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Opportunities Await Japanese Investors

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Opportunities Await Japanese Investors 第３種郵便物認可 (3) THE JAPAN TIMES FRIDAY, SEPTEMBER 16, 2011 5 Papua New Guinea independence day Opportunities await Japanese investors Looking forward to even friendlier relations with PNG Katsuo Yamashita relations between our two countries ever since CHAIRMAN, JAPAN-PAPUA NEW GUINEA ASSOCIATION Papua New Guinea’s independence 36 years Dennis T. Bebego natural resources ranging from ago. All of us in Japan wish a quick recovery CHARGE D’AFFAIRES A.I. OF PAPUA fisheries and forestry in the re- On behalf of the Japan-Papua New Guinea of Sir Michael Somare’s health and it is our NEW GUINEA newables sector to minerals as Association, I would like to express my sincere earnest hope that, in the near future, he will play well as oil and gas deposits both congratulations to the government and people his role to maintain and strengthen our close On Sept. 16, 1975, Papua New on land and on the seabed. Vast of Papua New Guinea, who relationships. Guinea became an independent arable land with year-round celebrate their 36th Independence I take this opportunity to express my deep state, with the transition to na- tropical weather presents op- Day today, Sept. 16. appreciation to the government and people of tionhood be- portunities for agricultural de- I am happy to note that Papua New Guinea for extending the sympathy ing smooth. To velopment. Tropical rain forests bilateral relations between our and a large amount of donations to the victims date, Papua New teeming with flora and fauna, two countries are getting closer from the March 11 Great East Japan Earthquake Guinea remains steep mountains and gorges and closer in recent years. Since and tsunami disaster in the Tohoku area. an active and with rapids and waterfalls, pris- last year, we witnessed many Two joyful events occurred for us last month: stable democ- tine waters, sandy beaches and important events that have taken Papua New Guinea’s new government was racy with power tropical reefs all hold out poten- place, including the official visit to Japan by formed under the leadership of Prime Minister divested to the tial for ecotourists, divers and then Prime Minister Sir Michael Somare, the Peter O’Neill and new Ambassador to Japan people through a adventure-oriented visitors. official opening ceremony of the chancellery Gabriel Dusava arrived. We hope that under system of local-level governments. The sustainable development building of Papua New Guinea in Tokyo, and the energetic leadership of the young prime Parliament, however, still remains of these resources with minimal the start of Air Niugini’s second weekly flight minister, Papua New Guinea will continue its the premier institution. environmental and cultural im- between Narita airport and Port Moresby in steady development, being supported by the On Aug, 2, 2011, the country pacts as well as ensuring that the March 2010. In April this year, the signing of revenue from the liquefied natural gas project witnessed a change of government investors receive fair returns on an investment agreement between our two in which Japan is involved as one of its product on the floor of Parliament when their investments present chal- countries was attended by then Foreign Minister importers and the contractor of related plants. the then coalition government of lenges for the government. In Strengthening ties: Then Foreign Minister Don Polye (left) of Papua New Guinea and his then Don Polye. These events contribute to the further The arrival of the new ambassador was long- the former prime minister and dealing with these development counterpart, Takeaki Matsumoto, sign the Japan-Papua New Guinea Investment Agreement on April strengthening of the official relations between awaited by the people of Japan after more than father of the nation, Sir Michael challenges, Papua New Guinea 26 in Tokyo. MINISTRY OF FOREIGN AFFAIRS OF JAPAN the two governments, promoting mutual a year’s absence of an ambassador in Japan Somare, was voted out of office welcomes partners and genuine business contacts and enhancing people-to- since the departure of former Ambassador and a new prime minister was foreign investors who can make Complimenting these fiscal nese investors to be involved from tracted as the LNG carrier for people exchange at the grassroots level. Michael Maue at the end of 2009. Our installed in Peter O’Neill, who, to- a contribution in mutually ben- policies are the bilateral frame- exploration and feasibility studies the project. In August, we heard the sad news of the association would like very much to continue gether with his coalition partners, eficial ways. work agreements that have been to the construction, development This makes the relations be- resignation of Prime Minister Sir Michael good cooperative relations with the Embassy has taken charge of government. concluded to promote economic and marketing of end products. tween Papua New Guinea and Somare as a result of his poor health. of Papua New Guinea under the guidance of This is not the first time Papua Investment climate developments. This includes the Japan even more important. On this occasion, we would like to pay the the new ambassador for the promotion of even New Guinea has witnessed pow- There are deliberate measures for double tax avoidance treaties The PNG LNG Project highest tribute to Sir Michael Somare for his friendlier relations between Japan and Papua er changing hands on the floor of creating an environment condu- and investment promotion and The construction phase of this The Gulf LNG Project tremendous contributions to make closer the New Guinea. Parliament, but it demonstrates cive to business and the stimula- protection agreements. project, which started early last This is the second LNG proj- yet again the active and robust tion of domestic and foreign di- With Japan specifically, Papua year, is continuing and the gov- ect led by InterOil Corp. and is system of parliamentary democ- rect investments. These include New Guinea signed an Invest- ernment remains committed to based in the Gulf Province of second largest trading partner. Ohira visited Papua New Guin- my recovered in 2003 after suf- racy that Papua New Guinea ad- various tax incentives and reforms, ment Protection Agreement in addressing issues that the tra- Papua New Guinea. The devel- Since 2005, there has been a ea, which was followed by a visit fering contractions the previous opted at independence and has various tariff reforms as well as Tokyo on April 26, which should ditional landowners raise from opment of the project is pro- marked increase in trade. The from former Prime Minister Yas- three years. This recovery and since enjoyed. wage subsidies for companies take effect once both countries time to time. gressing well and several head total volume of trade in 2007 uhiro Nakasone in 1985. the growth in the GDP came While Papua New Guinea en- manufacturing new products. have completed their internal The PNG LNG Project is the agreements have been con- reached $827 million compared From Papua New Guinea, for- on the back of high commodity joys a vibrant and stable democ- In the agriculture and fisheries ratification processes. single largest investment ever cluded already, which includes to $660 million in 2004 — the mer Prime Minister Sir Michael prices for its major agricultural racy, many development chal- sector, these incentives include made in the country, estimated agreement on funding and con- balance of trade being in Papua Somare made official visits in products of cocoa, palm oil, cof- lenges still lie ahead. accelerated depreciation of up Resource developments at $15.6 billion. Over a 30-year struction as well as a sharehold- New Guinea’s favor. 1985, 1997, 2003, 2005, 2006, fee and copra, as well as high The majority of the popula- to 100 percent in the first year on There are vast deposits of min- period, the project is expected ers’ agreement. Papua New Guinea’s major 2009 and 2010. Other former mineral and petroleum prices, tion, around 80 percent, live in new plants or equipment used in erals, petroleum and gas, some to produce 255 billion cu. me- The Gulf LNG Project will exports to Japan are metal ores, Prime Ministers Sir Julius Chan particularly that of gold, copper rural areas, while the remaining production. known while others remain ters of gas with an estimated utilize InterOil’s gas discoveries crude oil, coffee, fish and timber and Sir Mekere Morauta also and oil. 20 percent are urban dwellers. In the tourism sector, incen- largely unknown and untapped. return of $32 billion in direct at the Elk/Antelope fields in the products, while the nation im- made official visits in 1995 and This positive growth continues With a population at around 6.7 tives offered include exemptions Exploration activities have in- revenue to the government and interior of the country, estimated ports from Japan motor vehicles, 2000, respectively. to be sustained by strong perfor- million and growing at the rate from the goods and services tax creased in the mining sector the landowners. to produce 10 million cu. meters machinery and spare parts. Government ministers, senior mances in the communications of 2.7 percent, coupled with a per for hotel accommodations of with three exploration licenses Though operated by Exxon of gas per day. bureaucrats, businessmen, tourists and manufacturing sector as well capita gross domestic product of tourists, provided these are se- currently at prefeasibility to fea- Mobil, Japan’s involvement in All these present tangible op- Bilateral visits and ordinary citizens also contin- as robust growths in the retail, around $2,116, the ability of the cured prior to arrival in Papua sibility study stages. this project is substantial. Not portunities for Japanese compa- Trade and commercial relations ue to visit in both directions, help- wholesale, agriculture, forestry government to provide adequate New Guinea.
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