Thursday, June 02, 2011

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.

 

Wednesday, June 01, 2011

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.”