Report on the Implementation of the derogation to ... - Trade Websites

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
Project Agreements established between the Independent State of Papua New Guinea, the relevant
provincial Government and tuna processing companies include a specific provision relating to
broader socio-economic benefits, entitled ‘Provincial and Local Benefits’ (Clause 11). 91
Under the ‘Provincial and Local Benefits’ provision of Project Agreements, existing and
new/proposed Lae-based tuna processing developments are subject to the following
requirements: 92
• Annual meeting with Morobe Provincial Government – meetings must be held annually (and
as required) to discuss provincial and local benefits from the project in terms of utilising,
purchasing and encouraging food production and marketing, service industries and coastal
fishing in the Province. The meeting shall attempt to address immediate issues of concern
including direct and indirect benefits, fair and equitable opportunities to facilitate real
participation by local people etc.
• Priority to local business - the Company will identify business opportunities for participation
and give priority to the local landowners in the sourcing of any supplies or services related to
secondary business activity. Wherever possible supplies and services will be sourced from
local businesses in Morobe Province.
• Assistance to locally based artisanal fishers - the Company will give priority to local artisanal
fishers to participate in the supply of fish at fair value/price to the company’s processing
plant. The Company may also provide credit facilities for the purposes of assisting such
fishers to acquire small boats, eskies, ice and fishing gear.
For Madang-based tuna processing facilities, the requirements stipulated under ‘Provincial and Local
Benefits’ in Project Agreements are more extensive. This may relate to the fact that social issues
with Madang communities are long-standing and complex, whereas fewer issues have been raised in
Lae and Wewak.
In addition to holding an annual meeting with the Madang Provincial Government, giving priority to
local businesses and providing assistance to local artisanal fishers (as per the requirements for Laebased
operations), Madang-based companies are also required to undertake the following:
• Priority to local business participation – give first priority to citizens or registered business
entities living in the project impact areas whose eligibility is determined by land geneaology
studies and incorporated land groups.
• Local business spin off – in consultation with Madang Provincial Commerce Office, formulate
and develop viable business plans to be supported through the Local Business Development
Programme of the company. The company will identify and provide a list of business spinoff
activities and opportunities for participation. Priority for the listed business spin-off
activities and opportunities shall be given to the project impact area communities in the
sourcing of any supplies or services related to secondary business activities.
• Local business content – the company shall reserve certain business spin-off activities for the
local people/citizens. The parties will consider the immediate and long term opportunities
91 During the course of the review, the consultants’ had the opportunity to review Project Agreements for a
number of PNG’s tuna processing operations, including existing, approved and proposed projects. The text of
the Project Agreements is fairly standard across various processing operations for general provisions, with
project-specific variations concerning targeted plant production capacity and the number of associated fishing
licences.
92 The text largely reflects verbatim the requirements specified in the Project Agreements; minor textural
adjustments have been made by the consultants’ to enhance readability.
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