Fishy business. The Social Impact of SST.pdf - Act Now!

Kreer people report that Frances Sumanup and Joachim Nianguma were part of the initialawareness of the project. Baltazar Kaprangi was involved in documentation and licensing.Kevin Conrad [an American raised in Maprik with SIL parents] and Joachim Niangumapromised to use the undeveloped land at Yawasoro. Somare also promised Nick Artekain of theESIA to assist them to develop their projects. Kinson Kare was there too. Somare offered 1million kina to ESIA but then reneged. They believe this money was then given to Sir Hugo.Arthur Somare and Narokobi signed the project agreement.“Why did Somare and Narokobi the pillars of Sepik society and the State of PNG with theirrespective government Ministers and Department Heads sign the agreement knowing that therights of the resource owners were not protected?”“What’s Hugo’s role I all this?”Paul Bisambi, the Senior Policy Planner for the East Sepik Provincial Administration, producedan analysis of the benefits of the tuna loining factory in January 2000 (see below). Under theheading ‘Earnings to ESPG from Equity Participation in the Tuna Loining Project’ Bisambinotes that ESPG has only expressed interest in participating at that point, and the jointy ventureshare arrangement at the time was: ANGCO Pty LTd at 50%, FCF of Taiwan at 46.9% andStarkist of USA at 3.1%. He suggests three scenarios, based on ESPG equity participation of2%, 5% or 10%. Based on an estimated total value of export earnings for years two to five, ofUS$47,553,000, the 2% deal would garner the ESPG K2,958,000 in gross earnings; the 5% dealwould bring K7,396,000 for the same period; and the 10% deal would bring K14,791,000 forthose years.Interestingly, though, because this analysis is based on the first plans to base the factory atYawasoro, each of the three investment scenarios takes into account an injection of cash,or alternatively spend[ing] this amount on some infrastructure related to this project likeupgrading the road from Yawasoro to the wharf. This spending on infrastructure can then beconverted into equivalent share allotment.Landowners saw no written materials about the loinery before it arrived.During the negotiationsfor the loinery the Habours Board and the Provincial Government met with the Kreer peopleand discussed the land. They came to a compromise and the Kreer people gave their blessing forthe land to be developed. However it was Francis Sumanup’s idea that they shift to Saure atYawasoro because it is State land. He also indicated that the Kreer gave their blessing. It wastoo swampy and Yawasoro is dry and better suited. On the other hand, if the loinery were builtin Yawasoro electricity would be expensive to extend down there; building a waste disposaldrain would be difficult; trucks carrying fish from the wharf to the factory would be a healthhazard and the ice could melt; and there would be roadworthiness precautions.Tom Fandim told us the site where SST is located now is commercial land. According to him,SST plans to expand the factory and take on board a cannery to divert that part of the processfrom Western Samoa back to PNG.Other plans for expanding Wewak include bringing in more light industry. Sites have beenidentified to build an Offshore Master Processing Plant. A dredge has been hired from Cairnsin Australia and is currently dredging at the main wharf to allow big ships to come in. K1.2million has been committed from this upgrading project. The wharf will be extended 20-3054