Saturday, May 12, 2012

Book review: How the Highlands Highway was built


By MALUM NALU

Since I first travelled the Highlands Highway from Goroka to Lae with my father, the late Mathias Nalu just before independence in 1975 as a seven-year-old, I have always been fascinated by this bik rot (big road) that links the port city of Lae to the Highlands.
One of the things that touched me then, and does to this day, was when we stood at the Rupert Havilland Memorial Lookout on top of Kassam Pass, and gazed down into the magnificent panorama spread out from the Markham Valley of Morobe province to the towering Finisterre Range.
Havilland was only 21 when he supervised of the construction of the Kassam Pass Road, but upon return to Australia, died at a very young age and his ashes were returned to New Guinea to be scattered over the Kassam Pass.
Later, as a student at Aiyura National High School from 1984-1985, I frequently travelled by road from my home in Lae to Aiyura Valley.
Much, much later, while working with the Coffee Industry Corporation in Goroka between 1998-2002, I had the chance to drive throughout the Highlands, and even down to the coastal ports of Lae and Madang, and began to appreciate more the value of this economic lifeline.
However, I have never been able to gather much information about how the bik rot was built, apart from the fact that the legendary kiap (patrol officer) Ian Downs was the main force behind construction.
Things changed two weeks ago when I was invited to accompany one of the original builders of the Highlands Highway, Bob Cleland, to Goroka.
Cleland was one of those who helped build roads over both Kassam and Daulo passes.
His widely-acclaimed book, Big Road, first published in 2010, but not widely on sale yet in PNG,   tells the story of the building of the Highlands Highway, particularly the Daulo stretch between Asaro and Watabung in Eastern Highlands in 1953, which he personally supervised as a 22-year-old kiap.
Bob Cleland shows a copy of Big Road during his recent visit to PNG

Talking with Cleland and reading Big Road has answered all the unanswered questions in my mind about the Highlands Highway.
 The 'big road' today is the Highlands Highway running from the port of Lae and through the highlands provinces of PNG.
 Big Road describes the initial construction by hand, in 1953 and 1954, of the Daulo section of the road, which runs over the 2,478m Daulo Pass and which gives access westward to the great Waghi Valley.
Running right throughout Cleland’s book itself is the ‘big road’ itself, the Highlands Highway that was carved out of mountains and mud with shovels, sweat and tenacity.
Big Road is a pioneering tale that paints a vivid picture of the majesty of the mountains and the mingling of two cultures.
Cleland, before the Daulo Pass, helped the late Rupert Haviland built part of the road over the Kassam Pass.
Cleland checks out a section of the Daulo Pass road which he helped build almost 60 years ago as a young kiap

The big road was neither designed nor built by engineers but by kiaps, with local villagers using only picks, shovels and thousands of hours of backbreaking labour.
When Cleland arrived in the New Guinea Highlands in 1953, many tribes had just seen their first white man only 20 years before.
He was one of a team of young Australians charged with introducing a new form of justice to tribes that had previously settled disputes with spears, axes and arrows.
He was 22, fresh from university where he’d been studying engineering.
As a kiap, Cleland had a triple role of magistrate, policeman and administrator.
But he was not only a kiap, he was also the boss’s son.
His father Donald (later Sir Donald) Cleland was administrator of Papua New Guinea for 15 years from 1951, so his trial by fire in New Guinea was particularly intense.
Right from the start, Cleland was charged with building some of the most-challenging sections of the ‘big road’, linking the Highlands with the coast.
In the early 1950s there was no way into or out of the Highlands except by plane or on foot.
Yet the region was densely populated, home to hundreds of thousands of villagers, and alluringly fertile.
A road connection had to be built, and it had to be constructed by hand – no bulldozers or diggers.
The Eastern Highlands district commissioner then was the legendary Ian Downs, from Scotland, who first came to PNG as a 21-year-old kiap.
He’d been posted to the Highlands only five years after Australian explorers Jim Taylor and Mick Leahy discovered that hundreds of thousands of people lived in extensive upland valleys amid what had always been assumed to be impenetrable mountains.
“In 1953 Kassam Pass – the road into the Highlands dreamed of by many, rejected as impossible by others – was now open for traffic,” Cleland writes.
“Narrow and steep, with sharp ends, it was not a road for heavy vehicles – but it was a start.
“The rough track from Lae remained difficult but the reality of Kassam Pass gave the administration good reason to fund upgrading work.
“Access from Goroka to the great Wahgi Valley and beyond was blocked by a 3,000-metre-high spur of the Bismark Range.
“A road through a 2,440-metre (Daulo) pass and over this spur would provide the final link to the Wahgi Valley.”
Towards the end of July 1953, Downs brought Haviland and bridge builder Ludi Schmidt from Kassam to a temporary camp about a third of the way towards the top of the Daulo Pass.
Haviland, however, had to go on leave and Cleland was given charge of the project by Downs.
“Since 1933, the Koreipa Valley track had been one of the routes used by patrols walking from the Benabena station towards the large valleys and extensive populations further west,” Cleland writes.
“The track crossed the Asaro River at an altitude of about 1,500m and after a kilometer-and-a-half of easy gradient, began an increasingly-steep 10km climb to the top.”
To go into detail would fill archives, however, this was the road that Cleland and his team of hundreds of local villagers built.
Boulders were broken up by heating during the fire with fire and then allowing to cool at night, which made it eventually cracked.
Ludi Schmidt was the bridge expert using local timber.
On September 24, 1953, district commissioner Ian Downs drove to the top of Daulo Pass in his Land Rover.
On October 9, 1953, Ian Downs and his family, Jim Leahy, ex WW11 pilot Jerry Pentland and Mick Leahy (with his wife Jeanette and son Richard) drove through from Goroka to Mt Hagen.
“In 1933, it had taken Mick Leahy and Jim Taylor – acknowledged as two of the 20th century’s most acclaimed explorers – two weeks to get to the Mt Hagen area,” Cleland writes.
“Now here they were, 20 years later, making the 240km journey in a single day.
‘Big Road: a journey to the heart of the New Guinea highlands, 1953-56’, by Bob Cleland [Red Hill Publishing, $30.45, 240 pp, 9780980672022]

Memories of the 1970 Lae Show


By PAUL OATES
Finschhafen kiap (patrol officer) of that period

 Mid way through 1970, it came time for the annual Lae Show and this was something the DC (district commissioner) , Bill (Father) Seale gave much attention to. 
Kukukuku (Menyamya) warrior
 It was a splendid opportunity for each sub district to display the craft and produce of their region. Each sub district was required to submit a display and most of the liklik kiaps (patrol officers) were required to provide some sort of supervision for those who were attending.
Many of us were also, by default, required to help organise our sub district display.
 The prestige of winning the sub district display was, we discovered, much sought after and competition between some sub district exhibits was fierce. 
Display at the 1970 Lae stall

 Various show committees had been preparing for months but to many of us “Johnny come lately’ this was a new experience.
So there we were, three liklik kiaps from the Finschhafen sub district, who had been extracted from our stations, flown to Lae at short notice and told we were to organise our exhibit.
 I remember arriving at the showground, showing my police warrant card to get in to the showgrounds and being met with a mountain of produce, various exhibits including a live tree kangaroo in a wire fronted box and a group of Tami Island wood carvers. 
Tami Island carvers

A large display stand had been allocated for our use and we observed other field staff busily erecting their own sub district exhibits in stands nearby.
Having visited the Sydney Royal Easter Show in my youth, my artistic temperament came to the fore and I suggested we collect all the fruit and vegetables from the sub district that had been piled in a heap at the front of the stand, and separate it into groups of various colours and sizes. We could then place this fruit and vegetables into various geometric patterns on the stand.
So for the want of any other direction or even a better idea, this we started to do.
At that point, some Kukukuku warriors in full dress suddenly intervened.
Their sub district (was it Wau or Menyamya?), had brought these blokes as part of their display. The ‘Kuks’ as everyone else referred to them as, (although I understand this was originally a derogatory term in their language meaning muruk/cassowary), decided to stage an impromptu singsing rehearsal.
Kukukuku warriors at the 1970 Lae show

 To anyone who has never seen or was stationed in a Kukukuku region, their form of singsing is quite different from other areas.
 Firstly, they did not use drums (kundu) and instead of having eloquent head dresses, costumes and dance steps evident in other areas, they would grab their weapons and men and women would all run around in a circle yelling “Eyahh…yah…yah…’ in a high pitched yell.
We didn’t hear that initial cry however we did hear the result.
There was a sudden rumble, not unlike a guria (earthquake), a great cloud of dust and within 30 seconds, the whole area cleared of people.
A few heads were then observed peering around corners and down from their vantage points in the nearby trees, all with apprehensive expressions on their faces. 
The kiaps in charge of the ‘Kuks’ then told them to ‘settle down’ and we all got back to our preparations.
After a while, people started to appear again but there was an initial nervous scampering between vantage points, as everyone kept an eye on a possible getaway route.
ABC stall at the 1970 Lae show

 It was an object lesson of how these small men, dressed in grass sporrans and with their stone clubs and bows and arrows, were still regarded by the majority of other local people.
Whoever had collected our sub district produce had excelled themselves and we had a mountain of fruit and vegetables to select from.
Pineapples (ananas) bananas, taro, sugarcane, etc. were all arranged in geometric designs and the display came together quite well.
At the end, there were still some items left over that just didn’t quite fit into the rest of the exhibit, due to their unusual size or shape.
 Two of these items were those enormous glass balls (over a foot in diameter and covered in knotted rope) that the Japanese long line fishing boats kept losing and ended up being washed up on the local beaches.
What could we do with these things we wondered?
We scratched our heads.
They were too good not to use but where?
“Alright’, I said, “lift them up here,” and I tied them onto the central metal truss that supported the roof of the stand.
They just didn’t look quite right however and looking around, I spied an enormous, red marita (large, long, bright red conical fruit of the pandanus, about three feet long).
Whoever had cut it had left a long bit of woody stalk and this fitted perfectly between the ropes holding the glass balls up to the roof.
If the Sepiks could have their ‘phallic symbols’ at Maprik I thought, why couldn’t we have ours?
This instantly became a splendid talking point.
People would stop in their tracks and admire the “exhibit”.
 We, in our immature naivety, thought we had done the sub district proud.
 Then came the time for the judging of the exhibits.
The judging committee was chaired by the DC’s wife, no less.
 We even thought we might get a prize for our efforts.
The judging committee toured around each exhibit and took notes.
We held our breath and the Tami Islanders doubled their efforts and their mounds of wood chips.
Other sub districts had also been hard at work however and the Haviland’s from Kaiapit had produced a marvellous exhibit with miniature people and a diorama of the sub district.
 They got first prize.
 I think from memory we got some sort of prize however all I can remember is a senior officer pulling me aside later on, and informing me that we might have done better if the DC’s wife hadn’t been “severely put off” by a certain part of our exhibit.
(Oh well. What do they say about a “Streaker’s defence”? ‘It seemed like a good idea at the time’).
All that was left was for us to auction off our fruit and vegetables to help defray the expense of bringing them all to the show.
Ahh! It seems like only yesterday…

Friday, May 11, 2012

10 lessons for PNG from the last decade

By MALUM NALU
The last 10 years of economic growth in PNG has not seen improved development outcomes for the people, according to Asian Development Bank country economist Aaron Batten, The National reports.
He was speaking at the launching of a new ADB report, Diagnosing PNG’s Critical Development Constraints, at the University of PNG on Wednesday night.
“The last decade of economic growth has not been able to catalyse improved developed outcomes for the majority of PNG,” Batten said.

A pothole in the centre of downtown Port Moresby yesterday…growth is not translating into development .-Nationalpic by MALUM NALU
“The barriers to inclusive growth are large, but some positive lessons emerge from the last decade.
“Transforming these lessons into actions will be dependent on the people of PNG.”
Batten gave 10 lessons from a decade of growth, latest being the use of social media such as Facebook, Twitter and blogs.
“PNG economy has performed well over the last decade,” he said.
“But the benefits of growth are not being evenly distributed.
“Why isn’t growth translating into more-inclusive development?“
What lessons can the last decade give for improving service delivery and making the next decade of economic growth more inclusive?”
Batten’s 10 lessons were:

• Government funding has a weak relationship with service delivery;

• Better services don’t always require more government money as proven especially by mobile phone and airline companies;

• Services sector has become a major source of prosperity;

• Landowner companies are becoming more compatible with modern business as proven in the success stories of Trans Wonderland, IPI, Star Mountain, National Catering and others;

• Proximity to Asia has become PNG’s most-valuable resource;

• PNG now has a formal economy capable of creating more jobs;

• Rapid population growth erodes progress;

• Unrealistic perceptions of resource wealth distort policy;

• New models of service delivery can offer big advantages; and

• Individuals can make a big difference as widely proven in the use of social media – a new phenomenon which has taken PNG by storm – such as Facebook, Twitter and blogs.

PNG to lead Pacific growth in 2012

By MALUM NALU
Papua New Guinea is again expected to lead Pacific islands growth in 2012 at 7.8%, according to United Nations resident coordinator David McLachlan-Karr, The National reports.
He said at yesterday’s launch of the UN’s Economic and Social Survey of Asia and the Pacific 2012 that this would be boosted by rising commodity prices and growth in domestic demand, coupled with acceleration in investment through the LNG project and several mining projects.

United Nations resident coordinator David McLachlan-Karr (left) presents a copy of the report to Bank of PNG deputy governor Benny Popoitai.-Nationalpic by MALUM NALU
PNG was a star performer with an 8.9% gross domestic product (GDP) growth in 2011 (7.1% growth in 2010), with the economy benefitting from higher commodity prices as a result of a strong demand for oil, gold, copper, coffee, cocoa, palm oil and the PNG LNG project.
“One factor that could affect PNG’s growth prospect is movements in the prices of primary commodities and oil products,” McLachlan-Karr said
“While some countries with rich natural resources such as PNG and Solomon Islands have benefitted from rising commodity prices, their economies remain fragile due to wide price volatility.
“One key challenge to PNG is to manage the resource boom well so that rapid economic expansion does not translate into continuously high inflation.
“It is encouraging that PNG has taken steps to set up the government’s new sovereign wealth fund (SWF) to invest revenue earned from resources for future generations.”
McLachlan-Karr also suggested that PNG and other Pacific governments:

• Devise appropriate social protection policies to protect the poor;

• Diversify to agriculture;

• Improve infrastructure for rural agricultural production and marketing and put more effort into address often-binding constraints to agriculture such as land tenure, high labour costs and marketing infrastructure;

• Introduce initiatives to address increasing unemployment levels, especially among the youth; and

• Address urbanisation issues such as good governance, urban-rural development linkages, housing and related services infrastructure, and ways to deal with natural disasters resulting from climate change.

Bank of PNG deputy governor Benny Popoitai gave an update of the PNG economy, the problems the country was facing, and what the bank was doing to remedy these.
The 2012 Economic and Social Survey of Asia and the Pacific identifies major risks but also presents analysis to inform policy agendas for shared and sustainable growth.
It is produced by ESCAP, the United Nations Economic and Social Commission for Asia and the Pacific.

Pacific Balanced Fund posts K41 million windfall

By GYNNIE KERO
Pacific Balanced Fund (PBF), formerly the well-known PNG Investment Corporation Fund (ICPNG), yesterday (Thursday) announced a net profit of K41 million for the period 2003- 2009, The National reports.
Out of this K41 million, fund manager Melanesian Trustee Services Ltd (MTSL) has resolved to pay out a total of K18 million in dividends, in a massive turnaround from near bankruptcy to profitability and prolonged court battles with former fund manager Pacific Equities and Investment Ltd (PEIL).
MTSL chief executive officer Kennedy Wemin said a K18 million would be paid to the unit holders of PBF at K1.46 per share.

Wemin (centre) announces the K41 million windfall flanked by MTSL director Joshua Bakiri (right) and Securities Commission chairman Douglas Uyassi.-Nationalpic by MALUM NALU
He said total fund value as of December 31, 2011 was K239 million, with total units on offer at 12 million.
“This marks a milestone event since the inception of PBF from the former ICPNG and sets the pace for the future,” Wemin said.
“A once-gloomy and almost-bankrupt PBF has now done a complete turnaround.”
This will be the first time in the history of PBF to pay dividends.
The last dividend paid to unit holders was in 1998 under the former ICPNG.
“Audit files for 2010 and 2011 have been completed for Price Waterhouse Coopers to review and Deloitte to audit,” Wemin said.
“We expect both audits to be completed by end of June 2012 and made available by September 2012.
“PBF intends to commence trading by November or December 2011 and has put in place all necessary systems.
“Unit pricing is a function that was given to KPMG to carry out for the years 2003-2008, which has now been completed and an announcement will be made soon after internal processes are satisfied.
“Unit price for the year ended December 2011 and possibly mid-year 2012 are crucial to enable commencement of trading functions.
“In 2013 onwards, PBF financials will be up-to-date and these compliance matters will be considered complete and routine financial audit will be required each year.”
After the removal of PEIL in 2008 at fund manager, MTSL embarked on rebuilding the shareholder registry with 60% of unit holders now verified through a nationwide road show.
Wemin said following its removal by unit holders, PEIL was reappointed three times against the wishes of unit holders through the Security Commission, “causing a lot of instability in the minds of unit holders and undermining the efforts of MTSL”.
“Numerous court battles have also been put forward by PEIL to challenge the position of MTSL as trustee and interim fund manager, which has cost the fund millions of kina while preventing the trustee.
Wemin encouraged everyone who has not been verified to come forward and assist MTSL verify their shareholding in PBF so that they could share in this windfall.
Securities Commission chairman Douglas Uyassi acknowledged MTSL for the achievement, saying that what made it outstanding was that nothing had been paid out to unit holders for more than 10 years.
“It’s truly a milestone event for PBF and its unit holders since its inception as Investment Corporation Fund of PNG in 1973,” he said.
Meanwhile, MTSL has a new website http://www.mtsl.com.pg/, where announcements and updates will be posted.

Thursday, May 10, 2012

Botten says P’nyang is next biggest LNG resource

By MALUM NALU
Oil Search managing director Peter Botten says the P’nyang field in Western province – hailed as the next big gas field in PNG – is a “very interesting” resource, The National reports.
Botten, asked about the potential for P’nyang after the Oil Search annual general meeting in Port Moresby on Tuesday, was reserved but hinted that it had a lot of potential.

Peter Botten…a “very interesting” resource
“It’s relatively early days,” he said.
“It’s a significant resource in terms of the country.
“It’s a good resource.
“It’s a very interesting resource.”
P’nyang is among a number of appraisal, development and exploration wells that will be drilled across Oil Search’s PNG Highlands and Gulf licences over the next 18 months, as it embarks on the biggest drilling programme in its history.
Oil Search shares hit an all-time high two weeks ago because of significant gas discovery at P’nyang South sidetrack in Western province, according to investor relations manager Ann Diamont.
“The well extended the size of the known gas column at P’nyang South to 380 metres, with a potential additional up-dip upside, which could mean that the total gas column is over 650 metres,” Diamont said.
“It is subject to further evaluation, but it could help to underpin LNG expansion.”
An Oil Search drilling report says that on April 19, the P’nyang South 1 ST1 well was at a depth of 2,944 metres and undertaking a formation evaluation programme over the Toro sandstone.
“Based on the preliminary interpretation of data collected in both P’nyang South 1 and P’nyang South 1 ST1, the gas zone is interpreted to extend approximately 200 metres deeper than the lowest known gas in P’nyang South 1, indicating an increase in the total gas column to approximately 380 metres,” the report says.
“Seismic interpretation and structural mapping suggests additional up-dip potential above P’nyang South 1 and indicates a potential vertical gas column in the P’nyang South field of over 650 metres.”
P’nyang South is located four kilometres south-west of the P’nyang 1X gas discovery and approximately 90 kilometres north-west of the Juha gas field.
The participants in P’nyang South 1 ST1 are: Oil Search Ltd (38.5%), ExxonMobil affiliates (49%), JX Nippon (12.5%).

DPE: InterOil’s Gulf LNG project rejected

By MALUM NALU
The Department of Petroleum and Energy insists that InterOil’s controversial Gulf LNG project has been rejected by the government, and the company must respect that decision, The National reports.
Department secretary Rendle Rimua said that last year, the National Executive Council (NEC) rejected the Gulf LNG project primarily because Liquid Niugini Gas Ltd/Interoil deviated from the project concept that was agreed to with the State in the 2009Project Agreement.
A copy of Rimua’s statement was sent to InterOil on Tuesday for comment, however, the company had not responded by yesterday.

Rimua said the project was rejected as LNGL/Interoil did not:

• Formally seek and get approval from the state to change the scope and concept of the project;

• Find an internationally-recognised reputable LNG operator;

• Produce a proposal consistent with the project agreement; and

• Prove the proposed technologies were proven in the context of processing large amounts of LNG.

“During that time, Interoil released information on many occasions that they had completed the front end engineering and design (FEED) when the process of lodging applications for relevant licences had not been done yet,” Rimua said.
“They continued to promote the ‘Gulf LNG Project’ concept when they were advised on numerous occasions the concept was not the agreed concept in the 2009 Project Agreement.
“Recently, Interoil came out public stating that FEED was still in progress and the government had not rejected the ‘Gulf LNG Project’ concept.
“This is factually misleading.
Rimua said the department is aware that the FEED for the condensate stripping programme is complete “but we are not aware on the status of the FEED for the whole project”.
“The department has not even discussed or reviewed the FEED documents in detail with LNGL/Interoil as none have been lodged with the department,” he said.
“The department is also amazed that LNGL/Interoil states that the ‘Gulf LNG project’ has not been rejected even when the Minister for Petroleum and Energy publicly stated on various occasions that it was rejected by the NEC.”