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

would bring KK7,396,000 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 “oralternatively spend[ing] this amount on some infrastructure related to this project like upgradingthe road from Yawasoro to the wharf. This spending on infrastructure can then be convertedinto equivalent share allotment.”Bisambi recommends a 10% equity in the project, however, and furthermore suggests that theESPG “consider transferring two percent (2%) of its share to the Wewak islands LocalGovernment Council to allow tangible economic benefits to flow back to the resource owners.In actual fact tuna fishery is a highly migratory fish stock and therefore no particular group ofislanders can claim legal ownership unless the catch is within the 3 mile limit of the island(s).”The 5% Derivation Grant expected to come to the ESPG from export duties on the loins isestimated at K20 million. It’s impossible, however, to gauge the reliability of this amountwithout more knowledge of market prices and export quantities.2. Excerpts from the Project Agreement for Tuna Processing andExport Facility in Wewak, East Sepik Provincebetween The Independent State of Papua New Guinea and East Sepik ProvincialGovernment and South Seas Tuna Corporation Ltd (Department of the Attorney General)signed 5 July 2000:At that time “South Seas is a joint venture company consisting of ANGCO Limited (“ANGCO”)as The National venturer, FCF Fisheries Co., Ltd (“FCF”) and Starkist Seafood Company, adivision of Starkist Foods, Inc. (“Starkist”). “FCF is a company incorporated in Taiwan and isthe world’s leading Tuna brokering company, which currently supplies Round Tuna loins toprocessors around the world.”…“Starkist is a division of Starkist Foods, Inc., a companyincorporated in the State of California, and is the world’s pre-eminent processor and marketer ofTuna, and its parent, H.J. Heinz and Company , is the world’s leading food processing company.”“The State also acknowledges the commitment of South Seas to the policy of domestication ofdistant water fishing vessels by way of priority purchase of Tuna from Papua New Guineancitizen owned vessels owned by Papua New Guinean citizen companies.”“The State acknowledges that in view of high initial capital expenditure involved, South Seaswill be granted the necessary incentives similar and comparable to but no less than those grantedto other similar projects within the domestic industry of Papua New Guinea.”P31: The Company shall in accordance with the Business Development Plan, encourage local andother PNG citizens wishing to establish businesses providing goods and Services to the Projectduring Operations, provided that the Company shall not be obliged or called upon to grant or lendmoney to any PNG citizens or any local enterprises.”“The State shall not promulgate or apply environmental standards to the Company that are, whenviewed objectively, more onerous than those that govern and regulate environmental conduct andstandards for the Industry in general under the waste water quality effluent standards; under the62