Pacific Tenders Magazine Issue 3 by Pacifictenders

MAR - JUN / ISSUE 03

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RURAL ELECTRIFICATION / ENERGY

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Overview Pacifictenders Magazine is the News & Media Publication for the Award Winning Online Tender Procurement Platform Pacifictenders.com. An online marketplace connecting Local Governments & Contractors by way of linking Government Agency Tender bid notices to the Private Sector community. We are a locally owned & Operating Digital Publishing Company serving Solomon Islands & PNG markets.

About Us PacificTenders.com is a Subsidiary of Adkonect, a Marketing Communications company founded in 2011 in Solomon Islands. Over the past years we have worked on delivering Marketing, Advertising & communications projects for Corporate & Government Clients.

lication of Pacifictenders Magazine is an Industry resource for the Infrastructure & Development sector. It is about celebrating the diverse Building & Construction industry in the Pacific, by providing a medium to showcase their projects, build a greater public awareness and engage potential contractors.

Product Development Roadmap We have built our Online Procurement platform and Digital assets over the years to serve our Pacific Island Brands. In 2016 we launched the 1st online tender procurement platform in the Pacific Region (Pacifictenders.com), the second phase of the PT Product will be launched in 2020 introducing e-commerce digital tender document payments and a Self-Managed Portal for our Subscribers to use.

PT Magazine Publication Today our focus is on providing value added content & stories for Pacifictenders Users. The Pub-

Rodney Rupokets Founder & Publisher

Advertising Enquiries

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www.pacifictenders.com Published by Adkonect PNG P.O. Box 49 Port Moresby, PNG www.adkonect.com.pg

Founder Publisher Mr. Rodney Rupokets rodney@pacifictenders.com Business and Marketing Director Ms. Namoi Kaluae Editors Mr. Douglas Saefoa (Solomon Islands) Mr. Jason Som Kaut (PNG) Contributing Writer Mr. David Spring (Sydney, Australia)

contact@pacifictenders.com sorbie.valen@gmail.com www.pacifictenders.com S.I (+677 38229) PNG (+675 75971524) PNG (+675 75923057) PNG CONTACT In Country Marketing/Advertising Mr. Sorbie Pandiruo ......................................................................................................................

Distribution PT-Magazine is distributed via a Digital Copy accessed from the Pacifictenders.com Platform reaching all PT Subscriber Companies and Printed Copies Distributed to Government Agencies, Hotels, Retail and Hardware Supermarkets in Honiara & Port-Moresby. Relying on the support of our peers in the Construction and Infrastructure sectors to help this initiative grow.

Contents 10

Roads Works to go on Tender The Marpape-Steven government launched the ‘Connect PNG’ policy that includes National, Provincial and District roads throughout PNG.

Slippery when wet Solomon Islands’ future in water and airports infrastructure.

DBSI to improve social, economic livelihoods for all Solomon Islanders Revitalized DBSI to support the government’s strategic objectives.

8 COVER STORY GAME CHANGER: JM & SONS LIMITED Introduce a Game Changer to PNG’s infant drone sector

DCGA Launches DBSI DBSI to improve social, economic livelihoods for all Solomon Islanders.

‘GIVING BACK TO THE COMMUNITY’

Syntech to serve students and nearby communities with IT services.

Fabrication of Containers keeps Pacific Rim staff on payroll.

Energy

Yonnie Ltd Helping Light up PNG.

SICCI Roundtable

Highlights Opportunities for Raising Gov’t Revenue from Businesses.

12 ECONOMY $309m Economic Stimulus Package: SIG to address the negative fallout of the Covid-19 global pandemic.

14 INDUSTRY COVID-19 & THE INDUSTRY: The engineering industry has endured and recovered from downturns before. Can it do so again?

Construction

SICCI establishes Building & Construction Working Group.

Energy

Q&A

Didds Gas Launches Alternative LPG Gas Service.

‘SHIFTING GEAR FOR WOMEN’ Q&A with Gloria Mulai.

On Site With Hyundai Engineering Company (HEC) on Tina River Hydro Power Project Solomon Islands.

MFMR Hatchery at Aruligo Ministry of Fisheries is in the process of building a freshwater hatchery facility on Government land at Aruligo, Guadalcanal.

Road to Sol2023

UXO Survey advance ahead of PG2023 Preparations. ................................................................................................................

SIFF, Kramer Ausenco signed Lawson Tama design contract.

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GAME

CHANGER JM & SONS LIMITED Introduce a Game Changer to PNG’s infant drone sector

Training and learning from experience ensures one is 90 per cent ready, but still with room to learn. This is just a part of the ethos of James Murray, a young Papua New Guinean surveyor from East Sepik province who’s Managing Director and Senior Surveyor of JM & SONS LIMITED.

“ F90+

TRINITY

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More survey data in less time

a win-win situation Whether in the agricultural sector, in the mining business or when inspecting industrial plants and construction progress, more data can be recorded in a very short time than it was previously possible with conventional systems. The Trinity F90+ demonstrates its range advantage in comparison to classic multicopters and other fixed-wing drones due to the longer flight time and covers up to 20x larger areas. The larger the area to be covered, the more attractive the use of the Trinity F90+ will be.

SURVEYING / MAPPING

COVER STORY

The JM & SONS LIMITED team with “TAU-K”.

By JASON SOM KAUT Port Moresby, PNG

r Murray is part of a young generation of Papua New Guinean’s who are passionate in their drive and commitment to change the status quo for Papua New Guinea and improve the people’s socio-economic standards. This passion and motivation saw Mr Murray recently invest in ‘game changing’ technology with the recent purchase of a Unmanned Ariel Vehicle (UAV) drone. Not just any UAV Drone, but the Quantum Trinity P90+ that has a price range from K150, 000 up to K170, 000. The only thing better, is an aeroplane using LIDAR (Light Detection and Ranging) equipment and satellite imagery. Apparently it is the first for a Pacific nation and the second purchased from four (04) manufactured by Quantum Drone Technology Company of Germany. Of the four, three were sent to Australia, of which the first of this model was sold to a mining firm in Perth. Mr Murray and his surveying firm JM & SONS LIMITED purchased the second. Mr Murray has fondly named the drone “TAU-K”, named after the spiritual name of his home Island in Wewak, ESP, where he’s from. “The spiritual name for my Island home is Tau. When the missionaries first came, they renamed my Island home, Kairiru. When my grandfather Franz Rarem Murray bought the first Land Rover in Maprik in his days, it was the only car around Maprik, ESP. He then purchased the first boat to go between Wewak and Kairiru Island, built by our trusty boat builders of Kwato Island in Samarai. When the missionaries also wanted to use a boat as transportation, they wanted to use the spiritual name

of Tau, of which my grandfather’s permission was sought and given and hence, TAU-K was used as transportation for travel between Wewak and Kairiru Island. My father, Moses Murray, was then the first to buy a speed boat, complete with power steering in the front like a car. He also named his boat TAU-K. So keeping with history, and this being the first of its kind, not only for my PNG, but for my Island home Kairiru and East Sepik Province, I give this drone the name TAU-K” James said. ‘TAU-K’ can cover up to 2000 plus hectares in a 90 minute flight with a flight range of 100km distance and vertically up to 1.3km. “The imagery taken by ‘TAU-K’ allows me to use specific softwares to generate orthomosaic and generate contours. “So for roads, engineers can immediately produce preliminary road designs, based on the extracted contours, for alignment and clearing. Much faster than the feasibility studies that can take up to a year and use a third of the budget before the survey even commences and funds are used up by the design and construction phase. For agriculture, plants health indexes can be obtained by different interchangeable camera options.” Mr Murray revealed. “The likes of this survey grade technology has never been used in PNG, nor the South Pacific for that matter. We only hear of it being used in other well to do countries. Once it’s known that a local PNG SME company owns one of this, all donor funded programs can be realised. This itself is a ‘game changer’,” he said. The drone, or ‘TAU-K’, has the ability to take images in areas that haven’t been covered before in

aerial imagery. The benefits of actually having a Quantum Trinity P90+ in Papua New Guinea are limitless. “ILG mapping is also a vision I have - to give back to landowners and landowner groups their rights and identification by area and boundary when dealing with investors and developers. The benefits are enormous on a scale that can allow PNG to finally give prominence to landowners and also cement their rightful genealogy history. We have been severely let down in this area since successive Governments and members saw the opportunity to do underhand dealings without the knowledge of landowners. The tables will turn and landowners can now determine their own outcomes from their newly established rights from what we do with what “TAU-K” can provide,” So, when I say game changer, I really do mean it. “Mr Murray says. Beaming with passion and pride, Mr Murray had these last words to say: ‘As a Papua New Guinean SME owner, I am proud to be able to put PNG on the map. We have always played second fiddle to developers because of our lack of innovative technology to further our chances of development. We can now hold our own with the world in developmental technology for our own advancements”. Having come from humble beginnings and lots of hard work, his advice to upcoming young Papua New Guinean professionals is: ‘Never give up, never think that you can’t do it. We have all been gifted with a good sense of purpose. If you fall, don’t think it’s the end...falling teaches you how to land... get up and keep going and fly’. n

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Roads Works to go on Tender By JASON SOM KAUT Port Moresby, PNG

he Department of Works is currently collecting data on how many contracts are on the ground in all provinces and districts. This was the message from Works Minister Michael Nali when queried by Governor of Western Province to provide some feedback on road works in his province. ‘The Marpape-Steven government launched the ‘Connect PNG’ policy that includes National, Provincial and District roads throughout PNG. A lot of these roads are included and will sometime in the future, all connect,” Mr Nali told Parliament during its June sitting. “As Planning releases funding to Works Department for these budgeted road works under the ‘Connect PNG’ policy framework, we will sit down with provinces, districts and development authorities to work in partnership,” Nali said. “Together we will put these projects on tender, identify contractors who have the capacity to build these roads. Provinces and districts will undertake these works and Dept of Works will supervise, so we maximise results of money that will be spent,” he added. Also questioning Minister Nali, was member for Nawaeb Hon Kennedy Wenge who queried replacement of the Busu Bridge, an important connecting bridge for this Nawaeb LLG. Nali said under the governments news integrated finance management system, Works and any other departments have not authority to shift money. “Now it’s properly guided, strict, so that when it comes to implementation, as soon as money released tender will be put up

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and money released in consultation with the provincial governments and District Development Authorities (DDAs). Tambul-Nebilyer MP, Hon. Benjamin Poponawa also questioned Minister Nali about the 8km Kuta Road works in his electorate that are yet to progress after three years and funding of K1.2 million released to Works. Minister Nali said this was the first time he heard this and called on all involved in the process including Works managers to work diligently and professionally. “Roads are very important to us Government realises this and included in the ambitious ‘Connect PNG’ policy. He said it is important to realise that we do not have the money to build all these roads. ‘But with funding from Government and through our District Support Improvement Program (DSIP), we can slowly build roads to connect our country,” minister Nali said. Among the works, are five major Connect PNG road works that include; 9 Mile to Wau-Bulolo and Malalaua East to West Sepik East to West New Britain Bouganville Manus Morobe had awarded works to connect Lae to the Tewai-Siassi area. The Highlands highway is also seeing projects being implemented including Lae, Mt Hagen, Porgera, Kopiago, Komo and Telefomin. Another road from Baiyer River to Madang funded under Indian Exim Bank Loan. There is also the Gembogl to Bundi and the Southern Highlands to Gulf provinces. Mr Nali and the DOW are overseeing data collection, indentifying PNG contractors. He said the rocus of government is to draw down from pool of capable PNG contractors. He urged members and others not to talk-down on local contractors. We will help build up their capacity and support them to get works done. We have works engineers in all provinces. We can and we will support locals and roll out ‘Connect PNG’. More than 5,000 kilometres of news roads are expected to be constructed. n

INFRASTRUCTURE DEVELOPMENT / INDUSTRY

SlipperyWhenWet Solomon Islands’ future in water and airports infrastructure By DAVID SPRING Sydney, Australia

ny pilot who has ever tried to land during a large rain event, knows that water and airfields are best kept apart. The Australia-Pacific Islands Business Council made an exception to this when hosting “Solomon Islands Infrastructure Opportunities: Water and Airports” via Zoom on 29 May 2020. The meeting, also supported by Solomon Islands Chamber of Commerce and Industry, brought together presentations by Solomon Water and New Zealand’s High Commission in Honiara, to showcase their portfolios of upcoming infrastructure development in Solomon Islands. Conscious of the impacts of COVID-19 on business and current limitations on travel, the Australia-Pacific Islands Business Council initiated this event for international contractors. It provided an opportunity to appreciate that Solomon Islands remains open for business, is willing to collaborate and that competition is the key to maturing markets. The videoconference is part of an enabling environment for business to explore where work pipelines continue to flow. Awareness is the first step; hearing that key organisations such as Solomon Water are willing to consider bid process innovations to assist business is a larger step.

Solomon Water Solomon Water CEO, Ian Gooden, opened with the welcome news that a US$ 60 million program of works was progressively coming to the market over the next six months. A 15 ML/day Kongulai water treatment plant project is only weeks away from the start of the tender process. The US$ 17 million plant will be a key addition to water supply capacity for Honiara. The Honiara trunk main and trunk sewers (worth US$ 5 million and 11.8 million respectively) are also due out to market within two months. The remainder of the program includes provincial water supplies and upgrades to data and control infrastructure (SCADA). These construct-only projects not only have complete engineering designs, but drone footage will be available to bidders. With the difficulty of travelling to some of these sites being exacerbated by closed borders, the footage offers visibility of the complex nature of the terrain and sites. Solomon Water also extended an encouragement for prospective bidders to make suggestions to help them actively reduce the barriers that may prevent contactors from bidding. Funding is blended from the Asian

New Zealand sees reliable and competitive aviation as supporting key sustainable economic activities, including tourism and trade.

Development Bank (ADB), World Bank (WB) and the European Union (EU), with ADB procurement processes to apply. Keep an eye on www.tenderlink.com/siwa.

The Kiwis Sean Buckley (First Secretary Development) and Zubin D’Sousa (Infrastructure Project Manager), with Georgina Roberts, (NZ High Commissioner to Solomon Islands) also on the call, presented the New Zealand government’s current program - Provincial Airfield Upgrades. New Zealand has long-supported the aviation sector in Solomon Islands, as a means of increasing the reliability of air travel to and within Solomon Islands. Munda airport underwent several phases of development and, until the COVID-19 shutdowns, was receiving international flights every week. New Zealand sees reliable and competitive aviation as supporting key sustainable economic activities, including tourism and trade. Engineering designs are completed for four provincial airfield sites - Seghe, Choiseul Bay (Taro), Suavanao and Lata. A Registration of Interest (ROI) is already open for civil works at Seghe and Taro. Airfield ground lighting for Nusatupe (Gizo) airfield is also part of this

ROI. Commendable efforts have been made in the ROI documentation to assist contractors in understanding the context of the sites, describing facilities and amenities accessible in provincial centres, and materials availability. The document is also transparent about the risks associated with tendering during the COVID-19 pandemic. The High Commission remarked that more favourable proposals will include strong local presence, minimise the closure of the runway (to provide continuity for the tourism sector), and demonstrate genuine environmental and social safeguards. The Nusatupe site is known for its history with unexploded ordnance (UXO), and this must be considered for airfield lighting/trenching at all sites. The impact of climate change on runway foreshores was also of note. All construction works will be to NZ and international standards. The intended commencement of works is early 2021. n Details of the ROI at: https://www.pacifictenders.com/tenders/roi%E2%80%93-solomon-islands-provincial-airfield-upgrades-%E2%80%93-new-zealand-ministry-foreign-affairs-and;%20 or%20 https://www.gets.govt.nz/MFAT/ExternalTenderDetails. htm?id=22645167

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$309m Economic Stimulus Package The Solomon Islands Government (SIG) has launched an economic stimulus package on 04 May 2020 designed to address the negative fallout of the Covid-19 global pandemic. >> SIG Economic Forecast Preliminary predictions from the Central Bank of Solomon Islands (CBSI) and the Ministry of Finance indicate that Covid-19 is ‘likely to have considerable negative impact on the Solomon Islands economy’. The country is heading towards recession in the second half of 2020 with a significant decline in GDP growth and is expected to decline further to [-4.9] percent in 2020 as a result of reduction in logging and fisheries exports, a contraction in tourism, as well as the negative impact of containment measures that include suspension of all international flights, entry restrictions of non-citizens and strict mandatory quarantine for all returning passengers The forestry sector expects an 11% decline in log output, 9% fall in foreign exchange receipts and a 6% drop in government revenue from duties on logs. With nearly half of the Solomon Islands workforce thought to be directly or indirectly associated with the logging sector, the economic impacts will reverberate across all parts of the country. The tourism sector is also being hit hard. The tourism operators in Honiara predict a 10% occupancy rate for April while predictions for May and beyond are expected to be lower.

The guiding Principles of the Stimulus Package •

To address the immediate impacts of the crisis. To avoid job loss and increased unemployment thus activate a fiscal response to ensure as much money as possible flows into the economy as quickly as possible to improve cash flow for businesses and individuals. This will enable our domestic economy maintain economic activity, production, employment and spending, and hence stimulate aggregate demand in the economy.

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•

Capacity building: By investing into the productive and resources sectors, support major players in the economy and inject resources into critical infrastructure that would support increased economic activity and create employment opportunities.

Four Components that make up the Stimulus Package SOFT MEASURES: Immediate actions to ensure economic sustenance: • Temporarily relief on the cost of utilities to households and business consumers: • Solomon Power will reduce electricity tariffs by 16% in May in addition to the 44 cents reduction already being implemented; • SIPA-Domestic port charges have been removed for one month and will be extended to 2 months beginning April, 2020, and subject to monthly review. Storage period will be maintained and consideration will be given to local importers and exporters on case-bycase basis; • Commercial Banks to support customers by offering loan repayment holidays. The Central Bank will introduce an ‘export credit facility’ to assist exporters and have will support the Governments’ bond issue. This is to provide sufficient liquidity, if needed, in the financial system and the beginnings of what could become a secondary bond market in the country. • Tax Relief for affected businesses (Shortterm economic stimulus): - Five year tax holiday for local tourism operators - Remission of tax penalties and interests - Extension of deadlines for lodgment of income tax returns due on March - Tax payment relief on case-by-case basis - Ease of other debt recovery measures - Refund of tax credits - Goods tax exemption on personal protective equipment.

- -

Provisional tax adjustments Enhance services and communication initiatives. • Payment to public servants (Short-term economic stimulus): Government will continue to pay public servants (on special leave) to ensure cash regularly flows into the economy. • NPF relief on surcharges/penalties to employers and the injection of at least $200 million in the economy through member’s payout. This will drive domestic demand. • Special rental relief package to affected SME’s within the emergency zone – Total grant of $5 million • Engagement of women, youths and students to monitor specific State of Emergency Regulations: Women, youths and students will be engaged to monitor price control regulations and other tax related information. The expected cost of this initiative is SBD5 million. • Allocation of additional health grants to Provincial Health Authorities to ease the burden on rural health facilities. A grant of $10 Million. • Under Telecommunication relief package, the Solomon Islands Solomon Submarine Cable Company Limited (SICSSL) is offering additional 50 percent bandwidth to the retail telecommunications operators during this period of crisis in the form of additional free bandwidth. This is in anticipation of increased government and retail usage through this trying period. Additional support will also be given to churches. IMMEDIATE RECOVERY MEASURES 1: • This package is designed to prevent loss of income and employment in the economy, and diversification of the export and economic base. These measures include: • Support investment in value added or production of targeted agriculture products including noni, kava, cassava, taro, copra, coconut oil etc. A total of SBD$70 million is allocated towards this

COVID-19 RECOVERY / ECONOMY

ADVERTORIAL

Prime Minister Sogavare hands over the Economic Stimulus Package document to Finance Minister Harry Kuma. initiative. Government will introduce Special price or freight subsidies scheme for copra and cocoa over the State of Public Emergency period. • Supporting and promoting investment in value added or production of targeted products in forestry, fisheries and tourism sectors. The total of SBD44 million is allocated towards this initiative. • Rolling out of Covid-19 lending product for Small to Medium Enterprises by Development Bank of SI. A total of SBD$10 million is allocated towards this initiative. A formal framework towards the implementation of these measures is being finalized and will be submitted for Cabinet approval within the next fortnight.

Company

SBD($) injection and form of grant

Solomon Airlines

20 million (Grant and Concessional loan)

Soltuna

5 million

KFPL

Mention of support but no figures

Solomon Water

5 million (Grant)

DBSI

20 million Capital

CEMA (enhance marketing and quality certification capabilities)

2 million (Grant)

IMMEDIATE RECOVERY MEASURES 2: This component of the package proposes equity injection into government owned or partly owned companies. Other privately owned large companies will also be assisted by way of export credit or other liquidity support through the banking system to maintain production and employment. This measure is a combination of direct grant and concessional finance and a total of SBD75 million is allocated towards this initiative.

Measure include: An additional capital grant injection of $18 million into DBSI to provide specific concessional financial product to support large SMEs or companies. This product will be provided to borrowers at attractive concessional interest rate. DBSI is expected to open by the end of May. MEDIUM-TERM SUPPORT TO STIMULATE GROWTH Focus on support to stimulate and build the capacity of the economy to develop and grow. Projects not funded under the NTP programs are included in this element of the package. The proposed infrastructure investment include: • Infrastructure linking agriculture hubs in the provinces is allocated a total of $39 million • Major bridges in the provinces is allocated a total SBD30 million; and • Upgrade of domestic airports expected is allocated a further SBD21 million. MEDIUM TO LONG-TERM MEASURES BRINGING FORWARD DEVELOPMENT PARTNERS AND MULTILATERAL PROGRAMS AND INVESTMENTS Government has commenced discussions with development partners on how their planned expenditure on infrastructure that would support economic activity and create employment opportunities can be fast-tracked and brought forward. The proposed measures under this component include: • Use of labour intensive systems and programs especially in infrastructure projects; • Sourcing of materials locally, where feasible, to reduce reliance on imports and ease pressures on the balance of payments; and • Donor programs to be refocused at the outset. Financing of the Stimulus Package The stimulus package would be funded by the Government’s own resources, raised domestically through the issue of Bonds and through concessional financing abroad. The Government signed the first COVID-19 Domestic Development Bond agreement of SBD$20 million with the Solomon Islands Ports Authority (SIPA). The Government also signed another COVID-19 Bond agreement with the Solomon Islands National Provident Fund. The second stream of financing the Stimulus Package will be provided by our Bilateral and Multilateral Partners through direct budget support. In this regard, I wish to thank our partners for the valuable partnership with the Solomon Islands Government to help mitigate the economic fall out of the COVID-19 in Solomon Islands. n

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COVID-19 & the

Industry

The engineering industry has endured and recovered from downturns before. Can it do so again? By DAVID SPRING Sydney, Australia

n a region known for surprises, that the Pacific has remained largely free of the Coronavirus (COVID-19) is a welcome surprise. PNG has recorded 8 cases (no deaths) and Fiji 18 cases (no deaths). Yet Solomon Islands, Vanuatu, Tonga, Samoa and the Micronesian states

have thus-far avoided any cases at all. And it seems they’re intent on keeping it that way. As Pacific governments began closing international borders in mid-March, some were expecting a brief interval while the virus was brought under control, followed by a rapid return to business-as-usual. Others foresaw a lengthy downturn, involving several

cycles of lockdowns and severely curtailed activity. The reality may be somewhere in between. But now, more than two months after COVID-19 was formally declared a global pandemic by the World Health Organization (on 11 March 2020), all international borders in the Pacific remain closed to all but the most essential travel.

The GDP of the Pacific’s largest economies are expected to drop by 3.0% this year, compared with an average 0.1% growth in 2009, the worst year of the financial crisis. Many expatriates who play important roles within government agencies are working from home (be that in-country or abroad). Lockdown arrangements, including curfews, have hampered remaining business activity.

Air Vanuatu suspended all international flights from 24 March, QANTAS is currently operating only around 6% of its international network and Air Niugini is maintaining flights to Cairns, Brisbane and Singapore only, for outbound passengers. Cruise ships have been suspended indefinitely. As global demand has contracted, export volumes from the Pacific will also have dropped. In April, Tropical Cyclone Harold made its passage from Solomon Islands, through Vanuatu, Fiji and Tonga, with the recovery effort not involving the on-the-ground international assistance,

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which has become characteristic of recent disaster responses. The global pandemic has affected the engineering industry in the Pacific too. From travel restrictions, to delayed tender awards, import quarantines and cash flow droughts, contractors and engineering services firms have faced difficulties in their operations and in delivering projects. This article will look at the industry impacts from two angles – firstly, navigating the short-term; and secondly, what is the likely longer-term impact and the pathway to recovery?

Situation Report The GDP of the Pacific’s largest economies are expected to drop by 3.0% this year, compared with an average 0.1% growth in 2009, the worst year of the financial crisis. Many expatriates who play important roles within government agencies are working from home (be that in-country or abroad). Lockdown arrangements, including curfews, have hampered remaining business activity. As elsewhere, internet coverage has enabled many projects and operations to continue, with video- and tele-conference

COVID-19 RECOVERY / INDUSTRY calls becoming ubiquitous and essential to workplace functioning. While the movement of information is largely free (outside of China), the movement of people and goods is not. There are some activities which are far more difficult to conduct effectively via Skype. The most obvious of these is face to face consultation, and virtual interfaces cannot altogether substitute it. But construction supervision, field investigations and other data collection work requires personnel present. Thus, depending on the nature of the work and the contracts, some work may no longer be practical to carry out (due to social distancing, staff shortage or other safety requirements) and other work may be curtailed. Engineering firms and clients have had to consider all of the issues and weigh them. For most firms, the health and safety of employees has (rightly) been the paramount concern. Ensuring that workers were, as far as possible, prevented from exposure to COVID-19 was the driver for many local professional staff and expatriates to be relocated and for alternative arrangements to be put in place for in-country operations to continue. Early on, much of this relocation was done on the premise that the pandemic would spread to Pacific countries, burdening already-stretched health systems and leaving workers as either carers for the sick, sick themselves or otherwise isolated and unable to continue remote operations. While this premise has not been borne out,

the disruption it caused initially was significant and will have knock-on effects. Parties to all contracts have been looking for the contract provisions which deal with the various aspects of disruption and delays caused. FIDIC helpfully produced a “Guidance Memorandum,” which suggested the following must be considered, for which FIDIC contracts already provide remedies: > Health and safety > Change in Laws > Force Majeure / Exceptional Event > Unforeseeable shortages in personnel and in the supply chain > Variation > Delays caused by authorities > Extension of Time > Claims and disputes, in particular dispute avoidance provisions Some projects have seen COVID-19 claimed as a Force Majeure event, given its unforeseeable and wide-ranging impacts, as a way of managing the unknown forward effects it may have on productivity. Some contracts have gone into mutually agreed suspensions. Others have accepted Extensions of Time (cost or no-cost) to manage the delays experienced and now anticipated. The fact that it is governments who are

imposing lockdowns, curfews and import restrictions, and that governments are the Employer under most contracts, exposes them to these contract risks. But the onus is generally on the claimant to demonstrate that ‘if not for this event’, work would have continued as planned and that every reasonable avenue has been explored to minimise the consequences of any event of Force Majeure. Each contract and circumstance is different and must be assessed on its merits. All parties should be encouraged to find mutually agreeable solutions and not use the crisis as a fig leaf for previous failings under the contract. What contracts cannot prevent is the impact of an economic downturn. Firms with mostly domestic work, with limited reliance on imports, have been somewhat insulated from the effects of the crisis, though are still reliant on government protections. In most Pacific countries, construction work has not been locked down for long. Many firms would not have been able to sustain the fixed operational costs without income-producing work, which would have led to staff being laid-off. This was likely factored into many governments’ decision-making on ‘essential’ industries. In this regard, the efforts of governments to keep their economies moving are to be commended – never before have governments erected safety nets as generous, in order to keep business open and the >>

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>> unemployed paid. This created opportunities for some businesses, even as others remain closed. Vanuatu announced a stimulus package for laid-off tourism workers, one of the hardest hit sectors. Tonga have provided a modest stimulus with a 30 June horizon. PNG announced a range of eased fiscal measures and access to funds for businesses and individuals, though most international assistance has been budget support rather than investment. As Fiji experienced some early cases of COVID-19, part of their large package was targeted at provisions for the health sector; most of the remainder was low-interest loans and the deferral of taxes, to ease financial hardship. These temporary measures appear to have staved off the worst of the potential suffering and economic collapse. Now, there needs to be an exit strategy so that labour markets are not permanently changed. If not, workers will find other activities and engagements and their expertise will be lost to the industry. As the lockdowns and travel restrictions grind on, over-reliance on email and remote communications will ultimately limit productivity. Existing business relationships may survive, but using Skype is very a difficult way to grow new economic shoots.

companies. The US have also offered token support of US$4.5 million (excluding the Freely Associated States). This sort of geopolitical posturing offers little for the engineering industry. Infrastructure projects accessible to the international market will come from “pivots” in existing aid programs – that is, the re-purposing and fast-tracking of current contracts, pipeline projects and earmarked funds. The Asian Development Bank (ADB) initially announced a US$ 6.5 billion and later trebled it to US$ 20 billion worth of finance for COVID-related support across all their member countries, and are actively re-casting existing projects across the Pacific, as recovery support projects. The World Bank are employing similar tactics, as is Australia, with existing projects becoming vehicles for “COVID-response” funds. This is likely to involve tweaks, bolt-ons, funding of direct labour programs and links to ‘resilience’ and climate adaptation. The effect may in fact be to reduce the infrastructure spend, by diverting funds in order to satisfy national governments

Not Very Stimulating Stimulus for economies has primarily come from national governments, keen to spend large, to invigorate activity. The government of Vanuatu announced the cancellation of a range of taxes and has approved the fast-tracking of various outstanding infrastructure projects (worth ~US$45 million) by relaxing some tender requirements. Solomon Islands firstly addressed the tourism sector, with a “five-year tax holiday” offered to operators. The US$37.5 million stimulus also meets medium term recovery needs with assistance for private firms to develop and the rapid implementation of donor-funded projects. Both governments have directed that this stimulus be aimed at supporting national firms and industries. While stimulus that produces long-term economic benefits, such as infrastructure investments, would be supported by investment-seeking capital (such as from multi-lateral banks), economic rationalism may be jettisoned in the scramble to inject cash into the marketplace. “Stimulus” expenditure akin to handouts, would be entertained only by national governments and the staunchest bi-lateral partners. In May, Australia announced it is spending AU$100 million (diverted from elsewhere in their aid budget) to provide budget support to 10 Pacific countries. China set up the ChinaPacific Island Countries anti-COVID-19 Cooperation Fund, worth a rather paltry US$1.9 million, targeted to provide Pacific island states with finances to purchase medical equipment from Chinese

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more concerned with short-term social infrastructure than long-term accessibility and connectivity. This approach from the “development partners” is pragmatic, because their projects usually take several years to come to fruition and that time is not available. But what it means for the engineering industry, is that there is unlikely to be a large portfolio of new infrastructure expenditure that firms were not already tracking. It is the broader cycles of geopolitics which are driving the activity of development partners, rather than targeted assistance for international business looking for the next opportunity. Regardless, an inadvertent side effect may be meaningful work for engineering services and construction companies.

Recovery Although swift action from most Pacific country governments appear to have kept their countries COVID-free, without better visibility of forward workloads, engineering firms cannot sustain their staff indefinitely. As economies gradually reopen, activity will recover, but don’t expect a return to the preCOVID world of unfettered movement and

open markets. Trade is likely to be affected for some years to come, as countries no longer treat goods equally, regardless of where they come from. This will disrupt existing supply chains. But reconfiguration is likely, to align with accepted COVID-safe origins and uneven demand. It’s the same with people. A Pacific “travel bubble” involving Australia-New Zealand-Fiji is under discussion. Other Pacific countries have not yet expressed interest and are said to be waiting to see how Australia and NZ handle the shutdown of the virus. So when passenger flights do recommence (likely still months away), it is anticipated to be with a small, select group of countries, with multi-lateral COVID testing and quarantine agreements in place. And these agreements may be different between different Pacific countries. Fourteen-day mandatory quarantine periods for overseas arrivals have been typical and will be an impediment to the reactivation of economic activity. A period of adjustment and establishing new patterns is to be expected. Amongst other complications, attendance at pre-tender meetings and inspection of sites during tender periods will be uncertain for representatives of international firms. All of this

COVID-19 RECOVERY / INDUSTRY

complexity and regulation will ration the number and breadth of companies who can compete for contracts. The greatest risk to the recovery is a second wave of COVID-19 infections. Governments have been able to respond to this first significant shock. Existing resilience including savings and inventory has enabled business to mostly adapt - the numbers of insolvent firms for March 2020 are at relatively low historical levels. However, some firms have borrowed money to achieve continuity, reducing their capacity to withstand a second shock. The pandemic’s uncertainty will also limit borrowing potential, as lenders cannot foresee a company’s cash flow or future markets. This uncertainty will be exacerbated if a second wave occurs. Taking precautions and measures to prevent the possible spread of the virus is in everyone’s interests. Several strategies could be employed by firms, to stay abreast of, and ready to respond to, opportunities. Firstly, local partnerships are crucial to both hearing of the movements of national governments towards advertising tenders, and to gaining local knowledge of sites and associated issues. Secondly, firms must be ready and resourced to respond to

tender announcements rapidly and plan to prepare proposals at short notice. Extensions to tender and mobilisation periods should be sought from clients, to compensate for quarantine impositions, which are currently a disincentive for firms to participate in bidding. Thirdly, listening to counterparts and contacts with knowledge of project adjustments and additional financing may provide advance warning, but not every announcement can be predicted. Fourthly, reviewing existing insurance arrangements for policy changes and costs is prudent. Lastly, diversifying a supplier base is as feasible and relevant to construction firms (materials and equipment) as it is to consultants (specialists), to provide greater resilience and options. Being prepared, nimble and responsive is a sound strategy. If economic recovery is slower than treasuries are predicting, it will mean a prolongation of the COVID mitigation schemes and an increase in tax losses. This drain on national budgets may delay implementation of some projects, but the most likely outcome is a deepening of dependence on donors to implement theirs. Though the threat to public health should eventually pass, the national costs of the pandemic may linger. n

DAVID SPRING Sydney | Australia

David is an experienced engineer, with over 20 years’ experience in construction, design and international development. David has been working in Solomon Islands and Vanuatu as a Team Leader for the past six years, specifically on road and bridgeworks. He worked on intra-ministry roles at the Ministry of Infrastructure Development (MID, Solomon Islands) and led the Cyclone Pam road reconstruction project in Vanuatu, understanding donor requirements and how development projects are procured and delivered. Continuing as a Team Leader for MID and with some corporate responsibilities for Cardno, David seeks to deliver equitable access for communities, which generate social and economic benefits.

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MAR - JUN / ISSUE 03

Policy Achievement

DCGA Launches DBSI OPMC Honiara, Solomon Islands

he Democratic Coalition Government for Advancement (DCGA) has today officially launched the new Development Bank of Solomon Islands (DBSI). The launch of the bank reflects a milestone achievement of one of the policy priorities of the DCGA Government under the leadership of the Prime Minister Hon. Manasseh Sogavare, MP. “Opening of DBSI has been long awaited and this event is a fulfilment of one of my Government’s development policy agenda, which is to re-establish its development financing institution in support of its commitment to grow our national economy,”PM Sogavare said. The initial work to revitalize DBSI began after the Democratic Coalition for Change Government (DCCG) was elected into power in December 2014, under the leadership of Hon. Sogavare. “Back then, we were one of the countries in the Pacific without a development bank. As the third most populated country, second largest land mass and abundant natural resources it was inconceivable that we do not have a development bank.” The Prime Minister said. In 2015, Cabinet agreed to establish a Task Force and a Sub-Committee to progress this work. “Provincial consultations were held and there was overwhelming support by our people in the rural areas for the re-establishment of DBSI.” Following the provincial consultations in December 2018, the new DBSI Bill was passed and enacted by Parliament and became the DBSI Act of 2018. “This is to ensure that our people in the rural areas and SMEs have access to credit or capital to start up their own businesses. It is our sincere hope that the establishment of a new development bank in the Solomon

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Islands will positively impact our economy.” Government expects DBSI to offer and provide sustainable financial services to all Solomon Islanders in particular in the development of the rural areas, micro, small and medium enterprises, and commerce and industry. Government would also want to see DBSI aspire to become the leader in the provision of development finance in the Solomon Islands. “My fellow Solomon Islanders, the re-opening of DBSI is fundamental and will open doors for potentially game changing opportunities in our economy,” said Prime Minister Sogavare. “The future of this nation depends so much in rural development and what we have witnessed today is a manifestation of my government’s drive in achieving that pursuit,” said Prime Minister Sogavare. The Prime Minister further stated the Government is committed to continue to deliver what is best for the country and to continue to serve the people. “My fellow Solomon Islanders, this is your bank”, the Prime Minister concluded.“My fellow Solomon Islanders, the re-opening of DBSI is fundamental and will open doors for potentially game changing opportunities in our economy,” said PM Sogavare. “The future of this nation depends so much in rural development and what we have witnessed today is a manifestation of my government’s drive in achieving that pursuit,” said PM Sogavare. The Prime Minister further stated the Government is committed to continue to deliver what is best for the country and to continue to serve the people. “My fellow Solomon Islanders, this is your bank”, the Prime Minister concluded. The Democratic Coalition Government for Advancement is fully committed to the fulfilment of its policy priorities in the interest of economic stability, national prosperity and good governance. n

DBSI to improve social, economic livelihoods for all Solomon Islanders

ne of the goals of the revitalized Development Bank of Solomon Islands (DBSI) is to “support the government’s strategic objectives of improving the social and economic livelihoods for all Solomon Islanders.” This is according to the Prime Minister Hon. Manasseh Sogavare, MP during his address to officially launch the DBSI. Speaking during the ceremony, the Prime Minister stated that in supporting the Government’s strategic objectives, the government expects DBSI to contribute regularly and be part of government’s long-term economic planning and development especially in rural areas, particularly in agriculture, fisheries, forestry, tourism and infrastructure. This means that the Bank will carry out its own assessment of the support that Government needs and lend to the sector or other initiatives on its own terms and conditions. “My Government will put in place mechanisms to ensure that whilst working with the Bank, the Bank’s integrity and independence will be protected,” the Prime Minister stated. Prime Minister Sogavare further stated that by investing in economic and social wellbeing in an environmentally sustainable manner, the government expects DBSI to develop suitable lending products. This will support the productive and resource sectors such as agriculture, livestock, agro-forestry, aquaculture, marine resources and fisheries including small-scale rural fisheries, tourism, forestry and reforestation, mining and energy. DBSI is also expected to develop value chain financing mechanisms and lending products in support of value adding aimed at increasing exports and to support any infrastructure and utilities proposal that will promote or improve production in the productive sectors Other goals of the DBSI include investing in our people by developing the highest standards of service integrity and professionalism in the delivery of services, and for the bank itself to become profitable in a sustainable manner. Source: OPMC. n

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MAR - JUN / ISSUE 03

GIVING BACK TO THE COMMUNITY

Syntech to serve students and nearby communities with IT services

SICCI MEDIA Honiara, Solomon Islands “Volunteering with the Solomon Islands Chamber of Commerce and Industry (SICCI) helped me realize that we need to help our young generation with the use of technology to easily access information to inform and educate themselves.” Mr Moses Tadokata, who completed his five-month mission as ICT Strategy Analyst for SICCI in late February earlier this year, recalls as he watched live from his home in Melbourne through Zoom the opening of his IT Café in Honiara on Friday 5 June 2020. For him, this is not entirely about setting up a business but also an opportunity to work with young Solomon Islanders through this social enterprise and giving something back to the community and his home country. Mr Tadokata has been living in Melbourne, Australia for 20 years with his family and for the last 13 years he’s worked as a senior IT Technical Officer for the Djerriwar Health Services, a Health organisation in Victoria servicing one (1) hospital and seven (7) medical centres. Mr Tadokata was part of the Australian Volunteer Program assignment from October 2019 to February 2020 supporting SICCI members in identifying opportunities for their business with the arrival of the undersea cable. It was during his stint with SICCI that he had the opportunity to put to fruition the longtime idea of setting up an IT Café which was born out in Melbourne together with his Solomon Islands colleagues who used to attend University there. The Café is now called Syntech and its situated at the end of the Solomon Islands National University‘s (SINU) Panatina Campus close to the boys’ dormitory. “We have a community group in Melbourne that did a good number of volunteering services to help our community back in Solomon Islands and setting up this business is also part of our commitment to help in a small but tangible way. “And we have also engaged a number of youths to help complete this Café project,” Mr Tadokata said. The Principal Directors of Syntech are Mr Tadokata and his wife Margaret who have financially supported the start-up of the company and the Directors are Redley Raramo, Nada Bule and Junior Wale who are all based in Honiara. “The aim of having the Café closer to SINU is to provide avenue for our students to access some services closer to them instead of having to spend money on transportation to and from town,” he added.

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Syntech is not a typical IT Café as services provided ranges from Internet services, printing, copying & scanning, secretarial services, proof reading on assignments, designing & printing professional documents, design of wired & wireless network, data design & implementation, security, software, financial, health application & others and order of IT devices & accessories. Mr Tadokata said that Syntech will also look at providing four (4) hours of basic computer training per week which will commence in four to five months as all training materials are still stuck in Australia due to the travel restrictions associated with the COVID-19 global pandemic. He said these free basic computer trainings will target secondary students in year eleven (11) and twelve (12), foundation students attending Form 7 and first year university students. “The aim is to give students some knowledge in basic computing, software and typing skills during and before university. These are skills students will need when they are in university overseas or even our students in SINU. “If there is a demand and funding is available, we will create a technology hub for technology students to come and gain experience,” Mr Tadokata said. To be inclusive to everyone, Syntech is currently renovating the upstairs of their leased building and once completed, it will provide access for students and people living with disabilities. “It is very important to have IT in terms of helping students to have experience in using PC and different types of software. “And our internet service on the fibre optic cable should be fast enough to help students research topics online and have access to other educational materials,” Mr Tadokata said. He said down the track if all goes well, they will take this initiative further to other communities around Solomon Islands.

Solomon Islands Chamber of Commerce and Industries (SICCI) while thanking Mr Tadokata for his services during the five months with the Chamber also commended him and the rest of the team at Syntech for this great initiative in supporting our own university in providing these needed services to our local students and at the same time providing employment for youths who will be working at the Café. During his five-month assignment, Mr Tadokata assisted SICCI and its membership to make the most of the opportunities for their businesses from the arrival of the fibre optic cable through information forums and showcasing digital systems. “If businesses are to maximise the opportunities with the undersea cable, there is value in thinking through a national body responsible for governance of the sector, developing laws and policies and creating standards for ICT use in the country. “This body could develop standards and therefore responsibilities around the collecting, storing and processing of data by sectors such as in finance, medical and so forth. I think this has started largely driven by parts of Government concerned for example about gaps in Cyber Security. “However, these fundamentals need to be worked on now to contribute to business confidence in the country,” Mr Tadokata had shared in his presentation to business community back in February. SICCI congratulates Moses and his business partners on this social enterprise serving our young people starting with SINU students and students in nearby high schools. Mr Tadokata was previously employed by the ANZ Bank, Solomon Islands National Provident Fund (SINPF) and the Central Bank of Solomon Islands (CBSI) before migrating with his family to Australia in 2000. He is originally from Guadalcanal province and Choiseul Province. n

RURAL ELECTRIFICATION / ENERGY

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MAR - JUN / ISSUE 03

Fabrication of Containers

KEEPS PACIFIC RIM STAFF ON PAYROLL

Despite the slow-down that has seen mixed results across the economy a leading service provider towards project set-ups, Pacific Rim Constructors (PRC) has managed to keep most of its staff at work. By JASON SOM KAUT Port Moresby, PNG

t has put in place additional safety and security measures to ensure safety is not compromised and work can continue for its staff to keep earning some income to support their families and lessen the impacts of the economic hardships been faced across the country. Pacific Rim Constructors does work for large or small clients and has current ongoing projects to deliver accommodation and messing facilities for project sites in the Southern Highlands province. These remarks were made by current General Manager David Atterwell, during a recent interview with Pacific Tenders PNG at his office at the PRC Yard. “All businesses have been apparently affected by the Covid-19 induced lock downs, so has PRC but we are lucky, we managed to get some landscaping projects that has kept our staff busy and the bigger project for accommodation and messing facilities for a client project site,” Mr Atterwell said. He revealed that Pacific Rim Constructors had recently delivered a turn-key camp and kitchen/messing facilities that were pre-fabricated at their PRC Yard, Portion 2754C Bobona Badina, along the Papa Lealea Road in Central Province, on the outskirts of NCD.

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Workers that included electricians, plumbers, welders and carpenters were seen putting final touches to two of the 40 foot containers when Pacific Tenders visited their yard. PRC is an expert in delivering solid 40 ft container accommodation facilities kitted with taps and Components for client’s projects. The project, that involved the recent delivery in May of a total of eight solid 40 ft containers kitted either as office facilities, communications rooms, kitchen and messing facilities and turn-key accommodation facility, has enabled PRC to maintain its staff numbers up to June, 2020. The delivered containers included; n Dining and kitchen facilities n Laundry facilities n Completed ablution for sites in remote areas n Completed offices n Completed flat packs for Porgera Gold Mine and n IT Containers “There are 14 more 40 foot containers to do and 40 x 40 foot containers have been fabricated,” David revealed. PRC has another 20ft IT Container to put together and is committed to continue to support its current contract in the remote areas including maintenance work for its larger clients. n

CONSTRUCTION / INDUSTRY

ADVERTORIAL

Pictures by Jason Som Kaut

1. CROWD OF THREE: PRC staffs at the workshop pose for a picture while on break. 2. 200 MEN CAMPS: PRC also does complete 200 men camps – Picture Supplied

ABOUT PRC Established seven years ago in Port Moresby, PRC is ISO Certified in Quality, Safety and Environmental Management, maintaining its highest safety standards and ensuring consistency of its work and its delivery, even during a SOE lockdown. It is fully supported by multinational staffs with extensive experience in design, project management, electrical engineering, mechanical engineering, civil engineering and construction. Pacific Rim and its Partner Wagners (WagPac) have an assorted range of Heavy Machinery and Equipment to suit the variety of projects they are engaged in. Its wide range of services includes project management, hire of equipment, heavy machinery and labor, recruitment and efficiency consulting services. PRC is an industry expert in management, optimization and visibility for Turn Key Camps, Heavy Machines and Solid 40 foot container accommodation with plugged water and electricity. n

PICTURES OF FABRICATION OF 20 FOOT CONTAINERS FOR DELIVERY TO PROJECT SITES IN SOUTHERN HIGHLANDS PROVINCE 3. DESIGNED TO DETAIL: A kitchen setting being fabricated out of a 40 foot container for a project site in the Southern Highlands province 4. POWER OF MANY: PRC staff inside one of the fabricated 40-foot containers team up to complete a generic task. 5. COMMUNICATION EFFICIENCY: PRC also fabricates communication and IT rooms to client detail, including all the required cabling for various purposes. 6. SHOW OF CAPABILITY: A visitor to the PRC Yard getting a guided tour of various fabricated units, including this single office space with air conditioning installed. 7. AMONG THE 40-FOOTERS: QAQC Manager in charge of the fabrication team overseeing a staff as he works in between fabricated 40 foot containers.

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MAR - JUN / ISSUE 03

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RURAL ELECTRIFICATION / ENERGY

ADVERTORIAL

YONNIE LTD HELPING Light up PNG Jeremiah Jerrifia is a young electrical engineer now making waves in Papua New Guinea’s energy sector through his newly set-up company – Yonnie Limited.

ailing from Rofundogum Suandogum in the Sausso LLG of Yangoru Saussia district in East Sepik Province, he had previously worked at PNG Power where he saw the challenges facing the company and saw an opportunity to do something about an aspect of it. Jeremiah’s leap of faith in challenging the status quo and registering his business in 2014 has reaped rewards and created employment opportunities for 20 local staff. After working with PNG Power and experiencing the challenges that PPL was facing, Jeremiah registered a firm with the PNG Investment Promotion Authority (PNGIPA), resigned in August of 2017 and offered his services and expertise through Yonnie Limited to address a vital area of the power distribution network transmission lines and power poles. Yonnie won a contract with PNG Power Limited to maintain its existing transmission lines and extend them to increase access to electricity for more communities and people of PNG. PNG Power is plagued with ageing and inadequate plant and distribution systems that will struggle to address PNG’s future energy needs. It will need all the help and intervention it can get to address this. “Yonnie Limited is moving the Governments Medium Term Development Strategy to connect 85 per cent of the rural population to power. I set Yonnie up to help government through the Public Private Partnership (PPP) to try and meet the Government’s goals of rural electrification. Yonnie is specialised in power line construction and maintenance both for distribution and transmission. Its current major projects include the Taurama relocation

project where Yonnie Limited has relocated all power poles and lines to ‘pave way for road construction’ undertaken by Global Construction. Despite the lockdown the project had proceeded well and was expected to be completed mid May with the line route including Tuna Bay to the End of the World at Taurama. Jeremiah worked for about twenty years with PPL starting off as a linesman before making his way up to supervisory roles then in 2011 he went to Lae and did a Diploma in Electrical Engineering course

“

rural communities,” Mr Jerrifia said. Yonnie is available to work with Members of Parliament who wish to run their own rural electrification program for their people, but in conjunction with PPL as the power Hailing from Rofundogum Su- andogum in the Sausso LLG of Yangoru Saussia district in East Sepik Province, he had previously worked at PNG Power where he saw the challenges facing the company and saw an opportunity to do something about an aspect of it. Jeremiah’s leap of faith in challenging the status quo and registering his

We must push to grow PNG SME’s to medium enterprises and for medium enterprises to become large enterprises. Encourage local content and keep the money in PNG.

Jeremiah Jerrifia

at the National Polytech Institute. He returned upon completion of studies and was appointed Project Manager for the New Guinea Island region, under the Rural Electrification Directorate. He is ambitious and quite passionate about rural electrification and lighting up PNG. “I want to see Yonnie Ltd play a partnership role in growing the power line network for PNG Power and the people of PNG. We would like PNG Power to see us as equal local partners in improving access to power for the people, particularly in the

business in 2014 has reaped rewards and created employment opportunities for 20 local staff. After working with PNG Power and experiencing the challenges that PPL was facing, Jeremiah registered a firm with the PNG Investment Promotion Authority (PNGIPA), resigned in August of 2017 and offered his services and expertise through Yonnie Limited to address a vital area of the power distribution network transmission lines and power poles. Yonnie won a contract with PNG Power >>

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MAR - JUN / ISSUE 03

Yonnie Limited working on powerlines in Taurama in the National Capital District last month.

>> Limited to maintain its existing transmission lines and extend them to increase access to electricity for more communities and people of PNG. PNG Power is plagued with ageing and inadequate plant and distribution systems that will struggle to address PNG’s future energy needs. It will need all the help and intervention it can get to address this. “Yonnie Limited is moving the Governments Medium Term Development Strategy to connect 85 per cent of the rural population to power. I set Yonnie up to help government through the Public Private Partnership (PPP) to try and meet the Government’s goals of rural electrification. Yonnie is specialised in power line construction and maintenance both for distribution and transmission. Its current major projects include the Taurama relocation project where Yonnie Limited has relocated all power poles and lines to ‘pave way for road construction’ undertaken by Global Construction. Despite the lockdown the project had proceeded well and was expected to be completed mid May with the line route including Tuna Bay to the End of the World at Taurama. Jeremiah worked for about twenty years with PPL starting off as a linesman before making his way up to supervisory roles

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then in 2011 he went to Lae and did a Diploma in Electrical Engineering course at the National Polytech Institute. He returned upon completion of studies and was appointed Project Manager for the New Guinea Island region, under the Rural Electrification Directorate. He is ambitious and quite passionate about rural electrification and lighting up PNG. “I want to see Yonnie Ltd play a partnership role in growing the power line network for PNG Power and the people of PNG. We would like PNG Power to see us as equal local partners in improving access to power for the people, particularly in the rural communities,” Mr Jerrifia said. Yonnie is available to work with Members of Parliament who wish to run their own rural electrification program for their people, but in conjunction with PPL as the power authority in PNG. Asked about the challenges and obstacles, the first to come to Jeremiah’s mind is that PNG power is faced with legacy issues that have rendered it unable to provide cost effective and accessible power for the majority of Papua New Guineans. “There is too much bureaucratic red tape,” Jeremiah says, eager to get the work done. Reiterating on the legacy issues faced by the national service provider, he questioned a recent contract awarding that

saw a foreign company issued a rural electrification project in the Southern region costing less than K10 million. According to National Procurement Commission (NPC) Act, Section 43 stipulates that any contract worth less than K10 million are to be awarded to local companies. ‘We must push to grow PNG SME’s to medium enterprises and for medium enterprises to become large enterprises. Encourage local content and keep the money in PNG,” Jeremiah quipped.

YONNIE’S 2020 WORK PLANS

1 2 3

Huliwa to Handara road and rural electrification project, Yangoru-Saussia district, ESP Project Phase One of the North Lake Estate – awarded contract for line construction from Gerehu Freeway to 9 Mile to main gate of North Lake Estate, Laloki. Stage one – Power Line Reticulation to facilitate sub-division of Estate.

ADVERTORIAL

Pictures by Pasikia Scribe

RURAL ELECTRIFICATION / ENERGY

Yonnie Limited staff welding back a power box after changing the power poles at Tauram in NCD.

He urged PNG Power and the National Government to utilise locally owned firms in the power industry to do power line construction, by using local constructors...’and we have the skills and knowhow,” he said. “If we are unable to do a project because we do not have the skills and know-how, then we welcome overseas expertise,” Jeremiah added. The lack of sufficient forex in the economy and the lockdown due to the Covid-19 pandemic have caused a slow down in the economy that is hindering materials procurement and contributing to delays in delivery time, not just for Yonnie but many other companies, and small local MSME’s in Papua New Guinea and other parts of the region. Yonnie has Three (03) Divisions of General Services, Supply Services and Lines Services, its core business. These are bound to be reviewed with inclusion of new divisions as Yonnie continues its growth projection in partnering with PNG

Power Limited to light up PNG. Jeremiah, like others in the energy sector, believes PNG Power should only focus on its role as the power regulator, scale down operations and outsource other aspects of the business to firms like Yonnie, giving opportunity to local firms with the expertise to get the job done. According to Mr Jerrefia, ‘generation spectrum space is open and PPL is there to regulate’. Ambitous, as he is, like many of todays young generation of skilled professionals challenging the status quo of past systems, Jeremiah is resolute in his aim to see Yonnie running the PPL network. “The vision is to build a national grid where generation can happen anywhere in PNG with PPL enforcing regulatory compliance and control,” Jeremiah says. PPL is currently responsible for generation, transmission, distribution and retailing of electricity throughout PNG and servicing individual rural electricity

consumers. The leap of faith Jeremiah had taken in setting up Yonnie Limited has created employment opportunities for qualified and experienced local staff and other support staff. He now owns two properties and adequately caters for his family’s needs. Yonnies growth has created income earning opportunities for more than twenty families. This includes a Filipino General Manager, Zaide Jim Gonzales who has years of experience having worked in the power industry in the Philippines and the Pacific. He too is passionate about lighting up rural communities. Jeremiah believes power black outages will be a thing of the past if the national power authority ‘outsources and concentrates on its regulatory functions’. And Yonnie is strategically set up with the skills and experience to help ahieve this. Jeremiah believes collaboration and team work are vital in achieving shared goals and lighting up PNG. n

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Representing SICCI was Chief Executive Officer (CEO), Atenasi Ata and Executive Board members. SICCI membership with special interest in the subject, were General Man Rahman and South Pacific Oil (SPO) Limited, Mr Carson Korowa, Managing Director of Solomon Breweries, Mr Peralt van der Merwe, Country Manager for Solrice Limited, Meat, Mr Wayne Lorrimer.

SICCI Roundtable Highlights Opportunities for Raising Gov’t Revenue from Businesses SICCI MEDIA Honiara, Solomon Islands

he Solomon Islands Chamber of Commerce and Industry (SICCI) hosted a roundtable meeting on Wednesday 3 June 2020 to discuss ways in which the Solomon Islands Government (SIG) can maximize its opportunities for revenue collection from businesses. By doing this, SICCI aims to promote an environment where business confidence can increase because of a level playing field. Present at the meeting were Governor of the Central Bank of Solomon Islands (CBSI), Dr Luke Forau, officials from the Ministry of Commerce, Industry, Labour and Immigration and the Prime Minister’s Office and Director of the Economic Reform Unit (ERU), Mr Rictor Luaboe, who delivered a presentation on behalf of Government. Present at the meeting were Mrs. Atenasi Wasuka (SICCI CEO), SICCI Executive Board Members and SICCI ordinary members with special interest in the subject

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including: General Managers of Solomon Islands Tobacco Company (SITCO), Mr. Kazi Mushfiqur Rahman and South Pacific Oil (SPO) Limited, Mr Carson Korowa, Managing Director of Solomon Breweries, Mr Peralt van der Merwe, Country Manager for Solrice Limited, Mr James Bradford and Chief Executive Officer of Sullivans & Nambawan Meat, Mr Wayne Lorrimer. The Chamber convened this meeting as it was noted that in the last five (5) years, taxes paid to the government by these companies have dropped significantly. SICCI as a partner of Government and advocator for private sector growth is concerned that when the country is losing such substantial amount of revenue, there will be adverse social impacts such as reductions to budgets for critical sectors like health, education, and infrastructure. SICCI relayed that notwithstanding structural and institutional challenges faced by business and industry in the country, overwhelmingly businesses are prepared to invest in the productive capacity of the country to create and

sustain local jobs. Being responsible corporate entities, they comply with paying all taxes to Government, relevant licensing fees and permits required to implement/maintain high Health and Safety standards. SICCI recommended that these same requirements or obligations apply to all that do business in the country. This ensures that consumers are guaranteed safe quality products, employees are guaranteed a safe and healthy working environment while government see a boost in their revenue from a broader collection base. Hence, another important aspect of the roundtable discussions was how the Government can be the best enabler for private sector growth. ‘A level playing field’ continues to be a SICCI concern, as it is important that businesses coexist in a spirit of competition all the while complying with Government legal framework. Some examples where compliance is expected is in fulfilling company obligations as regulated by Government, adhering to tax

COMMERCE / INDUSTRY

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The Solomon Islands business environment lacks a ‘level playing field’. This is causing companies complying with Government regulations to lose significant Market shares. In competing with cheaper products on the market, compliant companies lose their market share as the consumers will choose the cheaper product over the quality-stringent, and tested product. Thus, the Government loses millions of dollars of revenue from the compliant companies.

SICCI CEO, Atenasi Ata

nagers of Solomon Islands Tobacco Company (SITCO), Mr. Kazi Mushfiqur , Mr James Bradford and Chief Executive Officer of Sullivans & Nambawan

regulations and complying with Occupational Health and Safety standards. SICCI in its presentation noted that combined, these large companies are substantial tax payers that contribute at least 30% in taxes to government revenue annually. Together they also employ a large number of Solomon Islanders as well as support families’ livelihoods through their supply chains throughout the country. On top of that they invest millions of dollars into the local economy. Benefits from taxes collected by Government trickles down to the local individual Solomon Islander who can access basic Government services such as health care, education, sanitation and hygiene, employment and so forth. In addition, the meeting noted the requirement by Government for large investors called the Company Social Obligation (CSO) which provides assistance for local communities through projects such as building of local schools, clinics, community church houses, improvement of feeder roads and so forth. During the roundtable meeting, SICCI CEO, Ms Ata in her presentation summarized the potential gaps and suggested some ways to address them. “The Solomon Islands business environment lacks a ‘level playing field’. This is causing companies complying with Government regulations to lose significant Market shares.” “In competing with cheaper products on the market, compliant companies lose their market share as the consumers will choose the cheaper product over the quality-stringent, and tested product. Thus, the

Government loses millions of dollars of revenue from the compliant companies.” “We conducted a desk-top exercise to project the amount that could be collected by Government when ensuring compliance to its laws and regulations and it was estimated between $200m-$400m.” “For the economy, in a worst case scenario, a surge in unemployment could lead to rising social problems. This can happen when businesses have to cut costs by reducing labour.” “Looking at it another way, for the average Solomon Islander, unsafe low quality and cheap products sold by noncompliant businesses can be risky and hazardous as well,” Ms Ata added. In response, Director of the Economic Reform

Unit (ERU) under the Ministry of Finance and Treasury, Mr Rictor Luaboe, highlighted the gaps in Government revenue and what the Solomon Islands Government is doing to finance the National Budget. The meeting agreed that going forward, SICCI would work with Government to ensure that level playing field for business and industry is implemented. To achieve this, it was agreed that a taskforce would be formed to ensure that compliance is monitored with regular review and reporting. The mechanism for this reporting will be through the quarterly SIG-Private Sector Advisory Group meetings mandated under the signed MOU between the Government and SICCI in 2017. n

SICCI Vice Chair, Ricky Fuo’o speaking during the Roundtable meeting.

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MAR - JUN / ISSUE 03

First meeting of the SICCI Building and Construction Working Group (BCWG) subcommittee on Tuesday 16th June 2020.

SICCI establishes Building & Construction Working Group SICCI MEDIA Honiara, Solomon Islands

he Building and Construction Working Group (BCWG) subcommittee of the Solomon Islands Chamber of Commerce and Industry (SICCI) held their first meeting on Tuesday 16th June 2020. Although this meeting was their first one, the National Building Code Solomon Islands (NBCSI) and the draft Infrastructure Management Bill 2017 were agreed upon as key focus for their term. The BCWG will provide a platform for informed, expert discussions to formulate SICCI positions on measures that can be considered by Government and development partners relevant to the building and construction industry. The positions will as far as possible, promote the interest of local services and goods providers and local jobs. In establishing the body, SICCI appointed its six (6) members after an Expression of Interest (EOI) process facilitated by the Secretariat. At this first meeting, Mr Daniel Tucker was appointed chair by majority vote. The other

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members are Joe Sika (Tongs), Ricky Fuoó (Tropical Glass Builders), Flori Gatu (SIWIBA), Ian Gooden (Solomon Water), and Andrew Bulman (Solbridge company). The newly-elected Chair of this Group, Mr Tucker, also Solomon Islands Country Manager for Kramer Ausenco, says that whilst it’s a privilege to lead this working group, it is also one that he takes very seriously due to its long-lasting impact on the country. “Our objective is that we help the industry by working with government, and its development partners, everyone with stakes in the building and construction sector, to address identified gaps and hindrances. “And we will do this by promoting real-time experiences and facilitating expert discussions or consultations,” Mr Tucker said. He said the first meeting agreed that the BCWG will focus on two key projects, namely the finalisation of the national building code, and supporting government to pass the Infrastructure Management bill.” The Secretary to the BCWG is, Mr John Kanai Taámora, who is also the SICCI Advocacy Officer for close to four years now. “SICCI sees that for Solomon Islands, out of

COVI-19, it is an infrastructure-led path that we take in terms of jobs it creates directly and the domestic procurement of local services and goods,” says Mr Taámora. “We are encouraged that the government agrees with this, endorsing our position as early as the last SIG-Private Sector Advisory Group meeting of 13th March where we relayed this imperative of local content, local jobs,” he added. “This is important because close to SBD8.4bn is planned for our country in terms of infrastructure works, and that is a substantial injection that could be of wider benefit not only for business, but also for wage-earners, and households.” Mr Ta’amora wants the working group to work hard to realise the SICCI Board’s vision of quality, durable building infrastructure for the country. “The Chamber Board is optimistic that with the group focusing on these two projects we are on a good path of setting the legal and policy framework for the industry that will assure us and our future generations to come, that our building infrastructure are safe.” n

LPG / ENERGY

Didds Gas Launches Alternative LPG Gas Service Didao Holdings has launched its latest subsidiary Didds Gas which will operate as an alternative LPG bottled gas supplier in Honiara and later to other Provinces. By DOUGLAS SAEFOA Honiara, Solomon Islands Didao Holdings has launched its latest subsidiary Didds Gas which will operate as an alternative Liquified Petroleum Gas (LPG) bottled gas supplier in Honiara and later to other Provinces. In an interview Didao Company owner Mr. Toata Molea told PT Magazine that the idea to start this new subsidiary was born out of vision to provide cheaper and efficient LPG gas for the residents and communities within Honiara and the Provinces since there is only one supplier in the country. “ I understand that currently Origin Energy is the only LPG gas provider in the country and i have also been a long time distributor of its gas products myself. But my intentions to become an alternative supplier is because i see the need for a second gas provider to give our customer the power to choose rather than depend on a monopoly service provider” said Mr. Molea. Mr. Molea said his LPG gas is being procured from New Zealand from Matson Bulk Fuels and has been shipped into the country and stored on a Tanktainer at his service station where he supplies them through gas bottles and also refills them at his service station once they are empty. On the actual operation of this new venture Mrs. Jacky Molea Chow, the daughter of Mr. Toata Molea and the Manager of Didds Gas said they will start by supplying 2 specific bottled LPG gas volumes namely 4.5kg and 9Kg to consumers. She said the most common distinct feature of their product is that their gas bottle is yellow coated and has their logo on it. “The most distinctive feature in our new gas bottles is the yellow colour of the gas bottle which can be distinguished from the Origin gas bottles which are grey,” said Mrs Chow. Mrs Molea also recognised her fathers vision as a local entrepreneur and acknowledged his commitment to

It’s all smiles for the first Didds Gas customers with their gas cylinders and merchandise.

see through bringing this project into fruition. Mrs Chow also highlighted that their gas prices will be much more competitive and will further expand to other Provinces. She also revealed that since the gas they are supplying has an added substance to the butane inside the cylinder, customers may notice a a slightly blueish flames the gas puts out when cooking. She said this allow their gas to cook more faster and more reliable. Meanwhile Mr. Molea a well known local entrepreneur who has been in the fuel business for more than 2 decades said all he wants is for the betterment of the people and to encourage local business to venture into such to improve the livelihood of the people. The Solomon Islands Government Ministry of Commerce, Industry, Labour and Immigration’s (MCILI) Price Control Unit says the variation and determination of the maximum price for LPG products is done by a Price Advisory Committee and submitted in due process to cabinet for gazetting on a monthly basis and may vary accordingly.

The Unit continues to explain that the determination of price has to also take into consideration annual financial reports submitted by wholesalers in this case the current wholesaler would be Origin Energy. Moreover, the monthly price gazettes for LPG products are priced per kilogram for both wholesale and retail categories. Also the key factor which influences the global Price of LPG products is the global fuel price. An increase or decrease in the global price of fuel will also have an effect on the price of LPG products. The price Control Unit also noted that licenses to supply and distribute LPG products has to come from the Ministry of Mines and Energy and Rural Electrification who will in approving such licenses will determine which LPG product a wholesaler wishes to sell. Currently the two main PLG products in the Solomon Islands are Butane and Propane gas which can also be differentiated and chemically mixed. More on this on our next issue. n

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MAR - JUN / ISSUE 03

Q With

Shifting Gear for Women

Gloria Mulai Gloria Mulai is the Assistant Policy Adviser Transport on secondment from the Civil Aviation Safety Authority of PNG (CASA PNG) to the Department of Transport. Ms Mulai completed her primary and high school education in Morobe Province and after Grade 12, was selected to the University of Papua New Guinea where she studied a four-year business and management program majoring in

Picture by Jason Som Kaut

strategic management.

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Q&A

Tell us about your secondment from CASA PNG to the Department of Transport

I’m doing a two-year twinning program which comes under the MoU between the Governments of Papua New Guinea and Australia on cooperation in the transport sector. It is an executive leadership and mentoring program for professional women within the transport sector. My role is to provide policy advice and project management in the delivery of Australia’s support to the transport sector as part of an integrated project team involving Government of PNG transport sector agencies, the Australian High Commission, the Transport Sector Support Program managing contractor (GHD) and Australian Government transport sector agencies. I see this twinning program as an open door for more opportunities. It gives me experience and insight into all the subsectors, from aviation to maritime and land. And as a bonus I believe this program will give me the courage and confidence to be able to establish relationships at the executive level across all of the agencies within the transport sector. Stepping out of my comfort zone is challenging and overwhelming, but that’s how you grow. I think women should take opportunities when they come, and not be afraid to face challenges. Because that’s the only way to gain confidence and courage and then you will be able to empower others.

How did you come to work in the transport sector?

I was selected by the head of the Strategic Management Strand to do my practical with CASA PNG as part of my final year practicum course. CASA PNG regulates the aviation industry by providing aviation safety and security oversight and surveillance to ensure safety of the travelling public. I’ve been with CASA PNG for eight years now. I started off as an on the job trainee, then worked up to a Graduate Trainee – Human Resource (HR) position, then became an HR Officer and was then promoted to the Corporate Strategic Planning Officer position.

Did you always want to be a strategic manager in the transport sector?

I never thought I would be working in the transport sector. When I was in high school, I had a dream of becoming a geologist. My mum was a landowner to the Morobe Hidden Valley Gold Mine, and I used to admire my uncles wearing their safety boots and safety uniforms to work. I always told my mum I’d become a geologist and go back to Hidden Valley to work.

INSIGHT

But everything changed when I was in grade 12. We had a couple of students from the Morobe Student Union at UPNG visit and present the programs that UPNG offers. That was the first time I heard about the strategic management program and that was when my dream changed from being a geologist to becoming a strategic adviser.

What drew you to strategic management?

Strategic management is all about planning into the future; knowing where you want to go and planning how you will get there. You don’t have to be specialised in aviation to apply strategic management skills. You don’t have to be specialised in education or health – it just cuts across the whole of government. It can be applied outside your work too in anything you do, even at a personal level or in community development.

What advice do you have for young women?

I recall in my high school days, when you saw a plane flying, you knew it was a male pilot flying the plane; a ship, you knew it was a male captain; you always saw maleengineers doing road works. As a girl, this makes you think, Will I be able to survive in that environment? To make it through, given that I have to gain certain qualifications? But my advice to young girls is to not have that mindset. Even now, we already have women in these fields – women pilots, women engineers, so it’s not impossible. It’s about being brave enough to face the challenges.

What message do you have for everyday women?

Being a woman in PNG, you come from a family and you have your own family, and you face challenges every day. My message to other women, not only women in the workforce but women in the community as well, is: Don’t let these issues that we face everyday stop us from achieving our dreams. Because at the end of the day, these issues that you face make you stronger and able to face any challenge that comes your way.

How do you feel about the future of PNG?

Nowadays our focus is all about developing our country and having effective and efficient systems in place for the future. It will take time because it depends on individuals; how you approach your job, your commitment to work. We rely on other countries to provide support and capacity development. It’s now about Papua New Guineans, how we own these opportunities and how we move forward from there. n

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MAR - JUN / ISSUE 03

On Site With

Hyundai Engineering Company (HEC) In this segment of “On site”, Douglas Saefoa of PT Magazine visited Hyundai Engineering Company (HEC)’s Ha Chung Ryul who is the Site Manager and HEC Rep. Mr. Ryul talks about the project and the difficulties faced with the current COVID-19 pandemic. Can you briefly tell me your name, Designation in the company and field of expertise? My name is Mr. Ha Chung Ryul and I am the Site Manager and Representative of Hyundai Engineering Company in the Solomon Islands. My Overall responsibility is to oversee the successful management and execution of the Tina River Hydro Project. I am a Civil Engineer by background and have executed overseas hydropower projects in Indonesia and 10 other domestic projects in South Korea.

How did your company come to know about the TRHP? We secured this project through competitive bidding which HEC participated with K-water

Can you tell us about your company and the specifics of your contract with regards to the project? HEC is a reputed South Korean Engineering and Construction Company which has global presence. HEC has several years of experience in engineering, procurement and construction of Hydropower Plants of different sizes. HEC and K-water had joined together to form a Special Purpose Company, Tina Hydropower Limited to undertake the development of the TRHP. Further, HEC was awarded the Engineering, Procurement and Construction contract on 30th os September, 2019 for the Access Road and main facilities (Roller Compact Concrete (RCC) Dam, 3 units of 5 Mega Watts).

What components of the Project are you responsible for and what are the specific timeframe for accomplishments within the remainder of 2020? HEC has various tasks to be

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accomplished prior to construction in 2020 which includes: > Environmental activities: Surveys to determine baseline of water and environment, assess the impacts and plan measures to avoid and mitigate. > Pre-construction activities: setting up of facilities like Concrete Batcher Plant, Crusher Plant to provide required materials for construction. > Preparation activities: Construct the base Camp for residence of workmen and office for control, coordination and execution of all works associated with TRHP. > Engineering and procurements: The major component of this project being the the design component is expected to be completed by the end of 2020. The basic design of main project and detailed design of Access Road has been completed. With regards to environmental aspects, have you considered any direct impacts to the communities along the river during the construction phase? Impacts due to the construction of the project, surveyed and assessed during the development period was detailed in the Environmental Social Impact Assessment (ESIA). As per the responsibilities outlined in the ESIA, HEC has been carrying out baseline surveys on various components to monitor the impacts arising out of construction works. The Engineering Procurement and Construction (EPC) contractor along with all other stakeholders has framed 31 Environmental Social Management Plans (ESMP) to monitor, manage, avoid rehabilitated as stated in respected Management Plans.

What is the actual value of this project?

The total value of the EPC Contract is USD 165 million which is broken down into: - Access Road-USD 25 million - Main Works- USD 140.25 million What are some of the foreseen Construction challenges already anticipated or have already been experienced? Challenges we’ve encountered include: - Lack of Technicians - Lack of proper construction equipment - Lack of various infrastructure (roads, facilities for producing material, high unit price for building material) - Lack of Testing facilities in the country for various parameters of

RENEWABLE ENERGY

Mr. Ha Chung Ryul of HEC standing in the centre alonside engineers and contractors of Sungpoong Construction Company and other local workers.

ESMP and Design. (Water Quality and suspended sediments.) - Lack of established systems in the country comparing to various laws and regulations. How many companies are currently involved in the actual construction of the dam and associated structures? At present HEC has sub-contracted Sungpoong Construction Company for the construction of the base camp, Office and access roads. Various companies shall be sub-contracted for concerned activities with the days to come. HEC has been working with various local companies/ entities for carrying

out environmental assessment, surveys, baseline, monitoring activities. Has the global Covid-19 pandemic had any effect on the projectâ&#x20AC;&#x2122;s progress? Covid-19 is a global pandemic and has also impacted this project. Some of the staff appointed for the project cannot come into the country due to travel restrictions and unavailability of flights. Due to the above, delay in the instalment of various facilities like the crusher plan, concrete batcher plant, basecamp and office. A lot of construction equipment belonging to HEC is in idle condition.

Some of the tests planned to be carried out abroad (Australia) are on hold due to closed borders and also unavailability of flights. Environment baseline study for aquatic could not be accomplished as the consultant has to come from Fiji. Is this the first contract or project that HEC has undertaken in Solomon Islands? TRHP is the first project HEC has undertaken in the Solomon Islands and we are very confident that we will successfully deliver on what is expected of us. Furthermore, we consider this project as an opportunity to participate more on future projects in the Solomon Islands. n

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MAR - JUN / ISSUE 03

Youths and Farmers encouraged to apply for ESP

ll youths and rural farmers in the country are encouraged to apply for assistance from the COVID - 19 Economic Stimulus Package, ESP. Policy Secretary for the Productive Sector in the Prime Minister’s Office, Dr Samson Viulu told a group of Malaita Youth representatives in a brief meeting in the Prime Minister’s Office on 27 May 2020. Dr Viulu clarified the ESP is inclusive for all individuals, groups and Associations who already engaged in business activities both in the formal and non-formal sector. “The package is aimed at rural workers in the rural areas and is directly channelled from the Government through the COVID-19 Oversight and Implementation Committee directly to the recipients,” Dr Viulu explained. Dr Viulu said the ESP is mainly to relief struggling entrepreneurs in the areas of agriculture, fisheries, tourism and forestry to maintain and boost production output at all levels of the production value chain. He explained that most rural farmers are eligible to apply by submitting simple project proposals, even a two page proposal with all the basic relevant information is suffice. “There is no standard application form but rural farmers who have existing farms can simply write up their application stating precisely the assistance they need,” said Dr Viulu. He also added that ESP may relax some of the qualifying criteria for assistance under the ESP for existing rural farmers. “Most rural farmers do not engage in the formal business sector and may not have legal supporting documents, but can submit applications given they have existing farms, with the hope that in the long run, these farmers will eventually register their businesses so that provincial governments too can earn revenue through business licenses” said Dr Viulu. He clarified that follow up assessments on site will be done after the submissions are received for verifications. The ESP has three overarching guiding principles including: 1

Quick economic return, which means the applicant’s proposed activity for funding should have a quick turnaround preferably not more than six months; 2 Significant impact to the rural and national economy by encouraging income generating activities and employment. This means the proposed activity should employ a good number of people and contributes hugely to the national economy through taxes, business licenses and growth in employment; 3 Platform for long term economic recovery post covid-19 which sets the foundation for multiplier effect from economic activity, investment and growth. n

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MFMR Hatchery at Aruligo The Ministry of Fisheries and Marine Resources is in the process of building a freshwater hatchery facility on Government land at Aruligo, Guadalcanal.

he Ministry of Fisheries and Marine Resources is in the process of building a freshwater hatchery facility on Government land at Aruligo, Guadalcanal. Overseen by the Project Management and Aquaculture Divisions of the MFMR, along with Project Manager PNCosting, the project is being built in two phases. Phase 1 is a laboratory and office block with an adjoining area of covered tanks and a perimeter fence. Phase 2 is an area of outdoor ponds and the necessary power and water services. The buildings and tanks from Phase 1 were constructed by local company R & D Enterprises and have been completed in June 2020. by contractor Bisivotu Enterprises Ltd. Both contracters have eds. According to the Ministry of Fisheries and Marine Resources, the total cost for construction alone for the facility will cost around $16 million SBD. Phase 2 is about to go out to tender. The freshwater hatchery will be run by the MFMR as a government facility and will be a central piece of infrastructure to help the MFMR progress it’s Aquaculture Development Plan. Fish is crucial to food and nutrition security in Solomon Islands, and demand is expected to increase due to a growing population. Aquaculture has the potential to be one of the options

to help ensure that fresh locally produced fish continues to be available to the people of Solomon Islands. The Government of Solomon Islands has identified land-based aquaculture as one of the solutions to support rural livelihoods and meet future food and income needs. The Ministry of Fisheries and Marine Resources is optimistic this project will provide the much needed facilities required to import and manage an improved strain of tilapia to produce fingerlings that will be available for rural fish farmers. The prioritisation of tilapia in the MFMRs aquaculture development plan is in recognition that Mozambique tilapia which was introduced into Solomon Islands in the 1950’s is already being farmed in parts of Solomon Islands for household consumption. But it is a slow growing, small fish which has limited potential as a commercial aquaculture species. The decision to develop inland aquaculture on an improved strain of Nile tilapia was based on a feasibility assessment and a preliminary economic analysis of various options. Nile tilapia grows 80% faster than Mozambique tilapia in farmed conditions and neighbouring Pacific Island countries (Samoa, Fiji, Vanuatu and Papua New Guinea) have introduced it as the basis for implementation of their own national

AQUACULTURE / FISHERIES

aquaculture policies. Like other fish, tilapia is a nutritious food and a healthy source of protein, micronutrients and essential fatty acids. There are already some experienced rural tilapia farmers in Solomon Islands who have been seeking a more productive strain of fish to farm for many years now. Tilapia farming usually involves the whole family including women and children from

the farming through to value adding either for consumption or to sell in order to generate income. Staff of the Aquaculture and Project Management Divisions in the MFMR supported by colleagues in the Ministry of Finance and Treasury, Ministry for Infrastructure and Development and the Guadalcanal Provincial Government are working tirelessly to make sure that the

construction of the facility continues even during the Covid 19 State of Emergency situation. The hatchery is jointly funded by the Solomon Islands Government and the New Zealand funded Mekem Strong Solomon Islands Fisheries (MSSIF) Programme. n Details of the ROI at: https://www.pacifictenders.com/tenders/ freshwater-fish-hatchery

Phase 1 is a laboratory and office block with an adjoining area of covered tanks and a perimeter fence.

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Pacific Games 2023 UPDATES MAR - JUN / ISSUE 03 from the Sol 2023 National Hosting Authority

UXO Survey advance ahead of PG2023 Preparations By DOUGLAS SAEFOA Honiara, Solomon Islands

Road to Sol2023

The Solomon Islands Pacific Games 2023 National Hosting Authority has kicked off preparatory work on proposed games facilities starting with Unexploded Ordinances (UXO) surveys at the five proposed sports precincts at the eastern end of Honiara. The Sol2023 NHA has contracted 4 UXO expert contractors to undertake battle area clearance. The work included a systematic search, detection and removal process to clear land contaminated with ordnance and munitions. During an interview with PT Magazine a representative of Solomon Islands Battle Area Clearence group Mr. Reinherd Alalo, a level 3 Explosive Ordinance Technician said their work must be done to determine the safety of the sites. It is not the same as mine clearance. Battle area clearance poses a lesser threat than mine clearance. Mr. Alalo told PT it is standard procedure to undertake UXO surveys before any development is done on the land. More especially since Guadalcanal and the proposed Pacific Games development site are highly littered with war remnants in the aftermath of the Japan-USA battle. Battle Area Clearance Group has been assigned to King George Sixth (KGVI) East Sports Precinct which covers an area of 13 hectares. Their job is to carry out low and deep level searches of about 15 to 30m below the surface for any UXO’s which may pose a risk during the construction phase. “We clear soil that may contain unexploded ordnance with armoured machinery and sieving equipment. In order to do this as safely and expertly as possible, we dig up the ground layer by layer. If UXO is found, we uncover it further by hand. This careful approach allows us to safeguard UXO and hand it over to the Royal Solomon Islands

Police Force Explosive Ordnance Disposal Service (EOD)” said Alalo. Since they’ve started the survey they have managed to unearth a lot of war remnants including shell casing, live munitions, and even scattered wreckages of war planes which have been left scattered over the area after the war. Mr. Alalo said the NHA originally gave them not more than a month to complete their task but they were not able to do so given size of the containment area. He said a revised timeframe had given them enough time to properly complete their task. Meanwhile the Secretariat to the Pacific Games 2023 National Hosting Authority Mr. Christian Nieng confirmed on 29 June that UXO surveys have been completed and independently assessed and that Geotechnical tests have also been done. Mr. Nieng noted that the five sports precincts at the eastern ed of Honiara will soon go into actual development once contractors are allowed to re-enter the country. It is also understood that the Solomon Islands National Institute of Sports located at the former Telekom Re-creation field has already entered into construction by the Chinese Construction and Engineering Company (CCECC) and a completion date is expected soon. Pacific Tenders Magazine is aware that the Chinese government is expected to finance more than half of the facilities including the main Stadium at the KGVI West Sports Precinct. The Indonesian Government in its support, will finance the construction of a Multi-Purpose futsal stadium at the Panatina Sports Precinct and Papua New Guinea has given pledged support which will go towards the new Solomon Islands Football Federation Academy at the old Taiwanese Farm. n

SIFF, Kramer Ausenco signed Lawson Tama design contract SIFF MEDIA Honiara, Solomon Islands

Lawson Tama, the iconic football ground is taking a step closer towards its planned facelift ahead of the 2023 Pacific Games as SIFF today signs a contract with leading architectural and engineering firm Kramer Ausenco for the development of the design for the stadium’s upgrade project. Kramer Ausenco was selected following a regional tender consisting of four (4) bidders ranging from Australia, Papua New Guinea, and locally which was concluded February of this year. The assessments are done by an independent committee appointed by SIFF to manage the project placed Kramer Ausenco as the top choice firm. The contract valued at SBD$3,836,936.00 will see Kramer Ausenco design a 60008000 capacity stadium in two phases. The first phase shall consist of the first stand, dressing rooms, and the playing pitch plus supporting fixtures. The second phase of the design incorporates the second stand. Following the completion of the designs

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for phase one, a tender will be run for the contractor later this year. The construction, similar to the designs, will also be executed in stages with phase one likely to start in 2021 and the second stage thereafter. FIFA is provided USD$277,679.00 (SBD$2,304,390.04) towards the design phase of the project and following the successful completion of the design shall contribute another further USD$4 million towards the project. SIFF acknowledges the funding from FIFA and the partnership with the Solomon Islands Government and Honiara City Council (HCC) with regards to the Lawson Tama upgrade project. SIFF President, William Lai in his remarks thank FIFA and other stakeholders who continue to work hard behind the scene to see the project up and running. “Today we are here to sign the contract but this project has gone through tough times up to this day,” he said. “I want to thank FIFA president and FIFA officials in the region for supporting us with this project. “Also I would like to acknowledge the national

government and Honiara City Council for their inputs as this signing is just a starting point for the upgrade of Lawson Tama.” Kramer Ausenco Country Manager, Daniel Taka said they are happy to get the project after a lengthy bidding process. “It’s been a long negotiation process but we are happy to receive this project,” he said. “We are grateful to SIFF’s trust in Kramer Ausenco since we’ve been operating here for a while and we feel that we have the best knowledge of the ground. “We are looking forward to delivering this project especially we understand the impact it has on sports in the Solomon Islands and it will be a landmark project for the institution SIFF.” Daniel stressed that work on the design will start soon as Kramer Ausenco is eager to deliver a higher standard design for the Lawson Tama upgrade project. n Details of the ROI at: https://www.pacifictenders.com/ tenders/expression-interest-architectural%C2%A0design%C2%A0and-project-management%C2%A0services%C2%A0-lawson-tama

MAR - JUN / ISSUE 03