A new dawn in Gulf

The National Weekender

By CYRIL GARE
‘Y U yet kam na lukim’ – Kerema: April 11, 2018 marked yet a milestone for Gulf.
Further to its fame as host of PNG’s to-be second LNG project and its life-long inferior laid back reputation, this backwater township woke up as early as 5am.
Youths set up the tents, women helped in arranging flowers, sweeping and beatifying the main arena while the sound system team had it all covered. Four memoranda of agreement (MOAs) would be signed today so it is all the reason for such a spruce up and an air of excitement among the 20,000-plus residents of the ‘K’ town.
Gulf Governor and a one-time former Deputy Prime Minister, Chris Haiveta arrived in a chartered aircraft later in the day and hosted the ceremonies. He was accompanied by Internal Revenue Commissioner General, Betty Palaso, Department of Justice and Attorney General Secretary, Dr Lawrence Kalinoe and Consul General and lawyer Sumasi Singin.
Yesterday, First Secretary of the Agriculture and Livestock Ministry, Jarvi Abisa with various reps from seven State agencies arrived by road from Port Moresby accompanied by a contingent of journalists and a television crew. The four hotels and lodges in town were fully booked, a real boost for the local hospitality and tourism industry.
The agencies included IRC, Tourism Promotion Authority, represented by CEO Jerry Agus, National Museum and Art Gallery (Alois Kuaso, acting director), National Cultural Commission (John Uani, executive director), Investment Promotion Authority (a rep for Clarence Hoot, acting MD), National Development Bank (Daniel Wohiembe), and Cocoa Board of PNG reps for CEO, Boto Gaupu; Tony Vigil, Charles Koel, Jeffrey Marfu, David Yinil, and Anton Varvaliu.
But only four will sign MOAs with Gulf which Governor Haiveta described as “small but significant” and for “progress and change” for the province. Under one of the MOAs, the NDB will establish a new branch in Kerema and facilitate a K4 million credit scheme which Credit Scheme general manager Daniel Wohiembe described as “a great leverage for security funding” and said Gulf people “must now take the opportunity to access credit financing”.
Whilst it was a “great risk” the NDB has taken to come rural, Wohiembe however, commended Governor Haiveta and his government for the bold move and vision to partner the bank in rolling out the credit facility for the rural unbanked.
Wohiembe said K1 million will be available for the churches to access credit financing, K1 million for women while K2 million will be available for other SME financing.
Loans allowable at K5,000 minimum and K30,000 maximum which avoids the radar of a 9 per cent commercial interest rate. Later, clients could graduate to K50,000 loans.
The NDB/Gulf MOA compliments and harnesses the financial inclusion and banking policy of the Bank of PNG where it is intended to make more Papua New Guineans become ‘bankable’. It also compliments and harnesses the indigenous SME stimulus policy of the Government via the commerce and industry ministry and department.
With the IRC MOA, Palaso said it was in line with the 2018 budget where the National Government intends to raise K9 billion in taxes for internal revenue. The 22 provinces are expected to contribute meaningfully now more than ever.
Palaso said IRC intended to wok wantaim the provincial governments in areas of conducting more tax awareness and tax compliance and enforcement on companies operating in provinces to pay their dues. In return provincial governments will receive their shares and improve their respective internal revenue budgets.
Under the NMAG MOA, acting director Alois Kuaso said a major cultural identification programme would be rolled out in the province to lay the road map for the development of tourism hot spots, and related historical and cultural events and activities in Gulf.
Kuaso took the opportunity to urge public servants to stay in Kerema and work instead of regularly roaming into Port Moresby for no ideal purposes.
The Cocoa Board signed a K2 million technical assistance MOA with the Gulf government.
The board’s executive manager Industries and Corporate Services, Tony Vigil said CB “is serious, is here and ready to assist Gulf province” in primarily three areas: i) revive the cocoa industry in Gulf, ii) build farmer’s capacity (skills and knowledge), and iii) return the confidence of people in growing cocoa and put money directly into peoples’ pockets.
Gulf was once a cocoa growing province however, the industry collapsed due to lack of government will and industry support and this trend is expected to change under the revamped leadership of Chris Haiveta as governor.
Vigil said that the National Government allocated more than K700 million in the 2018 budget to the agriculture sector, prioritising it as the key driver for economic recovery.
And cocoa is among coffee, rubber, oil palm and other such cash crops which the Government demands results from.
The Government intends to increase the country’s cocoa production from 40,000 tonnes per annum currently to 310,000 tonnes annually by 2030, to generate K1 billion in export earnings from the current K300 million.
Also, cocoa bean products from PNG must meet accepted (ICCO) trade standards or suffer an entry ban into the world market by 2020.
Under the Cocoa Industry Strategic Plan 2016-2025, the board is adamant to meet these standards, after having initiated innovative projects in five key areas:

  • Nursery establishment and roll out programmes;
  • Rehabilitation of cocoa plantations;

Cocoa quality improvement programme;

  • Road infrastructure and market access; and
  • Institutional capacity building.

“Our coming here and presence in Kerema today tie in well with the Cocoa Board’s roll out initiative and that is to reach out to as many as possible or all the provinces that are growing or have potential for growing cocoa.
Together we can meet the demand and expectation of the Government to increase cocoa production in the country,” Vigil said.
He said the Cocoa Board was ready to start the implementation of the MOA by June however, he challenged the Gulf government and its administration not to let the document “collect dust” and fade into oblivion.

  • Cyril Gare is a freelance journalist.