Page 1

Investment Opportunities in the Pacific Islands | 2011


Contents 6 7 11

About Pacific Islands Trade & Invest

12 Cook Islands 14 Fiji 17 Federated States of Micronesia 18 Kiribati 20 Marshall Islands 21 Nauru 23 Niue 25 Palau 27 Papua New Guinea 30 Samoa 32 Solomon Islands 34 Tonga 37 Tuvalu 38 Vanuatu

42

Map of the Pacific Islands

Introduction: The Pacific Islands economy Investment opportunities by country

Kayaking on Espiritu Santo, Vanuatu Credit: Vanuatu Tourism Office

3


Investment Opportunities in the Pacific Islands is published by Pacific Islands Trade & Invest (an arm of the Pacific Islands Forum Secretariat), PO Box 109-395, Newmarket, Auckland, New Zealand This publication is available free online at www.pacifictradeinvest.com. All enquiries relating to this publication should be sent to email investment@pacifictradeinvest.com. © Copyright 2011 Pacific Islands Trade & Invest/ Business Advantage International Pty Ltd ISBN 978-0-9871678-1-1 Editorial contributor: Pacific Islands Trade & invest

Produced for Pacific Islands Trade & Invest by Business Advantage International, www.businessadvantage.co Cover image reproduced by kind permission of the Samoa Tourism Authority. Printed in Australia. Both printer and paper manufacturer for this publication are accredited to ISO14001, the internationally-recognised standard for environmental management. This publication is printed using vegetable inks and the stock is elemental chlorine free and manufactured using sustainable forestry practices.

The work of Pacific artists that appears throughout this publication appears by kind permission of Okaioceanikart. Okaioceanikart is the world’s only Pan-Pacific gallery representing established and emerging artists of Polynesian and Melanesian heritage. Assisting artists of the region and elsewhere to earn a living by their artmaking contributes  to the development of creative industries of the Pacific. Viewing by appointment at okai@Reef Gallery, 69 Beach Rd, Auckland, New Zealand, tel +64 27 2854350 or visit www.okaioceanikart.com. Currency exchange rates provided are as of August 2011.

D isclaimer The information in this publication (Information) is for general information purposes only. The Information does not constitute an advice, advertisement, invitation, offer, solicitation, prospectus or a recommendation by Pacific Islands Trade & Invest nor any of its employees, contractors or officers (PT&I) to buy or sell any product or security or to offer any investment or financial service or facility by PT&I. You should seek professional advice and undertake appropriate due diligence before making any investment decisions. a) PT&I endeavours to ensure that the Information is up-to-date at the time of publishing, however: b) PT&I does not make any express or implied representations or warranties regarding the Information;

4

c) PT&I does not accept any liability, for any reason whatsoever, for any loss, claim, action or damage which may arise in any way from: - use of the Information; or - errors in, or omissions from, the Information; d) PT&I is not responsible for the content of any websites or references linked to, or referenced in the Information. The inclusion of, or reference to any link to another website, or reference to any specific investment, product or service, whether by trade name, trade mark, manufacture, or otherwise, does not constitute an endorsement, verification or recommendation by this publication or PT&I; e) PT&I does not endorse any business or investment opportunities featured in the Information;

f) the Information should not be construed as investment, legal, financial or professional advice of any type whatsoever; and g) each and every part of the publication must be read in conjunction with this disclaimer. The distribution of the Information in jurisdictions outside Australia and New Zealand may be restricted by law. Any failure to comply with these restrictions may constitute a violation of the laws of an applicable jurisdiction. International investors are reminded of the risks inherent in international investments, such as currency fluctuations and economic conditions, which may adversely affect the value of the investment.


F ore w ord

Let’s help you explore the Ocean of Opportunity …

t

Caleb Jarvis

Adam Denniss

he vast Pacific Islands region is home to

representative investment boards and private sector

some of the world’s most diverse cultures

organisations of these countries to document a list

and history. The Pacific represents one of

of projects we think are ready for investment—the

the world’s least explored regions – both for natural

first time such a prospectus has been produced in

resources and for the potential it offers in a range of

the Pacific. We extend our invitation to look at the

investment sectors in one of the most peaceful and

Pacific and its many nations and to contact us if you

beautiful environments anywhere on earth.

have an interest in the opportunities listed here.

The Pacific Island nations are working hard

Projects cover a range of industries: minerals

to attract investment into their countries. While

and mining, infrastructure, tourism, agriculture,

their populations are often small, herein lies their

real estate and renewable energy, to name a few.

most distinct advantage. These smaller economies

It is by no means a final list and we invite you to

offer opportunities usually only available to large

view an expanded list on our website, www.invest.

multinationals and big government in larger, more

pacifictradeinvest.com. This publication is designed

developed countries. Equally, it offers a world-class

to assist you in identifying potential projects and

product in some of its more developed industries,

progressing with an enquiry.

such as tourism. Pacific Islands Trade & Invest (PT&I) is the

The Pacific is a place of clean, green and organic living. It has endless summers, clean waters and rich

Trade Commission of the Pacific Islands Forum

volcanic soils perfect for growing. It is a safe place full

Secretariat and represents the 14 Pacific Islands

of friendly and welcoming people who live together in

nations and their trade and investment needs. Over

a rich and diversified culture.

the past six months, we have worked closely with the

Caleb Jarvis Trade Commissioner Pacific Islands Trade & Invest, Australia

It is an Ocean of Opportunity.

Adam Denniss Trade Commissioner Pacific Islands Trade & Invest, New Zealand

5


About Pacific Islands Trade & Invest lead export facilitation, investment and

p

effective communication, capacity building and

tourism promotion agency.

a commitment to developing and strengthening

Secretariat based in Fiji, we focus on export-capable

Pacific region.

acific Islands Trade & Invest is the region’s

As an arm of the Pacific Islands Forum

businesses and the international promotion and support of exporters in Pacific Island countries. We are the only Pacific Islands agency tasked by leaders to develop, grow and promote industry and the businesses of all 14 Pacific Island countries in export, investment and tourism promotion across international markets. Our offices in Auckland, Sydney, Beijing and Tokyo work with exporters from the Pacific Islands to promote their products and services as well as attract investment to Pacific Islands businesses. We do this by: • Developing export-capable businesses • Promoting and connecting export-ready businesses • Connecting exporters with international buyers • Facilitating the marketing of niche Pacific Island tourism services and products • Introducing potential investors to the Pacific Islands • Providing promotional support, networks and technical expertise • Facilitating shared understanding between markets By facilitating successful partnerships between

Our partnership philosophy is based on

relationships for sustainable economic growth in the Our work would not be possible without the support of our strategic partners including: • Pacific Island governments • Governments of China, New Zealand, Japan and Australia • Donor-funded projects • Multilateral agencies • Non-government organisations • Regional organisations • Associations • Service providers

OUR VISION We work together to create greater international opportunities for Pacific Islands businesses in order to build a better future through more sustainable communities and greater prosperity.

OUR MISSION To contribute to the sustainable economic development of the Pacific Islands countries,

the private sector and government agencies, and

by creating opportunities for successful

between exporters and overseas buyers, we are able

connections for exporters, investors and

to extend the potential of our service offering and

stakeholder organisations.

the business outcomes for our clients. Contact us by phone

Email us at

Or for more details visit

Auckland +64 9 529 5165 Beijing +86 10 6532 6622 Sydney +61 2 9290 2133 Tokyo +81 3 5259 8419

investment@pacifictradeinvest.com (investment opportunities) info@pacifictradeinvest.com (general enquiries)

www.invest.pacifictradeinvest.com

6


Port Vila harbour and Iririki Island, Vanuatu Credit: Vanuatu Tourism Office

I ntrod u ction

The Pacific Islands economy In spite of some challenges, the Pacific Islands have many natural advantages when it comes to investment.

t

he Pacific Ocean covers about 30% of the

also mitigate against investment. However, many

world’s surface—a massive 169.2 million

companies across sectors as diverse as tourism,

square kilometres. Scattered across this

mining and petroleum, agribusiness, fisheries,

massive expanse of water are almost 30,000 islands,

forestry, building and construction, transportation,

only 2000 of which are inhabited. These islands are

logistics and communications are doing good

grouped into three regions—Micronesia (north of the

business in the Pacific.

equator), Melanesia (south of the equator and in the western Pacific) and Polynesia (covering the central

The Pacific’s advantage

South Pacific).

The reasons are many. Their pristine and

Geographic remoteness and small population

picturesque environment has made the Pacific

are undoubtedly the major reasons why the

Islands the ultimate destination for tourists of all

Pacific has not traditionally been seen as a major

kinds. Their vast, unpolluted waters contain some of

business destination. The prevailing tenure of

the world’s largest fish reserves and potentially cover

land by communities, rather than individuals, can

significant mineral deposits. The region contains

7


a disproportionate share of the world’s mineral wealth. Its fertile soils, sustainable farming methods and warm climate make it a potential agricultural

The 14 Pacific Island Countries featured in this publication

powerhouse, especially for organically certified produce. It is also a peaceful and largely stable region with low labour costs. Lastly, as a developing market it has the potential to deliver a higher return on investment—although sometimes at a higher risk profile—than a first world economy.

The Pacific Islands as part of the global economy In the western and southern Pacific, Australia and New Zealand are not only major aid donors but also

Micronesia Federated States of Micronesia Kiribati Marshall Islands Nauru Palau

Polynesia Cook Islands Niue Samoa Tonga Tuvalu

Melanesia Fiji Papua New Guinea Solomon Islands Vanuatu

major trading partners with, and investors in, the Pacific Islands. Both Australia and New Zealand now have schemes to bring Pacific workers into their countries for agricultural labouring and both are pushing for a new trading relationship with the Pacific through a new trading instrument, the Pacific Agreement on Closer Economic Relations (PACER) Plus. At the same time, the participation of Singaporean, Malaysian, Philippines, Korean, Japanese and Chinese investors in the region is increasing—across sectors as diverse as retail, fisheries, mining and petroleum, hospitality, forestry, agribusiness and construction.

Improved communications One of the most striking recent developments in the Pacific Islands economy has been the great strides made in communications and transport, making the region more accessible to international markets but also encouraging intra-island trade and investment. While regular shipping services continue to facilitate regional trade, big gains have been made in an increasingly deregulated aviation sector. An increase in the number of airlines servicing the region has driven competition, lowering both the cost of travel and the frequency of air services. Meanwhile, deregulation in the region’s telecommunications sector has seen mobile phone penetration grow exponentially over the past five years (for example, mobile phone use in Vanuatu grew from 11% of the population to 57% within 12 months of the arrival of a second operator). Great progress has also been achieved with internet connectivity, with undersea cables reducing the region’s reliance on costly satellite services and opening the opportunities for internet-enabled enterprises such as internet banking and call centres. Such advances have enabled the region’s three major banks, for instance, to significantly improve services across the region.

Credit: Pacific Islands Trade & Invest

8


The Pacific’s key industries Tourism Tourism is considered the sector with the most growth potential across the region as a whole. The Pacific Island countries already receive well over one million visitors per year, and all 14 countries are actively seeking to increase that figure. For countries such as Fiji, Vanuatu and the Cook Islands, tourism is already the most important sector of the local economy, while others are carving out special interest niches (eg whale watching in Tonga, birdwatching in Papua New Guinea and bone-fishing in Kiribati). The Pacific’s intrinsic competitive advantage

Credit: PNG Tourism Promotion Authority

in tourism is evident. A largely pristine environment with clear lagoons, palm trees and sandy beaches; intact traditional cultures; and a warm climate make the Pacific an ideal destination all year round. And yet it is worth noting that it was actually the deregulation of air travel over the past decade that paved the way for a significant portion of the development of this sector. That growth may have been subdued somewhat in recent times by the global recession, but there is clearly enormous scope for future expansion.

Agribusiness and manufacturing The vast majority of the region’s population derive their livelihoods, at least in part, from agriculture.

Credit: Cloudy Bay Sustainable Forestry

While this is typically on a subsistence basis, a number of successful agribusinesses also operate

infrastructure inevitably pose challenges, the

in the region. For instance, New Britain Palm Oil Ltd,

prevalence of organic farming methods provides

which operates exclusively in Papua New Guinea

an opportunity for producers to tap into high-value

(PNG) and the Solomon Islands, is a world leader in

niche international markets.

its field and is listed on the London Stock Exchange. Growing conditions in the Pacific Islands are

The region’s manufacturing sector primarily satisfies local demand for FMCG (fast moving

generally excellent, with reliable rainfall, rich soils and

consumer goods) staples, eg food and beverage,

warm temperatures. Besides palm oil, important cash

but there are also some notable export successes.

crops include cocoa, coffee, sugar and copra, as well as

Among them are brands like Fiji Water, Samoa

a wide array of tropical fruits, vegetables and spices.

Artesian Water and Pure Fiji, all of which skillfully

If distance to market and underdeveloped

leverage the region’s pristine and exotic image.

9


Fisheries

development, they are somewhat overshadowed

Many of the world’s marine species are found in the

by the US$15 billion PNG LNG Project, led by

territorial waters of the 14 Pacific Island Countries

ExxonMobil. This enormous 30-year liquefied natural

which do, after all, cover the largest water body on

gas (LNG) project is now under construction, with

earth. It is tuna, however, which dominates the region’s

first gas shipments expected in 2014.

fishing industry. Over 50% of the world’s tuna comes

Fuel imports remain a heavy burden on most

from the South Pacific, with the Nauru Agreement

Pacific Island countries. Accordingly the exploitation

regulating fishing activity across the region.

of local renewable energy resources is a priority for

The twin challenges facing the Pacific Island Countries are to add as much value as possible to the

the region’s leaders. © Copyright 2011 Business Advantage International Pty Ltd

fish caught in their waters (as opposed to accepting lower revenues from the license fees paid by foreign

Investing in a slice of paradise

fishing vessels), while also ensuring that the industry operates in a sustainable manner. Besides fish processing, opportunities also exist in aquaculture.

Forestry The exceptionally low land-to-water ratio in the Pacific means forestry is restricted to a handful of countries. Overproduction by international logging firms has led to sustainability concerns in both Papua New Guinea and Solomon Islands. Improved supervision of the sector appears finally to be turning the tide in favour of sustainable practices. As a result, investment opportunities are emerging in plantation forestry and downstream processing.

Mining and energy While the Pacific Island countries are net importers of oil, the region is a major source of other minerals, most notably natural gas, gold, copper and nickel. As commodity prices have rebounded following the global financial crisis, activity in the sector has risen sharply, most notably in Papua New Guinea, but also in the Solomon Islands, Fiji and Tonga. As well as onshore operations, there is a promising but as yet nascent undersea mining sector in the Pacific. Papua New Guinea has the region’s largest mining and petroleum sector. The giant Ok Tedi copper mine alone accounted for 17% of the PNG’s GDP in 2009, while Lihir and Porgera are major gold mines. While new world-class mining projects such as Ramu Nickel, Hidden Valley, Nautilus Minerals’ Solwara 1 and Xstrata’s Frieda River are in

10

A European Union-funded study of the tourism sector in the Pacific Islands has mooted a $US50 million investment vehicle to boost the sector in the region. In most Pacific Islands, John Perrottet tourism is either the highest or second highest revenue earner and is certainly the largest single employer. The study, commissioned by the Bangkokheadquartered Pacific Asia Travel Association (PATA), was headed by Sydney-based John Perrottet, who has spent several years with the International Finance Corporation (IFC), the World Bank’s private sector investment arm, working on the financing of tourism projects in the Pacific region. The conclusion of the second and final stage of the Tourism Investment Vehicle initiative has now been completed and submitted to the European Union’s Centre for Development of Enterprise. The findings of the report were overwhelmingly positive for the creation of a structured investment vehicle that would provide a funding platform for approved tourism and hotel developments.  Investments could include the financing of new projects as well as the expansion, upgrading and refinancing of existing assets. The vehicle would be managed externally and mirror similar investment structures more suited to the needs of both financial institutions and/or individual investors.  ‘There is strong demand for finance in the Pacific tourism sector and an appetite among investors to increase exposures.  What is missing is an effective mechanism for investors to participate in a way that manages risk.  This initiative will directly meet that challenge,’ said the report’s author, John Perrottet.


Investment opportunities by country

11 Pictures (clockwise from top left): Vava’u, Tonga (credit: Tourism Tonga); Port Moresby, Papua New Guinea; building in Nuku’alofa, Tonga (both credits: Business Advantage International ); Espiritu Santo, Vanuatu (credit: Vanuatu Tourism Office)


Credit: Pacific Islands Trade & Invest

Cook Islands 1770, the Cook Islands consists of 15 widely dispersed islands, situated between Fiji and French Polynesia. Cook Islanders hold New Zealand citizenship and many have migrated over the past decade. In spite of this, the nation’s tourism industry is flourishing

Population:

13,200 (2009)

Capital:

Avarua, Rarotonga

Surface area:

240 sq km

Business language:

English

Political status:

self-governing nation in free association with New Zealand

Nominal GDP: US$206.5 million (2009) Currency:

New Zealand dollar (NZD)

100,000 visitors per

Major industrial sectors:

tourism, black pearls, offshore finance centre, fruit (fresh and tinned), fish and clothing

year) and is well-

Exports:

pearls, pawpaw, clothing

placed to expand.

Major export markets:

Japan, New Zealand, Australia, Hong Kong, USA

Imports:

food, animals, machinery, mineral fuels

Major import markets:

New Zealand, Fiji, Australia

(it receives around

Jeke Lagi, ‘Hidden paradise’ (painting, acrylic on canvas) Credit: Okai Oceanik Art

12

© Copyright 2011 Business Advantage International Pty Ltd

Named after Captain Cook, who visited in


Investment opportunities

Frangi Black Rock Villas Luxury villa development as part of a new resort Sector: Tourism Location: Rarotonga Project size/Investment value: NZD$1,500,000 (USD$1.,230,000)

Expansion and upgrade to an existing building Sector: Commercial Property Location: Rarotonga Proposed financing structure: Equity participation Notes: 60-year lease

Proposed financing structure: Equity participation Notes: 60-year lease secured

Day Dreamers Expansion and upgrade of existing resort Sector: Tourism Location: Rarotonga

Raro Cars

Project size/Investment value: NZD$850,000 (USD$698,000)

Leading car dealership for sale

Proposed financing structure: Equity participation

Sector: Automotive

Notes: 60-year lease

Location: Rarotonga Project size/Investment value: NZD$275,000 (USD$226,000) Proposed financing structure: Equity participation Notes: 60-year lease

Want to know more? Email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

13


Credit: Pacific Islands Trade & Invest

Fiji The communications hub of the Pacific, Fiji’s in 2006. It still boasts the region’s largest tourist industry with around 600,000 visitors

Population: 883,000 Capital: Suva Surface area:

18,376 sq km

Business language:

English

per year. While traditional sectors such as

Nominal GDP: US$3.2 billion (IMF forecast 2010)

garments and sugar are in decline, the Fiji

Currency:

Fiji dollar (FJD)

economy is mature by regional standards,

Major industrial sectors:

tourism, sugar, garments, gold, timber, ICT, agribusiness, fishing

Exports:

agribusiness, sugar, garments, gold, timber, fish, services

and its economy is broad-based. Besides tourism, Fiji’s well-educated English-speaking workforce and good infrastructure mean its services sector (including information and communications

Major export markets: USA, United Kingdom, Australia Imports:

manufactured goods, machinery and transport equipment, petroleum products, food, chemicals

Major import markets:

Singapore, Australia, New Zealand

technology) has strong growth potential. Its mining sector also has potential to grow from a low base.

14

Peni (Ben) Saimone Fong, ‘The Journey’ (drawing, ink and acrylic on paper) Credit: Okai Oceanik Art

© Copyright 2011 Business Advantage International Pty Ltd

economy has stalled since a military coup


Investment opportunities Malolo Surf Co. Equity partner or JV sought for existing charter vessel business Sector: Marine Tourism Project size/Investment value: USD$2,000,000 Notes: Inventory includes 60 foot sailing catamaran and two auxiliary craft.

Fiji Crab

www.malolosurf.com

Equity partner or JV sought for mud crab start-up business Sector: Aquaculture Project size/Investment value: USD$2,260,000 Notes: A fully integrated farming system which includes hatchery, nursery, and eco-friendly farm production of mud crabs, company’s own farm sites, contract farmers and centralized high quality processing and marketing.

First Landing Resort Expansion Project Integrated resort development on Viti Levu island Sector: Tourism/hospitality Location: Vuda

Vuda Marina Expansion Equity partner or JV in super yacht marina expansion project Sector: Tourism/hospitality Location: Vuda, Viti Levu

Project size/Investment value: FJD$113,000,000 (USD$63,700,000) Notes: First Landing seeks to expand and accelerate its project in a staged development. The adjacent Vuda Yacht Marina is planning to develop a second marina to cater for super yachts.

Project size/Investment value: USD$20,000,000 www.vudamarina.com.fj

Want to know more? Email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

15


Palm Grove A new hotel development adjacent to Denarau Island Location: Nadi Sector: Tourism/hospitality Project size/Investment value: TBC Notes: The property comprises Freehold Title and a Crown Foreshore Development lease. The Outline Planning Application allows for a maximum density of 300 bedrooms and integrated tourism facilities including a 250-seat conference centre, retail centre, wellness centre, river front restaurant and bar, landscaped swimming pool, boatshed and marina berth.

Raintree Lodge Established eco-resort on the edge of Fiji’s capital for sale by tender Sector: Tourism/hospitality Location: Colo-I-Suva, Suva area Notes: Raintree Lodge occupies a 3-acre site on the Princess Road at Colo-I-Suva. It is considered Fiji’s premier ecotourism resort. The land lease has another 86 years to run and the business is mortgage-free.

Future Forests Fiji Ltd Established teak plantation company planning IPO on the South Pacific Stock Exchange Sector: Forestry Location: Suva Project Size/Investment value: FJD$4,900,000 (USD$2,764,000) if only shares are issued; FJD$6,125,000 (USD$3,454,000) if only notes are issued Notes: The company’s vision is to become an internationally recognised, high-value Teak plantation company. It is implementing a pragmatic mix of high silviculture standards, sound business economics, environmental certification and social responsibility to establish and manage a minimum of 3,000 hectares of Teak plantations. www.fff.com.fj

www.raintreelodge.com

Want to know more? For information on these and other investment opportunities in the Pacific Islands, email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

16


Federated States of Micronesia Ruins of the ancient city of Nan Madol, Pohnpei Credit: Pacific Islands Trade & Invest

The Federated States of Micronesia (FSM) is a group of 607 small islands in the Western

Investment opportunities

Pacific subregion of the same name, about 6000 km southwest of Hawaii. While the

Pacific Skylite Hotel

country’s total land area amounts to only

Sale of established 18-room hotel

702 sq km, its vast Exclusive Economic Zone

Sector: Tourism/hospitality

(EEZ) straddles the migratory tuna path.

Location: Pohnpei

Relatively little value to the annual catch is

Project size/Investment value: USD$150,000

currently added onshore however. Extracting

Notes: Three storey hotel comprising of 18 rooms all with private bath facilities, balconies, and interior access. The property is located near Kolonia and government complexes and only 5 minutes from the International Airport, making it very attractive for business and government travellers. The hotel was constructed in 1995 and features receptionarea drop off point as well as a restaurant, conference rooms, bar and parking area.

more value from its EEZ, and developing the tourism sector are potential growth areas.   Population:

110,899 (2009)

Capital: Palikir Surface area:

702 sq km, EEZ 2.9 million sq km

© Copyright 2011 Business Advantage International Pty Ltd

Language: English Political status:

independent democracy in association with the US

Nominal GDP: US$ 253.5 million (2008) Currency: US dollar (USD)

Ulithi Adventure Resort Sale of established 10-room hotel

Major industrial sectors:

fisheries, tourism, copra

Exports:

fish, banana, copra, trochus shells/ meat, kava and betel nut

Major export markets:

Japan, USA

Project size/Investment value: USD$150,000

Imports:

food and live animals, mineral fuels, machines, transport and equipment, manufactured goods, textiles, beverages and tobacco

Notes: The business includes a 10-room furnished oceanfront hotel and restaurant that has been in operation since 1998. Ulithi Lagoon is popular with scuba divers (WW2 wrecks) and fishers and the hotel is perfectly located on the lagoon to attract this clientele. The resort is minutes away from Ulithi Airport, with flights arriving and returning on Mondays and Fridays from Yap Island, a short 45-minute flight.

Major import markets: USA, Australia, Japan

Sector: Tourism/hospitality Location: Yap State, Ulithi Atoll

17


Credit: Swire Shipping

Kiribati Kiribati is a group of 33 islands (23 inhabited) Australia, spread over a 3.5 million sq km EEZ, which is equivalent to the landmass of

Population:

108,000 (2009)

Capital: Tarawa Surface area:

811 sq km, EEZ 3.5 million sq km

Language: English/Gilbertese

New York City spread out across the width

Political status:

of continental US. The low-lying country

Nominal GDP: US$152 million (2010 est.)

faces significant challenges in the form of its

Currency:

Australian dollar (AUD)

isolation, highly dispersed population and,

Major industrial sectors:

tourism, fisheries, agriculture, remittances, copra

looking forward, climate change. Nonetheless,

Exports:

fish, copra, coconut oil, seaweed

its capacious territorial waters are abundant

Major export markets: USA, Belgium, Japan, Australia, Bangladesh

with seafood and mineral resources. Tourism is another sector of interest.

Imports:

independent republic

food and live animals, machines, transport equipment, manufactured goods, mineral fuels, beverages and tobacco

Major import markets: Australia, Fiji, Japan, New Zealand, Taiwan

Jon Jay, ‘Creations’ (painting, acrylic on canvas) Credit: Okai Oceanik Art

18

© Copyright 2011 Business Advantage International Pty Ltd

located about halfway between Hawaii and


Investment opportunities Cassidy International Airport Upgrade

Phoenix and Line Islands Air Service

Seeking investor for rehabilitation of the existing runway, upgrade to the runway, lighting, fencing and major reconstruction of the terminal facilities

Joint venture opportunity to provide air transport services

Sector: Infrastructure/aviation Location: Kiritimati Island (Christmas Island) Project size/Investment value: AUD$1,100,000 (USD$1,147,000) Notes: Proposed financing structure: loan/grant. The Kiribati Ministry of Communications, Transport and Tourism Development are currently undertaking engineering support analysis to scope the development of the runway rehabilitation. Funding for this rehabilitation may have been secured, however, funding of the cost of the terminal building has not and as such makes up the bulk of the financial costing of this project.

Teikabuti Fishing Company Ltd Joint Venture in tuna processing/export project

Sector: Transport Location: Tarawa Investment value: AUD$5,000,000 (USD$5,217,000), cost of aircraft as well as AUD$1,000,000 (USD$1,040,000) to establish business operations) Notes: The promoter (an experienced international pilot) is currently operating regular air services to 17 airstrips within the Gilbert Island Group in Kiribati. The company is seeking to obtain additional suitable aircraft to provide air service to the Line and Phoenix Island groups. These connections would present an opportunity to expand services to areas of high tourism potential (bone fishing, WW2 history, Phoenix Island Protected Area). The aircraft could also be utilised to provide Marine Air Surveillance (PIPA and Aerial Patrol – Illegal Fishing) as well as introducing the Pacific Flying Doctor Service (PFDS) - Medivac / Search and Rescue (SAR) services. www.coralsunairways.com

Sector: Fisheries Location: Tarawa Investment value: AUD$500,000 (USD$522,000) for 49% joint venture shareholding Notes: Teikabuti Fishing Company Ltd was established in 1990 as a foreign private sector business in Kiribati and is a fully legal and registered commercial fishing and fish processing entity. The company wishes to expand operations into commercial long lining, to achieve exports of high value tuna and value-added tuna products. The company has the technology and experience to value-add all by-catch products, thereby turning reject fish into profitable products.

Want to know more? Email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

19


Marshall Islands Credit: Bryan Lever

The Republic of the Marshall Islands (RMI)

Investment opportunities

is located in Micronesia, about 3700 km southwest of Hawai’i. The country is composed of two nearly parallel chains of low coral limestone and sand islands, dispersed over a wide EEZ. Key sectors are fisheries

JV opportunity to develop an eco-friendly overwater bungalow resort

(mainly fees paid by international tuna

Sector: Tourism

fleets to access fish resources in the EEZ), copra production and adventure tourism (principally diving and game fishing). The country is currently making great progress in developing a black pearl industry. Population:

65,859 (2010)

Capital: Majuro Surface area:

181 sq km, EEZ 2.1 million sq km

Language: English Political status:

democracy in free association with the US since 1986

Nominal GDP: US$166 million (2009) Currency: US dollar (USD) Š Copyright 2011 Business Advantage International Pty Ltd

EneKalamur Island Resort

Major industrial sectors:

copra, tuna processing, tourism, craft items from seashells and pearls

Exports:

copra, crude coconut oil, chilled and frozen fish, handicrafts, trochus shell/meat

Major export markets:

Australia, Fiji, Guam, Japan, Hong Kong, New Zealand, Philippines, Singapore, Taiwan, USA

Imports:

mineral fuels and live animals, machinery and transport equipment, crude materials, manufactured goods, beverages and tobacco

Major import markets:

Australia, Fiji, Guam, Japan, Hong Kong, New Zealand, Philippines, Singapore, Taiwan, USA

20

Location: Majuro Atoll Project size/investment value: USD$1,500,000 Notes: Enemanit-Latuma Extended Family Association (ELEFA) seeks a JV (preferably with established Pacific hotel operator) for the development of an eco-friendly island resort property comprising of 5 overwater bungalows, including mini-kitchenettes. The ideal investor will provide and promote clean energy, energy efficiency and climate friendly operations. It is anticipated the investor will develop and accommodate water-based activities not endangering coral heads and their living ecosystems, maintain sustainable clean water supply, and maintain sanitary upkeep of island and facilities including garbage collection and separation systems. Transportation to and from the main island of Majuro will also be required. This project is a new development utilizing a single family owned island on Majuro Atoll.

Want to know more? Email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com


Nauru Credit: Pacific Islands Trade & Invest

Nauru is a tiny, oval-shaped island located Pacific, just south of the Equator and some 3500 kilometres directly north of New Zealand. It has a total land area of only 21 sq km, making it the smallest independent island nation in the world. Nauru’s lucrative

Population:

14, 264 (2010)

Capital:

Yaren (unofficial)

Surface area:

21 sq km, EEZ 3.2 million sq km

Language: English Political status:

independent democratic republic since 1968

Nominal GDP: AUD$55 million/USD$57 million (2009)

phosphate reserves were depleted in the

Currency:

Australian dollar (AUD)

1980s but mining resumed on a smaller scale

Major industrial sectors:

phosphate mining, financial services, coconuts

in 2006. Foreign exchange is also earned

Exports:

phosphates, coconuts

through fishing license fees.

Major export markets:

South Africa, India, Canada

Imports: food and live animals, manufactured goods, building materials, fuel and machinery Major import markets: South Korea, Australia, USA, Germany

Reuben Friend, ‘I am’ (painting, acrylic on canvas) Credit: Okai Oceanik Art

21

© Copyright 2011 Business Advantage International Pty Ltd

in the Micronesian subregion of the central


Investment opportunities Nauruans Rock

Halstead Cinema

Equity partner required to develop a factory for phosphate cutting, polishing and shaping for trophies, ornaments and jewellery, furniture and tiling

Equity or JV partner to construct and operate a cinema

Sector: Manufacturing Project size/investment value: AUD$60,000 (USD$62,600)

Sector: Leisure and entertainment Project size/investment value: AUD$80,000–AUD$100,000 (USD$83,500– USD$104,300)

Notes: Privately-owned Petrified Rock stockpile.

Bytekiwi

Halstead Printing & Publishing

Partner required in project to fabricate and produce an innovative coconut scraper/oil milk extractor tool for use around the Pacific region

Equity or JV partner for Nauru’s first printing business

Sector: Manufacturing Project size/investment value: AUD$60,000 (USD$62,600)

Sector: Business Services Project size/investment value: AUD$200,000–AUD$$500,000 (USD$208,700–USD$522,000)

Want to know more? For information on these and other investment opportunities in the Pacific Islands, email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

22


Credit: Chris Burt

Niue Niue is a self-governing state in free the north-east of New Zealand, a three-hour (weekly) flight away. Niueans are New Zealand citizens with the right of free access to New Zealand, which also provides substantial economic and administrative assistance. Niue’s population is around 1600 but more than 20,000 Niueans actually live in New Zealand. Remittances are thus a major contributor to the local economy. Its economy is remarkably well-developed, with established tourism, fisheries and manufacturing

Population:

1470 (2010 est.)

Capital: Alofi Surface area:

260 sq km

Language: English Political status:

self-governing parliamentary democracy in free association with New Zealand

Nominal GDP: NZD$20.5 million/USD$16.8 million (2006) Currency:

New Zealand dollar (NZD)

Major industrial sectors:

tourism, handicrafts, food processing

Exports:

canned coconut cream, copra, honey, vanilla, pawpaw, root crops, limes, stamps, handicrafts, fish

Major export markets:

New Zealand, Fiji, Cook Islands, Australia, USA

Imports:

food, live animals, manufactured goods, machinery, fuels, lubricants, chemicals, pharmaceuticals

Major import markets:

New Zealand, Fiji, Japan, Samoa, Australia, USA

sectors. Kopotama Jacobson, Angle grinder (ink on paper) JPGCredit: Okai Oceanik Art

23

Š Copyright 2011 Business Advantage International Pty Ltd

association with New Zealand. It is located to


Case study:

Alex adds up the numbers in Niue

T

iny Niue is one of the world’s smallest territories, with a population of just 1500. Most Niueans, however, live in New Zealand, with which Niue is in free association, giving it a special status in terms of shared residency rights, currency and legal systems. The island has enormous tourism potential as a diving destination and there are now efforts to promote it as one of the world’s best ecotourism spots. Pacific Island Trade & Invest’s Return to Roots Mission to Niue in 2009 aimed to highlight its potential for gainful investment in a number of areas. Alex Talopau, who lives and works in Auckland, was one of the members of this mission. He is a qualified accountant and a Registered Financial Adviser. With his Niuean born wife, he runs a successful accounting and consultancy firm with a couple of offices in Auckland and one in Wellington. ‘At the end of the trip, I was convinced Niue needed an accountancy firm onshore. You can think and have all sorts of scenarios going on in your mind, but it’s when you are actually there and meeting the residents, that decisions become a reality.’ He incorporated the business in Niue, the first professional accountancy firm on the island, about a month and a half after the mission. Alex plans to spend

more time on his new Niuean enterprise in the coming months, garnering government and private business, which was earlier outsourced. Meanwhile, the New Zealand Government is planning a number of initiatives to develop Niue’s tourism potential—something that will bring greater opportunities to his business, says Alex. ‘Our islands are looking to those of us who have been educated and are experiencing success overseas to bring the same back home and share it with everyone for the benefit of our people and our island countries. The potential for business is enormous. You just have to have the commitment,’ he says.

Investment opportunities Monuina Fishing

Colonial Commodities Limited

Expansion of value-added products

Equity in project to manufacture & market premium Pacific gin

Sector: Fish processing/manufacturing Notes: Fishing, fish processing, fish burgers and sausages

Sector: Manufacturing Project size/investment value: NZD$500,000 (USD$411,000) Notes: Development phase completed. Investment-ready start-up.

Want to know more? Email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

24


Aerial view of Koror Credit: Meuns Bay Villas

Palau Palau consists of over 340 islands, of which location close to the Philippines and strong infrastructure has enabled it to develop a thriving tourism sector. Palau has one of the world’s most diverse marine habitats guaranteeing its appeal to diving enthusiasts, but is also making good progress in

Population:

20,397 (2009)

Capital: Melekeok Surface area:

458 sq km, EEZ 629,000 sq km

Language: English Political status:

independent republic in free association with the US since 1994

Nominal GDP: USD$178.4 million (2009 est.) Currency: US dollar (USD) Major industrial sectors: agriculture, tourism, subsistence fishing

diversifying its

Exports:

handicrafts, agricultural goods, taros and coconuts

product. Fish

Major export markets: USA, Japan, Singapore

exports are the

Imports:

country’s other

Major import markets: USA, Japan, Singapore

mineral fuels, manufactured goods, machinery, food

main income earner. Laben Sakale John, ‘Times are hard’ (painting, acrylic on canvas) Credit: Okai Oceanik Art

25

© Copyright 2011 Business Advantage International Pty Ltd

only nine are continually inhabited. A strategic


Investment opportunities Aman Resorts Palau Project

Ngermid Bay Resort

Equity partner required to construct and operate a world-class resort, comprising of 28 guest rooms as well as a lobby, restaurant, and spa facilities

Equity partnership in new eco-friendly bungalow-style resort

Sector: Tourism Location: Koror State Project size/investment value: USD$20,000,000 Notes: Proposed funding model: joint venture/ equity partnership/loan. Aman Resorts Palau is operated under the leadership and branding of the Aman Group—one of the world’s most successful high-end resort chains. The Aman business development model is locally-based, and the project will be built by a local contractor, employ local staff, and will utilise local products to the extent possible. This approach will bring many benefits to Palau and its population. Land leases and water use rights have been secured. The major environmental approvals and other licences have been issued and foreign investor permits have been issued. Financing is needed to get the project started and promoters are seeking a JV, partnership, loan or equity partner to construct and operate the property on the site of old Nikko Hotel. www.amanresorts.com

Sector: Tourism Location: Koror State Project size/investment value: USD$4,000,000 Notes: Private lease (75 years remaining). Ngermid Bay Resort will be the only ecofriendly, bungalow-style accommodation with waterfront access in Palau. Plans include 10 tropical timber duplex bungalows with 20 units. 5,593 square metres of land in Ngermid, Koror has been secured on the hillside overlooking the beautiful Nikko Bay. The National Development Bank of Palau (NDBP) is willing to fund up to USD$3,000,000 so proponents are seeking an additional USD$1,000,000. The investor will be a shareholder owning up to 25% of the corporation. The Resort will have close ties with Sam’s Tours, the leading tour operator in Palau.

Carolines Resort Opportunity to purchase unique resort Sector: Tourism Location: Koror State

The Meuns Bay Villas of Palau New high-end property development of villas, townhouses and condominiums Sector: Real estate/tourism Location: Koror State Project size/investment value: USD$10,000,000 Notes: Private lease. A high-end gated community to serve the needs of executivelevel residents and long-term visitors to Palau. It is a new development however the land has already been secured. The proponents are exploring opportunities for JV, partnership, loan, equity partner for site development (power, water, earth moving) and construction. www.meunsbayvillas.com

26

Project size/investment value: USD$3,300,000 Notes: Private Lease. The Carolines Resort is unique in Palau. All rooms are hand-crafted bungalows, each of which are modelled after traditional Palauan architecture using local materials such as bamboo, mahogany and mangrove. Each bungalow is equipped with air conditioning, TV and VCR, refrigerator, mini bar and private bath and guests have access to the only private beach in Koror. The owners are seeking investors for expansion and upgrade of resort facilities. www.carolinesresort.com

Want to know more? Email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com


PNG’s capital, Port Moresby, has experienced a construction boom in recent years. Credit: Business Advantage International

Papua New Guinea fastest growing. The Independent State of Papua New Guinea (PNG) in Melanesia is situated strategically between Australia

Population:

6.7 million (2009)

Capital:

Port Moresby

Surface area:

463,000 sq km

Business language:

English

and New Zealand to the south, the ‘tiger

Political status:

parliamentary democracy

economies’ of south-east Asia to the north

Nominal GDP: USD$12.65 billion (2010)

and west, and the rich fishing grounds of

GDP growth:

8% (2010, source: Bank of PNG)

Currency:

kina (PGK)

Major industrial sectors:

mining, crude oil petroleum refining, copra crushing, palm oil, plywood and wood chip production, construction, fisheries, tourism

Exports:

oil, gold, copper ore, logs, palm oil, coffee, cocoa, seafood

Major export markets:

Australia, Japan, China

the Pacific to the east. PNG is experiencing a sustained surge of economic growth, propelled by a world-class mining and petroleum sector. Other opportunities exist in agribusiness, sustainable forestry, tourism and

Imports: machinery and transport equipment, manufactured goods, food, fuels, chemicals

services.

Major import markets:

Australia, Singapore, China

Henry Iyaro, ‘Hiri trade’ (painting, acrylic on canvas) Credit: Okai Oceanik Art

27

© Copyright 2011 Business Advantage International Pty Ltd

The region’s largest economy is also its


Investment opportunities Sogeri Spices Equity stake offered in spice and fruit agribusiness firm seeking to expand Sector: Agribusiness Location: Sogeri, Central Province Project size/investment value: PGK2,500,000 (USD$1,125,000) Notes: Sogeri Spices Ltd has been operating for more than 20 years and promotes local produce operating close to the city in the rich Sogeri Plateaus. The company grows its produce organically and supplies restaurants, shops and hotels in PNG’s capital, Port Moresby. Currently the company produces organic fresh pineapple juice, pineapple jam and peanut butter. Because of strong demand, the company is looking to expand its current operations.

The Seraji Extension (Pondo) Timber Project Investment sought for expansion of forestry operation Sector: Forestry Location: Kokopo, East New Britain Province Project size/investment value: PGK21,600,000 (USD$9,720,000) Notes: The Seraji Extension (Pondo) Timber Project is located in the Baining District, approximately 100 kilometres from the Kokopo township. Gross timber area considered productive is about 120,000ha or net volume of 653,142,000 m3. Common species include tanu, walnut, cryptocarya, erima, calophyllum, basswood, heriteisa, kwila, rosewood, watergum, sloanea, white mix, red mix, canarium and amboroi. The project has an existing timber permit and land title. Forestry permits and company certification have been issued by relevant government agencies.

Credit: Pacific Islands Trade & Invest

28

Driftwood Resort Investment to expand unique resort Sector: Tourism Location: Alotau, Milne Bay Province Project size/investment value: AUD$2,000,000 (USD$2,085,000) Notes: Driftwood Resort is a unique resort with eight Cape Cod-style bungalows and direct waterfrontage to Milne Bay. We are looking for investors to build a further 7 bungalows and a conference centre. Driftwood Ltd is an approved international enterprise and the development was started four years ago and occupies traditional land with a 25-year renewable Lease. We are seeking a JV or equity partner to add additional bungalows and related services, a conference centre and a franchise centre (which are already in the process of construction approval). No additional licences or approvals are required other than the Physical Planning Approval for construction. All foreign investor and incorporation requirements are in place. www.driftwoodpng.com


Credit: Pacific Islands Trade & Invest

Sama Holdings Ltd Established company seeks investor to expand its sawmill operations Sector: Forestry Location: Balimo, Western Province Project size/investment value: PGK2,760,000 (USD$1,242,000) Notes: Sama Holdings Limited is a family business established to export sawn timber in 2007. The company was awarded a timber permit from the National Forest Authority in March 2011 covering over 100,000ha of forested land in Adiba and surrounding villages of the Balimo District of the Western Province in PNG. Species to be harvested and exported are rosewood, kwila/merbau, taun, malas, watergum, walnut, as well as various species of tropical hardwood and softwood species such as eucalyptus, mersawa, pencil cedar, brown podocarp. The company currently operates a small-scale village-based sawmill (chainsaw) operation however it now plans to construct and operate commercial sawmill operations. The promoter is seeking loan-financing to purchase plant and machinery from local suppliers or Joint Venture collaboration with interested partners. Projected monthly average sales are PGK750, 000 (USD$338,000), which is adequate to recover loans. Company certificate and timber permit have been issued by the respective government agencies.

HR and IT Consulting and Outsourcing Business HR Information Technology and Consulting specialising in HR Systems, Remuneration Consulting and Recruitment seeking JV, equity partner or outright purchase of the business. Sector: Business Services Location: Port Moresby Project size/investment value: AUD$500,000 (USD$521,000) Notes: There is an opportunity for an international firm looking for a footprint in Papua New Guinea to take advantage of the boom in resource developments, in particular the PNG LNG Project currently under construction. Outsourcing is a viable option for many organisations, particularly those that are only involved in the construction phase of the projects. There is a shortage of qualified personnel in IT, HR and Finance and this provides an excellent opportunity. www.concept.com.pg www.psp.com.pg

Want to know more? Email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

29


Samoa’s capital, Apia Credit: Business Advantage International

Samoa Western Samoa) is a picturesque, fertile, politically and economically stable nation with two main islands strategically positioned at

Area

2944 sq km

Population

181,000 (2009)

Capital city

Apia (40,000)

Official languages

English and Samoan

the centre of the South Pacific. Samoa was

GDP USD$588 million (IMF, 2009)

the first Pacific Island country to achieve

GDP growth

3% (2010 Central Bank projection)

independence in 1962 and has subsequently

Currency

Tala (WST)

Major industrial sectors:

tourism, food processing, building materials, automotive parts

Exports:

fish, coconut oil and cream, copra, taro, automotive parts, garments, beer

Major export markets

Australia (42.8%), American Samoa (29.1%), USA (3.3%)

Imports:

machinery and equipment, industrial supplies, foodstuffs

Major import markets

New Zealand (21.3%), Fiji (14.6%), Singapore (13.1%), Australia (8.6%)

led the way in terms of economic reform. On the back of sound infrastructure, it is building a robust tourism industry, but there are also niche opportunities in areas such as agribusiness and manufacturing where Samoa has a innovative trackrecord.

Fatu Akelei Feu’u, ‘Lapita Green’ (print) Credit: Okai Oceanik Art

30

© Copyright 2011 Business Advantage International Pty Ltd

The Independent State of Samoa (formerly


Investment opportunities

Paramount Industries Ltd

Le Spa Lelalelei o Samoa Lodge

Established manufacturer seeks investor to finance expansion

Existing spa/lodge seeks investor to fund expansion

Sector: Manufacturing

Sector: Tourism/hospitality

Location: Vaitele, Apia

Location: Apia

Project size/investment value: NZD$100,000 (USD$82,000)

Project size/investment value: WST$375,000 (USD$168,000)

Notes: Production of water and septic tank and fabrication of other plastic products

Notes: Business expansion to construct five premier suites, changing rooms, two treatment rooms and other facilities. www.le-spa-lelalelei.ws

Savaii Farms Established agribusiness concern seeks investor to expand and diversify its range of export-oriented products Sector: Agribusiness Location: Savaii Project size/investment value: WST$100,000 (USD$45,000) Notes: Export of cocoa beans, coconut oil, vanilla beans and manufacturing of soaps and lotions. www.savaiifarms.com

Want to know more? Email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

31


The Gold Ridge gold mine, the country’s largest, was bought by Australia’s Allied Gold in 2010. Credit: Australian Solomons Gold

Solomon Islands 900 coral islands in the Melanesian Pacific.

Population:

609,794 (2010)

Capital: Honiara

The country is recovering well from over a

Surface area:

decade of social, political and economic

Language: English/Pijin

volatility, with the 15-nation RAMSI security

Political status:

contingent still providing civil security and

Nominal GDP: USD$668 million (2009)

economic stabilisation. Although the key forestry sector is in decline, the outlook for its mining sector is positive. Tourism and agribusiness have significant

28,900 sq km, EEZ 1.5 million sq km

parliamentary democracy

Currency:

Solomon Islands dollar (SBD)

Major industrial sectors:

fish (tuna), mining, timber, agribusiness, tourism

Exports:

timber, fish, copra, palm oil, cocoa

Major export markets:

China, Korea, Japan, Philippines, UK

Imports: food, plant and equipment, manufactured goods, fuels, chemicals Major import markets:

Australia, Singapore, Japan, New Zealand, USA

growth potential. Ellie Fa’amauri, ‘Intertwine’ (painting) Credit: Okai Oceanik Art

32

© Copyright 2011 Business Advantage International Pty Ltd

The Solomon Islands is a collection of about


credit: saltmotion.com

Investment opportunities

SI Flour Technology (SIFT) Project Established agribusiness company seeking partner to establish a cassava plantation to supply domestic and export markets Sector: Agribusiness Location: Guadalcanal Province Project size/investment value: AUD$5,200,000 (USD$5,422,000) Notes: Proposed financing structure: direct equity direct investment via preference shares in CT Farm and Flour to give investors up to 40% of the overall project and first call on dividends. CassTech Limited, a public unlisted Australian company and majority owner of CT Farm and Flour, has developed mechanised cassava farming technology and agronomic practices. Cassava is widely grown in the Solomon Islands. CT Farm and Flour (a Solomon Islands company) is looking to establish a cassava plantation that (along with purchased roots) will feed a 10,500 tonnes per annum gluten free tapioca flour factory. The flour will be sold domestically and into Australia for the health food and fermented beer markets. Customer trials have demonstrated excellent performance in a range of food recipes overcoming many of the deficiencies of conventional wheat flour replacements. Parcels of land have been identified but a buy or lease decision is yet to be made. Investment of approx AUD$4,500,000 (USD$4,690,000) will be sufficient to cover the purchase of land (if deemed appropriate), installation of flour making machinery and equipment and working capital.

Surf Solomons Opportunity to invest in established niche provider of tourism accommodation in various locations around the Solomons Sector: Tourism Project size/investment value: AUD$250,000–AUD$400,000 (USD$261,000–USD$417,000) Notes: Operating since 2007, Surf Solomons is a social enterprise developing adventure surf tourism products to mid-to-high-end international markets in partnership with indigenous Solomon Islanders. The company is seeking a joint venture, equity investor, or strategic partner investment to expand surf camps into new sites at locations offering world-class, and as yet, undiscovered waves. The project is foreign investment approved and has all relevant licences. www.surfsolomons.com

Want to know more? For information on these and other investment opportunities in the Pacific Islands, email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

www.casstech.com.au

33


Tonga’s Royal Palace Credit: Tonga Visitors Bureau

Tonga’s Royal Palace, Nuku’alofa Credit: Tonga Visitors Bureau

Tonga The Kingdom of Tonga is made up of 176 Located just south of Samoa in Polynesia, it has recovered strongly from civil unrest

Population:

104,000 (2009)

Capital: Nuku’alofa Surface area:

748 sq km, EEZ 750,000 sq km

Business language:

English/Tongan

in 2006 and held landmark democratic

Political status:

sovereign monarchy

elections in late 2010. Tonga’s tourism

Nominal GDP: USD$378 million (2011, IMF forecast)

industry has great potential (it is already

Currency:

Tongan pa’anga (TOP)

Major industrial sectors:

tourism, agriculture, fishing

Exports:

squash, fish, vanilla beans, root crops, coconut, tuna.

a whale-watching mecca), while other prospective sectors include fisheries,

Major export markets: USA, Japan, NZ, Korea

agribusiness and

Imports:

foodstuffs, machinery and transport equipment, fuels, chemicals

undersea mining.

Major import markets:

NZ, Fiji, USA, Australia, China, Singapore, Japan

Dagmar Vaikalafi Dyck, ‘Identity’ (screenprint on paper) Credit: Okai Oceanik Art

34

© Copyright 2011 Business Advantage International Pty Ltd

islands and has close ties with New Zealand.


Investment opportunities Fuel and Gas Storage Facilities Equity partner required for the establishment of a new facility Sector: Energy Location: Nuku’alofa Project size/investment value: TOP10,700,000 (USD$6,470,000) Notes: Land secured.

Paradise Properties Limited Property for sale Sector: Real estate/property Location: Nuku’alofa Project size/investment value: TOP500,000 (USD$302,500) Notes: Property consists of a steel-framed building, with concrete and steel cladding over a footprint of approximately 1500 sq.m.

Lomipeau Marina Resort Holding Ltd Project to establish an over-water ‘fale’ resort seeks equity partner Sector: Tourism

Kupu House

Location: Nuku’alofa

Commercial building for sale

Project size/investment value: TOP20,000,000 (USD$12,100,000)

Sector: Real estate/property

Notes: Development of first class multifunction international tourism resort at Fanga’uta Lagoon.

Project size/investment value: TOP3,200,000 (USD$1,940,000)

Cassava Starch Processing Investor sought for new cassava processing venture Sector: Agribusiness Project size/investment value: TOP500,000 (USD$302,500) Notes: Own land

Location: Nuku’alofa

Notes: Private lease.

Want to know more? For information on these and other investment opportunities in the Pacific Islands, email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

35


Case study:

Beefing up business in the islands

G

eorge Niuhulu (pictured below) came to Auckland from Tonga as a young man in search of opportunities. Working hard as a daily wage earner painting and plastering homes, he soon set up his own business and began to raise a family. A sincerity of purpose, sheer hard work and astute business acumen saw the start-up grow into a substantial business over the next few years. George also began to accumulate a property portfolio, acquiring run down homes, refurbishing and on-selling them. It was only a year ago that George decided to put to use his considerable business skills to start an enterprise back in Tonga. After much information exchanges, discussions and some research with PT&I’s help, George zeroed in on the idea of starting a beef farm on Tonga’s main island of Tongatapu, not far from its capital Nuku’alofa. He acquired a large tract of land, close to his ancestral village and followed that up with planting

a nutritious variety of grass to feed the cattle, which he would purchase as soon as the planting was completed. Since then, he has bought a substantial herd of cattle from local farms. George looks forward to his visits to Tonga and has picked up a number of new skills in cattle farming: ‘I knew nothing about it before. But it is so interesting to learn.’ The farm has brought employment to several young men in Tongatapu. First they were involved in planting grass across the land where the cattle forage. Now they tend to the livestock everyday and manage resources at the farm. ‘It is a great feeling to start a business in your home country after living overseas for such a long time. It not only helps the local economy and provides employment but also throws up ideas for young people and brings enthusiasm in the community to seek out a path in entrepreneurship, while making a decent profit,’ he says.

Want to know more? For information on these and other investment opportunities in the Pacific Islands, email investment@pacifictradeinvest.com invest.pacifictradeinvest.com

36


Tuvalu Credit: Pacific Islands Trade & Invest

Tuvalu, formerly the Ellice Islands, became independent from the United Kingdom in

Investment opportunities

October 1978. Its nine coral atoll islands are located about halfway between Hawaii and Australia, scattered across an expansive EEZ. Sectors with growth potential include ecotourism and increased commercialisation of its fisheries sector. Population:

Project to create eco-style resort Sector: Tourism Location: Fualefeke Island Project value/investment required: AUD$400,000 (USD$419,000)

10,472 (2010)

Capital: Funafuti

© Copyright 2011 Business Advantage International Pty Ltd

Fualefeke Resort

Surface area:

26 sq km, EEZ 757,000 sq km

Business language:

English

Political status:

independent democratic government since 1978

Notes: Equity partner/JV sought to expand our tourism industry in Tuvalu and promote our beautiful and diverse culture to the whole world.

Nominal GDP: USD$29 million (2009) Currency:

Tuvaluan dollar (TVD)

Major industrial sectors:

fishing fees, remittances, copra

Exports:

copra, stamps, handicrafts, garments

Major export markets:

Fiji, Germany, Italy, Japan, Australia

Imports:

food and live animals, manufactured goods, mineral fuels and machines, transport and equipment

Major import markets: Australia, Fiji, New Zealand, Japan, China

Want to know more? For information on these and other investment opportunities in the Pacific Islands, email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

Leua Latai Leonard, ‘Self Portrait: A Samoan woman with a hibiscus on her forehead’ (photograph collage on canvas) Credit: Okai Oceanik Art

37


Port Vila harbour Credit: Business Advantage International

Vanuatu and Fiji, Vanuatu retains a charming French flavour after gaining independence from joint administrators France and the UK in 1980.

Population:

221,552 (2010)

Capital:

Port Vila

Surface area:

12,200 sq km, EEZ 68,000 sq km

Business language:

English/French

Despite lacking the natural resources of some

Political status:

parliamentary republic

of its neighbours, its economy has flourished

Nominal GDP: USD$767 million (2011, IMF forecast)

in recent years with strong investment in

Currency:

Vanuatu vatu (VUV)

Major industrial sectors:

tourism, agriculture, offshore financial centre, fisheries, forestry

tourism and real estate. Vanuatu’s status as a tax haven provides the platform for an international finance centre. The Y-shaped archipelago is also renowned for exporting some of the

Exports: copra, beef, cocoa, timber, kava, coffee Major export markets:

Thailand, India, Japan, Australia, EU

Imports:

machinery and equipment, foodstuffs, fuels

Major import markets:

Australia, Japan, Singapore, New Zealand, Fiji

world’s best beef. Andrew Tovovour, ‘Untitled’ (mixed media) Credit: Okai Oceanik Art

38

© Copyright 2011 Business Advantage International Pty Ltd

Located roughly halfway between Australia


Investment opportunities Vanuatu Geothermal Australia-based KUTh Energy seeking equity partner for landmark geothermal energy generation project Sector: Energy Location: Takara, Efate Project size/investment value: USD$77,400,000 Notes: Development of geothermal resources in the Takara area to supply electric power to Port Vila and the rest of Efate. Seeking JV, partnership, equity partner or loan.

Manuro Shores Resort seeking JV, partnership or equity partner to fund subsequent stages Sector: Tourism Location: Port Vila

Vanuatu Virgin Coconut Oil Ltd Existing coconut oil producer/exporter seeks investor Sector: Agribusiness Location: Luganville, Espiritu Santo Project size/investment value: AUD$250,000 (USD$261,000) for contract finance or equity share. Notes: VVCOL has the capacity to produce high quality Virgin Coconut Oil from whole coconuts and fresh coconut meat. The Virgin Coconut Oil (VCO) is produced using the unique Bowker process, pressing the oil within one hour of opening. Strong local and internationally branded sales are testimony to the high quality and excellent taste of this virgin coconut oil. The operation of VVCOL does not only deliver strong potential export growth for Vanuatu, but at full production can deliver increased earnings and improved livelihoods for up to 5000 coconut growers on Espiritu Santo. All business licences and approval processes are in place. www.nuicoconut.com

Project size/investment value: AUD$3,000,000–AUD$10,000,000 (USD$3,160,000–USD$10,490,000) Notes: Private lease (75 years). Manuro Shores is a unique and luxurious residential lifestyle, golf and hotel resort development located only 35 minutes from Port Vila. The features include 228 home sites, an 18-hole golf course, a marina, a village centre with shops and offices, a large resort and a unique 20 hectare nature reserve. Recently, the first stage has been completed. In place is a strata subdivision of 71 oceanfront lots with water and power including internal unsealed roads and detailed planning of an 18-hole golf course and hotel site. The land is owned by the development company, and the business has been established over the last 4 years. Seeking JV, partnership or equity partner to fund subsequent stages such as construction of the golf course and marina. All licences and approvals are in place for the development. The company is incorporated in Vanuatu. www.manuroshores.com

Want to know more? Email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

39


Moorings Hotel Established property seeks investor to facilitate expansion to meet rising demand

Lapita Boutique Resort

Sector: Tourism

New resort development on the island of Santo

Location: Port Vila

Sector: Tourism

Project size/investment value: AUD$2,000,000 (USD$2,080,000) (Stage 1 Additional Rooms), AUD$11,000,000 (USD$11,460,000) (Stage 2 Strata Title)

Location: Espiritu Santo

Notes: Land is by private lease (71 years remaining, renewable). Moorings Hotel was established in 2007 and comprises 30 studio rooms and a 60-seat restaurant. Due to strong occupancy pressure, an opportunity exists to further develop the existing site with the addition of a further 20 rooms. Furthermore, vacant land adjoining the site is available for strata titled development of 30 saleable lots that will enhance the core hotel business. All building and municipal permits and other operating permits are secured. www.mooringsvanuatu.com

The Havannah Resort

Project size/investment value: Residential Lots AUD$80,000–AUD$140,000 (USD$83,400–USD$146,000); Resort Sites AUD$850,000+ (USD$886,000+); Investment in Resort AUD$6,500,000 (USD$6,780,000) Notes: Private lease (73 years remaining with option for additional 75 years). Lapita is a managed eco-friendly residential/resort development located one of the most beautiful tropical coastlines in the South Pacific. It will consist of private residential land holdings and three resort developments – one of which will include an international standard 18-hole golf course. Stage 1 of the development, Lapita Boutique Resort, will offer 30 luxury independent villas surrounding large tropical feature pools, bars, restaurant and luxury guest amenities. www.lapita.com.au

Luxury resort and going concern; 16 rooms, 45 acre beach front property Sector: Tourism Location: Port Vila Project size/investment value: AUD$1,200,000 (USD$1,250,000) Notes: Currently on offer. 30% equity AUD $1,200,000 (USD$1,250,000) net of debt. Required investment of approx another AUD$1,000,000–AUD$1,500,000 (USD$1,040,000–USD$1,560,000) for 100% stage three. Seventy-five year lease (68 years remaining). www.thehavannah.com

40

Want to know more? For information on these and other investment opportunities in the Pacific Islands, email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com


Custom dress on Tanna Island

IFC identifies premium tourism opportunities in Vanuatu

Credit: Vanuatu Tourism Office

T

o encourage high-quality tourism investment in Vanuatu, the IFC, a member of the World Bank Group, together with the Vanuatu Investment Promotion Authority and the Vanuatu Department of Tourism, has identified and scoped a limited number of investment opportunities across the country. With the support of Pacific Islands Trade & Invest (PT&I), these sites are showcased below for interested investors. The sites are suited to investors specializing in 4+ star accommodation and range from 12-room boutique hotels to large scale resorts with 150+ rooms. Located on the islands of Efate, Espiritu Santo and Tanna, the sites have been selected in consultation with the Vanuatu Government. Evaluations have been completed based on the following criteria: infrastructure, site characteristics, development viability, tourism potential, and environmental and social factors. IFC has verified that each site has Government approval, clear land titling and meets market demand, leaving them free and available for immediate investment. Golden Beach, Hog Harbor, East Santo The site itself is very picturesque with a white sand beach and an outlook to further islands. The location is five minutes travel from Champagne Beach, a popular destination for travellers, and also receives visiting cruise ships. The site is located approximately 60 minutes from Luganville on a sealed road. Total land area is approximately 49 hectares with 470 meters of waterfront. Forest Resort, Aore Island, Santo Sand beach frontage with sheltered water. The site includes deep water to the front, allowing large vessels access to the shore for jetty use. North facing towards Luganville, the site has an abundance of natural features that make it a prime location for development. Suggested approvals and casino licence in place. Boat access

from Luganville consists of a 1.6 km crossing. There is internal road access on the island. Barasira, Aore Island, Santo White sand beach, with protected front with a northwest aspect back towards Santo. Deep water in front is suitable for larger boat access. Site is flat and suitable for development, with further surrounding resorts within short travel on the island or boat. Road access to boat is on sealed road and 10 minutes travel from Luganville. Boat access from Santo, is 1 km at its closest point. Estimated land area is 80 hectares. White Grass, Tanna Tanna Island is one of the southernmost islands of the Vanuatu archipelago. The new restaurant, bar, kitchen, and reception were built in late 2009, and the 14 bungalows were extensively upgraded during that time. The property includes a swimming pool, golf course and tennis court and jetty. There is an array of unique activities close by including volcano and rainforest treks and snorkelling. High potential for fishing and scuba diving activities. The resort consistently operated with 70% + occupancy from 2005 to 2009 and was voted Vanuatu’s best island resort in 2008. International airport is located 2 km from the resort. Further information can be obtained from: • Smith Tebu, Vanuatu Investment Promotion Authority: stebu@vanuatu.gov.au • George Borugu, Department of Tourism, Vanuatu: gborugu@vanuatu.gov.vu • Kathy Khuu, IFC: kkhuu@ifc.org • Christopher Bleakley, IFC: cbleakley@ifc.org

Scuba diving on Espiritu Santo Credit: Vanuatu Tourism Office

41


Wenzhou Fuzhou

Okino-tori -shima

Luzon Strait Luzon

Saipan Hagåtña

Manila

VIETNAM

M

GUAM

South China Sea P

Sulu Sea

hi

Koror

p lip

ine

Sea

Yap

Eniwetak

RATED STATES OF FEDEMICRONESIA

Melekeok

Carolin e Isla nds

PALAU

Kwaj

Palikir

Equator

Ya SULAWESI

Ceram Sea

INDONESIA

Banda Sea

Bismarck Sea

Kepulauan Aru

EAST TIMOR Arafura Sea

Ashmore and Cartier Islands (AUSTRALIA)

e vill Bougan

PAPUA NEW GUINEA Madang Lae

Kepulauan Tanimbar

Timor Sea

eland New Ir

Wewak

Torres Strait

SOLOM ISLAND

New Britain Solomon Sea

Guadalcanal

Port Moresby

Co ral

Se

aI

Honiara

Coral Sea

NE W C AL

ds lan

s

Noum

AUSTRALIA 0

500 Km

Lord Howe Island

Ta

Want to know more? For information on investment opportunities in the Pacific Islands, email investment@ pacifictradeinvest.com invest.pacifictradeinvest.com

42

sm a

n Se a


Oahu

Honolulu

Maui Hawaii

Wake Island

MARSH

ALL

jalein

IS L

AN DS

c Ocea Pacifi h t r No Kingman Reef Palmyra Atoll

Majuro

KIRIBATI (Gilbert Islands)

Tarawa

aren

NAURU

Howland Island Baker Island

Banaba

KIRIB A TI U VA LU

UA T

Rotuma

U

FIJI

Port Vila

ON IA

Vanua Levu

SAMOA

Mata-Utu

Wallis and Futuna

Ceva-i-Ra

American Samoa

Apia

Suva Viti Levu

ÎLES MARQUISES

TONGA Nuku’alofa

Alofi

NIUE

nd s

Isl a ad ec

SOCIETY ISLANDS

Avarua

Minerva Reef

Norfolk Island

ARCHIPE

OK DS COLAN IS

Papeete Tahiti

FRE N

CH

ÎLES TUBUAI

Sout

h Paci

LD ES TU

AM

O T

U

POL YNE

SIA

Rapa

s nd Isla n r i a Pitc

Adamstown

fic Ocean

r Ke

m

LED

méa

Tokelau

Santa Cruz Islands

VAN

Jarvis Island

KIRIBATI

Funafuti

Port Vila

Kiritimati (Christmas Island) (KIRIBATI)

Rawaki (Phoenix Islands)

T

MON DS

n

New Zealand

CHATHAM ISLANDS (N.Z.)

Map © Copyright 2011 Business Advantage International Pty Ltd

43


Contact us by phone Auckland +64 9 529 5165 Beijing +86 10 6532 6622 Sydney +61 2 9290 2133 Tokyo +81 3 5259 8419

Email us at investment@pacifictradeinvest.com (investment opportunities) info@pacifictradeinvest.com (general enquiries) www.pacifictradeinvest.com


Investment Opportunities in the Pacific Islands  

The Pacific represents one of the world’s least explored regions – both for natural resources and for the potential it offers in a range of...

Read more
Read more
Similar to
Popular now
Just for you