on the recent media reports of arrangements for construction of the Trans National Highway: "There is huge concern that the leases were improperly executed, that they will result in large-scale logging without providing large scale agricultural development and that the landowners are not adequately informed of the implications of these agreements supposedly executed on their behalf.

"Now the reports suggest that the leaseholders are involved in arrangements to build a major national highway which will cost the government nothing.

“The people of Western and Gulf provinces deserve to share in the prosperity of PNG.

“More importantly they need to benefit from resources in these provinces.

“A good road linking Kiunga to Port Moresby would be of great benefit to the people.

“But how do we achieve this at no cost to government unless we are giving some people the right to large areas of timber resources which, before the SPABLs were issued, belonged to whole communities?

“With the moratorium on new leases and the call to investigate existing leases there is a need to quickly ensure that the commission of inquiry is up and running to determine whether these SABL’s have been properly granted.”

Stephens raised the specific concern with reports that landowners have agreed to “trade off” their resources for access to roads in agreeing to a developer to harvest forest within the road corridors of the transnational highway.

 “What will happen to the prime virgin forest that the landowners are trading off?

“Will all the landowners be fairly compensated by the developer not just a select few?

“How wide is the corridor of tree harvesting along a 600km road?

“Gulf and Western povince people have the right to know what is planned.

“They are familiar with plans which see them lose their resources with no development to show for it." 

TI PNG, according to Stephens, remains concerned that “for too long our rural people based have not benefited from their resources and many unscrupulous developers have taken advantage of them. If this is to stop a true agricultural industry must be fostered, SABL's must not be a means for the bypassing of strict forestry regulations”.

Stephens reiterated the need to immediately conduct the commission of inquiry into the SABLs so as to rectify any possible irregularities.

 

True partnership

Hospital corpsman seaman Carmen Alfaro, assigned to the amphibious transport dock ship USS Cleveland (LPD7), reading to children during a Pacific Partnership civil action project in Lae, The National reports.

Pacific Partnership is a five-month humanitarian assistance initiative that will also make port visits to Tonga, Vanuatu, Timor-Leste and Micronesia.

During the past five years, it has provided medical, dental, educational and preventive medicine services to more than 220,500 people and completed more than 160 engineering projects in 16 countries. – USNavypic