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View Annual Report 2017 ANNUAL REPORT 2017 Delivering with Innovation www.otdfpng.org 1 OUR FOOTPRINT West Sepi TABUBIL k A>! Tabubil Southern Highlands Samagos Agriculture Centre Legend A>!! CMCA Trust Regions KIUNGA A! OTDF Field Base NOMAD Dudi-South Bank >! To wn s h i p Kiwaba .! FRPG Growth Centre Manawete-North Bank i[ OK TEDI Mine Middle Fly Aiambak - Kiunga Road Tabubil to Kiunga Highway West Papua - Indonesia Mine Villages Western Province Province Nupmo LAKE MURRAY Suki Fly Gogo Tutuwe WaiTri and Alice River Trust Western Province A! Aiambak Gu lf Prov ince INDONESIA Nakaku A! >! BALIMO Sturt Island A! ! Tapila A KOABU WIPIM : >! DARU 0408020 Kilometers Ok Tedi Development Foundation Geographic Information Systems W Ok Tedi Development Foundation 2017 2 Contents OTDF EVOLUTION AND DEVELOPMENT TARGETS 4 2017 AT A GLANCE 6 MESSAGE FROM THE CHAIRMAN 8 BOARD MEMBERS 10 MESSAGE FROM THE CHIEF EXECUTIVE OFFICER 12 OTDF ORGANISATION STRUCTURE AND COMMITTEES 14 COMMUNICATIONS 16 DEVELOPMENT SECTORS, INDICATORS AND PARTNERSHIPS 18 BASELINE SURVEY - LIVELIHOOD DEVELOPMENT PACKAGES 22 OTDF EXPENDITURE AND PROJECT LIFE CYCLE 24 TRUST ADMINISTRATION 26 HEALTH SECTOR OVERVIEW 28 EDUCATION SECTOR OVERVIEW 36 INFRASTRUCTURE SECTOR OVERVIEW ContentsContents 40 LOCAL & REGIONAL ECONOMIC DEVELOPMENT SECTOR OVERVIEW 50 COMMUNITY & SOCIAL DEVELOPMENT SECTOR OVERVIEW 62 CORPORATE SERVICES 68 2017 AUDITED FINANCIAL STATEMENTS 76 ABBREVIATIONS, ACRONYMS AND ACKNOWLEDGEMENTS 86 Picture This Page: Aerial view of Tank 5, TCS water upgrade Front Cover: project, Kiunga Mine village women Back Cover: proudly show off the first Aerial view of the Tapila eggs produced from the Field Base, South Fly Tabubil poultry project OTDF EVOLUTION AND VISION VISION: To improve self-sustainability and quality of life of Western Province communities ivery Del 2016- 2020 Ƹ Promoting a transition to more commercial production through improved market access Ƹ OTDF engages with communities cceptance to support the Livelihood A 2009 - 2015 Development Package concept Ƹ OTDF engages with CMCA communities and establishes a sound platform for project delivery Ƹ OTDF sets out new Strategic Direction 2010-2015 Establishment 2001 - 2008 Ƹ New package signed to extend mining operations to 2013 Ƹ OTDF incorporated as required by the 9th Supplemental Mining Agreement as a not for profit Foundation Ok Tedi Development Foundation (OTDF) was established under Clause 6 of the Mining [Ok Tedi Mine Continuation (Ninth Supplemental) Agreement] Act 2001 with its tax-free status enshrined in the same legislation. OTDF’s long term Vision is to ensure the self-sustainability of and to improve the quality of life of Western Province communities with consideration for the people of the Telefomin District of the Sandaun Province. The four key Principles of the OTDF Strategic Direction 2016-2020 underpinning all OTDF’s strategic engagement with stakeholders, and guiding day to day operations are: Ƹ Effective and efficient implementation of development programs in priority sectors Ƹ Strengthened partnerships Ƹ Open and transparent communications Ƹ Appropriate and accountable financial and operations support systems 4 DEVELOPMENT TARGETS 2016-2020 MISSION: Wise management of funds and programs to realise the development aspirations of community partners by delivering with innovation 2016 - 2020 THEME: Community financial self-reliance through socio-economic initiatives and improved infrastructure Effective and efficient Strengthened Open and transparent Appropriate & accountable implementation of Partnership communication financial and operations development programs support systems 2016 - 2020 Targets 2016 - 2020 Targets 2016 - 2020 Targets 2016 - 2020 Targets Strategic oversight and alignment of Focus on FRPG Provincial Growth Incorporate OTDF internal and Enhance OTDF staff and OTDF results and sector headline Centres for programs, including external communications channels stakeholders' skills and knowledge indicators with Provincial and National infrastructure development and and key messages, including the of M&E policies and plans service links role of Radio Fly, into the Communications Policy Consolidate and fully integrate M&E Evaluate Village Development Fund Advocate with FRPG for formal systems, headline indicators and projects and incorporate lessons into PEC recognition of OTDF as a Focus Communications Policy key baselines for reporting results new designs preferred implementing partner messages on: (a) Advocacy for the 2016 Strategic Consolidate performance-based HR Evaluate all TCS and high impact Support the Provincial Plan systems and KPI's to align with M&E projects with a focus on sustainability Administrator to establish a (b) Engagement with relevant and lessons learned, then incorporate Provincial Roads Authority National and Provincial Incorporate OTDF staff 'work time' those lessons into new designs government agencies to support into Attache job costing and Access funding from other the 5 key sectors of engagement expenditure reporting Advocate and collaborate with the sources including: DNP&M and FRPG for sustainability of (a) DFAT Business Partnerships Use appropriate mobile and Utilise Attache to generate timely Provincial infrastructure including Program; internet technologies for financial reports options to prioritise TCS programs, (b) PNG Incentive Fund; and Communications Policy and allocate PNGSDP long term funds (c) LNG Projects for Province-wide implementation, data collection and Consolidate and maintain shared for repairs and maintenance of existing priorities results reporting filing systems and data repositories and planned assets using appropriate technologies and Explore options for accessing Implement the OTDF controls Promote developments that position Trust funding for development Communications Policy, including Western Province as an agriculture and priorities after the current Mine Life annual joint communication patrols Provide access to OTDF policies forestry focal Province Extension period of 2025, by Associate Directors and Advisory and procedures in up-to-date including using accrued interest Committee members, Village manuals, including Finance, HR Promote utilisation of all Fly River jetties from Trust investments Planning Committee and Trust and M&E as access points to Fly Warrior, Fly Chairmen, Women's Association Zamby and Fly Hope Establish appropriate Presidents, OTDF and OTML Evaluate and enhance management mechanisms for engaging Community Relations and staff capacity to manage Target Trust education sponsorships non-CMCA communities outsourced project implementation towards development needs in the services health, education and agriculture Increase community, private sectors sector, government and Incorporate accountabilities and non-government participation in KPI's into Terms of Reference for all program design and M&E OTDF Committees (Risk, Safety, Disciplinary, Housing, Tender Provide business advisory Evaluation and M&E) services to support SMEs, Regional Women's and Support Trusts' management of Youth Associations transition to investment portfolios and ensure full operational independence that the Trust Investment Guidelines remain relevant to the operating Work with development partners environment to actively manage risks associated with program and Maintain audit and statutory project implementation compliances for OTDF, and all CMCA Trusts, Trust Investment Syndicates and Companies Transition to a fully independent OTDF IT system with related policies and procedures Key: Target achieved Target mostly achieved Target not achieved Target changed 5/32(16%) 18/32 (56%) 8/32(25%) 1/32 (3%) * This shows development target progress in the first 2 years of the 2016 - 2020 Strategic Direction 2017 AT A GLANCE Commercial scale Rice trials Middle Fly women launch successfully completed, the NDB credit scheme, read read more on p. 59 more on p. 51 JAN JUN 20 Western Province Youth OTDF website refreshed Development Plan launched, and launched, read more read more on p. 64 on p. 16 6 Board Directors open the South Fly singsing group Eaglewood nursery at Tapila, read at the inaugural Madiri more on p. 54 cultural show JUL 17 DEC Poultry project Annual Communications groundbreaking ceremony, patrol awareness in the read more on p. 52 Middle Fly MESSAGE FROM THE CHAIRMAN With political will reaching new annual cash compensation payments from the heights following the 2017 mine. This year there was no progress on mobilising General Elections, OTDF hosted the three major impact projects approved by the a brief but extremely important former Minister of Mines, Hon. Byron Chan for visit to Kiunga by the Mining funding under the CMCA portion of the Western Minister, Hon. Johnson Tuke and Province People’s Dividend Trust Fund (WPPDTF). Secretary of the Department of We expect these funds to be released in 2018 to Mineral Policy and Geo-Hazard support improvements in Education, the Livelihood Management, Harry Kore in Development Package programs and Delta Village October. The Minister and Secretary visted some Relocation project. of the Community Mine Continuation Agreement (CMCA) communities and Tax Credit Scheme (TCS) The election of the new and vibrant Members of projects implemented by OTDF in the North Fly and Parliament for the Western Province in the recent Middle Fly Regions. Minister Tuke was impressed National Elections brings hope and a new way with the work of OTDF, stating: forward for the people. OTDF is keen to align its Strategic Direction
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