Sunday, December 06, 2009

From "TIME MAGAZINE" last week- China in Papua New Guinea

If  Papua New Guineans are killed and injured by Government forces trying to control any riot which entuates at New Year we will see the beginning of a real, meaningful fight for independence in PNG.And it may become a short-lived civil war.There is great danger here.Is the country's government prepared?
John
 
The World of China Inc.
By Hannah Beech / Ramu Monday, Dec. 07, 2009
Kemal Jufri / Imaji for TIME

Lunch at the site of the future Ramu nickel and cobalt mine in the remote hills of Papua New Guinea is a hurried affair, food shoveled into eager
mouths. But the menu is as divided as the two distinct groups of workers squatting in the heat, swatting away flies and filling their bellies before
their nine-hour, seven-day-a-week shifts begin again. In one huddle are local laborers chewing chunks of sweet potato and the canned fish known in pidgin dialect as tinpis. In another clump are imported workers from China who dig into rice topped with pork belly and chili - black bean sauce. The Chinese, who were shipped in by the state-owned China Metallurgical Group Corp. that has invested $1.4 billion into this faraway outpost, can understand neither English nor pidgin, two of the national languages. The Papua New Guineans speak no Mandarin. Even at mealtime, an event during which both cultures would normally encourage community and hospitality, the air is weighted by mutual incomprehension. "How can we eat together if everything about us is different?" asks Shen Jilei, whose first overseas experience transferred him directly from China's Sichuan province to a South Pacific nation he hadn't even known existed.

Notes of culture clash ring everywhere I wander in the vast construction zones that by the end of this year will turn a pristine stretch of virgin
forest and grassland into one of the world's largest nickel-extraction sites. On the palm-fringed coast of Basamuk Bay, where the Ramu refinery
will be situated, a chatty Beijing-born building engineer tells me that before the Chinese arrived, "the natives were completely uncivilized and
running around almost naked." I voice my doubts, telling him that I've just talked to a nearby villager who described a PowerPoint presentation she recently made detailing environmental concerns about the mine. The engineer, like many other Chinese I meet, remains unimpressed. "All they do is chew betel nut and act lazy," he says. "They don't know how to work hard like we Chinese do." (See pictures of Chinese investment in Africa.) The impression the Chinese have left on many P.N.G. nationals isn't much better. A local landowner whose ancestral territory lies in the middle of the mine site alleges, improbably, that the nickel will be used to feed a secret Chinese weapons program. In the capital Port Moresby, my driver announces that if a gang to evict Chinese from P.N.G. is formed, he will be the first to join. "I will sharpen my bush knife and chop 10 or 20 heads," he says. The unease about Chinese influence extends to government circles, even if the Ramu mine promises to add 8 percentage points to the country's GDP. "I know the Chinese are going out everywhere in the world and investing successfully," says Rona Nadile, an assistant secretary of labor and industrial relations. "But what I don't understand is why are they are so stubborn to not respect our local culture. We are a democracy. They have to play by our rules or we will rise up."
Mixed Blessings
When China began its global investment push in the early part of this century, the flood of new money was welcomed, particularly in those parts of Asia, Africa and Latin America that felt abandoned by the West. China's promise not to politicize aid and investment by attaching pesky conditions like improved human rights pleased many governments. Between 2003 and 2008, Chinese direct investment overseas skyrocketed - rising from $75 million to $5.5 billion in Africa, 1 billion to $3.7 billion in Latin America and jumping from $1.5 billion to $43.5 billion in Asia. The People's Republic now ranks as the No. 1 foreign investor in countries as diverse as Sudan and Cambodia. In exchange for the natural resources needed to feed China's economic engine, Beijing began an assiduous campaign to win foreign hearts and minds by financing stadiums, hospitals and lavish government offices. The Foreign Ministry in East Timor was built courtesy of the Chinese, while Guinea-Bissau's marble-accented parliament building was a gift from Beijing.

Some countries, however, are no longer as willing to extend a red carpet toward the globetrotting Chinese. Although political strings might not come with Beijing's cash, there are economic catches. The roads, mines and other infrastructure on offer are most often built by armies of imported Chinese labor, cutting down on the net financial benefit to recipient nations. Chinese companies investing abroad also tend to ship in nearly everything used on building sites, from packs of dehydrated noodles to the telltale pink-hued Chinese toilet paper. It's not only the contracted Chinese workers who show up, either. Within a few years, their relatives invariably seem to materialize to set up shops selling cheap Chinese goods that threaten the livelihood of indigenous entrepreneurs. Locals who do get work on Chinese-funded projects complain that their bosses don't heed national labor laws ensuring minimum wage or trade-union protection. Over the past three years, anti-Chinese riots have erupted everywhere from the Solomon Islands and Zambia to Tonga and Lesotho. Tensions are also simmering in India, where the Chinese are involved in several major infrastructure projects. Even high-level officials are speaking up. In Vietnam, plans for a $140 million Chinese-operated open-pit bauxite mine were publicly excoriated by none other than revolutionary hero General Vo Nguyen Giap because, he said, of "the serious risk to the natural and social environment."
An Island Apart
Nestled in one of the most backward parts of one of the world's least developed nations, the Ramu mine has emerged as an acute example of
resentment against China Inc. In 2004 P.N.G. Prime Minister Michael Somare returned home from Beijing, triumphant at having snared the country's largest foreign-investment project to date. The euphoria was short-lived. Landowners brandished slingshots and announced they wouldn't sign off on their tribal territory being used for mineral extraction, no matter what document was signed in China's Great Hall of the People. Environmentalists cried foul over plans to deposit mine waste in the sparkling Basamuk Bay, while local workers protested conditions that even P.N.G.'s Minister for Labor and Industrial Relations David Tibu described as slavelike and "not fit for pigs or dogs." Skirmishes repeatedly broke out between villagers and the 1,500-plus imported Chinese laborers, some of whom were working illegally in P.N.G. At the same time, anger has boiled over because of an influx of thousands of Chinese who over the past couple of years have monopolized businesses that by law should be reserved for P.N.G. nationals. In May, anti-Chinese riots convulsed cities nationwide, and several people were killed amid the looting of Chinese-owned shops. "Our timber, our minerals, everything, goes to China," says Damien Ase, founder of the nonprofit Centre for Environmental Law and Community Rights in Port Moresby. "But we get so little in return."
Read more:
http://www.time.com/time/magazine/article/0,9171,1943087,00.html#ixzz0YUVQXK6m   

Saturday, December 05, 2009

Burns Philp building to be rebuilt

Captions: 1. Artist’s impression of Burns Philip with an additional third storey with balcony 2: The Bell Tower to be incorporated into the reconstruction 3: Tribal Den Hotel - to be renamed Jeffery Haus 4: Tribal Den Hotel concrete shell to be incorporated in the new design

 

 Mid this year, the historic Burns Philp building in Port Moresby  along with the Tribal Den was destroyed by fire.

Nasfund made a commitment that the Tower would be saved.

Now a few months later, the board has committed to rebuild Burns Philp with an addition third story and balcony.

“Tradition, history and continuity are all factors in the decision to protect the Bell Tower and rebuild an important historical landmark,” says joint CEO Rod Mitchell.

“The building will comprise three levels of commercial spanning 2,500 sq m of space, with commanding views over Fairfax Harbour.

“The construction will be done by Hornibrooks NGI Limited, a company 21% owned by Nasfund.

“Construction is expected to be completed by December 2010.”

Mr Mitchell said the Tribal Den Hotel would over the next 12 months be transformed into 2,000 sq m of commercial space on three levels of approximately 650 sq m per floor.

“Renamed in recognition as Nasfund’s longest-serving chairman John Jefferey, as well as a distinguished professional life on numerous high profile boards including over 10 years as president of the Employers Federation (PNG), the building will along with Burns Philp Haus, rejuvenate a long neglected stretch of Champion Parade.

“The construction will be unique for Papua New Guinea, with a face painting of a traditional Mekeo face painting and head dress by artist Daniel Waswas embedded in the glass.

“It is intended to block pave the pedestrian path, shift electricity poles and replant trees along this part of Champion parade, restoring it to pre eminence.

“The construction will be done by Hornibrooks NGI Limited, a company 21% owned by Nasfund.

“Construction is expected to be completed by December 2010.”

Nasfund Archipelago takes shape

Captions: 1. Map of Nasfund Archipelago 2.  Artist’s impression of Harbour City

Nasfund’s bold commitment three years ago to shift the city focus to the water and to Harbour City is moving closer to reality with the announcement of 65 apartments to be constructed, starting March 2010.

Nasfund will own 60% of this venture.

The additional 65 apartments combined with the 20 apartments (Sol Wara) already under construction plus 9,000 sq m of office space signals a new concept for Port Moresby – living and working by the water.

“This major on-going project was the product of a well-considered plan to shift the Town towards the sea and capitalise on Fairfax Harbour,” according to Nasfund joint CEO Rod Mitchell.

“Similarly Harbour City and the surrounding precinct of Konedobu were ideal for development being two kilometers from the GPO and linked to the Poreporena freeway.

“Easy access without the congestion of town made this location extremely desirable.

“It also meant that the Town could be split with a new ‘City’ – totally without the constraints the ‘Old City’ had shackled itself to, including poor traffic flows and ‘hotch potch’ architecture.

“This however will soon change as Nasfund develops a commercial plan for the Burns Philp site and in doing so revitalise a significant part of the town centre.

“Across in Konedobu, with the soon to be completed IPA House covering 2,700 sq m and ‘the Factory’ – a seven pod commercial development covering 6,200 sq m, the Archipelago project will draw to a close as we begin plans for a further commercial splash in late 2010.”

 

China, Papua New Guinea and the Pacific.

 From John Fowke

The Quiet Revolution-Maybe the Aussies know what they are doing….but where does PNG stand in this scenario of the present and near future?

Part of a report entitled "The Quiet Revolution" published in 2005 by respected Australian journalist and commentator Tom Dusevic  speculates upon Australia's developing relationship with China.

 "The Chinese are renowned for taking the long view. Australians, generally more easy-going, look ahead about as far as the weekend. To gauge where the relationship between the two countries is heading, you need a time frame that sits somewhere between several days and a couple of centuries: let's say 20 years.

"The Chinese have been part of the Australian story since the early days of settlement. I expect China to be of ever growing importance to Australia," says Foreign Minister Alexander Downer -( n.b.-in 2005)- "In the next 15 or 20 years it has the potential to become our biggest trading partner, for sure.

"A highly placed but unnamed Australian observer is prepared to look even further ahead in Dusevic's report.."In 25 to 30 years, Australia will be to China much as Hong Kong once was," says the government official, who has been dealing with China for two decades.

"There will be 5 to 10 million tourists coming here from the mainland each year. Our universities will be dependent on Chinese students. Large amounts of prime real estate in the major cities will be owned by Chinese investors. I see very large parts of the farming and mining sectors in Chinese hands. How else can a country of 20 million people survive and prosper in this part of the world, with a rising China?"

Dusevic continued, inter alia;"....from the standpoint of 2005, that scenario seems overwhelming. Some might say it's unrealistic, a straight-line projection that ignores the risk of unforeseeable events or friction in the relationship. How easy is it, after all, to predict the behavior of an authoritarian regime that leads 1.3 billion people? But for governments and the forward scouts of free enterprise, such future-gazing is vital. To a medium-sized country like Australia, China's economic and political rise seems irresistible. The two countries have been been growing closer for some three decades, since Australia gave diplomatic recognition to the communist People's Republic in 1972. China's growth and reform have continued with barely a blip since 1978. But trade and the movement of people go back a lot further, as Fu Ying, China's Ambassador to Australia, notes-( n.b. -in 2005)- "The history, habits and nature of our peoples have laid the foundations for the extension of relations," she says. "We are able to understand each other."

…………".In the 1840s, thousands of Chinese indentured laborers and free settlers were drawn to a thriving British colony which was to become Australia. Today, 430,000 people, including merchant bankers, students, artists, gamblers and tourists, move between Australia and China each year. If Hong Kong is included, the figure almost doubles. China's rise is easing Australia's isolation, putting it close to one of the hubs of the world economy. But it is also taking a toll….."

If Australia, a prosperous, modern industrialized nation-state of something over 20 million people is to become a subserviant, even if politically independant, client of China, equivalent to today's Hong Kong, what will be PNG's fate in the next two to three decades?What plans does PNG's leadership have for this aspect of the nation's future? Have they any plan at all?

 


Friday, December 04, 2009

University of Goroka supports World AIDS Day Celebrations

 

On Tuesday 1st December 2009, a team from the University of Goroka staff helped to support World AIDS Day celebrations in Goroka Eastern Highlands Province.

In a show of continued support for HIV/AIDS awareness and prevention at UOG, a team of staff members participated in a float around town and out along the Highlands Highway to Five-Mile with partners from Goroka Base Hospital, Provincial Health, Highland Regional Nursing College, Save the Children, Institute of Medical Research and other NGOs.

UOG staff gave out pamphlets and condoms to the public along the way, whilst sending out messages about HIV/AIDS prevention via a loud hailer from the back of a university vehicle decorated with awareness posters and a large red ribbon.

Staff members of UOG unable to participate in the float wore red or HIV/AIDS ribbons on the day to show their support for HIV/AIDS awareness. 

A banner was also hung outside the Administration block with the message: Stigma Kills, Love Heals. 

Vice Chancellor of the University of Goroka, Dr Gairo Onagi, stated that he was happy to support the participation of his staff in World AIDS Day celebrations in the community as UOG currently teaches a compulsory course on HIV/AIDS awareness and prevention to its students.

The participation of staff for HIV/AIDS prevention and awareness was coordinated by Mrs Alice Kauba, senior tutor from the Health Section of the Science Faculty, and was held as a follow on from early celebrations of World AIDS Day celebrated on campus on the 9th November 2009 by UOG health students.

 

Sinopec and PNG LNG finalise LNG sale and purchase agreement

Important Project Milestone with Key Asian LNG buyer

LNG to Supply Sinopec’s First LNG terminal in Shandong Province

 

Port Moresby, Papua New Guinea, December 3, 2009 – Unipec Asia Co., Ltd., a subsidiary of China Petroleum & Chemical Corporation (Sinopec) and Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation and operator of the Papua New Guinea Liquefied Natural Gas (PNG LNG) Project, today announced that Sinopec and the project participants have entered into a binding sales and purchase agreement for the long-term sale and purchase of LNG totalling approximately 2.0 million tonnes per annum.

Under the agreement, the PNG LNG Project will supply LNG to Sinopec’s LNG terminal in Shandong Province, for a period of 20 years.  

“We are pleased that the project has completed this important agreement with a key Asian LNG customer and look forward to a long and mutually beneficial relationship between Sinopec and the project,” said Ron Billings, vice president, LNG, ExxonMobil Gas & Power Marketing Company. “This is a key milestone in the project’s schedule.”

"Sinopec is very pleased to reach the final sales and purchase agreement with the PNG LNG Project. The LNG we've committed will supply an LNG terminal that Sinopec is going to build in Qingdao, Shandong Province. Phase I capacity of the terminal is 3 million tons per annum. With the developments of the market, we will expand the facilities to receive 5-6 million tons per year in a Phase II stage. This LNG terminal will provide long-term and reliable clean natural gas resources to the Shandong market and will play a positive role in meeting the local demand, optimizing the energy mix and improving the local environment,” said Wang Zhigang, senior vice president of Sinopec Corp.

China Petroleum & Chemical Corporation ("Sinopec Corp.") is listed in Hong Kong, New York, London and Shanghai, and it's also a fully integrated energy and chemical company. Its main businesses include exploration, development, production and trading of petroleum and natural gas; petroleum processing, manufacturing, trading, transportation, distribution and marketing of petroleum products; manufacturing, distribution and trading of petrochemical products. Sinopec is the largest domestic listed company based on its annual revenues in 2008, and it's also one of the major petroleum and petrochemical companies in China and Asia as well as one of the major producers and distributors of gasoline, diesel, jet fuel and other major petrochemical products in China and Asia.

The PNG LNG Project is an integrated development which includes gas production and processing facilities, onshore pipelines and offshore pipelines and LNG plant facilities. Participating interests are ExxonMobil (through various affiliates, including Esso Highlands Limited as Operator) 41.5%, Oil Search 34.0%, Santos 17.7%, Nippon Oil 5.4%, Mineral Resources Development Company 1.2 %, and Petromin PNG Holdings Limited 0.2%. 

(Participation will change when the PNG State nominees join as equity participants at a later date).

Sinopec Media Contact: Wang Tao Phone: (86 10) 59969809 Email: wtao@sinopec.com  

Media Contact: Miles Shaw Phone: (675) 322-2133 Email: miles.j.shaw@exxonmobil.com  

 

Thursday, December 03, 2009

Partners in supporting Papua New Guinea tourism

Caption: Barry Greville-Eyres (left) and senior PNG Tourism Promotion Authority staff Alcinda Trawen and Jerry Agus show some of the tourism publications and reference material donated by Co-op Bookshop in Brisbane

A Brisbane-based bookstore and a tourism development practitioner have made a valuable donation of tourism publications and reference material to the Tourism Promotion Authority.

The Co-op Bookshop and tourism development practitioner Barry Greville-Eyres handed over the publications to TPA’s policy and planning manager Jerry Agus.

 “The authority values strategic partner contributions especially at a time when TPA is implementing its tourism master plan,” Mr Agus said.

“TPA envisages that the master plan will be translated into a series of sustainable tourism development initiatives, generating local economic empowerment and prosperity for PNG’s rural and urban communities alike.”

 This also happens to coincide with an anticipated bumper festive season which could see an influx of international visitors despite the recent global financial crisis.

University of Queensland’s Prof Roy Ballantyne confirmed that UQ’s school of tourism had recently entered into dialogue with TPA on how both organisations can collaborate towards their mutual benefit.

 “As neighbours – sharing unique yet complimentary tourism products and experiences, it makes strategic sense exploring joint tourism opportunities - research, teaching, learning, marketing and development - as part of an innovative and exciting country to country or regional tourism initiative,” Prof Ballantyne said.