第３種郵便物認可 (3) Special Economic Reports THE JAPAN TIMES MONDAY, DECEMBER 21, 2009 9 www.panoramareports.com PANORAMA REPORTS PAPUA NEW GUINEA A new vision for sustainable development New dawn in South Pacifi c

As political stability and a massive natural gas project power Papua New Guinea’s largest donor of aid. The Asian With the Papua New Guinea tomary” — traditional land of country enjoys a strong pres- government holding a lucrative indigenous people that cannot economy to new heights, Japanese companies are taking advantage of the wealth of invest- ence on the island through the 19.4 percent stake in the project, be taken away. This “locked” ment opportunities as the government’s ambitious and dynamic Vision 2050 plan sets new work of the Japan International ministers plan to establish a sov- land has hampered develop- Cooperation Agency (JICA). ereign wealth fund to manage ment and deterred investors for standards for socioeconomic development in the South Pacifi c country. “We have enjoyed a cordial the estimated $50 billion wind- many years, but Temu, who is relationship with the Japanese fall from tax and dividends over also minister of lands, physical An emerging force in the Asia- “Papua New Guinea is enjoy- rates are low, while foreign re- government,” states Temu. the next 20 years. Japan is a key planning and mining, has led Pacifi c region and one of the Deputy Prime Minister ing political stability, which serves are at a record high. “JICA is doing an excellent job target market for LNG products, reforms that mean companies world’s fastest-growing econo- and Minister of Lands, is an important prerequisite The key driver of the export- here and providing money for along with China, India, South are now assured legal rights mies, Papua New Guinea is Physical Planning for sustaining policy develop- oriented economy is the agricul- new infrastructure, better edu- “We are joining Korea and Taiwan. over sites and facilities. fully embracing foreign direct and Mining ment and providing assurance tural industry, which produces a cation and health facilities.” the exclusive club “This LNG project will trans- “Investors can now invest investment (FDI) and taking to investors and our citizens,” wide range of products includ- These solid bonds will be rein- form our country,” says Temu. confi dently in customary land as advantage of the many lucrative wealth, create employment says Puka Temu, deputy prime ing cocoa, coconut, tea, sugar, forced further through the con- of gas-producing “We will join the exclusive club they will have tenure security,” opportunities that exist in the and make the nation more self- minister. rubber and palm kernals. Papua struction of a massive $15 billion nations and of gas-producing nations. The he says. oil and gas, mining, agriculture suffi cient. Papua New Guinea has New Guinea is also blessed with integrated, upstream natural fi rst shipment of gas will leave With the vision of utilizing and tourism sectors. “PNG Vision 2050 is a beacon enjoyed impressive economic many natural resources such as gas and liquefi ed natural gas Japan will play before the target date of 2014. land to improve the quality of life A proud, traditional and of fresh hope for our people and growth in recent years with oil, gas, gold and other minerals. (LNG) development involving a key role in this We are signing land agreements of all citizens, the Department of diverse nation that boasts more future generations,” says Prime Japanese company Nippon Oil success.” for the downstream gasoline Lands and Physical Planning than 850 indigenous languages Minister . “The “PNG Vision 2050 refl ects the hopes and Corp. and other industry giants. industry and already have many aims to promote the best use of among its 6 million citizens, plan maps out the future direc- The state-of-the-art project Japanese companies present. terrain in Papua New Guinea by aspirations of our people and maps out Deputy PM Puka Temu Papua New Guinea is improving tion our country should take, comprises a dozen well pads, “Japan will play a critical role ensuring that an orderly process its key infrastructure, such as refl ecting the hopes and aspira- the country’s future direction.” production wells, gathering in terms of participating in the exists and land is made avail- transport and information and tions of our people.” systems and processing plants, purchasing of our gas. It is a able for sustainable economic communications technology A stable democracy since the Prime Minister Michael Somare associated gas facilities and a win-win situation and improves and social development. networks, and investing sub- election of the present govern- gas pipeline between the central regional cooperation.” Revenue Services are delivered stantial amounts in the devel- ment in 2002, the country’s gross domestic product (GDP) A member of the highlands region and a major from the LNG plant will play a through a range of responsible opment of better education and economy has been largely unaf- up 6.2 percent in 2009 following Commonwealth of Nations, LNG plant near the capital, Port key role in funding PNG Vision and coordinated land manage- health facilities as part of a huge fected by the global downturn. a similar-sized jump in 2008. having gained independence Moresby. 2050. ment strategies and activities. socioeconomic development The business-friendly policies That positive trend is seen as from Australia in 1975, Papua It is expected to double Papua One of the greatest challenges plan known as PNG Vision 2050. of Prime Minister Somare are continuing, with GDP forecast New Guinea has been a key New Guinea’s GDP as it will gen- facing the government is land For a real experience in PNG, Launched in November 2009, transforming the country into a to grow 8.5 percent in 2010. trade partner of Japan for many erate up to 6.6 million tons of gas reform. Some 97 percent of please visit: the initiative aims to generate regional investment hub. Infl ation levels and interest years, with Japan the second- per year when fully operational. the country’s total land is “cus- www.pngexplorers.com

Head for a horizon of opportunities

Known as the last frontier of Papua New Guinea’s timber industry, Sandaun Province is now at the forefront of its transformation into a major economic hub for the Asia- Pacifi c region. Ambitious new SANDAUN enterprise Sandaun Free Trade Development Ltd. (SFTD) is proud to be pioneering growth and development in the downstream processing of the strategically located area’s weatlh of natural resources. These include oil and gas, mining, fi sheries and timber. There is an also an abundance DOWNSTREAM TIMBER FISHERY MINING OIL AND GAS ECO-TOURISM PROCESSING of eco-tourism openings. SFTD’s new Special Economic Zone offers intelligent investors a range of golden investment opportunities that will act as a profi table platform for growth.

Sandaun Free Trade Development Ltd. · Sec. 23 Lot 12 · Reke Street, Boroko · P.O. Box: 1886 · N.C.D · Papua New Guinea · Tel:+675 325 0600 · Fax:+675 325 8295

PAGE: 9 10 THE JAPAN TIMES MONDAY, DECEMBER 21, 2009 Special Economic Reports (3) 第３種郵便物認可

PANORAMA REPORTS PAPUA NEW GUINEA www.panoramareports.com www.panoramareports.com PANORAMA REPORTS PAPUA NEW GUINEA Green light to growth Flying high on natural charms Tourism is playing an increas- structure, security, and safety waters of Bootless Bay, Airways PNG Explorers International. Substantial investment in infrastructure and technology means investors are playing a key ingly important role in Papua improvements and upgrades Hotel is a unique Papua New Offering tourists a “one-stop role in the shaping of Papua New Guinea’s future via enterprise, commerce and industry. New Guinea’s economic and at Papua New Guinea’s 21 air- Guinea hotel. Located close to shop” of products and services, social development, with the ports through an ambitious Jacksons International Airport, the travel agency’s range of Forestry fuels the future country’s lush tropical rainfor- project that will see the gov- its wide range of luxury suites packages includes accommoda- Sustainable forest management lies at the heart of Papua New Guinea’s forestry sector as The commerce and industry Centered in the provincial ests, sandy beaches, mountains ernment inject $85 million and and executive rooms are com- tions, tours, fl ights and trans- Gabriel Kapris Anton Kulit sector in Papua New Guinea Minister of Secretary of capital Vanimo, the zone is and exotic wildlife drawing visi- the private sector a further $75 plemented by fi rst-class facili- fers, diving and fi shing excur- offi cials seek to secure the country’s magnifi cent rain forests for future generations while has struggled to develop itself Commerce and Commerce and being created by Sandaun Free tors from Japan and beyond. million. Aviation offi cials say the ties such as wireless Internet, sions and other activities. promoting downstream processing that will create employment for thousands of people. in recent years, meaning major Industry Industry Trade Development Ltd. The Its stunning natural beauty major works, which are due to a health and racquet club (pic- Meanwhile, the government investment opportunities exist massive project includes new and physical charms offer a for completion in 2018, will open tured on opposite page) plus is placing an increased empha- throughout the sector. industrial parks, power plants, diverse range of memorable up new economic opportunities gourmet restaurants. The hotel sis on education and the devel- Blessed with tens of millions of , on climate change issues, and and younger trees will have The government is focusing sewerage and water systems, in- experiences and locations, with as the country strives to achieve is increasing its capacity and opment of human resources as hectares of forests and with a Forestry Minister from 2010, any new permits for more time to regenerate,” he on the creation of a value-added is very important,” he explains. Japan — to consider invest- formation and communications excursions and adventures international standards at all of building luxurious apartments it looks to attract investors and fi rm commitment to the envi- log exports will only be issued explains. industry and the development “We are encouraging a policy of ment here. Japan has been technology networks, housing, available across the main island, its airports. as it prepares for an infl ux of boost living standards. The ronment through sustainable for downstream processing. Not surprisingly, Japanese of infrastructure through public- PPPs and our main objective is our second-strongest trading seaports, schools, health clinics as well as its smaller islands. large LNG project includes the forest management, Papua New This will create more jobs for companies are among the many private partnerships (PPP). to develop agriculture such as partner for many years and they and entertainment facilities. Up to 100,000 tourists visit “The $640 million airports upgrade upgrading of a technical college Guinea is creating thousands our people and means we will overseas enterprises that are “For any country to develop, palm oil, coffee, cocoa and even are a very important partner in New hotels and resorts are also each year, of which the vast project will focus on runways and help for 800 students, providing of jobs in its lucrative forestry sources. Founded in 1993 when experience a lot of growth in the exploring the unlimited invest- the most important thing is rice, and make logging our sec- our development and the intro- planned in conjunction with the majority arrive at Jacksons training for mechanics, electri- sector. it replaced the Department of forestry industry over the next ment opportunities among the infrastructure, such as proper ondary sector rather than the duction of new technology. We Border Development Authority. International Airport in Port to improve safety standards.” cians, plumbers and carpenters. And with the battle against Forestry, the PNGFA aims to few years.” country’s wilderness. roads, bridges, communications primary industry.” are trying to make Papua New The brainchild of Forestry Moresby before taking part Helping the nation achieve climate change playing an in- “promote the management and Downstream processing of “We have one Japanese networks, education facili- A key ingredient of its future Guinea as competitive as other Minister Belden Namah, SFTZ in eco-tourism trips or diving, Joseph Kintau, CEO of Civil Aviation Authority this aim is the University of creasingly important role in the wise utilization of the forest re- forestry products has enjoyed company operating in the ties and health services,” says economic development is the countries and are ready to work is an innovative step forward surfi ng, white-water rafting and Papua New Guinea. Established shaping of governmental policy sources of Papua New Guinea the fastest rate of growth in the eastern region and they are Gabriel Kapris, minister of com- new Pacifi c Marine Industrial closely with investors.” in the country’s development hiking. Accommodation is pro- “The improvements will foreign business executives . in 1965, the university has around the world, Papua New as a renewable asset for the manufacturing sector in recent doing very well as they are merce and industry. “We have Zone (PMIZ), which means fi sh One shining example of as a regional economic hub and vided by hotels, guesthouses, primarily concentrate on the “We are unique because we graduated more than 15,000 Guinea is leading the way in the well-being of present and future years, with exports of these experts in reforestation,” says achieved a lot in the last fi ve caught in local waters qualify Papua New Guinea’s desire and offers investors a valuable stra- lodges and village resorts. runway, extension runway are a transit hotel as well as students. It offers programs in development of environmen- generations.” At the center of its types of products up more than Namah. “Since they are doing years and this political stability for special status under the determination to attract major tegic location in the heart of the Due to the tough terrain, visi- pavements, runway extensions a resort hotel with wonderful medicine, health, law, science, tally friendly forestry projects. progressive policy is the man- 200 percent since 1997. The so well, I encourage other means our economy is growing European Union’s (EU) “rules of overseas investors is the de- Asia-Pacifi c region. tors travel by air on a network and the safety aspect of airport facilities,” says Airways Hotel humanities and social sciences. Home to some of the world’s agement of forest resources on majority of timber is exported, Japanese investors to come and rapidly.” origin” program. Fish will be ex- velopment of its fi rst free trade “We are looking for investors provided by leading operators operations,” states Papua New General Manager Kevin Yaxley. “Our quest for excellence and largest and most spectacular a sustainable basis to achieve with logs shipped to countries take advantage of our forestry In partnership with ported to the EU as a Papua New zone. Called Sandaun Free to come and sign a joint venture Air Niugini Ltd. and Airlines Guinea Civil Aviation Authority “We are the benchmark by merit sees no limit,” says Vice woodlands, the country’s 35 stronger economic growth, across Asia. Key export markets concessions and premium wood Commerce and Industry Guinean product and be exempt Trade Zone (SFTZ), the venture agreement with the new na- PNG. The airline industry has CEO Joseph Kintau. which service is measured.” Chancellor Ross Hynes. “We million hectares of forests production. I do not want a mo- Secretary Anton Kulit, Minister from duties. offers foreign partners a series tional company, Sandaun Free been given a huge boost with Nestled in the side of a majes- Helping people make the are dedicated to the pursuit, ad- comprise trees of high-quality “I encourage Japanese investors to take nopoly, I want the market to be The Health and Racquet Club, Airways Hotel. www.airways.com.pg Kapris is concentrating on “The PMIZ is very important of benefi ts and incentives. Trade Zone Development Ltd.,” the recent announcement by tic mountain and boasting spec- most of all Papua New Guinea vancement and dissemination tropical hardwood. As one of the advantage of our forestry concessions and open so other industry players value-added products instead as our waters are rich in fi sh Based in the northern prov- Namah says. “Once they sign the Asian Development Bank to tacular views of its own botani- has to offer is leading Japan- of knowledge, understanding few sectors able to operate in have the chance to enter.” that will boost export levels are coffee in the world. Our national exploration going on.” of the export of raw materials. such as tuna,” says Kapris. “We ince from which it takes its they will be eligible for mining provide $480 million for infra- cal gardens and the crystal clear based tour company specialist and wisdom.” the remote areas of the country, premium wood production.” Deputy Prime Minister Puka gathering pace as the country agricultural plan is empower- Meanwhile, the Border “By focusing on downstream will now be in a better position name, SFTZ will allow fi rms to and fi shing licenses in Sandaun the forestry industry provides Temu agrees that Japan can looks to take advantage of its ing our people further as they Development Authority is invit- processing we are creating jobs to take advantage of the rules take tax holidays, promote their Province, and will also be eligi- valuable jobs and income for Belden Namah, forestry minister play a vital role in the ongoing fertile soil and excellent climate. already possess fi rst-class agri- ing tenders for vital infrastruc- for Papua New Guineans and de- of origin legislation and would products with the help of gov- ble for a forestry concession that countless villagers in rural development of the forestry The highlands area boasts some cultural skills and knowledge.” ture works along the border with veloping the capacity for them to like to encourage investors from ernment resources, and reduce is currently being surveyed Caring and Sharing in Economic Prosperity for All communities. create employment and improve for this timber include Japan, business due to its valuable ex- of the world’s oldest agriculture Rich in minerals and metals, Indonesia. The construction access better technology, which other countries — particularly red tape for permits and visas. from 155,000 hectares.” Concerns over logging prac- viable onshore processing. China, Hong Kong and South perience and knowledge of the systems, but access is limited the country’s mining sector program includes roads, bridges, As part of its mission to maximize income-earning potentials, to resurrect the movement. Since then, it has registered six Cooperative “Our land is tices and deforestation were Under the careful guidance Korea, which among them com- fast-growing industry. due to inhospitable terrain. offers major FDI openings. A power plants and schools. create jobs and achieve sustainable growth for everyone in Associations and almost 500 Societies. great for certain Papua New Guinea, the Department of Commerce and Industry Minister of Commerce and Industry Gabriel Kapris lists some of the among the fi rst issues dealt with of Minister Namah and his col- prise 80 percent of the market. “Japan has been helping us The government is investing gold exporter since the 1930s, is breathing new life into cooperative societies. benefi ts members of a co-op enjoy: “From being your own boss, having by Forestry Minister Belden leagues, the forestry sector is Namah highlights the fact in the forestry sector and is in- huge sums in the sector, includ- commodities — the country operates several MAXIMIZE YOUR BUSINESS fl uencing our forestry policy,” ing substantial spending on key world-class open-pit mines and access to resources, obtaining maximum prices for products and the Namah following his appoint- now more heavily focused on that many tables and chairs we’ve some of the PMIZ: To become a major tuna transshipment and processing hub The proactive and hugely democratic concept, which sees small groups possibility of obtaining an import or export license, cooperatives give eve- ment to the highly prestigious sustainable forest management made from locally sourced logs he explains. “They are helping transport infrastructure like smaller-scale operations. in the Western and Central Pacifi c Region of people, usually rural dwellers, pooling resources such as cash crops, ryone the chance to participate in economic activities and develop both post two years ago. His ministry and downstream processing are actually fi nished overseas us add value to our forestry roads, wharves, and airstrips. best organically “We have very favorable THE UNIVERSITY OF retail and credit facilities to grow economically, was fi rst introduced into themselves and their environments. We have an overwhelming number keeps a watchful eye on the in- projects than ever before. and then sent back to Papua products but we also want Japan “We have a 10-year agriculture grown coffee in the mining conditions and leading PAPUA NEW GUINEA PNG by the colonial administration in 1947. For around 30 years, co-ops of applications and the numbers received increases each week.” dustry and oversees the duties “My priorities are sustainable New Guinea as evidence that to participate in quality control plan to develop this sector, but it gold mining companies are vis- P.O. BOX 320, UNIVERSITY 134 were vibrant business entities, but when the country became independ- The social benefi ts are as important as the economic ones. Co-ops are and activities of the Papua forest management, a return the sector needs to develop and development. They can help is vital we develop transport net- world.” iting us,” adds Temu. “Political PAPUA NEW GUINEA ent in the mid-1970s, the movement all but dried up. In 2000, however, based on the values of self-help, equality and solidarity, and members New Guinea Forest Authority on resources for landowners, and evolve if it is to be more us produce agricultural prod- works,” says Temu. “We want to stability and government assur- T: +675 326 7200 / 7201 the government established a Cooperative Societies Unit in an attempt display honesty, openness, responsibility and care for each other. Deputy PM Puka Temu F: +675 326 7187 (PNGFA) — led by Managing and the fi ght against climate successful. ucts as they have the technical move into more commercial ag- ances are attracting these top [email protected] www.upng.ac.pg Director Kanawi Pouru. The change,” he says. “We have “By concentrating on down- expertise and knowledge.” riculture because our land is ex- companies and we have a lot of Pacifi c Marine Industrial Zone (PMIZ) Cooperative Societies Unit authority monitors and controls aligned ourselves with the offi ce stream processing, we will have Meanwhile, plans to develop a cellent for certain commodities 1st Floor, Moale Haus, Melanesian Way, P.O. Box 375, Waigani 131, National Capital District, Papua New Guinea. Dept. Commerce and Industry: Moale Haus. Sir John Guise Drive Waigani, NCD, P.O. Box 375, Papua New Guinea Tel: +675 325 6080 / 325 4176 Fax: +675 325 6108 Tel: +675 325 9225 Fax: +675 325 6108 the wood and forest-based in- of climate change to ensure we more control over our logs, more more commercial, effi cient and — for example, we have some This report was produced by Panorama Reports and can also be dustries and manages forest re- meet the global requirements sustainable forest management productive agriculture industry of the best organically grown read online at www.japantimes.co.jp/international-reports

The transport infrastructure sector: moving toward better transport services for PNG

As Papua New Guinea continues along the could not be more timely as it comes at a time Henry Parakei path of social and economic development, when we are thinking very seriously about the Minister for Works, Secretary of the Department so the Department of Transport remains future of our network of roads, airports, wharves, Transport and Civil Aviation of Transport at the forefront of change as it steers a navigational aids and other related infrastructure steady course through major new inves- facilities.” tment in air, sea and highway networks. Civil Aviation Changes With 80 percent of the country’s population Improvements to the aviation infrastructure living in coastal regions or mountainous areas, and I would like to see Japan involved in more Transport, and Civil Aviation, is the construc- combined with a series of regulatory reforms the importance of providing citizens based in local mega-projects,” he states. “Our policy em- tion of a road network in the smaller islands. have led to a surge in demand for services from such rugged and diffi cult terrain with a decent phasizes good governance, export-driven eco- The $800 million project is being funded by the locals, tourists and foreign businesspeople. and affordable transport network cannot be nomic growth and the fostering of rural develop- Asian Development Bank. In addition, Minister Lower ticket prices, larger planes, increased underestimated. ment, poverty alleviation and human resources Polye is hopeful further funding for the ambitious competition and a wider range of destinations By modernizing and expanding the transport development, for which transport infrastructure Trans-Island Highway project will be secured in are cited by the Department of Transport as networks, the government is improving the improvement and development is a cornerstone the near future, most likely in conjunction with the key reasons for such successful growth. quality of life for people and sending out a pow- to keep the wheels of the economy turning. the private sector. The 600-km-long highway Furthermore, a multibillion-dollar LNG project, erful signal to potential foreign investors from “The corporate plan is a challenging one and would link the capital, Port Moresby, with the led by two of the world’s largest oil companies, Japan and beyond that now is the ideal time to articulates the core functions that will assist us nation’s second city, Lae, and the highland prov- is slated to boost passenger numbers by more invest in the country. in achieving effi cient and effective management, ince, where there are large-scale mining and than 7,000 a year, with the growth of mineral PRESERVING Papua New Guinea’s road network covers an implementation, monitoring and coordination agricultural operations that have received heavy exploration also adding fresh impetus to the estimated 30,000 km and its long-established and control of the department’s responsibili- investment from foreign companies, includ- rapidly growing economy. aviation sector is one of the region’s best devel- ties. The successful implementation of this plan ing enterprises from Japan. The project would “Over the past fi ve years, we have reformed the civil aviation sector considerably by re- OUR ASSETS structuring the administration,” explains Polye. “Our policy emphasizes good governance, export-driven economic growth and the “We now have an open-skies policy and invite fostering of rural development, poverty alleviation and human resources development, for competition from overseas carriers and opera- tors. We would also like to establish direct con- FOR GENERATIONS which transport infrastructure improvement and development is a cornerstone to keep the nections to Japan, China and Europe, as well as Papua New Guinea highways will get a major face-lift. wheels of the economy turning.” opening up the Pacifi c region by building on our success with fl ights to Australia.” and telecommunications. The Civil Aviation CAA divided the entity into two divisions: regu- While Papua New Guinea has hundreds of Don Polye, minister for works, transport and civil aviation Authority (CAA) also plans to transform the re- latory and nonregulatory. The latter has three TO COME small airports, Jacksons International Airport in gional airport at Gurney in Milne Bay Province units with a largely commercial mandate: PNG oped, with regular fl ights between towns and is based on principles of active participation open up a realm of investment opportunities in Port Moresby remains the key gateway to the into the next international airport. Air Services looks after operational matters such cities on the mainland and remoter locations on and commitment from everyone, including a wide range of industries and a large part of the Asia-Pacifi c region and beyond. Passengers Flag carrier Air Niugini Ltd. is the country’s as air traffi c control; PNG Airports Ltd. is re- the country’s smaller islands. In addition, the other state line agencies, the private sector, country that has yet to be discovered by foreign can access all of the world’s major cities from leading airline and is majority-owned by the sponsible for airport infrastructure development; coastal shipping services sector links nearly 20 provincial governments and the people in our commercial entities. the premier port of entry, with direct fl ights to government. Its modern fl eet comprises Fokker and PNG Airport City Developments handles all commercial ports and hundreds of little wharves communities.” Henry Parakei, secretary of the Department Australia, the Solomon Islands, Singapore, the F-100, F-28 jets and Dash 8 aircraft that suit projects related to the development of airport and jetties, providing vital access to goods and With dozens of infrastructure projects worth a of Transport, sees the renewed focus on the Philippines and Hong Kong. the requirements of fl ying within the unique precincts. Opportunities exist for luxury hotels, services for people in rural communities. total of $3.8 billion in the pipeline, it is an ideal transport sector as the catalyst for growth and The Department of Transport has ambi- Papua New Guinean terrain, and a Boeing 767 business and industrial parks and offi ce blocks In order to meet the challenges posed by the time for Japanese investors to enter Papua New a key ingredient of the country’s social and eco- tious expansion plans for the main airport and jet for international routes. It has a number within the airport boundary, through either joint development of its transport sector, the forward- Guinea and take advantage of the huge potential nomic evolution. projects are also in the pipeline for regional of codeshare deals with other international ventures or private sector projects. thinking government, led by Prime Minister for growth and revenue. “After more than 30 years of independence, airports in Lae, Madang, Tokua and Kargan. airlines, including Australia’s Qantas. These However, it is not only in the sky that major Michael Somare, has undertaken a series of “Japanese companies need to come here Papua New Guinea is at a major turning point in The ability to handle larger aircraft would pave coveted agreements further reinforce Papua transport investment is due to take place, with measures under a corporate plan. The ambitious and have a closer, in-depth look at our business its development and a cornerstone for improved the way for a fl ood of opportunities for invest- New Guinea’s emergence as an important desti- maritime trade extremely important to the coun- blueprint is connected to the national transport environment and what we have to offer. We social and economic development in transport ment in tourism-related industries, including n ation in the region. try’s economic and social prospects. Cargo ships development plan — a “Road Map” that pro- have to build up our construction industry, our infrastructure,” he says. “Our corporate plan hotels, local transportation, food and beverages Provincial niche charter players such as carry large quantities of key export commodities vides a clear and defi ned strategy for sustain- facilities and our road network; therefore, we Tropicair and Heli Niugini are also gaining a such as coffee, cocoa, spices and oil to destina- able improvements in the transport sector. need public-private partnerships,” the minister “After more than 30 years of independence, Papua New stronger foothold in the fast-growing market for tions throughout the region and beyond. According to Don Polye, minister for works, says. “I believe that if we continue to improve domestic and international air services. As the “We are looking to build a massive port that transport and civil aviation, Japanese busi- our infrastructure and our services, people can Guinea is at a major turning point in its development Department of Transport and CAA continue to will act as a regional hub,” says Minister Polye. With sustainability and wise forest management as top priorities, the government of nesses are set to play an important part in change their mind-set and the outlook can and a cornerstone for improved social and economic work closely to improve airport infrastructure “It would facilitate maritime trade with countries many of these projects, thanks to their excellent change completely.” around the country, the airlines are meeting like Singapore, Malaysia and the Philippines. Papua New Guinea is promoting opportunities in downstream processing through joint knowledge, experience of the sector, high quality One major road project being overseen by development in transport infrastructure.” the increased demand through improved route Further development and expansion of our port ventures, a wide-scale initiative that will create jobs and a fair deal for the landowners and equipment and state-of-the-art technology. the Department of Transport, which operates mapping, scheduling and load factoring. A is crucial, as I believe it will soon become the Papua New Guinea Forest Authority “Japan has always been a key region for us under the jurisdiction of the Ministry for Works, Henry Parakei, secretary of the Department of Transport recent major restructuring and streamlining of most important port of its kind in the region.” population at large, allow greater control of resources and give younger trees more time P.O. Box 5055, Boroko, NCD, Papua New Guinea to grow... Join us in our bid to protect the environment and create a better quality of life. Tel: +675 327 7841 Fax: +675 325 4433 Ministry of Works, Transport and Civil Aviation - Department of Transport Department of Transport, Enga House 1, 7 Mile P.O. Box 1489, Port Moresby, NCD, Papua New Guinea | Tel: +675 323 6186 / 302 2521 | Fax: +675 323 3339

PAGE: 10 第３種郵便物認可 (3) Special Economic Reports THE JAPAN TIMES MONDAY, DECEMBER 21, 2009 11

PANORAMA REPORTS PAPUA NEW GUINEA www.panoramareports.com www.panoramareports.com PANORAMA REPORTS PAPUA NEW GUINEA Green light to growth Flying high on natural charms Tourism is playing an increas- structure, security, and safety waters of Bootless Bay, Airways PNG Explorers International. Substantial investment in infrastructure and technology means investors are playing a key ingly important role in Papua improvements and upgrades Hotel is a unique Papua New Offering tourists a “one-stop role in the shaping of Papua New Guinea’s future via enterprise, commerce and industry. New Guinea’s economic and at Papua New Guinea’s 21 air- Guinea hotel. Located close to shop” of products and services, social development, with the ports through an ambitious Jacksons International Airport, the travel agency’s range of Forestry fuels the future country’s lush tropical rainfor- project that will see the gov- its wide range of luxury suites packages includes accommoda- Sustainable forest management lies at the heart of Papua New Guinea’s forestry sector as The commerce and industry Centered in the provincial ests, sandy beaches, mountains ernment inject $85 million and and executive rooms are com- tions, tours, fl ights and trans- Gabriel Kapris Anton Kulit the private sector a further $75 sector in Papua New Guinea Minister of Secretary of capital Vanimo, the zone is and exotic wildlife drawing visi- plemented by fi rst-class facili- fers, diving and fi shing excur- offi cials seek to secure the country’s magnifi cent rain forests for future generations while has struggled to develop itself Commerce and Commerce and being created by Sandaun Free tors from Japan and beyond. million. Aviation offi cials say the ties such as wireless Internet, sions and other activities. promoting downstream processing that will create employment for thousands of people. in recent years, meaning major Industry Industry Trade Development Ltd. The Its stunning natural beauty major works, which are due to a health and racquet club (pic- Meanwhile, the government investment opportunities exist massive project includes new and physical charms offer a for completion in 2018, will open tured on opposite page) plus is placing an increased empha- throughout the sector. industrial parks, power plants, diverse range of memorable up new economic opportunities gourmet restaurants. The hotel sis on education and the devel- Blessed with tens of millions of Belden Namah, on climate change issues, and and younger trees will have The government is focusing sewerage and water systems, in- experiences and locations, with as the country strives to achieve is increasing its capacity and opment of human resources as hectares of forests and with a Forestry Minister from 2010, any new permits for more time to regenerate,” he on the creation of a value-added is very important,” he explains. Japan — to consider invest- formation and communications excursions and adventures international standards at all of building luxurious apartments it looks to attract investors and fi rm commitment to the envi- log exports will only be issued explains. industry and the development “We are encouraging a policy of ment here. Japan has been technology networks, housing, available across the main island, its airports. as it prepares for an infl ux of boost living standards. The ronment through sustainable for downstream processing. Not surprisingly, Japanese of infrastructure through public- PPPs and our main objective is our second-strongest trading seaports, schools, health clinics as well as its smaller islands. large LNG project includes the forest management, Papua New This will create more jobs for companies are among the many private partnerships (PPP). to develop agriculture such as partner for many years and they and entertainment facilities. Up to 100,000 tourists visit “The $640 million airports upgrade upgrading of a technical college Guinea is creating thousands our people and means we will overseas enterprises that are “For any country to develop, palm oil, coffee, cocoa and even are a very important partner in New hotels and resorts are also each year, of which the vast project will focus on runways and help for 800 students, providing of jobs in its lucrative forestry sources. Founded in 1993 when experience a lot of growth in the exploring the unlimited invest- the most important thing is rice, and make logging our sec- our development and the intro- planned in conjunction with the majority arrive at Jacksons training for mechanics, electri- sector. it replaced the Department of forestry industry over the next ment opportunities among the infrastructure, such as proper ondary sector rather than the duction of new technology. We Border Development Authority. International Airport in Port to improve safety standards.” cians, plumbers and carpenters. And with the battle against Forestry, the PNGFA aims to few years.” country’s wilderness. roads, bridges, communications primary industry.” are trying to make Papua New The brainchild of Forestry Moresby before taking part Helping the nation achieve climate change playing an in- “promote the management and Downstream processing of “We have one Japanese networks, education facili- A key ingredient of its future Guinea as competitive as other Minister Belden Namah, SFTZ in eco-tourism trips or diving, Joseph Kintau, CEO of Civil Aviation Authority this aim is the University of creasingly important role in the wise utilization of the forest re- forestry products has enjoyed company operating in the ties and health services,” says economic development is the countries and are ready to work is an innovative step forward surfi ng, white-water rafting and Papua New Guinea. Established shaping of governmental policy sources of Papua New Guinea the fastest rate of growth in the eastern region and they are Gabriel Kapris, minister of com- new Pacifi c Marine Industrial closely with investors.” in the country’s development hiking. Accommodation is pro- “The improvements will foreign business executives . in 1965, the university has around the world, Papua New as a renewable asset for the manufacturing sector in recent doing very well as they are merce and industry. “We have Zone (PMIZ), which means fi sh One shining example of as a regional economic hub and vided by hotels, guesthouses, primarily concentrate on the “We are unique because we graduated more than 15,000 Guinea is leading the way in the well-being of present and future years, with exports of these experts in reforestation,” says achieved a lot in the last fi ve caught in local waters qualify Papua New Guinea’s desire and offers investors a valuable stra- lodges and village resorts. runway, extension runway are a transit hotel as well as students. It offers programs in development of environmen- generations.” At the center of its types of products up more than Namah. “Since they are doing years and this political stability for special status under the determination to attract major tegic location in the heart of the Due to the tough terrain, visi- pavements, runway extensions a resort hotel with wonderful medicine, health, law, science, tally friendly forestry projects. progressive policy is the man- 200 percent since 1997. The so well, I encourage other means our economy is growing European Union’s (EU) “rules of overseas investors is the de- Asia-Pacifi c region. tors travel by air on a network and the safety aspect of airport facilities,” says Airways Hotel humanities and social sciences. Home to some of the world’s agement of forest resources on majority of timber is exported, Japanese investors to come and rapidly.” origin” program. Fish will be ex- velopment of its fi rst free trade “We are looking for investors provided by leading operators operations,” states Papua New General Manager Kevin Yaxley. “Our quest for excellence and largest and most spectacular a sustainable basis to achieve with logs shipped to countries take advantage of our forestry In partnership with ported to the EU as a Papua New zone. Called Sandaun Free to come and sign a joint venture Air Niugini Ltd. and Airlines Guinea Civil Aviation Authority “We are the benchmark by merit sees no limit,” says Vice woodlands, the country’s 35 stronger economic growth, across Asia. Key export markets concessions and premium wood Commerce and Industry Guinean product and be exempt Trade Zone (SFTZ), the venture agreement with the new na- PNG. The airline industry has CEO Joseph Kintau. which service is measured.” Chancellor Ross Hynes. “We million hectares of forests production. I do not want a mo- Secretary Anton Kulit, Minister from duties. offers foreign partners a series tional company, Sandaun Free been given a huge boost with Nestled in the side of a majes- Helping people make the are dedicated to the pursuit, ad- comprise trees of high-quality “I encourage Japanese investors to take nopoly, I want the market to be The Health and Racquet Club, Airways Hotel. www.airways.com.pg Kapris is concentrating on “The PMIZ is very important of benefi ts and incentives. Trade Zone Development Ltd.,” the recent announcement by tic mountain and boasting spec- most of all Papua New Guinea vancement and dissemination tropical hardwood. As one of the advantage of our forestry concessions and open so other industry players value-added products instead as our waters are rich in fi sh Based in the northern prov- Namah says. “Once they sign the Asian Development Bank to tacular views of its own botani- has to offer is leading Japan- of knowledge, understanding few sectors able to operate in have the chance to enter.” that will boost export levels are coffee in the world. Our national exploration going on.” of the export of raw materials. such as tuna,” says Kapris. “We ince from which it takes its they will be eligible for mining provide $480 million for infra- cal gardens and the crystal clear based tour company specialist and wisdom.” the remote areas of the country, premium wood production.” Deputy Prime Minister Puka gathering pace as the country agricultural plan is empower- Meanwhile, the Border “By focusing on downstream will now be in a better position name, SFTZ will allow fi rms to and fi shing licenses in Sandaun the forestry industry provides Temu agrees that Japan can looks to take advantage of its ing our people further as they Development Authority is invit- processing we are creating jobs to take advantage of the rules take tax holidays, promote their Province, and will also be eligi- valuable jobs and income for Belden Namah, forestry minister play a vital role in the ongoing fertile soil and excellent climate. already possess fi rst-class agri- ing tenders for vital infrastruc- for Papua New Guineans and de- of origin legislation and would products with the help of gov- ble for a forestry concession that countless villagers in rural development of the forestry The highlands area boasts some cultural skills and knowledge.” ture works along the border with veloping the capacity for them to like to encourage investors from ernment resources, and reduce is currently being surveyed Caring and Sharing in Economic Prosperity for All communities. create employment and improve for this timber include Japan, business due to its valuable ex- of the world’s oldest agriculture Rich in minerals and metals, Indonesia. The construction access better technology, which other countries — particularly red tape for permits and visas. from 155,000 hectares.” Concerns over logging prac- viable onshore processing. China, Hong Kong and South perience and knowledge of the systems, but access is limited the country’s mining sector program includes roads, bridges, As part of its mission to maximize income-earning potentials, to resurrect the movement. Since then, it has registered six Cooperative “Our land is tices and deforestation were Under the careful guidance Korea, which among them com- fast-growing industry. due to inhospitable terrain. offers major FDI openings. A power plants and schools. create jobs and achieve sustainable growth for everyone in Associations and almost 500 Societies. great for certain Papua New Guinea, the Department of Commerce and Industry Minister of Commerce and Industry Gabriel Kapris lists some of the among the fi rst issues dealt with of Minister Namah and his col- prise 80 percent of the market. “Japan has been helping us The government is investing gold exporter since the 1930s, is breathing new life into cooperative societies. benefi ts members of a co-op enjoy: “From being your own boss, having by Forestry Minister Belden leagues, the forestry sector is Namah highlights the fact in the forestry sector and is in- huge sums in the sector, includ- commodities — the country operates several MAXIMIZE YOUR BUSINESS fl uencing our forestry policy,” ing substantial spending on key world-class open-pit mines and access to resources, obtaining maximum prices for products and the Namah following his appoint- now more heavily focused on that many tables and chairs we’ve some of the PMIZ: To become a major tuna transshipment and processing hub The proactive and hugely democratic concept, which sees small groups possibility of obtaining an import or export license, cooperatives give eve- ment to the highly prestigious sustainable forest management made from locally sourced logs he explains. “They are helping transport infrastructure like smaller-scale operations. in the Western and Central Pacifi c Region of people, usually rural dwellers, pooling resources such as cash crops, ryone the chance to participate in economic activities and develop both post two years ago. His ministry and downstream processing are actually fi nished overseas us add value to our forestry roads, wharves, and airstrips. best organically “We have very favorable THE UNIVERSITY OF retail and credit facilities to grow economically, was fi rst introduced into themselves and their environments. We have an overwhelming number keeps a watchful eye on the in- projects than ever before. and then sent back to Papua products but we also want Japan “We have a 10-year agriculture grown coffee in the mining conditions and leading PAPUA NEW GUINEA PNG by the colonial administration in 1947. For around 30 years, co-ops of applications and the numbers received increases each week.” dustry and oversees the duties “My priorities are sustainable New Guinea as evidence that to participate in quality control plan to develop this sector, but it gold mining companies are vis- P.O. BOX 320, UNIVERSITY 134 were vibrant business entities, but when the country became independ- The social benefi ts are as important as the economic ones. Co-ops are and activities of the Papua forest management, a return the sector needs to develop and development. They can help is vital we develop transport net- world.” iting us,” adds Temu. “Political PAPUA NEW GUINEA ent in the mid-1970s, the movement all but dried up. In 2000, however, based on the values of self-help, equality and solidarity, and members New Guinea Forest Authority on resources for landowners, and evolve if it is to be more us produce agricultural prod- works,” says Temu. “We want to stability and government assur- T: +675 326 7200 / 7201 the government established a Cooperative Societies Unit in an attempt display honesty, openness, responsibility and care for each other. Deputy PM Puka Temu F: +675 326 7187 (PNGFA) — led by Managing and the fi ght against climate successful. ucts as they have the technical move into more commercial ag- ances are attracting these top [email protected] www.upng.ac.pg Director Kanawi Pouru. The change,” he says. “We have “By concentrating on down- expertise and knowledge.” riculture because our land is ex- companies and we have a lot of Pacifi c Marine Industrial Zone (PMIZ) Cooperative Societies Unit authority monitors and controls aligned ourselves with the offi ce stream processing, we will have Meanwhile, plans to develop a cellent for certain commodities 1st Floor, Moale Haus, Melanesian Way, P.O. Box 375, Waigani 131, National Capital District, Papua New Guinea. Dept. Commerce and Industry: Moale Haus. Sir John Guise Drive Waigani, NCD, P.O. Box 375, Papua New Guinea Tel: +675 325 6080 / 325 4176 Fax: +675 325 6108 Tel: +675 325 9225 Fax: +675 325 6108 the wood and forest-based in- of climate change to ensure we more control over our logs, more more commercial, effi cient and — for example, we have some This report was produced by Panorama Reports and can also be dustries and manages forest re- meet the global requirements sustainable forest management productive agriculture industry of the best organically grown read online at www.japantimes.co.jp/international-reports

The transport infrastructure sector: moving toward better transport services for PNG

As Papua New Guinea continues along the could not be more timely as it comes at a time Don Polye Henry Parakei path of social and economic development, when we are thinking very seriously about the Minister for Works, Secretary of the Department so the Department of Transport remains future of our network of roads, airports, wharves, Transport and Civil Aviation of Transport at the forefront of change as it steers a navigational aids and other related infrastructure steady course through major new inves- facilities.” tment in air, sea and highway networks. Civil Aviation Changes With 80 percent of the country’s population Improvements to the aviation infrastructure living in coastal regions or mountainous areas, and I would like to see Japan involved in more Transport, and Civil Aviation, is the construc- combined with a series of regulatory reforms the importance of providing citizens based in local mega-projects,” he states. “Our policy em- tion of a road network in the smaller islands. have led to a surge in demand for services from such rugged and diffi cult terrain with a decent phasizes good governance, export-driven eco- The $800 million project is being funded by the locals, tourists and foreign businesspeople. and affordable transport network cannot be nomic growth and the fostering of rural develop- Asian Development Bank. In addition, Minister Lower ticket prices, larger planes, increased underestimated. ment, poverty alleviation and human resources Polye is hopeful further funding for the ambitious competition and a wider range of destinations By modernizing and expanding the transport development, for which transport infrastructure Trans-Island Highway project will be secured in are cited by the Department of Transport as networks, the government is improving the improvement and development is a cornerstone the near future, most likely in conjunction with the key reasons for such successful growth. quality of life for people and sending out a pow- to keep the wheels of the economy turning. the private sector. The 600-km-long highway Furthermore, a multibillion-dollar LNG project, erful signal to potential foreign investors from “The corporate plan is a challenging one and would link the capital, Port Moresby, with the led by two of the world’s largest oil companies, Japan and beyond that now is the ideal time to articulates the core functions that will assist us nation’s second city, Lae, and the highland prov- is slated to boost passenger numbers by more invest in the country. in achieving effi cient and effective management, ince, where there are large-scale mining and than 7,000 a year, with the growth of mineral PRESERVING Papua New Guinea’s road network covers an implementation, monitoring and coordination agricultural operations that have received heavy exploration also adding fresh impetus to the estimated 30,000 km and its long-established and control of the department’s responsibili- investment from foreign companies, includ- rapidly growing economy. aviation sector is one of the region’s best devel- ties. The successful implementation of this plan ing enterprises from Japan. The project would “Over the past fi ve years, we have reformed the civil aviation sector considerably by re- OUR ASSETS structuring the administration,” explains Polye. “Our policy emphasizes good governance, export-driven economic growth and the “We now have an open-skies policy and invite fostering of rural development, poverty alleviation and human resources development, for competition from overseas carriers and opera- tors. We would also like to establish direct con- FOR GENERATIONS which transport infrastructure improvement and development is a cornerstone to keep the nections to Japan, China and Europe, as well as Papua New Guinea highways will get a major face-lift. wheels of the economy turning.” opening up the Pacifi c region by building on our success with fl ights to Australia.” and telecommunications. The Civil Aviation CAA divided the entity into two divisions: regu- While Papua New Guinea has hundreds of Don Polye, minister for works, transport and civil aviation Authority (CAA) also plans to transform the re- latory and nonregulatory. The latter has three TO COME small airports, Jacksons International Airport in gional airport at Gurney in Milne Bay Province units with a largely commercial mandate: PNG oped, with regular fl ights between towns and is based on principles of active participation open up a realm of investment opportunties in a Port Moresby remains the key gateway to the into the next international airport. Air Services looks after operational matters such cities on the mainland and remoter locations on and commitment from everyone, including wide range of industries and a large part of the Asia-Pacifi c region and beyond. Passengers Flag carrier Air Niugini Ltd. is the country’s as air traffi c control; PNG Airports Ltd. is re- the country’s smaller islands. In addition, the other state line agencies, the private sector, country that has yet to be discovered by foreign can access all of the world’s major cities from leading airline and is majority-owned by the sponsible for airport infrastructure development; coastal shipping services sector links nearly 20 provincial governments and the people in our commercial entities. the premier port of entry, with direct fl ights to government. Its modern fl eet comprises Fokker and PNG Airport City Developments handles all commercial ports and hundreds of little wharves communities.” Henry Parakei, secretary of the Department Australia, the Solomon Islands, Singapore, the F-100, F-28 jets and Dash 8 aircraft that suit projects related to the development of airport and jetties, providing vital access to goods and With dozens of infrastructure projects worth a of Transport, sees the renewed focus on the Philippines and Hong Kong. the requirements of fl ying within the unique precincts. Opportunities exist for luxury hotels, services for people in rural communities. total of $3.8 billion in the pipeline, it is an ideal transport sector as the catalyst for growth and The Department of Transport has ambi- Papua New Guinean terrain, and a Boeing 767 business and industrial parks and offi ce blocks In order to meet the challenges posed by the time for Japanese investors to enter Papua New a key ingredient of the country’s social and eco- tious expansion plans for the main airport and jet for international routes. It has a number within the airport boundary, through either joint development of its transport sector, the forward- Guinea and take advantage of the huge potential nomic evolution. projects are also in the pipeline for regional of codeshare deals with other international ventures or private sector projects. thinking government, led by Prime Minister for growth and revenue. “After more than 30 years of independence, airports in Lae, Madang, Tokua and Kargan. airlines, including Australia’s Qantas. These However, it is not only in the sky that major Michael Somare, has undertaken a series of “Japanese companies need to come here Papua New Guinea is at a major turning point in The ability to handle larger aircraft would pave coveted agreements further reinforce Papua transport investment is due to take place, with measures under a corporate plan. The ambitious and have a closer, in-depth look at our business its development and a cornerstone for improved the way for a fl ood of opportunties for invest- New Guinea’s emergence as an important desti- maritime trade extremely important to the coun- blueprint is connected to the national transport environment and what we have to offer. We social and economic development in transport ment in tourism-related industries, including n ation in the region. try’s economic and social prospects. Cargo ships development plan — a “Road Map” that pro- have to build up our construction industry, our infrastructure,” he says. “Our corporate plan hotels, local transportation, food and beverages Provincial niche charter players such as carry large quantities of key export commodities vides a clear and defi ned strategy for sustain- facilities and our road network; therefore, we Tropicair and Heli Niugini are also gaining a such as coffee, cocoa, spices and oil to destina- able improvements in the transport sector. need public-private partnerships,” the minister “After more than 30 years of independence, Papua New stronger foothold in the fast-growing market for tions throughout the region and beyond. According to Don Polye, minister for works, says. “I believe that if we continue to improve domestic and international air services. As the “We are looking to build a massive port that transport and civil aviation, Japanese busi- our infrastructure and our services, people can Guinea is at a major turning point in its development Department of Transport and CAA continue to will act as a regional hub,” says Minister Polye. With sustainability and wise forest management as top priorities, the government of nesses are set to play an important part in change their mind-set and the outlook can and a cornerstone for improved social and economic work closely to improve airport infrastructure “It would facilitate maritime trade with countries many of these projects, thanks to their excellent change completely.” around the country, the airlines are meeting like Singapore, Malaysia and the Philippines. Papua New Guinea is promoting opportunities in downstream processing through joint knowledge, experience of the sector, high quality One major road project being overseen by development in transport infrastructure.” the increased demand through improved route Further development and expansion of our port ventures, a wide-scale initiative that will create jobs and a fair deal for the landowners and equipment and state-of-the-art technology. the Department of Transport, which operates mapping, scheduling and load factoring. A is crucial, as I believe it will soon become the Papua New Guinea Forest Authority “Japan has always been a key region for us under the jurisdiction of the Ministry for Works, Henry Parakei, secretary of the Department of Transport recent major restructuring and streamlining of most important port of its kind in the region.” population at large, allow greater control of resources and give younger trees more time P.O. Box 5055, Boroko, NCD, Papua New Guinea to grow... Join us in our bid to protect the environment and create a better quality of life. Tel: +675 327 7841 Fax: +675 325 4433 Ministry of Works, Transport and Civil Aviation - Department of Transport Department of Transport, Enga House 1, 7 Mile P.O. Box 1489, Port Moresby, NCD, Papua New Guinea | Tel: +675 323 6186 / 302 2521 | Fax: +675 323 3339

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