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Contribution of Forestry to Poverty Alleviation - APFNet

Contribution of Forestry to Poverty Alleviation - APFNet

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landowners also expressed similar sentiments on the lack <strong>of</strong> rental payments by the State. The State<br />

lease agreements with cus<strong>to</strong>mary landowners are generally done through the Lands Departments,<br />

which is then responsible for the rental payments.<br />

Nature <strong>of</strong> the project<br />

The Brown River and Kuriva Plantations are about 20 km apart and located approximately 20 and 40<br />

km away, respectively, from Port Moresby, the country’s capital city. The project falls under both old<br />

and new policy measures as the plantations were established under the old policy measures while the<br />

harvesting and marketing are under the new policy measures <strong>of</strong> FMA.<br />

The company built this school building at Brown River teak project area<br />

In this project, PNGFIA represented the State <strong>of</strong> PNG and entered in<strong>to</strong> an Agreement with a developer<br />

<strong>to</strong> undertake project development and management activities. The developer was granted Timber<br />

Permit-3-37 for 35 years commencing on 29th May 1997 and expiring on 28th May 2032. After that,<br />

the developer was replaced by a new one, though still using the same TP (3-37). Current operations are<br />

at the Brown River Plantation but the developer has moved some equipment <strong>to</strong> the Kuriva Plantation <strong>to</strong><br />

start harvesting the trees. Technically, these are two different resources and environmental conditions,<br />

therefore the terms and conditions should vary. The developer should not be moving <strong>to</strong> Kuriva and<br />

operate under the same permit conditions for the other plantation.<br />

The terms and conditions <strong>of</strong> the TP are incorporated in the Agreement. Through the TP, the State<br />

(through PNGFIA) granted the exclusive rights and obligations <strong>of</strong> the developer <strong>to</strong> develop and<br />

manage the Brown River Plantation in accordance with sound forestry principles, good forestry<br />

practices, and the principle <strong>of</strong> sustainable yield. Subject <strong>to</strong> these principles, the developer is required<br />

<strong>to</strong> develop and manage the forest resource in accordance with set schedules for harvesting, replanting,<br />

and processing <strong>of</strong> timber.<br />

Under the TP Agreement, the developer was <strong>to</strong> establish an average <strong>of</strong> 170 ha <strong>of</strong> teak plantation forest<br />

257<br />

Gae Y. Gowae

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