APEC to hold Ministerial Meeting on Food Security

Issued by the APEC Secretariat

Hiroshima, Japan, 24 February 2010 – While indicators suggest that the Asia-Pacific is recovering from the recent economic crisis, APEC is keeping an eye on food security. 

The remarkable spike in food prices between 2007 and 2008 and the subsequent global economic crisis highlighted the fragility of food security.  In 2009, the undernourished population exceeded one billion people; and estimates indicate that to accommodate a world population of more than 9 billion by 2050, agricultural output must increase by 70 percent.

In a meeting today, Senior APEC Officials discussed key challenges to food security in the region including: improving productivity, nutritional value, and the resilience of crops and livestock; improving human resource capacity in agriculture; bolstering confidence in trade and the ability of global markets to meet food demand; management of natural resources; management of fisheries, aquaculture and marine resources; and improving infrastructure in areas such as irrigation, transportation and storage.

APEC Officials will invite other key stakeholders including business people and food security experts to discuss these issues at an informal dialogue to be held when Officials next meet in Sapporo in May.

Based on these discussions an agenda will be formulated for APEC’s first ever Ministerial Meeting on Food Security.  Food issues have been included in APEC priorities and activities for some time but, today, are more important than ever:

§         Two-thirds of the undernourished population in the world resides in the Asia-Pacific region and more than one third of them in APEC economies;

§         APEC membership includes major players in international agricultural trade, both in exports and imports;

§         Increased food demand attributed to population growth and changes in dietary patterns in the region could bring about instability in the balance of food supply and demand;

§         The extent of interdependence for food is increasing in the Asia-Pacific region due to expanded agricultural trade;

§         Some APEC economies have already experienced social instability – such as food protests and riots – during the food price spike in 2007 – 2008; and

§         Natural disasters such as earthquakes and tsunamis that can affect food supply occur frequently in the Asia-Pacific region.

The first APEC Ministerial Meeting on Food Security will be held on 16–17 October in Niigata, Japan. An APEC Action Plan on Food Security, containing specific projects and initiatives, will be developed during the meeting.

 

For more information, contact:

Carolyn Williams at cdw@apec.org or at (65) 9617 7316

Linda Carroll at lac@apec.org or at (65) 9647 4847

 

Nasfund profit

Members in for 15% windfall

 

 MORE than 300,000 working Papua New Guineans, members of superannuation fund Nasfund, will see their savings increase by 15% starting today, The National reports.

Nasfund joint chief executive officer Ian Tarutia announced the good news yesterday when declaring a net profit (after tax) of K205.617 million for 2009.

This simply means that if you have K10, 000 in your savings, you can expect a windfall of K1, 500.

“In fact, it is happening now as our systems are down to allow crediting into members’ accounts,” Mr Tarutia said.

As of midday yesterday, Nasfund shut down its normal daily operations to allow crediting to take place for its 126,812 active and non-active 186,222 members, including Eda Super contributors. Normal operations would resume today.

In total NasFund is crediting K213.5 million to the members’ accounts on the back of the fund’s excellent gains in the equity portfolio.

While the 15% interest rate was good news for members, NasFund cautioned members not to expect another double-digit return this year.

Last year, members received 8% after the record 37% in 2007, 10% in 2006 and 29% in 2005.

Mr Tarutia said Nasfund was cautious with this year “on the back of what is happening in the international economy.”

“The international environment remains uncertain at this point in time and there is potential for a double dip recession,” he said, adding indications were that this year’s rate may be slightly higher than the predicated 9.5% inflation rate.

He said the 15% rate came about as a result of last year’s financial results. These included: a net profit (after tax) of K205.617 million; net asset value of K1.7 billion; and in the other highlights the fund grew by 21% (compared to 19% in 2008) with the number of active employers that the Fund has is 1,784 representing a growth of 7.5% over last year; 123 employers’ net going into the fund; and active membership base as of Dec 31 was 126,812 members.

Mr Tarutia said Nasfund staff, management and the board were pleased with the results, adding the Management Expenditure Ratio (MER) was 1.12% down 0.13% from 1.25% in 2008.

“MER measures the efficiency of the fund…basically what we spent in administering the fund and the total asset value. This compares to 1.25% in 2008 so as we are growing and becoming more efficient in the use of assets in administering the organisation,” Mr Tarutia said.

In withdrawals the fund paid out K125.584 million to 55,846 members through unemployment, housing advancement, particle withdrawals, retirement and redundancy, among others.

The contributions (inflows) from employers by way of member and employer contribution contributed to K232.7 million,” he said.

The gains in equity portfolios were in New Britain Palm Oil Ltd, Lihir Gold Ltd, and Oil Search Ltd, as well as gains on the currency rate contributing K127 million.

Mr Tarutia said the unlisted portfolio contributed K14 million to the portfolio and the overall net gain despite a decrease in Bank South Pacific and Credit Corporation which contributed K68.5 million, flows came from dividends from interest payments on loans and from profit income.

“And all that combined to the K205 million that the Fund recorded,” he said.

The audited annual report will be published and the members’ statements will be issued starting next week.

MPs to play region cards

GOVERNMENT sources, including some backbenchers have tipped that regionalism may play a “deciding” role in the imminent vote-of-no-confidence by the Opposition, The National reports.

The pending Supreme Court decision on the validity of the Organic Law on the Integrity of Political Parties and Candidates (OLIPPAC) was adding more intrigue to the political climate facing the MPs and ministers, a source said.

“With the events of the past few weeks in the National Alliance camp, the announcement of the reshuffle and the notice by the Opposition to pursue a vote-of-no-confidence, word is that MPs are starting to align into regions,” the source added.

The announcement of a major Cabinet reshuffle by the Prime Minister Sir Michael Somare and the National Alliance politics and infighting suggest “the NA is becoming very unstable”. 

“Right now in the NA, there is also intense lobbying, as factions from all regions want to gain support on who will replace Sir Michael when the time comes,” the source said.

“Each region, has its own leader and will want that person to replace Sir Michael, NA is not together at this time.”

Political scientist Dr Alphonse Gelu said since 2002 NA had proven to be a formidable group that was highly cohesive as a political party but warned that “the only danger to NA’s cohesiveness would be the leadership issue that would definitely lead to some disagreements and imminently the splitting of the party”.

Several backbenchers on the condition of anonymity said they were “observing cautiously” and weighing out the situation and agree that the strength in numbers from regions may play a role, if the vote-of-no-confidence occured.

Parliament is expected to sit next Tuesday at 2pm. 

Opposition leader Sir Mekere Morauta put Sir Michael on notice last week stating that the time was right for a vote-of-no-confidence in the Prime Minister and the ruling National Alliance Party.

“There is definitely a great deal of unhappiness in the National Alliance camp and it’s causing a rift between its coalition partners,” Sir Mekere had said last week.

The Government source echoed this and said this has trickled to the backbenchers. 

“MPs are no longer talking portfolios but are talking numbers, because it is only on the floor of Parliament that a new Government will be formed, and they must play their cards right to be on the winning side,” he said.

 

Rapist caught at 9-Mile

Convicted rapist Duma Kerowa (pictured)  was recaptured at 9-Mile settlement in Port Moresby yesterday, The National reports.

 POLICE caught escapee number seven yesterday, a day after nabbing number six.

 Convicted rapist Duma Kerowa, one of 12 prisoners who walked out of Bomana jail in January with alleged bank robbery mastermind William Nanua Kapris, was recaptured at 9-Mile settlement in Port Moresby yesterday.

 After receiving a tip off, police and warders involved in the special security operation surrounded a house located near the 9-Mile clinic and arrested Kerowa at 9.45am.

 The escapee appeared petrified and was trying to flee when he was shot on his shin and taken to the Port Moresby General Hospital for treatment.

 Kerowa, 39, from Chuava in Simbu province, was convicted in Dec 2005 and is serving a 25-year jail term for abduction and rape.

 According to police intelligence, Kerowa was planning to catch a plane to Simbu to “hide” when authorities were notified.

 Policemen involved in the operation said the escapee also attempted to rape a young girl at 9-Mile settlement yesterday, before he was caught.

 When The National arrived at the 6-Mile police station, Korowa was accompanied by alleged high-profile bank robbery suspect Kito Aso who was recaptured near Morata on Monday afternoon.

 The prisoner (Korowa) was in agony from the gunshot wound he sustained and his bandage was soaked in blood as he was being transported to the Port Moresby General Hospital.

 Korowa’s recapture brings the total number of those recaptured to seven after Jan 12.

 It is still uncertain as to when those recaptured so far- William Nanua Kapris, James Pari, John Siko Wel, John Peter Plesman and recently recaptured Korowa and Aso- would be facing their escape from lawful custody charges in court.

 Remandee Oliver Ben Gabi, who was the first of the 12 to be recaptured around Sogeri, appeared in court on Jan 26 and got a 6-month sentencing at the Boroko district court.

 Gabi’s earlier imprisonment as a remandee before the escape was for being an accessory to the BSP bank robbery in Madang.

 Police Commissioner Gari Baki, in a statement yesterday, reassured the public that police special operations would continue round the clock to recapture remaining escapees from jails around the country.

 He said the public showed its interest to fight against crime.

 Mr Baki said the consecutive arrest of some of the country’s dangerous prison escapees reflected on the dedication, commitment and professionalism of police personnel engaged in the special operation

 

Warning - Is your church a health hazard?

From Nasfund Newsletter

 

“Deciding between competing rights and balancing rights with responsibilities is difficult and challenging, no more than in relation to freedom of religion, expression and belief. As common sense suggests, not all rights are absolute and there are occasions when particular rights have to be qualified or curtailed. Freedom of expression does not give one the licence to shout ‘fire’ in a crowed cinema” Kevin Donnelly - Author.

Over the last few years a small number of church groups have been advocating that faith alone can cure or keep an HIV positive person alive. Unfortunately, a faith based approach alone does not have evidentiary support in trying to keep HIV positive people healthy. Sadly, there are too many instances of certain faith based groups who negatively influence a decision by a person with HIV to not use Anti Retroviral (ART) drugs.

This includes advocating that those already on ART, be taken off the life supporting drugs in favor of prayer and faith.

Anti Retroviral Treatment is the only proven long term combination therapy that keeps HIV positive people healthy and alive.

When certain faith based groups advocate for HIV positive people to go off ART, they are breaching the HAMP Act - they are playing with peoples lives and they are acting outside the laws of Papua New Guinea.

Disrupting ART with a patient (missing days or months of taking ART), renders long term treatment through ART ineffective.

Advocating HIV positive people not to take ART is the surest way to shorten their lives.

“I have witnessed it time and time again, when HIV positives are brought back to strong health with ART drugs only to be taken off them by a religious leader and within a short time frame, death occurs”. – Senior Catholic nun on what has been occurring in some faith based groups.

While we all support the right of people to have faith, we equally support ART treatment for those who have HIV.

Faith and anti retroviral drugs for HIV positive people go hand in hand – they are not mutually exclusive.

Thanks John!

This is what these mothers seem to be saying as they proudly show off their new cooking pots donated to their feeding programme by John Whitfield, general manager of Port Moresby –based Pacific Towing Ltd last week.

 Worth more than K500, the two 30-liter pot can each hold soup dish enough to feed the 83 orphan and abandoned children under the care of the Tembari Children’s Care (TCC) Inc, where these mums work as volunteers.

 Mr Whitfield was prompted to send the pots to TCC after seeing a picture emailed to him showing the mums in one of their cooking sessions while working on a small pot overflowing with boiling dish.

 He told a TCC volunteer-worker who sent him the picture: “The pot is too small to hold enough soup for the kids and it looks like it will not last that long … let me buy you a bigger one so you could do your job easier.”

The new pot was first used in cooking last Saturday’s special meal – pumpkin-rice soup -- for the kids.

The lunch meal was sponsored by a Filipino expatriate-manager who works at the PNG LNG project.

The TCC orphanage is based at ATS Oro Settlement at Seven-Mile outside of Port Moresby. – Nationalpic by ALFREDO P HERNANDEZ

Gas project slated to sign funding deal

International consortium packages K40b financing

 

By SHEILA LASIBORI

 

INTERNATIONAL banks and export credit agencies (ECA) are set to sign a record financing agreement next month to develop the PNG liquefied natural gas (LNG) project.

American-based  Trade Finance magazine reported that a deal is set to close by mid March towards a US$14 billion (K40 billion) financing scheme for the development of the LNG project being spearheaded by ExxonMobil and a consortium.

It reported that the expected total project cost was US$18.3 billion (K50 billion) and once developed, would double the gross domestic product of PNG.

The Export-Import Bank of the US (Eximbank) last December approved the largest financing transaction in its 75-year history of US$3 billion to support US exports for the PNG LNG project.

This was moments after ECAs committed US$14 billion (K38 billion) towards the project costs.

Workers at over 55 US companies would provide goods and services for the project.

Eximbank, the official ECA of the US, five other ECAs and 17 commercial banks would provide financing for the project.

Also in December, the Australian government announced US$500 million (K1.4 billion) loan to support PNG LNG project development.

Project operator Esso Highlands Ltd, a subsidiary of ExxonMobil, holds 33.2% stake in the project while the other participants include, Oil Search Ltd (29.0%) Independent Public Business Corp (PNG Government, 16.6%), Santos Ltd (13.5%), Nippon Oil Exploration (4.7%), Mineral Resources Development Co (PNG landowners, 2.8%) and Petromin PNG Holdings Ltd’s subsidiary Eda Oil (0.2%).

Miles Shaw, Esso’s manager for public and government affairs, said finalisation of financing and completion of the last LNG sales and purchase agreement (SPA) with an Asian-Pacific buyer was expected to be completed in the first quarter of this year.

The outstanding SPA is with China Petroleum Co (CPC) of Taiwan, for an estimated 1.3 million tonnes of LNG per annum (mta) from the total 6.6mta of LNG from the project.

The previous three SPAs signed were with Japan’s Osaka Gas Co Ltd, for 1.5mta of LNG on Dec 22; with Tokyo Electric Power Co Inc (TEPCO) for 1.8mta of LNG on Dec 7; and on Dec 3 with UNIPEC Asia Co, Ltd., a subsidiary of China Petroleum & Chemical Corp (Sinopec) for 2.0mta of LNG.

These agreements are long-term and effective for a 20-year period.

The PNG LNG Project is an integrated development that includes gas production and processing facilities, onshore and offshore pipelines and liquefaction facility with the capacity of 6.6 million tonnes of LNG per year.

Meanwhile, work on the project at various sites in Southern Highlands province is progressively restarting.

“We will advise when all sites have returned to normal operations,” Mr Shaw said.