Source: The National,
THE full impact of Prime Minister Peter O’Neill’s announcement yesterday on Frieda Copper was lost on many people.
He told people in Vanimo, West Sepik, that their provincial headquarters would become the export/import centre for all Frieda copper mine activities.
Until now, it has been thought that neighbouring Wewak, not Vanimo, would play host to the mine. Such a commitment, should it bear fruit, will change the face of this border town which, until now, has been much neglected despite its excellent harbour and its idyllic location. It would be safe to say that there are more Indonesian merchandise traded in this town than PNG’s own products - a further sign of neglect.
The idea has wider national bearing. So many provinces provide the resources but are themselves destitute. The prime minister’s own Southern Highlands and Hela provinces bear witness to this.
Since 1989, Southern Highlands has been exporting oil out of the Kutubu fields. The fields were soon joined by Moran, Gobe, Southeast Mananda and Juha. That is 23 years of exporting oil. Surely, there ought to be some substantial infrastructure in the pro­vince.
About a decade after first oil, O’Neill himself, in a private capacity, was involved in a proposal to drive a super highway from Southern Highlands right down to the Gulf of Papua. At the Gulf of Papua was to be deve­loped a major port, a second Lae giving the resource-rich highlands provinces a second sea access to the south of the country.
Today, more than a decade on and with O’Neill at the helm, the road has not yet reached the Gulf. There is no Gulf port.
If the people of that pro­vince today clamour for their dues in cash, it is because they have no trust in their government to deliver the goods. Seen in that perspective those of us who are piqued by their incessant clamoring can sympathise with them. In that time, the Southern Highlands and now Hela, have contributed some 50% of PNG’s total annual export earnings. Truth be told Southern Highlands and Hela are not alone, the rest of PNG have not seen much of the money.
Still owners of resources must at least see some deve­lopment.
And now the two provin­ces are to play host to ExxonMobil’s largest LNG project in the world. What will the story be?
The story is similar in neighbouring Enga. Porgera gold mine started exporting gold in 1984. Twenty-eight years later, murder, rape and tribal fights rage around the mine. The road from the mine to the provincial headquarters, Porgera, is yet to be sealed. Most of the other districts rank in the least developed stages.
And, yet, Porgera has contributed handsomely to the national coffers. Only the Enga children’s fund, the brain child of Governor Peter Ipatas in 1997 is a saving grace and now has investments worth K100 million for the future generation of that province.
That has been the pattern of development from the days of Bulolo-Wau in the 1930s to Bougainville Copper in the 1970s and now all the major resources in PNG.
They say gold from Bulolo-Wau built Brisbane and Sydney. We have no concrete evidence but they must have because we have seen no evidence of them in Bulolo or Wau or Lae for that matter.
Bougainville Copper Ltd brought in 19% of all export earnings for the country when it was around but the majority of people of Bougainville were sustained by their cocoa and copra.
Today, Gulf is among the poorest provinces in the country. Yet, it has the capa­city to become quite wealthy. Through much of its territory passes the pipeline for the oil and soon the gas pipeline as well. If the refinery or the LNG were to be stopped in Gulf, the province would do well indeed. But it is Central and the National Capital District, where much development is concentrated already, that are going to benefit.
Gulf, like its brothers Hela, Southern Highlands and Enga, will just lend its space and be content with the bones thrown at it.
Government policy and law if needed, but there must be legislation that a certain minimum amount of development in the host province is a prerequisite for resource development.
The minimum unconditional grant principle must be applied on a larger scale to cover infrastructure development.
And it must not just be law and policy. It must be implemented. Let that be the path into the future.