www.otdfpng.org 1 2015 Annual Report www.otdfpng.org 2015 ANNUAL REPORT ANNUAL Delivering with Innovation CMCA COMMUNITIESOTDF FOOTPRINT & PROJECTS

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Ok Tedi Development Foundation Geographic Information Systems W Ok Tedi Development Foundation 2016 Prepared by Aaron Uforty www.otdfpng.org 3 4 5 6 8 9 10 12 14 18 20 25 31 32 37 49 54 56 62 67 68 76 86 2015 Annual Report Contents

OTDF EVOLUTION AND MISSION OTDF EVOLUTION 2015 DEVELOPMENT TARGETS 2015 AT A GLANCE THE CHAIRMAN MESSAGE FROM DRY WEATHER PROFILE BOARD MEMBERS OFFICER MESSAGE FROM THE CHIEF EXECUTIVE AND COMMITTEES OTDF ORGANISATION STRUCTURE OFFICER MESSAGE FROM THE CHIEF PROGRAM AND PARTNERSHIPS DEVELOPMENT SECTORS, INDICATORS TRUST FUND WESTERN PROVINCE PEOPLE’S DIVIDEND LIVELIHOOD DEVELOPMENT TRUST ADMINISTRATION AND INVESTMENTS REGIONAL DEVELOPMENT SOCIAL AND BUSINESS DEVELOPMENT EDUCATION ENGINEERING SERVICES & EVALUATION COMMUNICATIONS AND MONITORING CMCA TRUST LIFE CYCLE OPERATIONS 2015 AUDITED FINANCIAL STATEMENTS ACRONYMS AND CORPORATE INFORMATION Contents Aiambak wharf and laydown taken during the dry weather period Back Cover: Aerial View of the Front Cover: Rice field in Lewada village, South Fly OTDF EVOLUTION AND MISSION

VISION: To ensure self sustainability and improve the quality of life of all Western Province communities

ivery Del 2016- 2020

Ƹ New Strategic Direction adopted to develop the OTDF vision in accordance with results based M&E principles

Ƹ Promoting a transition to more commercial production accessing markets through high impact transport infrastructure projects built across the Western Province ance Accept 2009 - 2015 Ƹ OTDF engages with communities to support food security Ƹ OTDF strengthens financial governance and develops the Livelihood and delivers high impact health, roads Development Package and infrastructure projects funded by concept the WPPDTF

Ƹ OTDF engages with CMCA communities and establishes a sound platform for sustainable impact project delivery by meeting all OTML TCS obligations

Ƹ OTML appoints a new Board, Advisory Committee and CEO to set out a new Establishment Strategic Direction through to 2001 - 2008 2015 Ƹ Five year review of the CMCA completed and a new package signed to extend mining operations to 2013

Ƹ OTFRDP is Registered as the trading name of OTDF. OTDF begins operating independently to better mobilise CMCA funds

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 all Western Province communities with consideration for the people of the Telefomin District of the Sandaun Province.

The four key Principles underpinning all OTDF’s strategic engagement with stakeholders, and guiding day to day operations are:

Ƹ Effective management and implementation of regional development programs Ƹ Strengthening partnership and involvement with stakeholders Ƹ Prudent financial and operational systems management and accountability Ƹ Open and transparent communications

Delivering with Innovation www.otdfpng.org 5 Partnerships End 2015 Targets Communication and Stakeholder 2015 Annual Report Staff spend at least 5,000 days or Staff villages and attend nights in the 157 CMCA to or visited at least 20,000 clients Closer communications with the Fly River Provincial Government once permanently located in Kiunga Facilitate the completion of 6 Mine Development Plans Village Implement the OTDF Communications Plan, including bi-annual joint communication Advisory Associate Directors and patrols by Trust Committee members, VPC and Association Presidents Chairmen, Women's Community Relations and OTDF and OTML Maintain partnerships with the Australian Centre for International Agriculture Agricultural Research, National Technology, Research Institute, University of Australian Department of Consultancy, LAL Business for Trade, and Affairs Foreign Millennium Development and OLAM Successful administration of a Credit Tax Provincial Projects and OTML Scheme project matrix initiatives along Support Eco-Tourism the Fly River Participation on the Health and Education Steering Committees and meetings with new potential donor organisations and emerging resource companies Facilitate the formation of and participation on a Fly River Provincial Authority Government Provincial Roads Target not achieved 6/36 (17%) End 2015 Targets Accountability Safety, Finance and Human Safety, Resource manuals completed and in use Monitoring and Evaluation handbook completed and in use by quarter 2 Capture all appropriate CMCA development data by developing a functional Esri Geographic Information System Administration accounts all Trust Attache software by converted onto the quarter 3 Organisation structure planning in place should OTDF take on Provincial wide development responsibilities Agreements for Sialowa, Secure Lease field bases Tapila Nakaku and Demonstrate a proven increase in small business opportunities and communities investments for CMCA by utilising high impact infrastructure road and bridge projects Maintain audit and statutory Trusts all CMCA compliances for OTDF, Investment Syndicates and Trust and Companies Evaluation and Tender Safety, Housing Committees fully functional more cost Develop a leaner, organisation for the delivery of efficient donor and stakeholder funded projects from 2016 Operational System Target mostly achieved 11/36 (30%) End 2015 Targets Projects Nominate 43 Model villages and introduce multi-sectoral Health, Education and Livelihood Development Packages Support implementation of the North Fly Health Development OTML Province Education and Western Foundation Programs Completion of the Nupmo Holdings egg and aquaponics Aiambak fish processing production, and Daru retail store Business Plans and secure funding Continued implementation of the Middle and South Fly Health Aiambak Program, completion of the to Lake Murray road project and contract preparation for new CMCA WPPDTF projects Begin construction of the Cassowary Hotel in Kiunga in partnership with Steamships Ltd and Coral Sea Hotels Province Review the Western rubber industry with Business for Millennium Development, secure a pressed cuplump market with Olam and write a detailed business plan for implementation by quarter 4 utilisation of the Fly Effective (14 meter barge) to deliver ZAMBY project materials direct into Middle and South Fly villages Resource Centres and 3 Women's 52 Community Learning Centres built Regional Investment DEVELOPMENT TARGETS 2015 TARGETS DEVELOPMENT SUMMARY OF THE 2015 DEVELOPMENT TARGETS SUMMARY OF THE 2015 Programs End 2015 Targets Target achieved 19/36 (53%) MISSION: 2015 THEME: 2015 THEME: financial self-reliance through A transition to infrastructure and improved socio-economic initiatives Committed to best practice and wise management of funds and programs with emphasis on of funds and programs with emphasis practice and wise management Committed to best realise the equal participation in order to performance and accountability, transparency, of our community partners development aspirations Regional Development Complete upgrading the Aiambak, Complete upgrading the bases for field Tapila Nakaku and from permanent occupation by officers quarter 4 points grown Rubber: 112,500 North Fly 70 ha planted; Middle Fly 40 ha planted; and South Fly 140 ha planted Eaglewood: 54,000 points grown North Fly 40 ha planted; Middle Fly 20 ha planted; and South Fly 30 ha planted Aquaculture: 120 new ponds in production and 10 tonnes of fish feed manufactured in the North Fly capacity Complete executive officer building training across all 9 Women's Associations and develop a 5 year Association operating plan for each community members to 2,000 CMCA Training receive Financial Literacy Youth Implement the CMCA Development program, complete an audit of youth group status in all 157 Youth villages then develop 9 trial Development plans Review and amalgamate the Community Development and Women and Children team functions Implementation of projects and consequent funding as required by the Credit Scheme rules Tax OTML Key: 2015 AT A GLANCE

OTML Board of Directors, led by OTML Community Health Program Chairman Sir Moi Avei, visit the new delivery transferred to OTDF, including CMCA housing estate after OTDF Kiunga Hospital and the Tabubil Urban staff move in Clinic

JAN APR

OTDF conducts joint community OTDF Head Office and CMCA Village communications patrols with OTML officially opened by the Honourable Ati Community Relations Wobiro, Western Province Governor

Delivering with Innovation www.otdfpng.orgg g 7 DEC 2015 Annual Report OTDF plays a pivotal role in OTDF plays a pivotal role supporting the Western Province Disaster Committee Constructions in Thailand Cassowary Hotel room modules being constructed by Modern Modular taken during the drought) Starwest completes construction of the Aiambak to Lake Murray portion of the Barramundi Highway, including this barge ramp at Lake Murray (picture AUG Province for OTDF to operate FLY ZAMBY financed by Middle Fly FLY ZAMBY financed by Middle in Investments Limited, launched Yamba, NSW and delivered to Western MESSAGE FROM THE CHAIRMAN The people of Western Province have shown communication channel through Radio Fly will be re- incredible resilience in staging their recovery activated under OTDF management in 2016. from the extreme dry weather experienced over the last third of the year. It is this very resilience The Board has taken account of these factors in the and evident willingness to collaborate with the new five-year OTDF Strategic Direction 2016-2020. Ok Tedi Development Foundation was yet again The 2016 Plan is based on a significantly different demonstrated throughout 2015, this gives me great operating environment, as OTDF transitions to hope that the people’s aspirations and OTDF’s vision become less dependent on direct funding from to “improve self-sustainability and quality of life of OTML, and assumes greater responsibility as the Western Province communities” can be realised. development vehicle for the Province. On the opposite page, you will read the profile on I would like to extend my appreciation to the OTDF the Heduru Trust’s support for dry weather relief to Board, Associate Directors and Advisory Committee communities, and the added assistance provided by for supporting the initiatives put forward by the Ok Tedi Mining Limited (OTML) and OTDF during hardworking OTDF team led by the Chief Executive the disaster. On page 29 there is a case study about Officer (CEO) Ian Middleton. 2016 will provide even OTDF’s response to the drought through its health greater challenges but I am very confident that as program in the Middle and South Fly. a team we will continue to ensure we deliver to our The downturn in the global economy and the partner communities. depressed copper price has affected OTML, resulting Musje Werror in the Company having to make necessary changes to its business to reduce costs. This will have a flow on effect on OTDF due to the reduced funding support from OTML expected over the coming years. In addition, the revised Community Mine Continuation Agreement (CMCA) Compensation Agreements have a greater proportion of direct cash payments to families, which will affect the quantum of funding available to Trusts, and scope for OTDF to support larger Trust-funded development and investment projects.

In December 2014 the National Executive Council (NEC) approved the people of Western Province to hold a 33.3% shareholding in OTML, to be split amongst the Mine Landowners, the CMCA Communities and the Fly River Provincial Government (FRPG). The decision by the NEC recognises the importance of the FRPG, and the roles that all Western Province communities (including non-CMCA communities) should play in managing their resources; and will help to provide additional funds for social and economic development in the Province.

The Board recognises the challenges and opportunities that these changes present, along with additional responsibilities bestowed upon the Company in 2015. The management of the North Fly Health Services Development Program (NFHSDP) and Kiunga Hospital has been consolidated with existing management arrangements for the CMCA Middle and South Fly Health Program (CMSFHP). OTML’s Community Education Services function and staff were also transferred to OTDF in 2015. Additionally, a key

Delivering with Innovation www.otdfpng.org 9 2015 Annual Report Nomad, North Fly Tomu Village Councillor, harvest.” we see any food to many months before grow, but it will still be gardens are trying to of the dry season. Our is not good because eat here. Even our sago “This is all we have to The Western Province Inter-Agency Disaster Committee has determined the required quantities and distribution points across the Province, the majority of which is expected to take place over the first half of 2016 facilitated by OTDF with OTML logistic support. OTDF would like to acknowledge the support of the United Nations World Food Programme (an organisation with international expertise in emergency logistics and food distribution), the Australian Department of Foreign Affairs and Trade (DFAT), the Steamships Trading Company (STC), Exxon Mobil, Starwest, the Digicel Foundation, Food For Peace, the respective District Coordinators and the many volunteers for supporting this humanitarian crisis. of Directors/Trustees, chaired by the Secretary of chaired by the Secretary of of Directors/Trustees, & Geohazard the Department of Mineral Policy including Management (DMPGM), with membership 3 districts. OTML and LLG Presidents from the Trust directors In December 2015 the Heduru 4.4 million to approved a contribution of PGK 600,000 to the the Western Province and PGK relief assistance. Telefomin District for drought 5 million. These OTML contributed an additional PGK of rice for contributions enabled immediate purchase to make distribution and for aircraft to be chartered District. deliveries to remote villages in Telefomin DRY WEATHER PROFILE Communities are fortunate to have access to funds through the Heduru Trust that could be used to provide immediate assistance for the worst impacted areas in the Western Province. The Trust was set up in 1995 to manage general compensation payments and is paid to persons who are adversely affected by environmental damage as a result of OTML’s operations. Payments are made annually to resident clan accounts for the 120 villages along the Ok Tedi and Fly River systems. Interest is accrued every year from the funds deposited in the Heduru Trust account; accumulated to PGK19 million. These funds are available for emergency disasters in the Western Province. The Trust is managed by a Board At the request of OTML, OTDF participated in At the request of OTML, OTDF crisis despite supporting the unfolding food operations from the temporary suspension of were August onwards. District site assessments plans drawn up, consequently conducted and action PGK 15.7 million including the immediate need for people impacted to support the estimated 170,000 by the worsening dry weather at that time. This was presented to the National Disaster Committee in October, 2015. Regretfully very little commitment was forthcoming, so the CEO appealed to the OTML Board which agreed to support the purchase and shipping of 1,150 tonnes of rice in collaboration with the Heduru Trust. The drought conditions from mid-2015 onwards from mid-2015 onwards The drought conditions seriously caused by the El Nino phenomenon and led disrupted food production and livelihoods which were to widespread food and water shortages up to the end of still critical for many communities well into 2016. the year, and are expected to continue country, not just This was true for many areas in the assessments the Western Province. On the ground Government and were needed for the National humanitarian international donor agencies and for those organisations to prioritise food assistance time, and was most severely affected. All this took challenges made much more difficult by the logistical in the Province. BOARD MEMBERS - DIRECTORS

Musje Werror Chairman since 2015 and Director since 2009 Mr Werror is the Chief Operating Officer with OTML. Mr Werror was formerly the Board Chairman and Executive Manager of OTDF. He holds a Master of Business Administration and a Master of Professional Accounting from the Divine Word University and a Bachelor of Science Degree in Chemistry from the University of Papua New Guinea. He has held various roles with OTML over the last 24 years. Mr Werror is also the Director of Ok Tedi Australia, Director of Ok Tedi Power Limited and Director of the Heduru Trust.

Leonard Lagisa Director since 2015 Mr Lagisa is the Community Relations Advisor with OTML, he was formerly the Executive Manager of OTDF in 2008. He holds a Masters of Philosphy from Massey University in New Zealand and has a Bachelor of Arts in Geography and Environmental Science from the University of Papua New Guinea. He is currently a Trustee and Director of the Heduru Trust and Heduru Ltd and a Trustee and Director of the Ok Tedi Landowners Royalty Trust and Investment Ltd. Mr Lagisa is from Ulamona village in Bialla District, West New Britain.

Shadrach Himata Director since 2012 Mr Himata is the Permanent Secretary for the Department of Mineral Policy and Geohazard Management, formerly the Department of Mining. He holds a Bachelors Degree in Mineral Processing Engineering from the PNG University of Technology and is currently doing his Reader Masters Degree in Mineral Economics at the Curtin University in Perth, Australia. Mr Himata is from the island of Nuguria in the Autonomous Region of Bougainville.

David Sode Director since 2013 Mr Sode is the Chief Executive Officer of the PNG Sustainable Development Program Limited (PNGSDP). He has a Law Degree from the University of Papua New Guinea. From 1989 to 1993 he served as Legal Counsel to the PNG Bureau of Customs and Excise. He was subsequently appointed as Commissioner of PNG Customs in 1994, then in 1998 he was appointed Commissioner of Taxation and a year later promoted to the Commissioner General of the PNG Internal Revenue Commission serving in this post for a period of 7 years.

Dr Modowa Gumoi Director since 2014 Dr Gumoi is the current Provincial Administrator of the Western Province. He holds a PhD in Agricultural Management from Lincoln University in New Zealand and is an Economist by profession. He also holds a Masters Degree from the University of New England, NSW, Australia and a Bachelor of Economics with Honours from the University of PNG. Dr Gumoi taught Economics for 12 years and was Head of Economic Research at the National Research Institute for over a decade. Whilst at these institutions he consulted widely for, advised and represented the PNG Government and external agencies such as the European Union, World Bank and United Nations.

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11 2015 Annual Report Richard Zumoi in 2013) Associate Director since 2009 (Observer of the Middle Fly Trust region. Mr Zumoi represents the CMCA people and was instrumental in the CMCA negotiations He is a former primary school teacher again during the 2006/2007 CMCA review. Mr Zumoi between 1999 and 2001 and then of the Foundation and throughout the transition was also involved in the initial creation operating as an independent entity from OTML. period in 2010 which saw OTDF begin He was further involved in the 2009 to 2012 MLE Community Consultation process and He was further involved in the 2009 negotiations with is now the CMCA people’s representative regarding consultation and the State for a direct share in OTML. of the Middle Fly He comes from Wangawanga Village in the Middle Fly Trust region District. Aniba Samo Associate Director since 2014 Mr Samo represents the CMCA people of the 4 South Fly Trust regions. and then He was a CMCA Regional Delegate during the 2001 CMCA negotiations Planning Comittee again during the 2006/2007 CMCA review. He has been the Village a secondary school (VPC) Deputy Chairman for Kenedibi village since 2001. Mr Samo has of Distance education level and is currently doing a Science course with the Institute College Education in Daru. Manawete Trust He comes from Kenedibi village on the North bank of the Fly River in the region. Clara Fred Dangkim Clara Fred 2014 Director since Associate of all 8 CMCA Trust regions and represents the Women and Children Mrs Fred Dangkim in the CMCA Review negotiations was a women’s representative at 6 Mine villages. She as a Wai Tri Development Trustee the Wai Tri Trust women 2006 and 2007, represented of the Lower Ok Tedi Nima Ara and was elected as the President from 2002 to 2004, certificate in Advanced Secretarial from 2005-2012. She holds a Women’s Association from the Divine Word University. in Human Resource Management Studies and a Diploma in the North Fly District. village, one of the Mine villages She comes from Bultem Maino Lucas Associate Director since 2014 of the 3 North Fly Trust regions and 6 Mine Mr Lucas represents the CMCA people in Management from the Divine Word University in villages. He holds a Bachelor Degree by OTML as a Superintendent of the Mine Production Madang and is currently employed leader determined to drive positive development D Crew. He is an influential young people. He is also the Chairman of the Bultem Village changes amongst the Mine village of the OTML Local Local Program. Planning Committee and Chairman of the Mine villages in the North Fly District. He comes from Bultem village, one BOARD MEMBERS - ASSOCIATE DIRECTORS - ASSOCIATE MEMBERS BOARD MESSAGE FROM THE CEO Welcome Olgeta. 5 years. These gains will be strengthened by the It is 5 years since OTDF became arrival of the FLY ZAMBY, a custom built 14 metre operationally independent barge which was delivered in late November. This from OTML, and in this our barge was designed to carry CMCA project materials fifth Annual Report we capture to the beneficiary villages once discharged from the the highlights of another FLY WARRIOR onto the recently upgraded jetties successful year of program along the Fly River (funded by the OTML Tax Credit and project delivery. At the Scheme). This will significantly reduce current project end of this important stage in delivery times from 2016. the Foundation’s operations, we can also celebrate a wide I am proud to report that our results have been Ian Middleton range of achievements. Ones achieved in the safest possible manner with zero that have made a positive harm to our staff, continuing an exemplary health difference to the lives of the CMCA people and and safety record in completing a sixth successive built a foundation for delivering on a new Strategic year without a Lost Time Injury (LTI). Direction. The new Strategic Direction proposed for We also take time to reflect on the more immediate, implementation from 2016 builds on the successes disastrous dry weather event experienced across of the Foundation’s first five years, achieving many Western Province in the latter part of the year and of the 2010–2015 Business Plan aspirations and commiserate with our community partner families sees a transition from household food security to on the loss of loved ones, especially the infants and semi-commercial production, leveraging on 43 children. This 2015 El Nino event surpassed the Model Villages established by OTDF, and the 6 FRPG 1997 dry weather disaster in terms of the impacts nominated Growth Centres in all three Districts. on people and loss of life across the Province. While Now that this intensive establishment phase has OTDF significantly reduced operations and staff been completed, OTDF is focusing on transitioning numbers in line with the Ok Tedi mine closure in our partner communities into financial self-reliance August, the Company kept field bases occupied, through socio-economic initiatives facilitated by and health officers in the field. In response to the improved transport infrastructure. situation, OTDF was involved in providing logistics for humanitarian supplies, and played a significant As a consequence, OTDF has restructured the role in support of the Provincial Disaster Committee. organisation, and reduced staff numbers to become I sincerely thank all staff for their humility, ongoing more efficient and cost effective; and aligned concerns for the CMCA communities and loyalty to the structure to achieve expected outcomes and the Foundation during this highly disruptive period. impacts in the five key sectors of Health, Education, OTDF will strive to provide the necessary support Community & Social Development, Infrastructure, to those most impacted when returning to normal and Local & Regional Economic Development. operations in early 2016. These sectors will be the drivers of development over the next five years of transition, underpinned Operationally, 2015 was a significant year that saw by a strong focus on sustainability. Early indications the final relocation of head office and remaining staff of progress in the transition to self-sufficiency from Tabubil to Kiunga in February; the opening of is highlighted by the successes of the Women’s CMCA Village which now houses 19 OTDF families Associations, improved business development and who have quickly developed a sense of pride in financial literacy, increases in productive use of land being one collective family; making a positive for rice cultivation and rubber plantings, completion difference to Kiunga town through Kommuniti Dei of the Fly River jetty upgrades and completion of the initiatives; enabling a consolidation and integration Aiambak to Lake Murray road rehabilitation projects. of Trust and Finance systems with the new Attaché accounting software; wrapping up the submission Along with other impact programs, the roll-out of project feasibility studies to the CMCA portion of Livelihood Development Packages (LDP) is of the Western Province People’s Dividend Trust contingent upon the resolution of the court case Fund [WPPDTF (South Fly High School in Koabu that will trigger the release of funding from the and Livelihood Development Packages across all CMCA portion of the WPPDTF. OTDF has explored regions)]; and setting a strategic organisational options for strategic commercial partnerships roadmap to guide the Foundation into the next focusing on the three priority packages of rice,

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13 2015 Annual Report n 2016, the Foundation will take its commitment will take its commitment n 2016, the Foundation to Results Based Management (RBM) to the next Management (RBM) to the next to Results Based on the monitoring and evaluation stage by building during the 18-month pilot phase capacity developed in the handover of the Monitoring which culminated in June 2015. The new and Evaluation Handbook provides the framework by which Strategic Direction and corporate performance in achieving sectoral objectives will be managed and measured. faced by OTML, Despite the operational challenges and solely the Company has continued to support thankful finance OTDF operations, I am personally Committee, for the guidance of the CMCA Advisory Director OTDF Board Chairman, OTML Managing Directors. and CEO, Board of Directors and Associate Continued community support, and a strengthening Continued community support, and will partnership with the Provincial Administration Direction help us to achieve the planned Strategic outcomes and impacts from 2016. OTDF looks to the next five years. forward I The most notable of these investments was the investments notable of these The most exciting of Kiunga Town’s of construction beginning Western will provide Hotel, which new Cassowary level of quality in business and Province with a new tourism accommodation.

investments. investment portfolio with a focus on property These economic development gains have been These economic development gains initiatives complemented by human development South Fly Health supported by the CMCA Middle and contributing Program (CMSFHP) with activities three Program to achieving results across the an independent components. Commencing in August, conducted by mid-term review of the Program was evaluator, the University of PNG and an independent Sustainability. with a focus on Partnerships and Despite the drought, Regional Development teams Regional Development teams Despite the drought, field oriented were able to achieve many of their including objectives with adjustments to workplans, early in the the distribution of planting materials The South Fly year, at the onset of the wet season. in September and rice harvest and milling conducted Model Villages October allowed the 16 participating food throughout to have a reliable source of a staple fire and lack of the drought; a period during which of sago. water constrained the traditional harvesting This is an excellent example of partnering where example of partnering where This is an excellent private and non-government OTDF, communities, their technical skills, land and organisations combine sustainable outcomes for the other assets to achieve momentum several Trusts have future. To maintain to prepare for LDPs ahead of committed resources becoming available. These and WPPDTF funding will be further developed in 2016. other partnerships with the CMSFHP is OTDF’s largest sector program, the managing CEO leading engagement with Abt JTA, contractor, and supporting access to Program stakeholders. OTDF is pleased with the outcomes achieved thus far and looks forward to supporting the planning and partnership approach essential to achieving future sustainability as the Program enters its final 2 years. OTDF has also continued to support CMCA Trusts to manage their growing rubber and eaglewood, including with Business for with Business eaglewood, including rubber and Bige (B4MD), OLAM, Lotic Development Millennium Trukai. Alliance (PFA) and Pacific Forest Limited (LBL), Trust Administration Trust Trust Administration Trust Manager Admin Assistant Admin Procurement, Procurement, & Asset Logistics Management Corporate ServicesCorporate Manager Finance Chief Corporate Officer Chief Corporate Executive Secretary Executive Media & Communications HR Manager Human Resources and Human Resources Technology Information OTDF BOARD OTDF Chief Executive Officer Chief Executive Engineering Projects Engineering Engineering ServicesEngineering Manager Business Development Development Community Development Technical & Children Women OTDF ORGANISATION STRUCTURE Senior Manager Services Program Advisory Committee Chief Program Officer Chief Program Food Security Food Livelihood Development South Fly Manager South Fly Admin Assistant Admin Food Security Food Livelihood Development Middle Fly ManagerMiddle Fly Food Security Food Livelihood Development North Manager Fly

Delivering with Innovation www.otdfpng.org 15 2015 Annual Report impact project

ground breaking ceremonies) Meeting Frequency: As required Policy to Purpose: Administer the OTDF Housing occupants, the ensure the safety of residents, monitor repairs & cleanliness of the properties and ongoing maintenance 2015 Terms of Reference 2015 Terms Meeting Frequency: As required to the M & E Purpose: Provide feedback and advice of pilot projects Consultant during implementation handover of and new systems and procedures until the M&E Handbook in June 2015 Meeting Frequency: As required Meeting Frequency: on staff disciplinary incidents Purpose: To deliberate to the CEO on action(s) and make recommendations as enabling a staff grievance to be taken, as well process Meeting Frequency: Bi-annually Purpose: Review OTDF Risk Management framework and report changes to the OTDF Board Meeting Frequency: As required Meeting Frequency: resources and Purpose: Plan and coordinate OTDF engagement in special events (eg Meeting Frequency: Monthly Purpose: Identify health and safety problems and develop procedures for safe systems of work Note: Safety Committee members not elected due to disciplinary issues with the former Safety Officer then the suspension of operations Meeting Frequency: Every second month or as required Purpose: Ensure compliance with OTDF Tender Guidelines, and provide a framework for the effective, consistent and efficient management of tendering practices to achieve ‘value for money’ No Meetings No Meetings Held in 2015 2015 2 Members: 5 Formed 2014-2015 6 Members: 6 2014-2015 0 Members: 7 2014-2015 4 Members: 8 2015 2 Members: 6 2015 0 Members: 8 2014-2015 4 Members: 7 Housing Committee Date Monitoring and Evaluation Reference Group Disciplinary Risk Management Events Safety Tender Evaluation OTDF COMMITTEES OTDF Delivering with Innovation www.otdfpng.org 17 2015 Annual Report Partners in Rubber Development, OLAM and Business for Millennium Development visiting an OTDF rubber nursery in Sialowa, South Fly MESSAGE FROM THE CHIEF PROGRAM OFFICER Welcome to the 2015 OTDF Aiambak, Nakaku and Tapila field bases. The scaling program achievements that up of numbers of Model Villages from 11 to 43 in contributed to multiple socio– 2015 was in response to the need for more efficient economic development and effective approaches to preparing communities aspirations of the CMCA for commercial scale agriculture and forestry communities. Our community production from 2016 onwards. These villages will partners include 151 be the change agents and priority implementers of CMCA villages, and 6 mine Livelihood Development Packages which have been villages, covering more than submitted for funding from the WPPDTF. 134,000 people representing approximately 70% of the entire See page 31 for more detailed information on the Lalatute Avosa Western Province population. approach to Model Village preparations for LDPs, and pages 38-43 for overviews and profiles on LDP The new organisational structure implemented in initiatives in the North, Middle and South Fly. 2014, brought together Regional Development, Engineering Services and Program Services under The combined OTDF Program Services and Trust the Chief Program Officer (CPO). In 2015 with the first Teams worked closely with the CMCA Advisory full year under one umbrella, the focus shifted from Committee, Village Planning Committees and the mainly food security and community development 8 Trust Boards to ensure compliance with project activities towards local and regional economic approval and decision making processes. In 2015, initiatives that aim to improve financial self-reliance a Quantity Surveyor position in Engineering for all households. Services was dedicated to providing specialist support for CMCA infrastructure projects, resulting OTDF has also adjusted the way in which it engages in improvements in the quality of design and with communities, by having officers permanently construction of community infrastructure, mirroring based in the regions from August onwards, remaining the quality of advice and services already provided engaged throughout the stand down period. This was to Tax Credit Scheme projects managed for OTML. facilitated by improvements in office and residential infrastructure and communication capacity at the During the 2015 Dry Weather (El Nino) period from August to year end, OTDF participated in the Western KEY PROGRAM STATISTICS Province Disaster Committee (WPDC) within which Description 2015 Results the CPO was Deputy Chair, joining the Fly River Target Actual Provincial Government, PNG Defence Force, Kiunga (up to business houses and Churches to provide planning and technical support. Technical support included a August) review of the Western Province Inter-Agency Disaster Days/nights spent in the 5,000 2,168 Contingency Plan; preparation of a Provincial 157 villages Executive Council (PEC) Submission for internal and Clients visited/attended 20,000 30,931 external funding for disaster relief preparedness and to responses; development of a Disaster Mobilisation & Response Action Plan; and Disaster Risk Management Increase in number of 32 32 Planning. OTDF further supported Government Model Villages to a total disaster teams with awareness and key messages of 43 for the communities of the North, Middle and South Mine Village 66Fly Districts and provided situation reports to the Development Plans Provincial Administrator and the Assistant Director Lease Agreements for 30National Disaster Office, Southern Region. OTDF’s Sialowa, Nakaku & Tapila role in planning the distribution of relief supplies to impacted communities is outlined in more detail on Field Bases page 9. Field bases upgraded for 33 permanent occupation Under the stewardship of a Monitoring and Evaluation by Quarter 4 (M & E) Reference Group chaired by the CPO, pilot Joint Communications 21programs were completed. The M & E Consultant Patrol formally handed over the M & E Handbook to OTDF

Delivering with Innovation www.otdfpng.org 19 2015 Annual Report such as this one at Nomad Station communities to benefit from rice distributions remote Nomad Local Level Government (LLG) Western Province Disaster Committee, enabling OTDF plays a pivotal role in supporting the mine-related funds from OTML operations, as well OTML operations, funds from mine-related Committed partnerships donors. as international their in- through were highlighted with contractors the communities with whom they kind support for instance, in 2015 the Community are working. For partnered with the CMCA Middle Development team Program contractor, AbtJTA, to and South Fly Health awareness and global events support general health & AIDS and World Tuberculosis including World HIV (TB) days. suspension of operations Despite the temporary and only conducting the one from August 2015 managed to communications patrol, OTDF still more community attend to and or engage with 55% commitment to members than targeted. This for delivering engagement has laid a solid foundation drive community on the Foundation’s aspiration to the Livelihood financial self-reliance through onwards. Development Packages from 2016 The Chief Program Officer is responsible for Officer is responsible for The Chief Program stakeholder partnerships ensuring that OTDF’s expanded to address emerging are fostered and A summary of OTDF issues and opportunities. in 2015 is included on partnership activities importance of Provincial page 23. The increased has emerged, such as the Government partnerships which liaise OTDF health and education programs Steering with stakeholders through the Provincial are longer-term Committees in those sectors. These established to sectoral initiatives that have been Province, with coordinate activities across the whole sources, including funding coming from a variety of allocations, National and sub-National budget in June, ready for roll-out of the integrated systems of the integrated for roll-out in June, ready stand delayed due to the This was and procedures. how M year. See more on latter part of the down in the the Results Based Management & E systems support 66. approach on page OTDF SECTORS AND RELATED PROGRAMS

Ƹ Community Based North Fly Health Health Initiatives Development Program HEALTH Ƹ Health Facility Infrastructure CMCA Middle & South Ƹ Health Institutional Fly Health Development Development Program

Ƹ Education Facility Infrastructure Ƹ Education EDUCATION Sponsorship Community Education Ƹ Educational Service Programs Institutional Development

Ƹ Community Women & Children’s Infrastructure Programs Ƹ Community Capacity COMMUNITY & SOCIAL Building DEVELOPMENT Ƹ Community Youth Development Institutional Support Programs

Forestry Ƹ Eaglewood Ƹ Rubber

Small & Medium LOCAL & REGIONAL Enterprises ECONOMIC Ƹ Rice Ƹ Root Crops DEVELOPMENT Agriculture Ƹ Horticulture

Ƹ Poultry Animal Production Ƹ Livestock Ƹ Aquaculture

Ƹ Water Transportation Ƹ Road Ƹ Air

Community Housing

Community Water Supply INFRASTRUCTURE & Sanitation

Power & Communications

Commercial Real Estate

Delivering with Innovation www.otdfpng.org 21 2015 Annual Report Percentage increase in non-OTML cash income per cash income increase in non-OTML Percentage household population in paid employment Percentage of CMCA and operated by CMCA Number of SMEs owned communities (%) in primary education (grade 1-8) Net enrolment ratio in FODE students completing Year 10 Percentage increase & Year 12 100 boys in primary education Number of girls per Pupil-teacher ratio Number of elementary schools Number of primary schools schools with Proportion (%) of elementary and primary access to safe water schools with Proportion (%) of elementary and primary hand washing facilities immunized Proportion (%) of one year old children against measles health Proportion (%) of births attended by trained personnel had at least one Proportion (%) of pregnant women who antenatal care visit per 1000 children Number of outreach clinics conducted under 5 years Number of aid posts open access to safe Proportion (%) of health facilities with water hand washing Proportion (%) of health facilities with facilities Estimated length of provincial and district roads Number of jetties upgraded for domestic vessel traffic Increased number of scheduled shipping routes Increased number of scheduled air routes Proportion (%) of rural population using an improved drinking water source Proportion (%) of rural population using improved sanitation facilities Household electrification rate (% of households) Proportion (%) of population covered by at least a 3G network (proxy internet coverage) Number of affordable houses constructed Men and women (%) from CMCA communities represented in formal LLG structures Number of CMCA co-funding partnerships with government and non-government agencies RESULTS SECTOR DEVELOPMENT REGIONAL ECONOMIC LOCAL AND employment income earning and Increased reliable subsistence consumption opportunities, and for CMCA communities EDUCATION SECTOR of curriculum, quality of teacher CMCA access, quality and management improved in education & training, Province and National Education line with the Western Plans INDICATORS HEALTH SECTOR CMCA primary health care service delivery Province and strengthened in line with the Western National Health Plans INFRASTRUCTURE SECTOR Increased access to markets, basic services and village facilities that contribute to improved local and regional economic development opportunities, education & health status, and social development of CMCA communities COMMUNITY AND SOCIAL DEVELOPMENT SECTOR Increased participation by CMCA community members (including women and youth) in planning, decision-making and implementation of community development priorities OTDF RESULTS FRAMEWORK HEADLINE INDICATORS HEADLINE FRAMEWORK OTDF RESULTS OPERATING EXPENDITURE BY CATEGORY PGK 23,060,245

General & Administration costs

21% Consultants & Professional fees

Program Support 44%

17% Travel

Fuel 8% 7% 3% Salaries / Wages & Employee related costs

PROGRAM EXPENDITURE BY SECTOR PGK 44,492,436

10% 11% Local & Regional Economic Development 6%

Infrastructure

Health

37% 36% Education

Community & Social Development

TRUST FUNDS EXPENDED PGK 9,871,874

7% 6% MINE VILLAGES MIDDLE FLY 4%

KIWABA WAITRI

42% 15% MANAWETE TUTUWE

DUDI NUPMO 0% 9%

6% 11% SUKI FLY GOGO

Delivering with Innovation www.otdfpng.org 23 2015 Annual Report South Fly Health Services Commissioner, health and education Commissioner, health and education Collaboration with OLAM to provide Collaboration with OLAM to provide the alternative marketing strategies for Rubber Industry rice Opportunities to develop dry land farming with Trukai/Sunrice Cassowary Hotel joint venture with the Coral Cassowary Hotel joint venture with Sea Hotel chain Implementation of various OTML Tax Credit Implementation of various OTML Tax Nawae Scheme Projects in partnership with the PNG Construction, Starwest, TKI, AES and Water Board Education Steering Committee Provincial Disaster Committee Opportunities to develop an eaglewood industry including tree inoculation trials using CA Kit technology, market quality assessment, experimentation with local fungal strains, and integration with the carbon trade Provided high yielding rice seeds to support project implementation and augment and project implementation to support funding. a two pronged approach to OTDF maintains through formal Memoranda partnerships. Firstly, or Understanding, commercial of Agreement funding agreements with contracts, and project partners. Secondly, reputable development working relationships and through collaborative private and non-government networking with public, and service providers; organisations; contractors agency committees and inter-governmental development forums. General Development ACIAR, engagement with the Australian High Local and Regional Economic Development – Rubber - Rice Commercial Real Estate Water & Sanitation Infrastructure Education Local and Regional Economic Development – Eaglewood Local and Regional Economic Development – Rice Partner Sector 2015 Activities Abt JTA Health & implementing North, Middle Contractor Australian Department of Foreign Affairs and Trade Business for Millennium Development OLAM & Trukai Steamships Group Trust Investment - Fly River Provincial Government & the National Department of Planning and Monitoring LAL Consultancy, University of Technology & Pacific Forest Alliance National Agricultural Research Institute Starwest Infrastructure construction Road OTDF’s partnership with these communities and with these communities and OTDF’s partnership including Village Planning their formal structures, Trust Boards, Women’s Committees, CMCA Advisory Committee, and Board Associations, CMCA are focused on efficient and Associate Directors of high quality sustainable effective implementation the CMCA partnerships are projects. Complementing and funding partnerships the technical, managerial As a community based development organisation, organisation, based development As a community part of as an integral partnerships OTDF values the development its vision for fulfilling achieving CMCA communities. aspirations of the OTDF PARTNERSHIPS OTDF Aerial picture taken where the Aiambak to Lake Murray Road forks up to Kiunga (left) and across to Lake Murray (right)

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25 119,851,904 92,042,225 12,944,987 14,990,825 9,900,000 2015 Annual Report PENDING WPPDTF PROJECTS: 2015 Provincial Roads: Bosset border; Matkomrae rubber; Balimo to Fly A second North Fly footbridge across the Ok Tedi River Wai Tri Trust Water Catchment & 3 Regional Women's Resource Centres (former PNGSDP projects) Livelihood Development Packages South Fly High School (Koabu) 35,374,792 TOTAL 298,104,733 PROJECT BUDGET (PGK) PROJECT BUDGET South Fly Village RelocationWestern Province Education 13,000,000 Support Program with the current CMCA WPPDTF project submission WPPDTF project submission with the current CMCA by former Minister for Mining, process approved Pundari on October 25, 2010. the Honourable John These, along with the former South Fly Relocation the former South Fly Relocation These, along with additional project submissions project and 2 PGK 45.2 million are pending a budgeted at a further court case. conclusion to the concluded two feasibility studies In 2015, OTDF by the CMCA Advisory that had been approved South Fly High Committee. These were for the bank of the Fly School at Koabu village on the South Packages River delta, and Livelihood Development concept. These tied to the expanded Model Village the OTDF Board feasibility studies were approved by implementation on June 12, 2015 and proposals for of Mineral funding were submitted to the Department in August 2015. Policy and Geohazard Management of the 33.3% OTDF looks forward to the approval development shareholding in OTML for the further closely with of Western Province, and working delivering CMCA Holdings executives to continue with Provincial high impact projects that are aligned aspirations. Government’s recognised development

In 2014, OTDF submitted funding proposals for 7 new projects worth PGK 252 million in accordance Read more on the excellent progress being made by the CMSFHDP now mid-way through its 5-year duration on pages 26-29. The remaining activity is the 5-year PGK 43 million CMCA Middle and South Fly Health Development Program, due for completion in 2018. Four of the five initial contracts signed on June 26, 2013 totalling PGK 135.8 million have been successfully completed on budget and to schedule. Given the expected development funds that will become available through dividends, governance within CMCA Holdings is integral to the success of this Company and the consequent project and program delivery that OTDF anticipates carrying out on its behalf. This has resulted in the formation of a new Company, This has resulted in the formation of the mechanism CMCA Holdings Limited, providing empowered to through which communities are and once proven determine their future self-reliance; to have reputable, paves the way for the Company full voting rights a direct shareholding in OTDF with for a Director appointed to the OTDF Board. CMCA communities, the Fly River Provincial CMCA communities, the Fly will share Government and Mine Village communities directly benefit in 33.3% of future dividends that will This includes a the people of the Western Province. to 12.1%. doubling of the current CMCA entitlement as a result of The consequent dissolution of WPPDTF there must be these changes in shareholding means receive future a legal entity to hold these shares and CMCA people. dividend payments on behalf of the In 2015 the principal Western Province beneficiaries In 2015 the principal Western Province on the future and the State concluded negotiations which will directly shareholding in the Ok Tedi mine, in 2016. go before Parliament for approval At the end of 2015, funds earmarked for 10 major funds earmarked for 10 major At the end of 2015, frozen, as an ongoing case impact projects remain remains unresolved for another before the courts year. OTDF has continued to successfully implement to successfully implement OTDF has continued high impact projects funded previously approved portion of the Western Province under the CMCA Trust Fund. People’s Dividend (CMCA PORTION) (CMCA WESTERN PROVINCE PEOPLE’S DIVIDEND TRUST FUND TRUST FUND DIVIDEND PEOPLE’S PROVINCE WESTERN CMCA MIDDLE AND SOUTH FLY HEALTH PROGRAM

OTDF has continued to successfully deliver the PRIMARY HEALTH CARE DELIVERY 5-year PGK 43 million CMCA Middle and South Fly Health Program, which is funded by the CMCA Activity 2013* 2014 2015 portion of the WPPDTF and implemented under a Outreach Clinics 77 170 194 contract between OTDF and Abt JTA. The Program is Outpatients 4,215 6,854 17,246 a public private partnership with local health service providers, namely Catholic Health Services (CHS), Vaccinations (BCG, 1,390 6,150 12,195 Evangelical Church of PNG Health Services (ECPNG), Hepatitis B, Pentavalent, Sabin, Measles, PCV 13) and District and Provincial health services, covering all five CMCA Trust Regions within the Middle and Vitamin A Supplement 0 3,833 3,483 South Fly Districts. New Acceptors of Family 362 534 777 Planning CMSFHP is implemented in three components that align with the National Department of Health (NDoH) Women who attended at 105 114 380 National Health Plan 2011-2020, and Western least one antenatal care visit Province Health Plan targets. Results of program implementation in 2015 are as follows: Child nutrition 1,292 1,920 8,921 assessments Component 1: Support to Provincial and District *Based on Q3 and Q4 only in CMCA regions as the Health Services and Partnerships Program commenced in July 2013

The partnership between CMSFHP and Provincial Component 2: Fundamental enablers of health health service providers is a key principle, with the care Program supporting partners to deliver improved Enablers include primary health care delivery, health health services. Quarterly meetings are convened infrastructure, transport and logistics, staff and to bring all partners together to discuss common community training. issues and to review progress. These meetings were particularly important during the latter half of 2015 A clinical attachment model was used from July as partners were able to raise their concerns and 2015 onwards, which was in part responding to the work together on approaches for addressing the dry limitations of the dry weather on travel and logistics weather disaster. for outreach patrols. CMSFHP Health Care Officers began clinical attachments at 11 key facilities in all The independent midline evaluation of the CMSFHP five CMCA Trust Regions. The facilities were Aiambak reported that “the quarterly stakeholder meetings Aid Post, Bosset Health Sub-Centre, Obo Health Sub- were identified as important ways of sharing Centre, Membok Health Centre, Suki Health Sub- information about the program and to hear about Centre, Wasua Health Sub-Centre, Sialowa Aid Post, challenges and achievements of other partners.” Nakaku Aid Post, Tapila Health Centre, Teapopo One of the significant outcomes of these meetings is Health Centre, and Samari Health Centre. As indicated the development and endorsement of the Program’s in the table above, 2015 data for the majority of these Annual Activity Plan, which is based on partners’ activities substantially increased from previous years. priority requests, and considers equity across all 5 The table includes all data from the health facilities CMCA Trust Regions and health service providers. for the duration of the attachments and not just the activities that the individual Program team member undertook.

CMSFHP has delivered improvements in health infrastructure, transport and logistics to key health facilities in the CMCA Trust Regions. Five new staff houses were constructed in 2015 at Aiambak, Bosset, Mipan, Suki and Kwem. Having a staff house is critical to ensuring that a sufficient number of health workers are in place to care for communities. A comfortable house for health workers to live in also boosts their morale and contributes to positive attitudes at work. Village Health Volunteer graduation ceremony

Delivering with Innovation www.otdfpng.org 27 2015 Annual Report Outpatient visits per person increased from 1.3 to 1.5; community needs Logistics activities carried out during 2015 included out during 2015 activities carried Logistics and installations, and solar lighting cold chain fridges Solar vaccine of health radios. maintenance that an adequate cold chain is and freezers ensure vaccination coverage in the in place, and increases Having solar lighting enables CMCA Trust Regions. operate during the night for facilities to properly and deliveries, and health radios emergency care communication channel between provide a vital remote health facilities. Component 3: Tailored support for identified (VHV) training Following the Village Health Volunteer participants, the delivered in 2014 and 2015 for 91 to villages to Program focused on supervisory visits monitor progress support recently trained VHVs and as community on any activities that were identified also carried needs. CMSFHP Health Care Officers activities with out targeted health promotion World TB Day communities. Topics in 2015 included immunisation, commemorations, family planning, that related to and nutrition and sanitation topics the effects of the drought. CMSFHP Midline Evaluation Evaluation was In Quarter 3, 2015, a Midline conducted to: a) activities, outputs Review progress on Program progress towards and outcomes, including Health Plan Monitoring achieving the National and Evaluation Framework targets; b) Assess the effectiveness of the partnership model and coordination mechanisms; and c) Identify lessons learned and recommendations for improving overall Program performance to achieve outcomes by 2018 and beyond. The mixed method evaluation included interviews with Program partners, health workers, Village Health Volunteers and Trainers; health facility assessments; and focus group discussions with community members. The findings will influence future annual program planning in an aim to achieve sustainable health services for CMCA villages beyond the life of the Program. A snapshot of the findings show improvements in indicators in the first 18 months of implementation. Between the baseline year of 2012 and 2014: Ƹ Solar 551 N=21 Totals Lighting Cumulative Cumulative N=21 Radio 22 46 91 SCHOLARSHIPS N=12 49 45 94 Freezer Vaccine 178 186 364 Total Total Cold Chain Health STAFF AND COMMUNITY TRAINING & / AVAILABLE AT HEALTH CENTRES: 2015 / AVAILABLE AT HEALTH CENTRES: N=16 Fridge Vaccine FUNCTIONAL STATUS OF EXISTING COLD CHAIN, FUNCTIONAL STATUS OF EXISTING 16 (100% ) 12 (100% ) 20 (95%) 21 (100% ) HEALTH RADIO, AND SOLAR LIGHTING INSTALLED HEALTH RADIO, AND SOLAR LIGHTING CUMULATIVE TOTAL TRAINING & SCHOLARSHIPS CMCA Community Member Scholarships Village Health Volunteers/ VHV Training of Trainers In-service Training Course 2014Formal Training 2015 Health outboard motor and dinghy deployment There are now 22 open facilities in the CMSFHP facilities in the now 22 open There are 2 with the re-opening an increase of catchment, 2015, 13 As at December and Samari. of Aiambak access to dinghies and outboard health facilities have means of transport for outreach motors for efficient patients. clinics and transferring Ƹ Outreach clinics per 1,000 children less than 5 In 2013, OTML extended funding for a further five years of age increased from 4 to 27; years, to consolidate the achievements of 2009–2013 and to reinforce the primary health care approach Ƹ Measles vaccination coverage increased from in the North Fly District. In 2015 the NFHSDP began 35% to 38%, first dose pentavalent vaccination integrating with its counterpart Program, the increased from 34% to 67% and third dose CMSFHP, in a move towards greater efficiency and pentavalent vaccination coverage increased from collaborative service delivery in Western Province. 7% to 17%; In recognition of this integration, NFHSDP now reports to OTDF. The Program’s Steering Committee Ƹ Immunisation for children greater than 1 year still retains representation from OTML, however the increased from 294 to 1,409 for pentavalent contractual management of NFHSDP falls within vaccine, 1,524 to 1,937 for sabin vaccine and OTDF’s scope. from 1,213 to 6,118 for measles vaccine; Similar to CMSFHP, the Program is a public private Ƹ Couple years protection for contraception partnership, with a key focus to strengthen primary increased from 726 to 996; and health care delivery. The partners are North Fly Ƹ Antenatal first visit coverage increased from 35% District Health Services (NFDHS), CHS, ECPNG with to 44%. Abt JTA as the implementation partner. Program activities are centred on supporting partners, North Fly Health Services Development Program improving health infrastructure, access to medical supplies and support in logistics, staff training The North Fly Health Services Development Program and health scholarships. The Program also has a is an initiative of OTML and has been operational service delivery role at Tabubil Urban Clinic and a since 2009, when the OTML Board committed PGK management support role at Kiunga Hospital in the 20 million over the initial five years of the Program. North Fly District.

Iasa villagers assisting in the delivery of water tanks supplied by Abt JTA, South Fly

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29 A man from A man 2015 Annual Report In the early hours of one In the early hours - Pastor Bani Gandip Snake bite emergency: Snake to the aid post after was brought Wangawanga venomous snake. The health being bitten by a first aid for snake bites. officers quickly applied transferred in the CMSFHP The patient was then a half hours down-river to dinghy for one and was administered. Obo, where the anti-venom a full recovery and thanked The man later made at Aiambak Aid Post, stating the CMSFHP staff was not open I would have that, “if it (aid post) lost my life.” First baby born: Officers morning, the CMSFHP Health Care baby assisted a mother to deliver a healthy supervised boy. It was the mother’s second Health delivery at a health facility. The World Village.” people here in Aiambak and Wangawanga appreciate all that they are doing for our Health Sub-Centres [at] Bosset and Obo. We spent so much money to go to the nearest times when there was no officer on site. We previously we’ve been going through hard “We are very happy with the Program… Organization indicates that timely management and Organization indicates that timely before, during treatment by skilled health workers of mothers and and after childbirth can save the lives checks, mother their newborn babies. After routine morning. The and baby were discharged later that Bani Gandip, OTDF Aiambak Field Base Coordinator, the delivery was was very excited and explained that in 1997. the first for the aid post since its closure One of the attendees was the new born baby, whose parents were able to bring him back due to their close proximity to the aid post. The Program will now work with MFDHS to engage a full time health worker who can reside at the Aid Post. Particularly important given the anticipated opening of the highway to Lake Murray early in 2016 and the potential influx of added patients from that region. A few days later, the Bosset Health Sub-Centre team conducted a maternal and child health clinic at the Aiambak aid post, providing essential immunisations.

AIAMBAK AID POST REFURBISHMENT AID AIAMBAK PROFILE World Health Organization, Maternal Mortality, http://www.who.int/mediacentre/factsheets/fs348/en/ 1 There were many highlights following the Aid Post refurbishment, but two stand out: In July and August, two officers were also joined by staff from the Program’s partners, the ECPNG and CHS, based out of Bosset and Obo Health Sub- Centres. During the clinical attachment health officers conducted static clinics at the aid post and outreach patrols at nearby communities, they attended to 485 outpatients and made 7 referrals. However, the aid post remained inoperative following the refurbishment due to the absence of a health worker. In the first quarter of 2015, CMSFHP conducted outreach clinics at the aid post and surrounding villages, and from July has maintained a Health Care Officer on clinical attachment. 77,900 refurbishment funded by the CMCA Middle 77,900 refurbishment funded by the the way for and South Fly Health Program, paving in Aiambak once health services to be delivered was also installed again. A solar powered lighting unit health radio and a radio connected to the national house was also network. A new PGK 400,000 staff constructed and handed over to MFDHS in October 2015. In 2014, Aiambak Aid Post underwent a major PGK In 2014, Aiambak Aid Post underwent The Aiambak Station aid post, which is managed The Aiambak Station aid post, which (MFDHS), is by Middle Fly District Health Services 500 community a health facility that serves around since 1997 members. However, it has been closed Over time without a full time health worker available. and for the the building has deteriorated significantly, have travelled past 17 years, community members facility. over an hour to the next closest health PROFILE AIAMBAK TO LAKE MURRAY HIGHWAY COMPLETED The 45 km Aiambak to Lake Murray portion of the maintenance; a jetty upgrade at Aiambak to enable Barramundi Highway and the 4 km Kasa feeder road the berthing of 5,000 dead weight tonne vessels; and project is the largest civil works contract undertaken a dedicated barge ramp was also completed at the by OTDF. This vital infrastructure development Lake Murray end of the highway to ensure safe and project was awarded to Starwest Constructions easy access for handling rubber and other goods Limited, funded with PGK 59.9 million from the CMCA and materials. portion of the WPPDTF. The highway was completed within the scheduled 24 months; from the arrival of OTDF and Starwest take pride in enabling additional equipment to site in November 2013 until utilisation community services beyond the scope of the for disaster relief as a link to the temporary dry roadwork contract, some of these services have weather road to Kiunga from November 2015. included:

This initiative was proposed by the CMCA Advisory Ƹ Assistance to the Aiambak High School by Committee on behalf of the Middle Fly people, repairing and maintaining their generators, taking into account the importance of Aiambak and sewerage system, and water supply, rehabilitation Lake Murray as future ‘Growth Centres’ identified in of 7 teachers’ houses, and assisting with the Provincial Development Plan 2013 – 2017. This sponsorship of school activities and logistics; commitment by the CMCA people now paves the way for access to markets for rubber, eaglewood, Ƹ transport for local people and goods along the food crops and rice, as well as improved delivery of highway to Lake Murray and up to Kiunga during health & education services, and access to Kiunga the dry weather period; town. The improved road infrastructure will also be critical to development of agriculture, fisheries and Ƹ support for emergency health cases; and forestry processing based at Aiambak Port. Ƹ direct payments to community members through Working alongside communities and stakeholders to land rental, contractor & labour employment and ensure a harmonious partnership with all involved, food supplies. Starwest has delivered a high quality, all weather gravel road; overcoming the logistic challenges of With the highway successfully completed by year construction in a remote location with no nearby end, OTDF now looks forward to the official opening gravel source. The works also included a number ceremony which will be planned once operations of variations, including: allowance for 2 years of resume in 2016.

3 6

2 1. Preliminary inspection 2. Mobilisation 5 3. Initial clearing 4. Shipment of gravel 5. Completion of works 1 4 6. Highway links with the dry weather road to Kiunga

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31

2015 Annual Report provides a mechanism for scaling up production, scaling up production, a mechanism for provides In and sustainability. manageability while ensuring identified region were villages in each early 2015, basis of a set of criteria which and ranked on the an additional 31 Model Villages, were used to select number to 43. bringing the total Partnerships: Connections and developed initial marketing In early 2015, OTDF packages. These strategies will strategies for LDP communication and awareness enable future to have focused discussions on sessions in 2016 sellers can be connected; how how buyers and may be able to communities participating in LDPs created through benefit from stronger markets strategies to Western Province Government potential use of establish Growth Centres; and market access. transport connections to increase OTDF has also In preparation for the next stage, that can established partnerships with organisations mobilisation and complement OTDF’s community with broader technical skills in the Western Province expertise. marketing, production and processing Funding and Implementation Timeframe: to the In July 2015, a proposal was submitted Minerals and Secretary of the Department of 9.9 million of Geohazard Management for PGK CMCA WPPDTF. funding to be allocated from the Program The 5-year Livelihood Development of 3 Livelihood proposes initial implementation Eaglewood, and Development Packages (Rubber, will depend Rice). The schedule for implementation enabling the on the outcome of the court case, release of funds.

ss gegeggggggg lala ilil VV

elel odod MM ofof rr bebe umum nn hehe tt ofof nn ioio Awax Gosai at his Teak tree nursery in Komovai, Middle Fly nsns papappppp ExEx

. tsts ecec jjjjjj ojoj Model Farmer For the past 5 years, OTDF has worked closely has worked past 5 years, OTDF For the security to improve food communities with CMCA of subsistence by increasing production benefits and root crops, and raising ducks crops such as rice than one production cycle per and fish, all with more opportunity to scale up production year. There is the of communities to augment to improve the capacity compensation payments. There is cash income from in increasing the volume of also a growing interest QRQƦWLPEHUIRUHVWSURGXFWV 5XEEHUDQG(DJOHZRRG  DYDLODEOHIRUH[SRUW)RUHVWU\UHTXLUHVDORQJHUƦWHUP LIVELIHOOD DEVELOPMENT PROGRAM DEVELOPMENT LIVELIHOOD timeframe, with benefits into the future. Rubber has into the future. Rubber has timeframe, with benefits than 50 years and processed been grown for more since 1994; for export in the Western Province new high value however Eaglewood is a relatively export income. product with the potential to earn Model Villages as a Delivery Mechanism: OTDF has invested in nurseries to produce planting OTDF has invested in nurseries to employing material for both Rubber and Eaglewood, field staff working experienced technical officers and with farmers in all three CMCA regions. levels Scaling up production to more commercial capacity, requires a critical mass of production and air transport access to markets (e.g. road, water, connect buyers infrastructure), and networks to improved access with sellers. OTDF has already projects funded through transport infrastructure Village initiative, by the WPPDTF. Under its Model services OTDF piloted the convergence of extension sector support and other community and social villages have in an initial 12 communities. These to engage with demonstrated their readiness and to Regional Teams, adopt new technologies, provide sweat equity that ensures the success of their projects. Expansion of the number of Model Villages prprppppppp TRUST ADMINISTRATION

The primary responsibility of the OTDF Trust administration of trust accounts. The investment Administration team is to manage the CMCA accounting function is currently outsourced to a firm Development and Investment Funds as stipulated of chartered accountants based in Port Moresby. under the 2001 Community Mine Continuation To reduce administrative costs from 2016 onwards, Agreements. These funds are paid annually by OTML OTDF will bring all Trust accounting functions in- into the respective Trust accounts as follows: house by recruiting a Trust Investment accountant.

CMCA TRUST ACCOUNT DETAILS The newly elected local Trustees in 2015 commenced No Name of Trust District Region in their new roles following an induction and training program. They will require ongoing guidance and 1 Nupmo North North Ok Tedi mentoring to enable them to perform their duties in Development Fly accordance with the Trust governance requirements Foundation once OTDF resumes normal operations in 2016. 2 Tutuwe North Highway Development Fly Communities In 2015, administration of the CMCA Trust Foundation Education Assistance program was transferred 3 Wai Tri North Lower Ok to the Community Education Services team. The Development Trust Fly Tedi management of allocated Trust funds will continue 4 Middle Fly River Middle Middle Fly to be managed by the Trust Accountant. Development Fly Foundation Projects Implemented in the 8 CMCA Trust 5 Suki Fly Gogo South Suki & Regions: PGK 2,870,399.11 Development Fly Gogodala Others Foundation

6 Manawete South North Bank 20% Social Development Development Fly Foundation Economic Development 7 Kiwaba South Kiwai & 8% Development Trust Fly Wabada Education 3% 64% Islands 4% Infrastructure 8 Dudi Development South South Bank Trust Fly

The quarterly cycle of Trust meetings was interrupted In 2016 the Trust Administration Team plans to in the second half of 2015 by the dry weather stand reduce the number of routine CMCA Trust meetings down, with only 2 of the scheduled 4 meetings from quarterly to tri-annually. Other than a spike conducted. This has therefore delayed approvals for in project activity and consequent support to the new projects to be funded in 2016. respective South Fly Trusts once a court case decision is made, all Trusts will have considerably less project New Mine Life Extension Benefit Splits: The revised development funds. Consequently, Trusts will be 2015-2025 CMCA package was signed by the MLE encouraged to support projects aligned with OTDF’s Leaders representing the CMCA communities. The 5 principal sectors and less overall submissions are respective communities were allowed to alter their expected. benefit splits between cash, development, investment and women & children funds. Subsequently most of Based on the same principles, OTDF will also look the Trust regions opted for a higher cash component. to reduce quarterly VPC meetings to tri-annually, further encouraging communities to spend some of The effect of the reduction in development funds their increased cash component on the LDP program. means less funding for key activities that improve delivery of services to communities, including in the health and education sectors. There will also be significantly reduced budgets available for

Delivering with Innovation www.otdfpng.org 33 2015 Annual Report ACCOUNTANTS FUNDS TO CUSTOS CMCA SYNDICATES LEASE AGREEMENTS (8% Return On Investment) OTML / OTDF / STEAMSHIPS (Accounting & Administration) (Shipping/ Aviation/Properties) (Inscribed stocks return 8-10%) TRUST INVESTMENT COMPANIES (Pooling of Trust Investment funds) FUNDS TO SINTON SPENCE CHARTED FUNDS TO SINTON SPENCE CHARTED TRUST INVESTMENT FLOW DIAGRAM coupons which allow solid, long term investments in solid, long term investments in coupons which allow premium stocks. operating numbers (cargo The vessel and airframe etc) and the return value reported passengers carried are not as proportionately high as by the custodian is as a direct consequence of previous years. This of operations on August 16, the OTML suspension dry weather conditions. Both 2015 due to the severe have however maintained their OTML and OTDF paying the monthly lease values commitment to accumulated over this period. progression of The flow diagram below shows the through funds from the respective CMCA Syndicates to the cleared funds held by the custodian.

project delivery Development accounts for future sustainable time the funds will be distributed to all Trust accumulated until mine closure at which Income earned from investments will be conditions annum on capital cost with agreed return Investments must return a minimum 8% per development of the CMCA people Province and where possible contribute to the Investments should be highly visible in Western the Trust Deeds Investments must be made in accordance with Trust investments are an integral part of the Trust investments are an integral from OTML 2006/2007 CMCA benefits package are able to through which the respective Trusts funds. Other dedicate approximately 10% of their the other 7 than the Fly Hope passenger vessel, Board approved CMCA Advisory Committee and a regular monthly investment projects are returning per annum to the income in excess of PGK 7 million investment portfolio. documented Progress reports on all assets have been include asset in previous Annual Reports, these earned. This utilisation and the respective returns full year of actual year OTDF is pleased to report a first returns from the Kiunga Office and CMCA Village real estate assets and an update on the beginning of construction of the Cassowary Hotel in Kiunga. On behalf of the CMCA communities, OTDF facilitated vibrant, heartfelt opening ceremonies for the OTDF Office and CMCA Village housing estate buildings. Attended by the Western Province Governor, the Honourable Ati Wobiro, the OTDF Chairman and fellow Board Directors, community leaders, the contractors, dignitaries from the Provincial Administration and interested onlookers filled the housing estate on June 12, 2015. All operating assets continue to make significant contributions to OTML operations while also supporting the successful relocation of OTDF staff and operations from Tabubil to Kiunga in February, 2015. To date, the investment portfolio custodian, Custos Limited, is holding PGK 18.15 million in lease payments and interest earned on behalf of the CMCA Trusts. Custos continues to seek high yielding Guidelines for Trust Investments Guidelines for Trust Progress on Existing and New Projects and on Existing Progress CMCA TRUST INVESTMENTS TRUST CMCA MV FLY EXPLORER The FLY EXPLORER is a 30 metre custom built research vessel being used by the OTML Environment Department, primarily to conduct environmental monitoring, riverine biota, levee bank and hydrological sampling, navigability studies and DEC inspections along the Fly River and its tributaries, and Fairfax Harbour in Port Moresby.

Total investment value: PGK5.5 million Projected return on investment to the CMCA communities over the current 15 year contract: PGK8.5 million

Number of scientific trips conducted in 2015: 7 MV FLY EXPLORER Scientific trips conducted since July 2012: 28

Return to CMCA communities in 2015: PGK569,028 Cumulative return since July 2012: PGK2,039,017

MV FLY WARRIOR The FLY WARRIOR is a 65 metre bulk diesel fuel and container carrier that can ship up to 72 containers and or 1.2 million litres of fuel out of Port Moresby and is registered to call into Australian ports if required.

Total investment value: PGK19.01 million Projected return on investment to the CMCA communities over the current 15 year contract: PGK29.5 million

Freight shipped in 2015: Fuel: 7,881,705 litres of diesel Cargo: 456 containers and 42 break bulk pieces MV FLY WARRIOR Return to CMCA communities in 2015: PGK1,965,986 Cumulative return since January 2013: PGK6,061,790

Series 400 Twin Otters The two aircraft (P2-IRM and P2-IRN) are servicing regional airstrips within Western Province and the Telefomin District of Sandaun Province. They are being used to transport OTML and contractor personnel to and from their homes; OTDF staff to regional field bases; and to conduct urgent medivac requirements within our community partner regions.

Total investment value: PGK33.9 million Projected return on investment to the CMCA communities over the current 15 year contract: PGK49.5 million

Passengers flown in 2015: 10,149 Series 400 Twin Otter (P2-IRM) Freight flown in 2015: 46,835 kilograms

Return to CMCA communities in 2015: PGK3,301,266 Cumulative return since January 2013: PGK10,178,903

Delivering with Innovation www.otdfpng.org 35 PGK743,310 PGK852,754 PGK1,847,633 2015 Annual Report 12,482 PGK6.9 million PGK7.4 million 137.66 tonnes 7 houses and 12 units 52 workstations and 15 offices Kiunga Office Complex and Housing Estate Complex and Kiunga Office This committment from the Provincial Administrator Internal roadways, drainage and access paths and Internal roadways, drainage and connection water, sewerage and power reticulation enabling works were completed in February, formerly based immediate occupation by OTDF staff ‘CMCA Village’ at in Tabubil. This estate was named the grand opening in June. Total investment value: to the CMCA Projected return on investment contract: communities over the current 10 year PGK8.0 million Return to CMCA communities in 2015: Capacity: OTDF staff have completed the transition into the the transition have completed OTDF staff The office continues Head Office in Kiunga. new OTDF and a relations with OTML Community to be shared Power Limited (OTPL). Funds sub-lease to Ok Tedi are used to maintain the facility. collected from OTPL value: Total investment on investment to the CMCA Projected return the current 10 year contract: communities over PGK8.52 million in 2015: Return to CMCA communities since January 2014: Cumulative return Capacity: Passengers ferried since April 2012: Freight shipped since April 2012: 894 7.03 tonnes the Provincial Administration will work with the Foundation to establish a Provincial OTDF Housing Estate (opening), Kiunga the Fly Hope and operate her within this new Company. Shipping Company and is willing to discuss arrangements with you and the CMCA communities to acquire Following on from 2014 investigations to find a workable solution to maintain long term vessel operations, Following on from 2014 investigations to find a workable solution to wrote, in part, the following to OTDF the Provincial Administrator of Western Province, Dr Modowa T. Gumoi on October 29, 2015: .... The FLY HOPE is a 34 metre passenger ferry operating primarily to and from CMCA villages in the Middle Fly The FLY HOPE is a 34 metre passenger ferry operating primarily to and with safe and readily available District to the port of Kiunga. The ferry continues to provide these communities of wholesale store goods, fuel, fish access to services such as banking and markets and enabled the trading in 2014 and a further 894 and rubber. The socio-economic value of the Fly Hope was clearly demonstrated were suspended due to the closure passengers were carried in the early part of 2015 before vessel operations of operations. Passengers ferried in 2015: presents an exciting opportunity for the FLY HOPE going forward with the prospect of subsidised fares and presents an exciting opportunity for the FLY HOPE going forward with linking with Port Moresby bound services. Freight shipped in 2015: OTDF Office complex (opening), Kiunga MV FLY HOPE CMCA TRUST INVESTMENTS - Cassowary Hotel

Artist’s impression

to certified Australian standards by Modern Modular in Thailand and will be erected on site by The George Group. The hotel is being constructed under the supervision of the Pacific Palms Property in partnership with OTDF.

Costing a total of PGK 27 million the hotel will be managed under a long term lease agreement with the Steamship Trading Company through their Coral Sea chain of hotels, from which the Trusts and Women’s Associations will earn a long term income Hotel room interior (actual module) stream, returning a minimum 8% per annum on the investment.

The hotel will set a new standard for accommodation for business travellers and tourists coming to the Western Province. The opening of the Cassowary Hotel will provide opportunities for employment of locals in a variety of roles, as well as a market for fish, prawns and crabs caught in the Fly River and rice, fruits and vegetables grown along the CMCA corridor. Facilities include 40 rooms, conference facilities, full service restaurant, bar and a shop. Hotel reception area (artist’s impression) Key 2016 dates: The Cassowary Hotel in Kiunga, is set to be an architecturally iconic structure for the Western Ƹ Civil works begin in March Province, funding for which has been provided by the Ƹ Delivery of modular rooms in May respective Trusts through CMCA Properties Ltd (PGK Ƹ Ground-breaking ceremony in June 20 million) and 4 of the Women’s Associations (PGK7 Ƹ Completion by December 31 million). The hotel building modules were fabricated

Delivering with Innovation www.otdfpng.org 37 2015 Annual Report Pedaeya villagers with locally grown and packaged rice, South Fly REGIONAL DEVELOPMENT REGIONAL NORTH FLY OVERVIEW

One of 3 completed houses at Kwiape Village, North Fly

OTDF supports 3 Community Mine Continuation Primary School and an elementary classroom each Agreement Development Trusts and 6 Mine villages for Ankit and Finalbin villages. comprising 4 tribal groups in the North Fly Region which includes the famed Mount Fubilan copper and Water and Sanitation: OTDF managed a contract gold deposit mined by OTML. in two mine villages to upgrade and install a water supply system in Bultem village at a cost of PGK In 2015, the North Fly CMCA communities prioritised 130,000; and, install nine 9,000 litre water tanks and activities to support community housing; education a gravity feed sewerage system in Finalbin village for infrastructure including elementary school teachers’ PGK 100,000. houses and classrooms; and water and sanitation. The North Fly Team continued support for food Food Security: OTDF’s North Fly Team provided security activities and also began preparations for a technical and extension services aimed at preparing transition to more commercially oriented Livelihood the communities to increase their cash income from Development Packages. sustainable livelihood development opportunities in rubber, eaglewood, rice and inland fisheries Community Housing: In the 5 years up to December in preparation for the upcoming Livelihood 2015, a total of 151 houses have been constructed in Development Package program. North Fly villages. In 2015, 48 permanent and semi- permanent family houses were constructed, compared In 2016, the North Fly Regional Development to 54 in 2014. The 4 villages with the highest number responsibilities will be streamlined through the of houses constructed were Senamrae (15), Bige (10), Tabubil and Kiunga Base coordinators. These officers both in the Lower Ok Tedi; and in the Mine villages, will encourage the North Fly CMCA communities to 7 permanent houses were constructed in Wangbin, continue constructing community housing and other and 8 in Atemkit. infrastructure projects, and support model villages by encouraging and promoting Livelihood Development Village-based local contractors were identified Package crops. to construct the houses, through a village profile database, whilst OTDF Regional Development and Coordinators will also provide technical and extension Engineering Services provided supervisory services. services to inland fisheries with a focus on tilapia The North Fly Team also delivered basic housing research, breeding and fingerling distribution at materials to more than 200 families across the region. Samagos, and setting up a fish feed mill at Migalsim village. Education Infrastructure: OTDF facilitated the construction of 2 teachers’ houses for Senamrae Delivering with Innovation www.otdfpng.org 39 2015 Annual Report DQGDYDULHW\RIYHJHWDEOHSORWV land to OTDF officers to develop into a model farm. into a model officers to develop land to OTDF citrus high yielding hybrid planted 2,800 The group from Jiwaka Province; constructed plants brought in fish fingerlings in 8 corrugated and stocked tilapia a poultry shed which they circular tanks, constructed chickens; and planted various stocked with Australorp and vegetables. varieties of food crops farm has attracted people from Abraham’s model even visitors passing through nearby villages and from his model farm initiative. to see and learn success of this farm the Ambaga After seeing the more than 10 hectares of community has allocated production in arable land for commercial agriculture 2016.

MODEL VILLAGES BECOME FOOD SECURE BECOME VILLAGES MODEL PROFILE WRSOHIW¿VKWDQNVLQVWDOOHG¿VKIDUPHUWUDLQLQJFRQGXFWHG Pictures of various food security activities at Ambaga village Model Farm, North Fly. Clockwise from Ambaga village in the Waitri Trust region of Lower the Waitri Trust region of Lower Ambaga village in as one of these Model villages. Ok Tedi was selected The Model Village Program is an on-going activity is an on-going Village Program The Model self- deliver a holistic, promotes to that OTDF to food security across the sustaining approach communities. In 2015 OTDF North Fly CMCA model villages, bringing the total identified 12 new Team encouraged ongoing food to 17. The North Fly to complement their preparation security activities forestry and agricultural for the future commercial being proposed. production approach In 2014 Abraham Karun became the leader of a like- In 2014 Abraham he embraced the minded group within the village; his arable model village concept, and committed MIDDLE FLY OVERVIEW The Middle Fly region has a population of and South Fly, and in 2016 OTDF and communities approximately 20,000 comprising 5 tribes (Zimakani, will continue to explore options for achieving this Awin, Mandabo, Boazi and Yongom) living in 18 aspiration across all three regions. villages that are evenly divided into 3 Middle Fly sub- regions: upper, middle and lower. OTDF operates a Eaglewood: Ahead of the LDP to be funded in the recently re-furbished field base at Aiambak, staffed future by the WPPDTF, the Middle Fly Women’s by a Field Base Coordinator, 2 outboard motor Association and Middle Fly Trust have entered into operators and 2 field assistants. The field base a 3-year partnership with OTDF to grow Eaglewood. facilities include Eaglewood and Rubber nurseries At the end of the program, up to 3ha per village where seedlings are grown and distributed to CMCA (totalling 54ha of Eaglewood) will be planted. In communities in preparation for the upcoming 2015, despite the dry weather affecting delivery, Livelihood Development Packages. Field base the first batch of 800 seedlings grown in OTDF’s facilities also include staff houses and office space, Aiambak Nursery were distributed to each of 17 of with telecommunications infrastructure. the 18 village Women’s Associations, with technical support from OTDF’s Eaglewood team. The project Aiambak is one of the Fly River Provincial budget includes a 3-year establishment phase with Government’s nominated “Provincial Growth funding for local youth who have been mobilised to Centres”. In 2015 OTDF supported the Provincial prepare and maintain the blocks, learning new skills Government’s approach to regional development by and providing them with casual employment. improving access to markets and services through the refurbishment of the Aiambak to Lake Murray Fibreglass Canoes: Eighteen fibreglass canoes Road; upgraded the jetty to handle 5,000 dead and outboard motors were purchased to improve weight tonne vessels; and improving health service community access to markets and basic services, delivery under the CMCA Middle and South Fly and handed over to each of the villages in November Health Development Program by refurbishing the 2014 along with a detailed management plan. In Aiambak Aid Post, which has enabled it to re-open early 2015 the OTDF Monitoring and Evaluation with a health worker rotation on site after nearly 20 team prepared a draft evaluation plan to be ready years (read more in the profile on p28). for regular monitoring and extension support, and a sample survey to be conducted later in 2015 and Housing: Affordable housing remains a high priority in mid-2016. However the dry weather delayed this in the Middle Fly. In 2015 a small OTDF team along activity. The monitoring and evaluation processes with a Trust representative and the Lake Murray are expected to inform future similar business LLG President travelled to Merauke in Indonesia’s development activities with regard to process, Papua Province to investigate options for low cost capacity and market development. OTDF has utilised housing. The team’s findings were that the total these canoes to transport supplies to field bases and cost of upgrading houses across the whole region assist in distributing humanitarian rice supplies into significantly exceeds the available Trust funds. This lower Middle Fly villages. scoping study is also relevant for Trusts in the North

CMCA fibreglass canoes used to support the Middle Fly rice distributions

Delivering with Innovation www.otdfpng.org 41 2015 Annual Report Lake Murray Richard Zumoi (right) with a local dancer from involvement of all stakeholders to drive development to drive development of all stakeholders involvement moment next level. The Province to the in Western things see many good and we can is ours now happening.” out of the Livelihood Development Richard says that another good way for his Middle Packages, rice was an income and the ideal place for Fly people to make is the vast grassy plains commercial rice cultivation around Obo. can look at for rice now is Obo. We “The best place we [of land] here [in Wangawanga], have some portions especially for but Obo is the better place to start, We’ve tried it large scale, mechanised farming. the Buffalos before, that is why we’ve introduced concluded. there [to prepare the land]” Richard part of the Richard is determined to be an influential he advocates and future development of his people, looks forward to upholds the integrity of OTDF and good governance sharing lessons learned to ensure 2016. within CMCA Holdings Limited from

RICHARD ZUMOI RICHARD PROFILE “Middle Fly has been a model trust region, benefitting from many project trials so Middle Fly to me is not a problem. And OTDF going that way, we know OTDF’s focus now is having the responsibility for our wider area of impacted people, and even the Province too, because now the mine is partly owned by the people of Western Province. And when we look at that, my perception now and my vision now is beyond more than Middle Fly CMCA corridor, we need the Richard remains optimistic that there are many great things to come for his people through the partnership with OTDF. “Well it’s like any other successful organisation, as you “Well it’s like any other successful organisation, the operations. progress, you need to change to suit needed and And that’s what OTDF as a Foundation The current we need to see OTDF moving forward. changes strategic direction is in line with the of mine ownership. The community are the owners of the mine through CMCA Holdings. So really we need to sail in that direction. It’s also confirming the growth OTDF has experienced from when it started,” says Richard. With OTDF’s newly proposed Strategic Direction With OTDF’s newly proposed Strategic all the CMCA from 2016, the focus is on empowering self-reliant communities to become financially Packages of through its Livelihood Development says the new Rubber, Rice, and Eaglewood. Richard forward for OTDF Strategic Direction is the right step the CMCA as the Foundation progresses in serving communities of Western Province. RICHARD Zumoi, 51, is from Wangawanga Village Wangawanga Zumoi, 51, is from RICHARD region Middle Fly CMCA area of the in the Aiambak people, leader for his been a charismatic and has long way from his early days as having come a teacher back in 1992. Richard a primary school the Middle Fly Region on the currently represents and has been a member OTDF Advisory Committee OTDF became operationally since 2009 before Ok Tedi Mining Limited. He is an independent from of the OTDF Board in which he Associate Director as a proxy director for the PNG is often nominated Program. Sustainable Development SOUTH FLY OVERVIEW The South Fly CMCA region consists of 66 villages lined along both river banks and scattered throughout isolated islands in the Fly River delta, of which 16 have been designated as Model villages. There are 4 Trust regions, and more than 50% of the CMCA population resides in Kiwai speaking villages.

To enable OTDF to improve engagement with these widely scattered communities, field bases at Nakaku and Tapila were upgraded in 2015, and 3 permanent Field Base Coordinators have been appointed, 1 in Nakaku, and 2 in Tapila. Logistical support is provided by 3 boat operators - 1 in Nakaku, and 2 in Tapila; and 1 maintenance officer based in Tapila. Five additional field assistants are based in Tapila, Muscovy Duck farming in Suki, South Fly with a further 2 at Nakaku. Rice: In preparation for LDP rollout in partnership Tapila is also the site of an OTDF Rubber and with Trukai, rice was one of the major projects driven Eaglewood nursery and food crop trial plots, provide by the South Fly Team in all 16 model villages as technical and extension support. A Rubber nursery well as any other CMCA villages that showed an on Sturt Island is staffed by South Fly Rubber interest. The Suki Fly Gogo region produced the Program field assistants, operating from the Sialowa highest number of kilograms of paddy rice which Women’s Learning Centre. The recently upgraded demonstrated their understanding of the importance Sturt Island wharf also boasts a container storage of the rice program supported by OTDF to improve area for materials and supplies to be delivered to their families’ food consumption, and provide a cash communities. income. At an estimated conversion rate of 60% from paddy rice, 3,218 kg of white rice was milled The ongoing court case has limited the amount and distributed back to farmers in the 2015 rice of CMCA Trust-funded projects which can be production year. implemented in the South Fly. However OTDF has been able to provide limited funding to support ongoing food security activities, and also maintain Food Security: The South Fly Team remained momentum on rubber and rice in model villages for engaged with Model villages to trial a range of the planned Livelihood Development Packages. food security activities. These included distribution of citrus seedlings in Waliayama and Samari; corn See pages 44 and 45 for more information on the seeds and peanuts from Mount Hagen to all Model Rubber Program in the South Fly. villages in the Manawete and Kiwaba Trust Regions. Muscovy ducks were also distributed to all Model villages in the Manawete and Kiwaba regions, for initial multiplication then further distribution to SOUTH FLY TRUST REGIONS RICE interested members within nearby communities. PRODUCTION: 2015 Trust Region Paddy Rice Milled Rice Production (kilograms) Suki Fly Gogo 3,578 2,147 Manawete 1020 612 Dudi 138 83 Kiwaba 627 376 Total 5,363 3,218

Nakaku citrus bearing in the South Fly

Delivering with Innovation www.otdfpng.org 43

 2015 Annual Report late S rice G to the G ackage el S ¿ aeya rice farmer G e to fellow villagers 3 selling his From the as fully support OTDF in their endeavour to bring their endeavour OTDF in as fully support people Pedaeya #1. The to develop other projects OTDF support for what expressed their have strongly over the past 5 years along the has done for them self-reliance. pathway to financial PEDAEYA 1 - MODEL VILLAGE 1 - MODEL PEDAEYA PROFILE The people are so happy and will take ownership of this as well After hearing about rice cultivation success stories After hearing about rice cultivation and Lewada from other South Fly villages like Samari was determine to the Pedaeya #1 village community all from 1 kg of create their own success story. And to rice seed and the will of Max Kavani succeed as a rice farmer. OTDF officers then conducted awareness on the OTDF officers then conducted awareness the village, along type of projects to be delivered in under the with the expansion of rice cultivation initiative. While Livelihood Development Package LDP, Pedaeya #1 waiting for the implementation of Local men and village has continued to plant rice. clearance and women have been engaged in land maintenance rice field preparation, planting and the village who activities. In July 2015, casuals from small incentive provided their labour were given of their efforts. payments from OTDF in appreciation Max Kavani is 27 years old and from Pedaeya #1 and from Pedaeya is 27 years old Max Kavani He Trust region. in the Manawete Model Village village selected from the first person to be was the at Tapila Field Base in 2014. to attend rice training he was issued with a certificate and After the training NARI 16 rice seeds to take home also given 1 kg of first planting Max harvested 50 and plant. From his rice, and those seeds were equally kilograms of paddy other interested farmers in the distributed amongst This interest and consequent village for planting. the village led to Pedaeya #1 rice production in a Model Village in 2015. being selected as RUBBER DEVELOPMENT

The Rubber Program priorities in all 3 Trust RUBBER PROGRAM: SUMMARY OF 2015 Regions throughout 2015 centred on ensuring that RESULTS key activities were completed in preparation for Outputs Target Actual implementation of the Livelihood Development Package program in 2016. As part of this process, Distribute 2014 70 ha 22 ha –Due to the an evaluation was conducted on the field success planting materials dry weather of clonal planting materials in 2014 in the South Fly. to Central and This provided OTDF with the opportunity to trial Lower Middle Fly field monitoring templates developed as part of the small holders involvement of the Rubber Program as a pilot in the Distribute 2014 100 ha 0 ha -Due to the dry roll-out of the new OTDF Monitoring and Evaluation budded clonal weather policy and procedures. Key findings of the evaluation planting materials which are relevant for all regions, and to scaling up in South Fly for the LDP were: Rootstock 120,000 94,200 materials for Ƹ Low field success rates (24%) in South Fly from budding for 2016 the distributed planting materials; field distribution Ƹ Similarly poor success rates were encountered in Hectares planted 22 ha ƸKD0LGGOH)O\ North and Middle Fly; by end of 2015 ƸKD1RUWK  Ƹ Field success rates could have been improved by South Fly (planting providing more farmer extension services; materials not Ƹ Farmer incentives are of paramount importance distributed due to in boosting engagement and commitment to the dry weather) reducing field losses; Ƹ Access to markets is the major factor in generating farmer interest. New Farmers n/a ƸƩ1RUWK)O\ growing rubber at ƸƩ0LGGOH)O\ The primary reason for low success rates was the end of 2015 ƸƩ6RXWK)O\ lack of funding available to provide essential farmer awareness and extension services. OTDF was asked to continue implementation of the PNG Sustainable “We are very thankful to OTDF for the Development Program rubber initiative in the South Rubber planting program. It has enabled us Fly without the additional financial resources needed to fell our old trees and replant with hybrid to support extension services. This resulted in the clones which will give higher yields which much lower than expected field planting outcomes means less work and more production than across the Middle and South Fly regions. compared to the aged seedling trees. If all farmers can be committed in the planting Based on these major lessons learned, and focusing program, there is a great opportunity ahead. on sustainability, the LDP will ensure resources are available to address the issues to increase farmer There is also a lack of purchase of our cup interest, engagement and commitment, particularly lump, which has contributed to loss of interest in the Middle and South Fly. Block maintenance after by farmers. We hope there is someone who post planting material distribution is an important can purchase our cup lumps frequently as aspect of caring for young trees during the critical we are eager to sell our produce. We have stage of growth in the first 3 years, so that at least helped the current buying agent to where it 80% of trees in a block are producing five years from is today, however, there is no creation of a the time of field planting. win-win situation for us growers. Thank you OTDF!” Dry weather conditions and fire damage have further impacted on the expected results for 2015, delaying Namusu Bege, Baidowa Village, Suki Fly Gogo distribution of planting materials to farmers who Trust, South Fly have expressed interest in cultivating rubber.

Delivering with Innovation www.otdfpng.org 45 2015 Annual Report successfully bud grafted at the nursery A healthy rubber bud stick sprouting after being Activities in 2016 will support the transition of the transition in 2016 will support Activities focus of the LDP, and as part Rubber Development due which occurred up on the delays on catching including distribution of 200 to the dry weather; materials to small holders in ha of hybrid planting South Fly regions; and exploring North, Middle and cup lump marketing for existing alternatives for rubber block holders. Aerial view of rubber nursery blocks at Kawito Mission Station, Middle Fly Aerial view of rubber nursery blocks at Kawito Mission Station, Middle Activities included site visits to Kiunga, Lake Murray, site visits to Kiunga, Lake Murray, Activities included to help the development partners Suki and Balimo logistical hurdles created by the understand the Western Province. The team geography of the and Malaysia to investigate also visited Singapore strategy was potential markets. The marketing Fly Rubber Ltd presented to the Board of North reactivating and (NFRL) as a possible option for have relied on sustaining their operations, which plan was OTML subsidies to operate. The marketing it will remain rejected by the NFRL Board, however future LDPs and a blueprint for implementation for blocks. existing farmers with mature rubber OTDF prepared a new marketing strategy to improve strategy to a new marketing OTDF prepared holders in collaboration for small market access company commodity agricultural with international rural development OLAM, and non-government for Millennium Development organisation, Business was to create a more sustainable (B4MD). The aim industry across the Province. opportunity for the EAGLEWOOD DEVELOPMENT Developments for Eaglewood (Aquilaria crassna the Cultivated Agar (CA) technology. This trial has sp) throughout 2015 centred on ensuring key demonstrated the potential use for the CA Kit in the outputs were achieved to prepare for the Livelihood cultivation of agarwood, and provides a positive story Development Package program which is expected to to communicate to the CMCA Eaglewood farmer receive increased funding from 2016. However, the population. Sampling will be undertaken in 2016 drought in 2015 greatly impacted on the Aiambak (18 months after treatment), and will also include nursery production targets for the Middle Fly Women an evaluation of market potential of the agarwood and Children Eaglewood program, and there was no products. seedling production in the year. Fundamental to building on the success of the EAGLEWOOD PROGRAM: SUMMARY OF 2015 promising agarwood results achieved in 2015 is RESULTS securing PNG licensing formerly held by PNGSDP for Outputs Target Actual the CA Kit technology. Seedling 50,000 Due to poorer than In 2016, OTDF will refine its strategy for Eaglewood production at expected production Aiambak Nursery caused by the dry development under the LDP program, based on current trial results, and continue to support the 6PDOOƦKROGHU Up to weather, the number of Women’s Association funded Middle Fly Eaglewood Eaglewood 40ha seeds to be procured in plantings 2016 will be increased Project. Eaglewood is a promising industry, and established OTDF intends to secure a technical partner to throughout plan for constructing a distilling plant at Aiambak, the CMCA secure a market and continue the nursery program communities through various funding sources to expand its target Completion 2015 Successful CA Kit trial distributions to small holders within the CMCA of field trials outcomes will be used as region to a total of 250,000 seedlings. and evaluation a basis to perfect artificial of Cultivated inoculation process in Agar (CA) Kit support of long term Vale Samuel Famiok potential for industry development artificial agarwood Senior Group Forestry Officer, Samuel Famiok production passed away suddenly in Port Moresby on the Memorandum 2015 Signed 2015. Priority 13th November 2015 during the dry weather stand of Agreement focus will be on down period. Joining OTDF from its operating (MOA) established development of a independence in 2010, Samuel demonstrated with Unitech for local inoculant and undeniable passion for Eaglewood production, collaboration appropriate inoculation understanding the prospects for this high value on Eaglewood procedure for trials species to provide long term incomes for the research & on native and planted CMCA communities. The consequent success of development Eaglewood this species will be Samuel’s enduring legacy. Evaluate progress 2015 Evaluation report of Eaglewood highlights progress The Management and staff of OTDF will always development against key output remember you, thanks ‘diwai’, may your soul rest as part of the indicators including: Monitoring and (a) Number of points in eternal peace. Evaluation pilot raised and distributed to program communities since 2010 (b) planted trees and actual number of trees growing, (c) number of farmers by regions/trust area, and (d) expenditure to date

A 12-month evaluation of Eaglewood inoculation trials in 2015 have shown promising results for agarwood production on 5-year-old trees using

Delivering with Innovation www.otdfpng.orgwwwww.ootddfppnng.g org 7 474747474747474747474744744474747444747474744474744 rtr pop Re l ua nn A 15 202015 Annual Report Nursery Stage 2: planting Nursery Stage 1: Germination Seedlings ready for field Agarwood production: Dark ring Agarwood production: attack from induced fungal Seeds: Imported from Vietnam Mature trees: Used for future Seed Production (arrow down) or grown through to inoculation (arrow up) technology Inoculation: 5 year Inoculation: old trees using CA Kit old trees PROFILE COMMUNITY FORESTRY

Improved housing remains an important community in management of current and future sawmill development priority among mine impacted investments targeted at housing. A field audit was communities. Funding portable sawmill projects has conducted in the Middle Fly and a desktop review been considered a cost-effective option to assist was conducted for the North Fly. communities to mill their own timber from local forests to build houses. Over the years CMCA Trusts Outcomes of both the audits centred on common have spent over PGK 4 million to fund portable operational problems such as mechanical breakdown, (wokabout) sawmills and chainsaws to allow spare parts and servicing. Other issues identified communities to utilise their timber resources to in the field audit included poor management and build houses, as well as pursue income generation technical capacity to ensure the community asset opportunities through sale of timber. is used for its intended purpose. In the Middle Fly, of the targeted 536 houses to be constructed using TRUST SAW MILLING 2010-2014 the sawmills, just 24 houses (4.5%) meet the Trust North Fly Middle Fly definition of a complete house. Only 3 pieces of sawmilling equipment remain in operation on an ad Expenditure PGK 3,036,322 PGK 1,155,203 hoc basis. Pre-start training in the Middle and North No Villages 16 8 Fly was scheduled in 2015 for the 10 Lucas mills Equipment 16 Lucas mills 9 Lucas mills purchased during 2014 and 2015, however only 3 18 chainsaws 16 chainsaws prestart courses were conducted, training a total of Operational Operational 36 operators in the North Fly. In those villages where costs costs training occurred, the sawmills have since been put to use and all are now milling timber. Building In 2015, in the face of ongoing demand for housing on lessons learned, the North Fly Trusts will be timbers, and issues with equipment breakdown, supported to improve monitoring and management abuse and mismanagement, the OTDF Forestry of sawmilling activities. A key recommendation Team recommended that an audit be conducted to arising from the Middle Fly field audit was the urgent assess the current status of the investment made in requirement for a robust strategy to be developed the sawmilling equipment over the 5-year period before more investments are made in sawmilling in from 2010 to 2014. The overall objectives of the the Middle Fly. audit were to: analyse the costs and benefits in terms of development outcomes on the ground for In 2016, a Community Sawmill Management participating communities; highlight key issues and Strategy will be developed to guide the planning and constraints associated with investments in sawmilling facilitation of sawmilling developments throughout equipment; and, recommend improvements the CMCA regions.

Using a Lucas Sawmill to cut timber in the Middle Fly

Delivering with Innovation www.otdfpng.org 49 2015 Annual Report manage the respective 10% W & C funds. In 2015, W & C funds. the respective 10% manage WAs, of support to four a range OTDF provided and of the W & C funds wise management aiming for on development priorities programs, and focusing Women and Children Action Plans identified in their 2009-2019. by OTDF to the Nupmo, Tutuwe, Support provided Fly Women’s Associations in Wai Tri and Middle advisory services to help 2015 included business secure W & C funding for new them identify and aimed at providing long-term capital investments capital growth; initial audit and income streams and for a new baseline data collection in preparation be designed and Youth Development Program to proposals for commenced in 2016; and, developed funded by the a range of business ventures to be respective 10% W & C funds. to participate in The four South Fly WA were unable court case. The 2015 activities due to the ongoing with the dry weather also delayed some activities Learning Centre North and Middle Fly WA, including construction and adult literacy training. to earn an income The Star Mountains WA continues Centre facility in from the hire of their Resource operating Tabubil which offsets their Association’s Middle Fly are costs, whilst Nupmo, Tutuwe and leases of their 2 earning an income from long term buses and dinghies respectively. an external A major task for 2016 is to commission Action Plans, review of the Women and Children including preparation of an updated Women and Children Program to align with the OTDF Strategic Direction and provide indicative programming for available funds. In 2016 OTDF’s support will also continue to focus on the steps towards achievement of sustainability and operational independence through good governance for the Star Mountains, North and Middle Fly Women’s Associations. This will include assisting them with the registration of investment companies as separate entities to enable them to manage future income streams from their investments. The South Fly Women’s Associations will be supported for a similar period, once they are able to participate. W & C’s ASSOCIATION OUTCOMES 5 WA conducted two regional association meetings in 5 WA conducted two regional association Tabubil and Kiunga Wai Tri and 4 WA Presidents sat on Nupmo, Tutuwe, 2 and delivered Middle Fly Trust Boards in quarters 1 & 2 Trust Board reports due to Adult Literacy Training deferred until 2016 in the OTDF’s temporary suspension of operations second half of the year 5 out of 9 Regional W&C 2015 work plans approved for funding of activities. 4 WA purchased investment properties (a) 5 Regional WA allocated PGK 50,000 each to continue Financial Literacy Training for communities targeting women and youth. (b) 17 students (7 female, 10 male) sponsored by Tutuwe WA returned from 1 year of training in Agriculture Studies at OISCA, Rabaul. 2 male students were selected for further studies in Japan 5 Regional WA allocated K50,000.00 each towards the CMCA Youth Development Program activities which will be implemented in 2016 Women’s Resource Centre construction using WPPDTF funds delayed by the ongoing court case. 10 Learning Centres completed in Nupmo. Wai Tri and Tutuwe WA allocated funding for Learning Centres to be constructed in 2016 OTDF’s assistance to the W & C program focuses OTDF’s assistance to the W & C of the nine on supporting the development that are the Trust Women’s Associations (WA) children on the representatives of women, youth and decision-making Trust Boards. They participate in managed about allocation of all funding for activities the 10% W & C by their respective Trusts, including of both funds. The OTDF vision of self-sustainability guides the formal institutions, and their operations operational support for transition of WA towards their capacity to independence and building of The CMCA Women & Children (W & C) program (W & C) Women & Children The CMCA Social Community and to the OTDF contributes through community outcomes, Development capacity building and institutional support, Activities in this sector infrastructure sub-sectors. participation by CMCA contribute to increased (including women and youth) community members and implementation in planning, decision-making priorities. Many of the of community development community development priority business-related to OTDF’s Local and Regional projects also contribute sector outcomes. Economic Development WOMEN AND CHILDREN PROGRAM PROGRAM CHILDREN AND WOMEN YOUTH DEVELOPMENT PROGRAM Village Development Funds have in the past been in decision-making, and recognition by formal allocated by Trusts for activities which generally CMCA structures (in this case the Village Planning target Youth, such as sports activities, equipment and Committees). musical instruments. However this funding was not based on a coherent set of development objectives and outcomes for CMCA Youth. Recognising Youth Perceptions on Sectoral Drivers for this, OTDF commissioned an independent rapid Development 2015 assessment of CMCA Youth status; conducted in Infrastructure 2013. The aim of this scoping study was to identify 7% the challenges that young people in the CMCA 7% Social Development face and how these challenges can be addressed in line with the national strategies and legislations Economic Development supporting Youth development in PNG.

Key recommendations of the rapid assessment were that CMCA Youth should have access to stable income and employment complemented by social, 86% health and educational services and a safe physical environment. Three program outcomes were proposed: These baselines can be used as the starting point 1. Youth are self-reliant and empowered as leaders from which activities for institutional and social 2. Youth have increased income earning development of Youth can be planned to improve opportunities through waged employment the current situation according to the local priorities. 3. Youth are empowered by knowledge and education to lead healthy lifestyles Also of interest, were the perceptions of Youth on which sectors will drive development, and where the OTDF planned 2015 as the foundation year for the resources will come from. Respondents expect that program with preparatory Youth audit activities most of the 86% of Local and Regional Economic conducted by the Community Development (CD) Development drivers will come from animal Team. Initial findings of the audit revealed that of production (45%) and small and medium enterprises the 157 CMCA villages, 109 (70%) have already set (36%). up Youth groups, enabling a number of emerging issues to be identified: These expectations will need to be managed if youth groups are given the opportunity to participate Ƹ Lack of access to economic development in Livelihood Development Packages, which are mechanisms to encourage income generation. focused on agriculture and forestry (rice, eaglewood Ƹ Youth are not given the opportunity [by the and rubber). community] or the capacity to participate in income earning opportunities Youth expect that 54% of the resources for funding Ƹ Lack basic skills to run Small and Medium projects to address these development aspirations Enterprises (SME) will come from mining operations, principally Ƹ Income earned by Youth mainly centred on very through compensation payments (36%), with small scale informal activities government services providing 20%, reflecting the ongoing reliance of the next generation on OTML. The objective for the Youth Development Program as described in the Results Framework is “Increased In 2016, the OTDF CD team will assist with participation of all Youths in planning, decision- establishment of the remaining 47 village Youth making and implementation of community groups. To facilitate implementation the CD team development priorities”. will: finalise the Youth Development Program design along with proposed implementation arrangements A comparative analysis of audit results for three Trust with key stakeholders; and submit proposals for regions in each of the North, Middle and South Fly funding through Trusts and other potential donors. have highlighted regional variation in participation rates of females in Youth groups, Youth involved

Delivering with Innovation www.otdfpng.org 51 2015 Annual Report In 2016, the BD Team will be consolidating their business services support for the existing 4 WA’s investments, and increasing the number of businesses in its portfolio. A critical element of the business services support is the transition to self-sustainability. The BD Team will prepare a monitoring evaluation framework and plan which will provide relevant data on businesses through a phased transition to eventual independent operations. In 2015 the OTDF BD and the CMCA Trust Teams the CMCA Trust the OTDF BD and In 2015 and opportunities on identifying business focused their plan and implement communities to assisting Team assisted over 50 businesses businesses. The BD basic operations and with statutory compliance, and general corporate governance accounts support services. Promotion Authority (IPA) This included Investment Business Groups, 4 Companies and registration of 18 and with related insurance and 2 Business Names; Commission (IRC) processes. Internal Revenue have The CMCA regional Women’s Associations to business and led the way in committing funds both long-term investment opportunities to secure income streams and local employment. Plans for The BD Team prepared 7 Business guidance and proponents, providing the strategic decision- financial projections needed for informed aspirations. making on funding for their investment and North Fly Of the 7 business plans, 4 Middle Plans have been Women’s Association’s Business 10% Women and approved for funding through their budgets, and Children funds held in the CMCA Trust be considered by the remaining 3 Business Plans will Trusts during their first 2016 meetings. the significant These 4 WA’s have also recognised and in 2016 risks that start-up businesses face, the BD Team to will enter into an agreement with that are part provide business incubation services that is of the critical business enabling environment essential for scaling up the number of SMEs. .

Training in Kiunga A Middle Fly villager participating in Financial Literacy The OTDF Youth Development Program audit results The OTDF Youth Development Program SMEs to be the showed that young people perceive strongest driver for future income and employment opportunities (see more on page 50) Community-based Financial Literacy and Start Your Community-based Financial Literacy been funded by Own Business training courses have to increase their Trusts and Women’s Associations from informal awareness and capacity to transition to formal business activities. OTDF has made significant advances in the Western OTDF has made significant advances through Province in providing physical infrastructure has concurrently road and water transport, and incubator developed a capacity to provide business Development services through the OTDF Business (BD) Team. In PNG, this failure rate is much higher due to a lack rate is much higher due to a lack In PNG, this failure such as lack of savings culture, and other factors to markets; and of infrastructure to provide access such high costs of enabling business infrastructure business as power and water, telecommunications, support systems and processes. In line with MTDP2, OTDF focuses on small and OTDF focuses on small and In line with MTDP2, as the means by which increases medium enterprises income and employment can be in rural community statistics suggest that more achieved. International businesses fail within 5 years. than 70% of new The Government‘s Medium Term Development Plan Term Development Medium The Government‘s citizens’ to increase PNG (MTDP2) aims 2, 2016-2017 pathway activities as a in business participation self-reliance, creating jobs and towards promoting reducing poverty. SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ENTERPRISE AND MEDIUM SMALL t n PROFILE MIDDLE FLY WOMEN’S ASSOCIATION PROPERTY INVESTMENT

Building on the successful preparation of their block based on its impressive returns, high quality, business plans, four Women’s Associations from prime location and corporate tenant history. the North and Middle Fly regions (Nupmo, Wai-Tri, While the Trust Team assisted with the financial Tutuwe and Middle Fly) have started investing in transactions, the BD Team led the negotiations business opportunities outside of Western Province with the selling agent, and the Port Moresby-based in 2015. The Middle Fly Women’s Association (MFWA) property management company which handles the is a great story for the Middle Fly CMCA Women and leasing arrangements, daily operations, repairs and Children. With a long term investment view, the maintenance. This new investment will be managed Association invested PGK 1.425 million in a property by the Ela Vista Management Team in Port Moresby. in Port Moresby, capitalising on the strong real estate market in the nations capital with a projected annual Both the Association and its investment company return on investment of 13%. (Middle Fly Women’s Investment Limited) will need ongoing business support services to ensure all This is their first ever direct investment outside of governance structures, and operational systems are Western Province, and it is aimed at providing reliable in place, and running smoothly before they transition long term income flows. When the final contracts to independent operations in the future. were exchanged in November 2015, it became the biggest investment the MFWA has made since their establishment in 2007. Income will be channelled through a separate investment company which is in the process of being registered with the IPA, and used to fund priority projects and programs for the Middle Fly Women and Children. It is a concrete demonstration of the transition from the ‘royalty reliance’ of communities to investment of those funds in an asset that makes that continue to flow after the closure of the Ok Tedi mine.

The OTDF Business Development Team assisted the MFWA from the very beginning, to ensure that sound decisions were made on allocation of this significant amount of funding, based on a detailed well researched Business Plan that provided a range of investment options, and comparison of returns Middle Fly Women’s Association invest in the for similar properties. This enabled the MFWA to Gardenia Apartment building, Port Moresby confidently allocate funds in the Gardenia Apartment

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333 5353 rt po Re l ua nn A 15 202015 Annual Report were at Lake Kindam in Lake Murray and the channel were at Lake Kindam in Lake Murray These included between Daru and Bristow islands. fish fed diced some very encouraging results for the surrounding herring and garfish collected from than imported waters, a far more cost effective option then stalled fish feed. The operations of the hatchery in the State for a variety of reasons, culminating Ok Tedi mine in taking over the PNGSDP share in the September 2013. project, OTDF Recognising the significance of this agreement signed a 3 year lease and management with PNGSDP to continue operating the facility from December 2013. The primary intention was to prove that barramundi spawning and fingerling production was again viable and to continue restocking the waters of the Fly. Under OTDF management the hatchery has since produced in excess of 56,000 fingerlings although the facility has the capacity to produce triple this amount. Fingerlings from the most recent crop, spawned on January 7, 2015 were raised and eventually stocked into mainland nursery grounds within the vicinity of Daru during July. Now that the hatchery is again in annual production it is hoped that PNGSDP will find a long term owner operator before December 2016 when the lease expires and the facility is returned to PNGSDP. Interest in a joint venture to conduct long term marine aquaculture research has been expressed by the NFA. DARU BARRAMUNDI HATCHERY HATCHERY BARRAMUNDI DARU PROFILE After the successful spawning of over 20,000 barramundi fingerlings and transfer to nearby Daru, then Middle Fly and Lake Murray trial cage sites from 2010 to 2012, the most successful of these trials The hatchery was to be a key link between an integrated conservation and food security program and a semi-commercial development program to assist communities with income earning opportunities at the village level. By replicating the aquaculture model of Bismark Barramundi in Madang, PNGSDP funded the construction of a barramundi hatchery on Daru Island. This facility became fully operable in 2009 with two specific purposes; to breed fingerlings to restock the natural wetland habitats of the Fly and traditional nursery grounds on the mainland as well as supply fingerlings to trial cage culture farms, predominantly in Lake Murray. Local Fishing Companies, the National Fisheries Local Fishing Companies, the National declines in Authority (NFA) and OTML have reported severely depleted barramundi biomass with stocks – 350 tonnes as a consequence of over fishing (300 from the late captured and processed annually 20 tonnes 1950’s through to 1980 down to around per annum from 1990). Fishing remains one of the most important food Fishing remains one of the most Province yet and income earning sources in Western barramundi an alarming reduction in commercial great concerns captures since the 1990’s has raised regarding the future of this fishery. EDUCATION

Montfort Primary School children enjoying learning in their recently refurbished classroom, Kiunga

Delivering with Innovation www.otdfpng.org 55 MCET PAD TRUST ALICE RIVER CMCA TRUST 2015 Annual Report 5% 34% 35% 26% progress at Samagos, Kiunga FODE examinations for Grade 12 students in The CES team has focused on promoting scholarship The CES team has focused on promoting human resource programs that will support priority workers, and development needs for teachers, health 996 applications skilled agriculture workers. In all, places at post- were received for 283 scholarship to commence secondary institutions scheduled applications and in 2016. However processing of was put on engagement with host institutions and the hold due to the dry weather stand-down, could not be consequent selection of candidates year. As a result, undertaken for the 2016 academic 402 continuing in the 2016 academic year, only the studies, and the students will be able to undertake 2017 academic new places will be held over until the year. will therefore The CES Team’s efforts in 2016 students, be directed to supporting continuing to encourage and providing awareness sessions applications for new scholarships in 2017. The CES Team will also roll out 6 new FODE Centres along the CMCA corridor to provide access to secondary study for out of school youth and adults. Funding Sources for all Secondary and Sources for all Secondary Funding (PGK 2,326,955) Scholarships Post-Secondary

; focusing on building ; providing accessible, ; improving access to secondary ; improving access to secondary Institutional Development through FODE capacity for delivery of education services Scholarships for and post-secondary education opportunities children and youth Facilities infrastructure well managed and maintained FODE facilities The Community Education Service (CES) Section Service (CES) Education The Community at the OTDF management from OTML to transferred CES Team has completed of 2015, and the beginning based in Kiunga. The transfer is its first full year of consolidating community part of the process for all mine-affected development initiatives OTDF; and incorporating OTDF communities under CMCA Trust scholarships under management of the better coordination and focus of CES; facilitating funded from a variety of sources. education programs OTDF COMMUNITY EDUCATION SERVICES EDUCATION COMMUNITY OTDF The consolidation of all community education of all community education The consolidation for the CES Team in 2015, programs was a challenge and analysis of including collection, consolidation purposes. This data for monitoring and evaluation caused was further exacerbated by the disruption flexibility to by the stand down, as there is minimal academic year. make adjustments around the fixed Ƹ Ƹ Communities have recognised the importance that education plays in improving economic and social conditions in the Western Province. PGK 2.47 million was committed to scholarships in 2015 for 193 full- time students studying from secondary to tertiary level, both in PNG and overseas, representing young people from the CMCA, mine village and Preferred Area Development (PAD) including Telefomin in Sandaun Province. In 2015, 79 scholarship students graduated, and 114 were scheduled to continue their studies in 2016. Additionally, the Education Assistance scheme administered by CES for OTML, provided funding to support tuition costs of students already enrolled in tertiary courses. In 2015 the scheme funded 533 subjects for mainly PAD students. This scheme will be phased out by 2017 due to reduced funding availability. Ƹ However the significant benefits that are emerging However the significant benefits that the opportunity from improved coordination include: provided through to quantify all education support operations; various funding from OTML’s mining development to work with government and other to the partners to complement their contributions outcomes sector; and to more effectively monitor in the Western from the investment in human capital has 3 outcome Province. The consolidated program areas: ENGINEERING SERVICES

Brand new Jetty constructed at Midiri in the South Fly Delta

Delivering with Innovation www.otdfpng.org 57 2015 Annual Report ENGINEERING SERVICES Infrastructure is a vital element of development; capacity of contractors. Contractor issues include providing connectivity through roads and waterways poor compliance with certified drawings; engagement to markets and basic services; health and education of inappropriate manpower for particular jobs; and facilities to support improved service delivery, inadequate logistics coordination for delivery of along with housing and key buildings to support materials. community life. Engineering Services is mindful of the challenges The Engineering Services team provides specialised associated with delivering large scale engineering support to various OTDF teams, CMCA communities, projects in Western Province and in 2016 will mine villages and the OTML Tax Credit Scheme (TCS) continue to ensure contractor compliance with to safely deliver quality, sustainable infrastructure OTML/OTDF safety standards, coordinate relevant in the Western and Sandaun Provinces. This has stakeholder awareness, and ensure adherence to the included the facilitation of technical documentation project scope. for engineering project submissions and tenders, site investigations and supervision.

Improved planning and regular engagement with the client communities and funders enabled the Engineering Services Team to achieve the project delivery goals set for 2015.

In 2015, a clear delineation between TCS and non- TCS (mainly CMCA) clients was made with the appointment of a separate Team Leader for non- TCS projects. This has helped to maintain cohesion within the team and also ensure complementarity of existing and planned projects.

ENGINEERING SERVICES REGISTERED PROJECTS: 2015 Completed maintenance of the School No Funding Current Amount % Inspector’s house at Telefomin High School Projects (PGK mil) Complete 1 TCS 9 52 50% As of the 2nd Quarter 2015 (before stand down) there were 22 active projects valued at PGK 75 million for 2 CMCA Trusts 3 - 66% implementation. Three of these projects worth PGK 3 CMCA Mine 8 - 100% 24 million were completed by year end, these were Villages Telefomin High School repairs and maintenance; 4 OTML / 2 23 50% upgrading existing Fly River jetties previously OTDF constructed by OTML Regional Engineering and TOTAL 22 75 installation of 2 new jetties; and completion of road construction from Lake Murray road junction to the Kiunga water front. Throughout 2015 Engineering Services played a pivotal role in implementing a number of key The remaining 19 projects are at various stages of Provincial impact projects, in education, water completion, including site investigation, reports and supply and transport infrastructure. These include cost estimates, tendering, partial completion and the Kiunga Town Water and Sewerage Upgrade, Fly project reactivation following stand down, (see the River Jetties Upgrade, South Fly Water Catchment, Profile on the CMCA South Fly Water Catchment Lake Murray to Kiunga Road Project, Kiunga Montfort Project on page 60). Primary School Re-development, Telefomin and Oksapmin High School Projects. In 2016, the focus will be to progress the re-activated projects with a view to cost effective completion The biggest project constraints experienced are and timely handover. All new projects received will delays due to: Provincial Building Board capacity to be concurrently documented in preparation for provide timely statutory inspections; land issues; and implementation.

Delivering with Innovation www.otdfpng.org 59

2015 Annual Report refurbished staff houses.” and amenities complemented with the building when completed with workstations as they move into a new administration and preparing teaching and lesson materials high and they will be motivated to teach Furthermore, the teacher’s morale will be without repairs and maintenance. buildings have deteriorated over the years carry out this important project as the funding made available by OTML TCS to “The school has been fortunate to have Mr Pancrasius Lawrence Montfort Primary School Headmaster, now in use at Montfort Primary School Montfort Primary School A newly constructed double storey classroom One of the renovated Teachers Houses at : Contract value of 1 70% OTML TAX CREDIT SCHEME PROJECT SCHEME TAX CREDIT OTML : Contract value of PGK 3.75 : The Montfort Primary School in : The Montfort Primary PROGRESS BY COMPONENT: 2015 MONTFORT PRIMARY SCHOOL PROJECT PROFILE Staff Houses 2 60% Administration Building 1 0% Multi-Purpose Hall 1 0% New Construction Classroom (Double Storey) Staff Houses 10 60% Library 1 100% Repairs & Maintenance Classrooms 12 100% Component Planned % Completed Repairs and Maintenance This project was funded under the OTML TCS with This project was funded under the million. Contracts an approved budget of PGK 8.1 based firms were awarded to two Western Province of the project: covering the following components New Construction 2014 and The construction began in November, February 2016. was scheduled for completion by The suspension of all TCS funded Projects as a consequence of the dry weather stalled construction works. By then, 12 classrooms had been refurbished and were back in use. A significant delay in the new construction component will be reviewed in 2016. Kiunga was established in the 1960’s to serve the in the 1960’s to serve the Kiunga was established and is administered by the local North Fly District, Lack of funding for repairs and Catholic Church. resulted in a number of classrooms maintenance has environments for teaching becoming unsuitable teacher housing conditions falling and learning, and standards. In recent years the school below acceptable in student in-takes with the has seen an increase now at 900. The project current student population infrastructure will repair existing dilapidated school building, two and construct a new administration and student staff houses, a double storey classroom scheduled to hall. The construction work was learning, with minimise disruption to teaching and over upon each completed classroom being handed completion. PGK 3.8 million. million About the Project MONTFORT PRIMARY SCHOOL PROJECT PRIMARY SCHOOL MONTFORT PROFILE CMCA / OTDF FUNDED PROJECT

SOUTH FLY WATER CATCHMENT PROJECT following strategies were implemented:

About the Project: The PNG Government’s Water, 1. Reductions in the number of workers hired, and Sanitation and Hygiene (WaSH) Policy 2015-2030 retain only 3 Construction Supervisors in the has the following objectives for PNG’s rural areas: villages. (a) 70% of the population has access to a safe, 2. Allocation of catchment buildings per village convenient and sustainable water supply; and has been reviewed to a minimum 2 catchment (b) 100% of educational institutions and medical buildings with 6 x 9,000 litre water tanks per centres, including health centres and aid posts building. across the country have access to a safe, convenient 3. Villagers to be engaged to assist in the and sustainable water supply. construction works and be compensated as an incentive In 2013, three of the South Fly Trusts (Dudi, Kiwaba 4. Villagers be responsible for security of all project and Manawete) committed 10% of the funding for materials delivered, including safe storage a PGK 4,542,741 project to install water catchment in designated areas within the villages, and systems in 51 villages with a population of 58,506. monitored for vandalism and loss through theft. The remaining 90% was to be funded by PNGSDP. However the withdrawal of PNGSDP meant a Implementation: The Project started initially with consequent adjustment of the project to a significantly Dudi Trust where Water Catchment Buildings were reduced budget. OTDF and OTML have contributed constructed in all but 2 of the 17 villages and are funding, logistics and project management to ensure currently being used. The construction work has the project continues. The outcome to date has progressed in the first 4 villages of Kiwaba Trust been an example of how communities can adapt to Region, and the Manawete Trust Region will follow. changed arrangements, minimise costs and achieve greater direct involvement in the management and Both men and women have been involved in those monitoring of their village catchment project. The construction activities in their villages that require work comprised construction of new timber framed less technical skills. The Construction Supervisors open structure buildings with corrugated steel roof are tasked to ensure transfer of the basic skills sheets and PVC gutters and down pipes to feed into needed for simple repairs and maintenance. Project 9,000 litre water tanks. Catchment structures were sustainability will be enhanced as a result of this prioritised according to village populations. hands-on involvement by the villagers.

In response to the changed circumstances, the

SOUTH FLY WATER CATCHMENT PROJECT PROGRESS: 2013-2015 Trust Total No Total Cumulative to Region Villages Units Dec 2015 Dudi 17 39 34 Kiwaba 14 17 3 Manawete 20 35 0 TOTALS 51 91 37

Gesowa villagers volunteer to help deliver catchment project materials to their village, South Fly

Delivering with Innovation www.otdfpng.org 61 2015 Annual Report New Suki Jetty completed, South Fly Completed Kiunga water supply, Tank #5 Completed Kiunga sewerage pump station COMMUNICATIONS

GIS Officer Aaron Uforty (right) gathering information from a Suki Fly Gogo Trust leader, South Fly

Delivering with Innovation www.otdfpng.org 63 2015 Annual Report The OTDF Communications OTDF’s Facebook page continued to OTDF’s Facebook page continued The OTDF website provides easy access The OTDF website provides easy Communications Plan: Plan was initiated in 2014 and provides a framework for the Foundation’s engagement with all its stakeholders, using a range of strategies, targeting key groups and focusing on important messages about emerging issues. In 2016, the Communications Plan will be updated into a Policy that more effectively integrates OTDF’s various communication channels. Website: Plans and to OTDF corporate information, Business information past Annual Reports, and complements Fly Breeze. The provided through Facebook and the to improve its website will be upgraded in 2016 functionality, and content will be updated in line with OTDF’s newly proposed Strategic Direction. its positive stories published and aired. In 2015 and aired. stories published its positive articles 6 newspaper January and August, between on social were published 3 articles were published, 2 television segments were aired. news media, while Facebook: for informing be an effective social media tool project and stakeholders of its development feedback on community activities, and receiving coverage in the posted stories. With increased mobile to become Western Province, Facebook is expected communicating an increasingly important means of 2015, the OTDF with communities. By the end of with an Facebook page gained 1,755 followers week. average of 14 ‘likes’ to its page each OTDF OTDF continued to publish its quarterly OTDF continued to publish its quarterly An important communication medium by An important communication Mainstream Print and Electronic Media: publishes stories and pictures to a wider audience outside the Western Province through the mainstream print and electronic media, including The National, Post Courier, Wantok Niuspepa, Sunday Chronicle, Mid-Week Chronicle, Loop PNG, EMTV, TV WAN, Kundu 2, FM100 and the National Broadcasting Corporation (NBC). OTDF appreciates the support from these respective media organisations in having Fly Breeze: Fly Breeze. This newsletter, the 6 to 8-page all stakeholders, informative newsletter targets and the development partners, CMCA communities, Western Province broader public audience both in 500 copies are and across the country. Each quarter, by staff in the distributed to CMCA communities widely circulated. field, and electronic copies are also in the first half Two Fly Breeze issues were published suspension of 2015 before the dry weather induced of operations in August. Radio Fly: the CMCA communities of its which OTDF informs its weekly OTDF Awareness and activities is through aired on the Community Toksave radio programs staff in OTDF, Radio Fly. All managers and selected in projects as well as community members engaged their planned took time out to be interviewed about Fly team. In 2016, activities for the year by the Radio of Radio Fly from OTDF will take over management and work to OTML, relocating the station to Kiunga; Fly and South Fly restore coverage to lower Middle short wave signal communities who listened in via through until 2012. Communicating with the 157 villages of the 157 villages with the Communicating region Agreement Mine Continuation Community With work in 2015. part of OTDF’s is an essential across vast distances from the villages scattered surrounding Tabubil to the mountainous areas of the Fly River, OTDF engages islands at the mouth through a combination of face- with all stakeholders radio, television, print and social to-face meetings, media. COMMUNICATIONS PROFILE OTDF JOINT COMMUNICATION PATROL

In 2015, OTDF and the CMCA Advisory Committee Equally, joint patrol partners sought feedback from committed to undertaking joint patrols from 2015 communities on a range of issues to gauge their onwards, commencing in the 2nd Quarter, with the perception of the project development work being aim of visiting all 151 CMCA villages and 6 mine done for them. During the feedback sessions, concerns villages. This was considered an important initiative were raised about the lack of essential information to ensure that timely and accurate information was reaching communities from the Advisory Committee, communicated about community programs and Trustees and Village Planning Committee Chairmen, projects, and awareness was raised about Trust making it difficult for them to participate in the investments, funding arrangements and future formal decision-making processes that have been opportunities. put in place. Conversely, the key positive message coming from the meetings was about the trust that The 2015 patrol was conducted over a 4 week period has been placed in OTDF as a credible development in April and May, covering 147 villages (94%). Ten project and program implementation organisation. villages were not visited due to unavailability of communities at that time. The patrol was planned Discussions were also held in all communities on to be jointly conducted with the OTML Community the negative future development and investment Relations (CR) Department as a cost effective and implications for those Trusts choosing a higher efficient way of conducting face-to-face engagement proportion of cash in their annual benefits package with communities. The patrol was led by OTDF payments from OTML from 2015. Executive Management who were joined by staff As OTDF works with the communities to transition to from all OTDF Departments, along with the OTML CR officers. National Government officers from the Activity North Middle South Total Mineral Resources Authority and the Department of Indicators Fly Fly Fly Environment and Conservation, were also part of this Number 64 17 66 147 initiative. of Village meetings The Communications Plan prepared in 2014 set the framework for timing and participation in the 2015 Number 4,591 1,704 8,112 14,407 CMCA patrol which focused on specific messages of people that OTDF and participating partners wished to share attending with communities. The key messages presented at village meetings related to the socio-economic financial self-reliance from 2016 the next CMCA and activities that OTDF undertakes for the CMCA and mine villages’ communications patrol will be a very mine villages as their development organisation important one involving a number of development and custodian of their development and investment partners across the health, education and economic funds. As part of OTDF’s governance process, development sectors. project and investment updates were distributed to the communities in all villages visited.

The expansive Fly River delta presents many communications challenges

Delivering with Innovation www.otdfpng.orgwwwww.w.ototddffppnngg..ororg 55 656565656565666565666 t rt po l Re ua nnn A 5 151 0 2202015 Annual Report Women and children at Wapi No.2 Village waiting to hear from OTDF Women and children at Wapi No.2 Village waiting to hear from South Fly Officers during the communications patrol, Kiwaba Trust Region, PROFILE RESULTS BASED MONITORING AND EVALUATION

OTDF uses a Results Based Management (RBM) The next stage of M & E development planned for the approach to managing project and program life cycles latter half of 2015 was to integrate corporate systems that integrates strategy, people, resources, processes and procedures with the project management tools and measurements to improve decision making, and techniques for monitoring and evaluation. This transparency and accountability. This approach allows results to be managed and monitored across focuses on achieving outcomes, implementing all OTDF Departments. OTDF’s two M & E officers performance measurement, learning and adapting, provided on site coaching and mentoring of OTDF as well as reporting on performance. staff to support initial implementation of the systems outlined in the M & E Handbook, with off-site In June 2015, the OTDF Monitoring and Evaluation support by the Consultant, however the dry weather Handbook was formally submitted to OTDF at the stand-down impacted on this integration progress. conclusion of an 18-month pilot program and In particular, a trial was delayed with the South Fly consultancy to implement the M & E Policy that was Rubber Program on integrated financial and project developed in March 2014. The Handbook has a strong reporting using traffic lights as an indicator of status. focus on mechanisms for reporting performance, which requires review and enhancement of In preparation for the 2016 Strategic Direction, sector OTDF’s systems and procedures across the whole outcomes and headline indicators were finalised for organisation. The process of further embedding the all five OTDF sectors (see page 21). The indicators M & E concepts, policies and procedures outlined in broadly align with those in National and Provincial the Handbook will be achieved by a mix of formal development plans and will form the basis for annual training; mentoring and coaching; and on-the-job reporting of OTDF project and program contributions skills transfer. The focus will be on applying new to those sectors from 2016 onwards. systems, and incorporating lessons learned into ongoing projects and programs. In 2016, the focus will be on completing outstanding reviews and evaluations that were delayed in 2015, In the first half of 2015, the M & E Consultant including preparation of related M & E Frameworks. conducted 6 training sessions for 46 staff (65% of These are important tasks to capture lessons learned all OTDF staff of which 34% were women and 66% both mid-term and also on completion, to inform men). Job Descriptions (JD) were finalised for the stakeholders about adjustments to ongoing projects, two M & E positions which were established in 2015, develop case studies, and create a framework for and in 2016, the M & E function will be integrated designs of new projects. M & E Frameworks will be into all OTDF JDs to reinforce the concept that M & prepared for all ongoing and new OTDF programs E is “everybody’s business”, and these will provide valued over PGK 100,000 to facilitate regular the framework for officers to prepare their individual reporting of progress. work plans in line with OTDF’s results framework.

MONITORING AND EVALUATION: SUMMARY OF 2015 RESULTS Outputs Target Program / Project Progress Program 5 to be 1. North Fly Fisheries; Delayed Implementation completed by 2. South Fly Water Catchment Project; Desk-Top December 15 3. Middle Fly Women & Children Program; Reviews 4. Middle Fly Investment Holdings Limited; 5. South Fly Women & Children Program

CMCA Project 4 to be 1. Komokpin Rubber Project: Full Review/Case In progress – 80% Evaluations completed by Study December 15 2. South Fly Rubber Project: Mid Term Review/Case Study 3. Grehosore Housing Project: Final Evaluation Delayed 4. Middle Fly Canoes

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CMCA PROJECT LIFE CYCLE 67

Village / Community If Accepted by VPC, OTDF Regional Team & Group nominates project 55 Days Monitoring & Evaluation Program Services assess 2015 Annual Report and seeks endorsement Approved projects reports compiled and sent project nomination Duration to community and relevant from VPC chairman and committee for viability and stakeholders sustainability

Program Services conducts quarterly monitoring and OTDF Regional evaluation in Coordinator, Trust line with M & E Planning + Program Services, conduct Framework Databases Àeld assessment CMCA Trust Provincial Project and prepare project Agreed M&E framework Project Master Matrix documentation and schedule List Funded Funded 5 Days Approved projects Referred to external implemented by Funding organisation Project proposal relevant OTDF (e.g. PNGSDP, WPDTF) submitted to Teams OTDF CMCA Trust Administration for registration and presentation at Trust Board meeting for >90 days Project 5 Days funding funding Agreement 10 Days OTDF Trust Legend Administration Feedback / Review generates referrals OTDF Management Project funding proposal and updates vets and signs off Regular Updates Databases 5 Days submitted to the Trust 5 Days OTDF Board meeting for Commitment to approval CMCA Trusts OPERATIONS

Delivering with Innovation www.otdfpng.org 69 2015 Annual Report Eaglewood Seed Production Area trees at Kasa Village, Middle Fly CORPORATE OVERVIEW PROFILE The corporate services at OTDF provide a range CONTRACT ADMINISTRATION of key support mechanisms for operational and field activities including community engagement One of the key strategies for OTDF since its inception and project delivery by all other teams across the as an independent entity has been to ensure that its Foundation. operational and corporate obligations comply with the prevailing legislation and regulatory requirements Functions include Finance (see page 75) Procurement, in PNG. The 2010 OTDF Business Plan identified over Logistics and Asset Management (see page 73), 125 Acts and Regulations which were potentially Information Services (see page 72), Occupational applicable to OTDF, covering all possible operational Health & Safety (see page 71), Human Resources areas and governance obligations, such as building, (see page 74), and Legal Services (see the Contract environmental protection, customs, taxation, public Administration profile on this page). health, mining, and motor vehicles. In 2013, OTDF appointed a senior program coordinator with a These core functions are the strategic proprietary legal qualification who is accountable for Contract capabilities of the Foundation. They are that set Administration. This position now directly reports to of specific human skills and knowledge that OTDF the Finance Administration Manager. combines with technical systems and processes to ensure the Foundation’s services achieve its mission OTDF outsources legal services for Trust of transparency and the wise management of funds administration and for major service agreements, and programs. Innovations in core functions are consultant and development partner contracts to driven by the service delivery commitments that two law firms, and also accesses legal advice from OTDF makes to its stakeholders. the OTML legal team. Contract Administration is responsible for maintaining files of signed contracts, These functions have evolved organically over the drafting service agreements and contracts that OTDF previous 5 years of operations as the Foundation has executes with the mine impacted communities, such adjusted to the changing operating environment, as minor construction and service contracts; and for and taken account of the lessons learned. supporting OTDF staff to effectively manage those contracts. All contract information is loaded on to Prior to stand down these core functions employed the Attaché contract module to facilitate contract 19 permanent staff (23% of all staff). registration and link payment components to each contract. In 2016, it is planned to investigate options In 2015, OTDF teams providing corporate service for providing contract managers with access to the functions improved operational policies and financial relevant module in Attaché. As a member of the OTDF governance functions; managed shipping and Housing Committee, the Contracts Administration transport handling contracts; ensured staff health, Officer drafted the Tenancy Agreement for the OTDF welfare and safety was achieved without recording staff residing at the CMCA Village (Housing Estate) a Lost Time Injury; and successfully facilitated an which was endorsed by the Committee for use by unqualified financial audit for the 2015 financial year. OTDF and its employees.

The OTDF Tender Review Committee was established in July 2014 and met 3 times that year. Tender Guidelines were developed to provide a framework for the effective, consistent and efficient management of tendering practices, and achieving ‘value for money’ outcomes. The Contracts Coordinator administers meetings and Committee activities. In 2015, the 10-member Committee met twice before stand-down, and was working towards establishing a Tender Register and Tender Box, as well as standardising tender documents.

The Committee will review Tender Guidelines in 2016 with amendments incorporating new processes and templates, and reflecting roles and responsibilities under the new OTDF organisational structure. Members of the OTDF Corporate Services Team

Delivering with Innovation www.otdfpng.org ’ 71 Total First Aid Komuniti Dei 2015 Annual Report Job Safety Analysis Fire Exting. 00 0 43 1 SAFETY INCIDENTS 2015 Work at Heights activities within Kiunga town Working closely with Field Base Coordinators to ensure safety and security of personnel and property in remote field bases. Leading the OTDF Safety Committee in a review of OTDF’s current safety policies and procedures. Preparation of a Safety Management Plan Re-commencement of OTDF ‘ SAFETY TRAINING 2015 SAFETY TRAINING Staff GeneralTheft 4Equipment / Property Dam- 1age Light Vehicle 1Near Miss 0 3 TOTAL 1 1 0 0 10 1 0 5 4 Incident Type TotalLost Time MinorInjury(LTI) Significant Ƹ 2016 will be a year of consolidation and implementing targeted OH&S activities which will include: Ƹ Ƹ Ƹ A strong OTDF Occupational Health and Safety A strong OTDF Occupational Health been rewarded culture and associated practices have Lost Time Injury, with the excellent record of zero of incidents in and a 66% reduction in the number small part to the the last three years. This is due in no to keep OTDF’s sustained efforts of OTML in helping workforce safe and in good health. provided by OTML to ensure they had the necessary they had the necessary by OTML to ensure provided both in for their work that are required OH&S skills women of 40 staff (11 in the field. A total Kiunga and targeted training excluding and 29 men), attended To reinforce the importance General Inductions. in the workplace, OTML of responsible behaviour Concentration (BAC) self-test provides Blood Alcohol and conducts random tests. kits at strategic locations OTML Light Vehicle Permit Safety Induction Total 30 10 4 3 3 20 70 Male 17 8 4 3 3 11 46 Female 13 2 0 0 0 9 24 Gender General ) in Kiunga. OTDF also participates in the ) in Kiunga. OTDF also participates Kibungs In recognition of the broad scope of work for the In recognition of the broad scope of Safety Officer function, OTDF renamed the position Safety (OH&S) to Group Occupational Health and inspection Coordinator who combines compliance, oversight of and advisory roles as well as provides system OH&S training. OTML’s risk management which are made generates health and safety resources robust framework available to OTDF; and provides a also facilitates for managing OH&S. The Coordinator along training, and ensures policies and procedures, communicated with improvements to processes are all work locations, in OTDF’s daily safety meetings at sessions and fortnightly safety communications ( OTDF recorded 4 significant incidents in 2015, of 4 significant incidents in 2015, of OTDF recorded which 3 were behavioural, casual and relating to both under full time employees two the influence of alcohol; resulted of these incidents in termination. Management will take a strong safety stand around expected behaviour and alcohol awareness on resumption of operations in 2016 to mitigate against this. Safety is a key concern of OTDF Management of OTDF Management a key concern Safety is long staff who spend for the field based particularly villages and in remote the Fly River periods along partners. At the end of serving CMCA community to report its sixth consecutive 2015, OTDF was proud Time Injury. year without a Lost OCCUPATIONAL HEALTH AND SAFETY HEALTH OCCUPATIONAL Knowledge, awareness and specific skills are an important element in ensuring that all staff are able to perform their duties in a safe and secure environment; and that they demonstrate responsible behaviours at all times, whether working in the office, or in the field. This starts on day one for new staff and visitors with an OTDF Site Specific Induction conducted by the OH&S Coordinator or in his absence the immediate supervisor. This is followed up by an OTML General Safety Induction for staff, where current policies and procedures are covered in detail. In 2015, with the majority of staff based in Kiunga, an Emergency Evacuation Muster Plan was prepared for the OTDF Kiunga office (known as Brown House 2). In 2015 specific staff were targeted for on-site training monthly OTML ‘Safe Days’ each of which have a theme (eg Safe Driving Awareness). The Coordinator chairs the OTDF Safety Committee which will be re- constituted and meet monthly in 2016 when staff return from stand-down. INFORMATION SERVICES The Information Services (IS) Department including network services such as file and printing provides computer networking and software, services, through its corporate network. telecommunications and Geographic Information Systems (GIS) services to OTDF to support cost- Business continuity was the number one priority for effective and efficient delivery of planned targets, the final stage of relocation of OTDF Headquarters and facilitate reporting of projects and programs. from Tabubil to Kiunga. This entailed safely packing and transporting equipment, and re-connecting The 2 person IS team supports staff and infrastructure computers to the network at new workstations in a challenging operating environment located in in Kiunga. Minimal disruption to the Attaché Kiunga Headquarters and in four field bases, and accounting system was also critical to maintaining also collects spatial data for presentational decision- business as usual for payroll, supplier payments and making purposes using GIS software. Internet, email, purchasing. The Attaché software remains hosted on television and telephone connectivity is vital to the OTML server in Tabubil. Additional telephone facilitating efficient operations along the river. extensions were installed to connect relocated staff in their new workstations, along with their security Connectivity ensures that OTDF can: provide timely access to the building. IS also assists the Media and reports; transmit monitoring and evaluation data; Communications team with most of its print media access shared files; and, communicate key messages design such as posters and banners or newsletters to field staff and communities. With all three field and visual media, including the layout and design of bases down river now permanently occupied, it is the 2015 Annual Report. essential that field staff have the means to stay in contact with colleagues, and can access up-to-date The IS team provides technical support for staff to local and international television news. OTML has ensure that they can maximise their productivity, continued to support OTDF IS by providing intranet, and responds to repair and maintenance needs. The email, internet and telecommunications services time that these services can take is a challenge that is common to similar teams in other organisations, INFORMATION SERVICES: PLANNED VERSUS limiting the team’s ability to make progress on ACTUAL RESULTS 2015 innovations to further improve efficiency across the whole organisation. In response to the demand Activity Actual for these services, the team has instituted a system Re-locate the Completed by 28th February, for scheduling ad hoc consultations, and has also Headquarters ICT 2015 prepared “fact sheets” for staff to address frequently systems to Kiunga asked questions without the need for face-to-face Telecommunications VSAT - Aiambak VSAT sessions. upgraded & reconnected EMTV systems installed in Aiambak, Tapila & Nakaku In 2016, the IS team plans to: Computers and 15 new PCs and 2 new networking (PC laptops procured and installed Ƹ Create a Wide Area Network (WAN) by connecting Refresh Project) Tapila and Nakaku field bases in South Fly region to the OTDF corporate network at headquarters Geographic Established parameters and Information Systems templates for databases. using Digicel’s Private Branch Network (PBN) Initial baseline data collected: service. Ƹ GPS locations of villages Ƹ Extend the OTML corporate data network from Ƹ Projects initiated by OTDF the main office complex across to the CMCA Ƹ Government services (eg Village (staff housing estate) in Kiunga to enable aid posts & schools) staff residing there to work from home. Villages completed (overall Ƹ Complete the on-going PC Refresh Project with 49%): the installation of 10 desktops and 2 laptops. Ƹ South Fly – 59 villages Ƹ Relocate the Attaché server located in the OTML (88%) data centre in Tabubil to the OTDF office complex Ƹ Middle Fly – 18 villages (100%) in Kiunga. Ƹ North Fly – 0 villages (0%) Ƹ Update the GIS database in line with the new Established an internal OTDF OTDF 5 year strategic direction. GIS working group

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73 : Ongoing 2015 Annual Report : In 2015 the PLAM team : In 2015 the catchment materials MV SEPURA unloading South Fly water Moresby, by the PLAM team in Kiunga, and Field Base in Kiunga, and Field by the PLAM team Moresby, tonnes of In 2015, 1,254 at field bases. Coordinators vessels OTML chartered were moved by OTDF cargo the commissioning of the FLY and aircraft. In 2016, Fly Investments Ltd owned barge ZAMBY, a Middle and more efficient deliveries from will facilitate safer villages. field bases to riverside Asset Management operational down time, and focused on minimising through a regular maintenance safety of all staff and outboard motors, as well program for vehicles base generators and equipment. as office and field PLAM was responsible for sourcing and coordination PLAM was responsible for sourcing contractors) of contractors (including village-based infrastructure to support field bases and office further improve maintenance. In 2016, PLAM will to maintain all schedules and systems essential which OTDF is buildings and other assets for bases. responsible in Kiunga and the field Field Base Fuel and Consumables for teams support in providing fuel and consumables is one of operating within the impacted communities team. Control and the main focus areas for the PLAM of fuel and other reporting of use of field base stock with losses consumables is an ongoing challenge, a significant through theft and misuse presenting operations. The financial risk that impacts on OTDF coupled new OTDF structure and accountabilities, and usage with strengthened controls on reporting management is expected to result in more efficient of these valuable resources. Given the permanent occupation of field bases from 2016, PLAM has a vital role in ensuring the bases are supplied and maintained, allowing staff to provide safe and sustained engagement with CMCA communities.

: PLAM has achieved significant : PLAM has achieved significant : OTML continues to provide significant 2015 was the first full year that OTDF did not charter vessels to assist deliveries, saving in excess of PGK 1 million in charter costs. The two new Jetties at Sturt Island and Aiambak enabled containerised cargoes to be delivered directly to those main river field bases, from where they were offloaded to dinghies for transport to project or program locations and CMCA communities. Containerised cargo handling has enabled more effective planning, cargo consolidation and handling by Hilift in Port Logistics subsidies for national and international freight delivery by air, sea, and river for OTDF projects and operational requirements. Investments in vessels and jetties along the river have shown immediate benefits in 2015 that will continue from 2016 onwards. efficiencies in both time and cost in its first full efficiencies in both time and cost in late 2014 year of operations since the transition procurement from OTML systems to independent software. using the Attaché financial management local businesses, OTDF encourages promotion of quality remains however stock availability and orders for goods an issue, resulting in over 2,795 orders), being (representing about 75% of all Moresby. PLAM sourced from suppliers in Port to adjust continuously updates its supplier database including for changing business circumstances, quality of stock, availability of reputable suppliers, discounts or long and arrangements for prices and the end of 2015, term purchase arrangements. By for goods 3,727 purchase orders were generated procurement of and services, comprising: 50% - 45% - OTDF materials for CMCA communities; requirements; managed projects and operational approved third 5% - reimbursable procurement for parties providing benefits to CMCA communities, including the OTML Donations Committee, and the LikLik Skul Foundation. Procurement The Purchasing, Logistics and Asset Management and Asset Management Logistics The Purchasing, OTDF’s for supporting is responsible (PLAM) team other of CMCA and an implementer role as The PLAM team provides Trust-funded projects. for small scale one off projects, procurement services and ensures OTDF’s assets are facilitates logistics regularly for effective serviced and maintained delivery. The Western Province program and project operating environment with presents a challenging along 455 approximate river communities spread the mouth of the Fly River to miles (ARMs) from km of road between Kiunga and Kiunga, along 137 villages with no road access. Tabubil, and serving PURCHASING, LOGISTICS AND ASSET MANAGEMENT AND ASSET LOGISTICS PURCHASING, HUMAN RESOURCES The Human Resources (HR) Department plays an as residents; with OTML dongas and a variety important role in the administration, development, of third party leases accommodating FIFO staff. remuneration and rewarding of staff so that they OTDF Field Base Coordinators are now residents, can contribute effectively to the OTDF’s goals and with permanent accommodation and office objectives. OTDF is committed to providing a safe space in Tabubil, Kiunga, Aiambak, Tapila, and and dynamic work environment and to assisting Nakaku. staff to develop both personally and professionally Ƹ Support for the 17 employees who were made within the framework of the OTDF Code of Conduct redundant, including certificates of service, and relevant OTML safety regulations. The HR team letters of confirmation for superannuation funds, participates as members of the Housing, Risk and travel and logistics for repatriation of those staff Disciplinary Committees, and the Occupational and their families. Health and Safety Coordinator chairs the Safety Committee (see more on Occupational Health and Permanent Staff Turnover Safety on page 71).

Key milestones achieved by the HR Department in 5% 2015 included: 1% Resignations 12% Death Ƹ Introduction of a new element to the remuneration 5% system: packaging all school fee allowances into Terminations annual salaries, and giving staff the option to salary sacrifice for tuition fees. 17% Redundancies Ƹ Change in timing of the annual performance appraisals to a calendar year to more effectively New Hires align performance with the financial year results. Appraisals form part of the OTDF performance- based personnel management and remuneration system. An important outcome of performance appraisals was Ƹ Working closely with the Housing Committee the identification of staff training and development to facilitate the relocation of staff from Tabubil needs, with the highest priority identified by 22 staff to Kiunga. Accommodation has been allocated as being project management skills. In response according to staff classification, with the CMCA to this need OTDF sponsored a 4-day project Village houses and units, OTML Compounds, management course delivered in Kiunga in April and third party leases catering for those classed 2015 attended by 10 staff; and a further 5 staff are undertaking sponsored off-site project management training modules utilising their rostered recreation KEY HUMAN RESOURCE DATA 2015 and annual leave. Targeted skills training and Male Female Total ongoing professional development for staff remain a Staff on December priority for OTDF, however achieving coverage of all Payroll staff remains a challenge due to travel commitments Permanent 33 20 53 and FIFO rosters. The HR Department coordinates Casual/Body Hire 41 6 47 the collection of all training statistics and supports managers in their ongoing development of OTDF Training Participants staff skills and knowledge. External Courses Technical Skills Training 2 0 2 The HR Department was established as a fully Professional 31 4 functional team in 2014, and preparation of a HR Development Manual was an outstanding milestone from the 2010 Project Management 4 1 5 Strategic Plan. In its first full year of operation, the team focused on consolidating a range of policies, On-Site Short Courses procedures and templates to be combined into Project Management 8 2 10 a comprehensive Manual which will be finalised M & E Modules (May 10 16 26 in 2016. The Manual will incorporate monitoring 2015) and evaluation principles into the procedures for Safety (see details 46 24 70 collecting data, analysing and reporting on key page71) performance indicators.

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75 62 PGK 2,013 61,542,338.61 PGK 1,840,490.31 PGK 59,701,848.30 2015 Annual Report 64 4% 38% PGK 3,004 7,519 5,417 106,332,864.50 PGK 3,196,693.50 PGK 103,136,171.28 FINANCE ADMINISTRATION DATA 2015 Transactions 2014 2015 Savings Against Budget # Cheques Value # T/T’s Value Total Expenditure Invoices Processed successfully migrated all of the accounting records of the accounting migrated all successfully held in QuickBooks for the last five years into the last five years for the held in QuickBooks early in commenced software. The process Attaché data processing was being May and by November on both systems for the eight carried out in parallel Trust accounts. also significantly reduced the The Finance Team to overdue supplier accounts company’s exposure to accounts payable procedures by making changes OTDF to pay suppliers within their that has enabled Fixed Asset Register, which is trading terms. The was reviewed and updated in maintained in Attaché, for all assets June and adjustments made to account Management that were approved by the Executive end of the 2015 Team to be written off. At the Value of PGK financial year, OTDF carried a Net Book compared to PGK 1.5 million, including depreciation budget savings 1.4 million in 2014. OTDF achieved 2015, due mostly of near PGK 10 million or 38% in during the to the reduced operational costs incurred suspension of operations. Department in A re-organisation of the Finance of financial late 2015 resulted in the separation which will be activities into two functional areas Administration fully operationalised in 2016. Finance annual budgets; is responsible for preparation of and ensure accurate posting of transactions ensure there is maintenance of appropriate records; oversee payroll a full audit trail for all activities; and Reporting and accounts processing in Attaché. financial system and Compliance is responsible for statutory maintenance, reporting and ensuring compliance. The restructure is expected to improve efficiency and create greater synergy between the Finance Department, the EMT and staff. Bedding down these processes has prepared the Finance Team to meet the challenges expected in 2016 under the new OTDF Strategic Direction. OTDF Headquarters The provision of monthly financial reports to OTDF The provision of monthly financial basis for regular budget custodians has formed the conversations on budgets, including variances; assisting in activity planning; cash flow management and for reporting to the Executive Management Team (EMT) and the Board. The final task of integrating all financial data into one system was completed during the year when CMCA Trust Administration In 2015, the Finance Administration Department In 2015, the Finance Administration software to consolidated its use of the Attaché enhancements broaden the scope for reporting, with Payroll, to Management and Project Accounting, and Human Contracts, Fixed Assets, Purchasing improvements Resource administration. This included of a range in workflow processes, requiring revision processes. All of templates to align with the new Link software modules are integrated with Power This has for reporting on projects and programs. to enable a included loading of sector information system to support more integrated project reporting Monitoring and requirements under the OTDF Evaluation Policy. The OTDF Finance Administration Department is Department Finance Administration The OTDF through financial services for providing responsible projects development supporting transactions by the CMCA Trusts and and programs funded the Western Province People’s the State, including Finance Administration is also Dividend Trust Fund. and reporting on OTML accountable for managing provided by OTML. Transactions operational funding the Attaché Financial Management are processed in handles Purchasing, Accounts system which Receivable, Payroll, Contract Payable, Accounts and Reporting. Finance Administration, Budgeting that OTDF complies with Administration ensures for managing the specific policies and procedures funds under and reporting on program and project specific funding agreements. FINANCE ADMINISTRATION FINANCE Delivering with Innovation www.otdfpng.org 77 2015 Annual Report Delivering with Innovation www.otdfpng.org 79 2015 Annual Report Delivering with Innovation www.otdfpng.org 81 2015 Annual Report Delivering with Innovation www.otdfpng.org 83 2015 Annual Report Delivering with Innovation www.otdfpng.org 85 2015 Annual Report Acronyms

Abt JTA - Middle and South Fly CMCA Health NBC - National Broadcasting Corporation (Radio) Development Program Contractor NDoH - National Department of Health ACIAR - Australian Center for Agricultural NEC - National Executive Council Research NFA - National Fisheries Authority AES - Avenel Engineering Systems NFDHS - North Fly District Health Services BAC - Blood Alcohol Consumption NFHSDP - North Fly Health Services BD - Business Development Development Program B4MD - Business for Millenium Development NFRL - North Fly Rubber Limited CA - Cultivated Agar OH&S - Occupational Health and Safety CD - Community Development OLAM - largest agricultural commodity trader in CEO - Chief Executive Officer the world CES - Community Education Services Olgeta - Tok Pidgin meaning All CHS - Catholic Health Services OTDF - Ok Tedi Development Foundation CMCA - Community Mine Continuation OTML - Ok Tedi Mining Limited Agreement OTPL - Ok Tedi Power Limited CMSFHP - CMCA Middle & South Fly Health PBN - Private Branch Network Program PGK - Papua New Guinea Kina (national CPO - Chief Program Officer currency) CR- OTML Community Relations Department PLAM - Procurement, Logistics and Asset DEC - Department of Environment and Management Conservation PNG - Papua New Guinea DFAT - Department of Foreign Affairs and Trade PNGFM - Commercial Radio Station (Australia); formerly AusAID PNGSDP - PNG Sustainable Development DMPGM - Department of Mineral Policy and Program Limited Geohazard Management PRA - Pacific Rainforest Alliance ECPNG - Evangelical Church of PNG SME - Small and Medium Enterprises EMT - Executive Management Team SPA’s - Seed Production Areas EMTV - Commercial Television Service STC - Steamships Trading Company ESD - Engineering Services Department TCS - OTML Tax Credit Scheme FIFO - Fly In Fly Out TB - Tuberculosis FM 100 - Commercial radio Service TKI - Tawap Kamen Investments FODE - Flexible Open Distance Education T/T - Telegraphic Transfer FRPG - Fly River Provincial Government TV WAN - Commercial Television Service GIS - Geographic Information System VHV - Village Health Volunteer GPS - Global Positioning Sytem VPC - Village Planning Committee HR - Human Resource W & C - Women and Children ICT - Information and Communications WA - Women’s Association Technology WAN - Wide Area Network IPA - Investment Promotion Authority Wantok Niuspepa - Tok Pidgin meaning Friend/ IRC - Internal Revenue Commission Relatives/Speaks the Same Language newspaper IS - Information Services WaSH - Water Sanitaion and Hygeine JD - Job Description Wokabout - Tok Pidgin meaning Portable (in Kibung - Tok Pidgin meaning Gathering reference to sawmills) Kundu2 - National Television Station WPDC - Western Province Disaster Committee LBL - Lotic Bige Limited WPPDTF - Western Province People’s Dividend LDP - Livelihood Development Packages Trust Fund LLG - Local Level Government LTI’s - Lost Time Injury Acknowledgements: MFDHS - Middle Fly District Health Services Sally Lloyd - rice distribution pictures on pages 7, MFWA - Middle Fly Womens Association 9, 19 & 34 M&E - Monitoring and Evaluation Abt JTA - health associated pictures on pages 26, MTDP2 - Medium Term Development Plan #2 27, 28 & 29 NARI - National Agricultural Research Institute Cathy Deane - late Samuel Famiok on page 46

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Delivering with Innovation www.otdfpng.org 87 134,500 PNG National Department of Education Promotion Authority Tohmatsu Not for profit Tax deductible 2015 Annual Report (Source CMCA (Source CMCA Census 2014) LLGs –14 Wards – 283 PNG National Department of Health 1 April 2002 Investment 1 March 2010 2013 Deloitte Touche Number - vabyA0407204486v1 665088743 Date - 19 July 2012 Payments or Contributions to the Foundation Value Added Tax percent Zero 2025 2016-2020 2016-2020

201,351 CMCA 201,351 Districts - 3 (North Fly; Middle Fly; South Fly) 2011 CMCA Village Profiles (OTDF) OTDF project specific Feasibility Studies and Evaluations OTDF GIS (spatial data) OTDF FORMATION INDEPENDENT FROM OTML COMPANY REVIEW CONSTITUTION TAX STATUS OK TEDI MINE LIFE EXTENSION DATE GENERAL INFORMATION GENERAL CORPORATE INFORMATION Total Western Total Western Province (Source 2011 National Census) Fly River Provincial Government Administrative Centre - Kiunga CMCA 151 CMCA 6 Mine 157 Total Total - 8North Fly - 14 PNG National Statistics Office (2011 North Fly - 3 Middle Fly - 9National Census and other intercensal data) Fly - 16 South Middle Fly - 1 Fly - 4 South Number allowed – 8 Number - 5 Western Province - 5 Year Provincial Development Plan - 2013-2017 Western Province - 5 Year Provincial Development Economic Development; Infrastructure; Social and Health; Education; Local and Regional Community Development National - 2017 Provincial – 2017 LLG - 2017 Headquarters – Kiunga Samagos Agriculture Centre; Aiambak, Obo, Sturt Field Bases - Tabubil Agriculture Centre; Island; Nakaku; Tapila Tapila; Koabu; Wipim Nomad; Lake Murray; Aiambak; Balimo; Number Issued – 4 OTML - 3 PNGSDP - 1 Members - 13 Total 61 FemaleMale 19 PGK 18 million from OTML 42 Table 3: Operating Environment Snapshot Operating Environment Table 3: POPULATION GOVERNMENT ADMINISTRATIVE STRUCTURES VILLAGES CMCA TRUST REGIONS (see also map) CMCA MODEL VILLAGES (Dec 2015) BASELINE DATA SOURCES FOR RESULTS MONITORING AND EVALUATION DIRECTORS (Dec 2015) OTDF SECTORS ELECTIONS BASIS OF THE ECONOMY OTDF HEADQUARTERS OTDF HEADQUARTERS & FIELD BASES (see also map) PROVINCIAL GOVERNMENT GROWTH CENTRES (see also map) OTDF SHARES ADVISORY COMMITTEE PERMANENT STAFF (Dec 2015) 2015 ANNUAL EXPENDITURE 2015 Annual Report

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