Small reforms make big sense

Issued by the APEC Secretariat

 

Hiroshima, Japan, 3 March 2010 – The number of days it takes to start a business can have a direct impact on economic growth, says the World Bank.

According to Yara Salem, Private Sector Development Specialist at the World Bank, simple streamlining of processes can have a dramatic impact on economic performance:

“On average, reducing business-related processes by ten days leads to a 0.4 percent economic growth.  For some it is even more.  For Singapore, reducing the cost of starting a business has increased economic growth by about one percent and for Peru by 2.57 percent.”

In addition, she says, making it easier to start a company can also have a positive impact on employment.  She notes, as an example, the dramatic 28 percent increase in the number of businesses registered in Viet Nam following reforms in 2005.

Of course, economies should not stop at registration processes.  The benefits of one-dimensional reform are easily undone.  Salem specifies that to achieve enduring results demands coordination among institutions:

“You don’t want people just to register businesses.  You also want them to pay taxes, protect workers and know about the services that exist to help them.  You want to analyse the results and monitor them.”

Mexico is an excellent example of an economy that has created a synergy among agencies so that businesses can follow procedures at a “one-stop shop.”  A reduction of red tape has led to a five percent increase in newly registered companies and employment growth of almost three percent.

According to Salem, the five most important things that economies can do to increase the ease of establishing a business are:

• Provide one-stop shop service: reduce the number of offices a business must visit to establish itself legally. 
• Simplify registration formalities: make the process easier and make it purely administrative.
• Introduce or improve online processes so that they are interlinked.
• Simplify post-registration procedures at local levels.
• Abolish minimum capital requirements.

Only five out of APEC’s 21 members maintain minimal capital requirements for starting a business and APEC economies account for five of the ten world economies in which it is easiest to start a business.  These economies have standardised forms that are simple and in which answers are not subject to interpretation.  Registration fees are fixed and there is a very simple publication requirement to announce the creation of new companies. 

These topics were discussed by regional policy-makers and international experts at this week’s Ease of Doing Business Seminar, organised by the APEC Economic Committee.

As per the direction of APEC Leaders, economies are developing strategies for growth that is balanced, inclusive, sustainable and knowledge-based.  Specifically, they aim to create conditions that are conducive to business and which, by extension, lead to increased employment and economic growth.  Trade facilitation is one of APEC’s fundamental goals and APEC economies continue to address barriers to trade, including the time, cost and frustration associated with starting and operating a business. 

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

 

 

 

PNG carbon trader joins forces with Australian technolgy group

By Ilya Gridneff

PORT MORESBY, March 2 AAP – ASX-listed m2m Corporation Ltd has dropped a $10 million merger with Carbon Planet and gone into business with a man accused of running a carbon “cargo cult” in Papua New Guinea. 

Former disqualified Australian horse trainer and Philippine cock-fighting syndicate operator Kirk Roberts, and his company Nupan, is now working fortechnology investment group m2m to develop carbon trading projects in PNG. 

At a volatile meeting between PNG government and forest landowners on Monday Mr Roberts, who is also under investigation by the PNG’s Forest Authority (FA),was accused by PNG’s Forest Minister Beldan Namah of promoting a carbon “cargo cult”. 

But Mr Roberts, who received $1.1 million from Adelaide-based Carbon Planet in 2008, shrugs off widespread criticisms and is adamant he represents numerous PNG landowner groups who want lucrative carbon projects developed under a voluntary system. 

PNG authorities are worried Mr Roberts is undermining existing forestry laws, possibly misleading landowners in remote areas all while exploiting PNG’svacuum of national legislation and policy covering carbon trading where companies can offset emissions by supporting forest growth. 

East Pangia, in PNG’s rugged Southern Highlands region, is the latest carbon battle ground as Mr Roberts promises what many PNG villagers call ’sky money’because he appears to be selling air. 

At Monday’s meeting with divided Pangia landowner groups some argued for Nupan’s carbon trading, some argued for logging while a raft of governmentofficials and ministers criticised Mr Roberts’ carbon scheme. 

PNG’s FA managing director Kanawi Pouru last month took out a newspaper advertisement outlining an investigation into Mr Roberts while remindinglandowners Pangia had been allocated for logging since 2002. 

In July 2009 m2m announced a merger as a way for a back-door listing for Carbon Planet but the deal fell through in January this year, a month after m2mannounced that Mr Roberts’ Nupan would become their “rainforest developer”. 

“It is very important for shareholders to note m2m’s existing carbon credit business will not be affected by the Carbon Planet transaction not proceeding,”an m2m statement said. 

Nupan will generate about 10 million scientifically approved and verified carbon credits from 15 forestry projects in PNG over the first half of 2010,m2m said.   “Completion will allow m2m to recognise about $1 million in revenue in the first quarter of next year (2010). Further trading from the 15 projects isanticipated to deliver in excess of $4 million revenue by December 2010 and positive earnings,” another statement said. 

Ian Clarkson, m2m executive chairman, told AAP he would call back with a response but did not.   Paul Barker director of PNG’s think tank Institute of National Affairs said PNG does not need any more carbon trade scandals. 

“One would like options for the landowners other than logging operations, which have ruled the roost for years with many bad results,” he said. 

Mr Roberts is linked to last year’s sacking of a top PNG climate change official and is tied to an ongoing government investigation of PNG’s nowdefunct Office of Climate Change. 

Carbon Planet has replaced former CEO Jim Johnson with Dr Ross Williams while executive director Dave Sag declined to comment on recent developments”due to the confidentiality clauses that persist in our contracts”. 

m2m’s current market capitalisation is about $6.7 million and its shares last traded at 0.3 of a cent.

Source AAP

 

'Reveal names'

Somare to refer The National to privileges committee

 

By ISAAC NICHOLAS

 

Public Enterprise Minister Arthur Somare wants the names of the politicians who are allegedly behind the escape of suspected bank robber William Nanua Kapris and 11 others to be revealed in Parliament, The National reports.

Mr Somare yesterday threatened to use Parliament to force The National to reveal the names of the three politicians allegedly involved with the top bank robbery suspect.

The Angoram MP gave notice that he would move a motion today in Parliament for the newspaper to be summoned before the Parliamentary Privileges Committee to reveal the name of one MP and two ministers alleged to have funded Kapris’ escape as well as benefited from the proceeds of his crime.

He said the reporter who wrote the story and the newspaper should be hauled before the committee to provide names.

Deputy Speaker Francis Marus, in response, said he would advise the minister after considering the matter.

Mr Somare’s move came after questions were raised during Question Time by Bulolo MP Sam Basil.

Mr Basil said newspaper reports on the front page of The National yesterday and in previous weeks have allegedly accused MPs of assisting criminals carry out their activities.

In his questions to Attorney-General and Justice Minister Dr Allan Marat, Mr Basil asked if the report was true and, if not true, could the minister asked the newspaper not to publish these reports.

He said if the report was true, could Dr Marat ask the newspaper to publicise the names of the MPs allegedly involved.

Mr Basil said the integrity of Parliament and MPs have been called into question by such reports, drawing a round of applause from the public gallery.

He had to repeat the question after Dr Marat sidetracked and started talking about Parliament security.

The minister, however, denied any knowledge of these rogue “politicians”.

The National reported yesterday that Kapris had told police after his capture that three politicians funded his escape from Bomana jail on Jan 12.

He also revealed to police how much he paid each of the “politicians” from the robberies he staged, and that he feared he was a “marked man.

 

 

Police pistol found on Kapris: Sources

THE .38 caliber pistol found on bank robber William Nanua Kapris at the time of his arrest was "a pistol belonging to the police department" according to police investigations, sources have revealed, The National reports.

Kapris told police interrogators that he had bought the weapon off the streets at Boroko where he was dropped off, and had spent some nights at a guest house there after his escape.

Kapris said he had trekked down from the Sogeri Plateau where he and his gang of 11 prisoners were driven to after they were sprung from jail by a female "lawyer" named "Helen".

Upon reaching Tubuserea, Kapris said he had hitched a ride into Port Moresby and was dropped off at Boroko.

While there he bought the firearm from a "strit mangi", he told police.

He later took a taxi to a lodge at Gordon where he stayed for three nights before he was arrested on Feb 6.

On Feb 9, Kapris appeared in court and pleaded guilty to being in possession of an unlicensed firearm, contravening section 27(1)(a) of the Firearms Act Chapter 310.

He told the Boroko District Court then that the weapon was for his own protection against rogue "politicians" who were involved in the case.

The matter involving the .38 caliber pistol was adjourned to March 16.

 

 

Sir George murder suspect arrested

ONE of the suspects involved in the murder of businessman Sir George Constantinou in December 2008 was caught by police yesterday, The National reports.

During a routine patrol in the Tete settlement on the outskirts of Gerehu in the NCD, police nabbed Kevei Paul, 16, of Tapini in Goilala, Central province, who was taken by surprise.

Paul dropped to the ground when police fired a warning shot.

Paul has been on the run for over a year after his name had was released to police by prime suspect Joe Auki, who reportedly released all other names in connection with the killing of Sir George.

Auki, also from Tapini in Goilala, was only recaptured by police last month after escaping from Bomana jail last year.

Gerehu police station commander Insp Steven Kapera said yesterday police were on their routine patrol and on the look-out for suspects in the area related to the murder when they spotted Paul.

Insp Kapera said as a first time offender, they did not have a picture of Paul but had his name.

Paul was also on the NCD police homicide unit’s “hit list”.

Insp Kapera said eight suspects were involved in the murder of Sir George.

 So far, Paul was the fourth suspect to be arrested.

 

Local bourse expands 70% in '09: Yates

 Growing confidence from business sector

 PAPUA New Guinea’s local investment market grew by more than 70% last year, indicating a growing confidence from  the business sector in the domestic marketplace.

Kina Securities Ltd (KSL) said yesterday in its March bulletin the Port Moresby Stock Exchange (POMSoX) achieved a market capitalisation of K50 billion last year.

This compared with its capitalisation of K29.4 billion in 2008, representing an increase of more than 70%.

KSL chief executive Syd Yates said this showed the PNG local investment market was continuing to expand strongly.

Mr Yates said the substantial growth of the investment figures in the 12 months when the world was recovering from the most severe financial crisis in 60 years, was indicative of the growing confidence from the business sector to look towards PNG for their long-term development and exploration initiatives.

“It clearly indicates that investors are keen to support their local major enterprises and have confidence in the domestic marketplace.

“Historically, PNG investors were forced by lack of a local alternative to invest through international channels,” he said in the bulletin.

Mr Yates said while there was record overall growth of the POMSoX, there were however, fewer transactions completed when compared to the previous year as the global economic crisis continued to impact on investor and consumer confidence worldwide.

Last year, there were a total of 6,182 equities transactions on the POMSoX, compared to 8,240 recorded in 2008.

Similarly, the average number of daily transactions also dropped from 33 in 2008 to 24 last year.

He said consistent growth of the POMSoX across a period of more than 10 years was a strong indication that locally-based operations remain high on the radar of investors within PNG and across the world.

“The POMSoX will continue to play a key role in the economic recovery process, providing local and international investors with an opportunity to become directly and financially involved with some of the leading development and exploration projects currently taking place throughout PNG.”

Since its inception more than 10 years ago, PNG’s domestic stock exchange has continued to move from strength to strength to the point where it now regularly provides investors with returns that are consistent with, if not better, than other major financial indices across the world, the KSL CEO said.

PNG, Taiwan ink LNG deal

THE PNG liquefied natural gas (LNG) project has signed off its last 1.2 million tonnes per annum (mta) of LNG to China Petroleum Co PNG-Taiwan LNG deal, The National reports.

Esso Highlands Ltd, operator of the US$15 billion (K40 billion) LNG project, signed the 20-year sales deal with the Asia-Pacific LNG customer, last of the four LNG customers for the total 6.6mta to be produced when the project exports its first cargo in late 2014 or early 2015. 

Esso Highlands Ltd is a subsidiary of ExxonMobil Corp.

“This important agreement with CPC will deliver a reliable supply of cleaner-burning natural gas to meet Taiwan’s growing energy demand and begin a new and lasting relationship between Taiwan’s largest energy importer and PNG’s first LNG project,” Ron Billings, vice president, LNG, ExxonMobil gas and power marketing, said.

Second major partner Oil Search Ltd’s managing director Peter Botten said: “The PNG LNG project is now fully contracted for the entire plant capacity, and the way is clear to move forward to financial close.”

Mr Billings said: “It also marks a significant step forward for the PNG LNG project. With this SPA, all of the project’s production capacity has been committed on a long-term basis.

“We are now looking forward to the finalisation of the financing arrangements with lenders which is expected in the first quarter of 2010.”

CPC Corp is the largest energy importer in Taiwan.

The previous three SPAs signed last year (2009) 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.

(CPC) Taiwan.

Esso Highlands Ltd, operator of the US$15 billion (K40 billion) LNG project, signed the 20-year sales deal with the Asia-Pacific LNG customer, last of the four LNG customers for the total 6.6mta to be produced when the project exports its first cargo in late 2014 or early 2015. 

Esso Highlands Ltd is a subsidiary of ExxonMobil Corp.

“This important agreement with CPC will deliver a reliable supply of cleaner-burning natural gas to meet Taiwan’s growing energy demand and begin a new and lasting relationship between Taiwan’s largest energy importer and PNG’s first LNG project,” Ron Billings, vice president, LNG, ExxonMobil gas and power marketing, said.

Second major partner Oil Search Ltd’s managing director Peter Botten said: “The PNG LNG project is now fully contracted for the entire plant capacity, and the way is clear to move forward to financial close.”

Mr Billings said: “It also marks a significant step forward for the PNG LNG project. With this SPA, all of the project’s production capacity has been committed on a long-term basis.

“We are now looking forward to the finalisation of the financing arrangements with lenders which is expected in the first quarter of 2010.”

CPC Corp is the largest energy importer in Taiwan.

The previous three SPAs signed last year (2009) 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