44476 Private Enterprise Partnership - Pacific Pacific Quarterly Third Quarter Financial Year 2007 Private Enterprise but there is a whole segment of the population Partnership - Pacific Top Level Visit that is not emerging from poverty. In fact Demonstrates IFC's poverty has increased over the past few years." Co-financed by IFC believes that the answer is private sector Australia Commitment to PNG led growth and Peter Cusack believes that PNG Microfinance Ltd is now well placed to provide International Finance Corporation A visit to Papua New Guinea by much needed capital to enterprises ranging Japan IFC's Director for East Asia and from sewing ventures to shoe repair and fishing Pacific, Dick Ranken, during the businesses. New Zealand quarter reinforced the Corporation's Indeed, Mr Ranken made a point of inspecting commitment to the Pacific region a branch of PNG Microfinance in Port Moresby's Managed by and in particular, the region's largest Koki district where many informal micro and most populous nation. enterprises have grown up around a local International Finance Corporation, a The visit, which included an informal meeting market. member of The World Bank Group. with Prime Minister Sir Michael Somare, was The other current stakeholders in PNG The Private Enterprise Partnership ­ Mr Ranken's first visit to PNG in his capacity as Microfinance, which has seven bank branches Pacific (PEP-Pacific) was established Regional Director. and a total of 100,000 deposit customers, are as the South Pacific Project Bank South Pacific and the PNG Sustainable Facility in 1990. The primary "Mr Ranken wanted to show PNG's government Development Program. objective of PEP-Pacific is poverty and its private sector that IFC takes its relationship reduction through employment- with the country extremely seriously," said Peter "IFC sees the Sustainable Development Program generating sustainable private Cusack who was appointed as IFC PEP-Pacific's sector development. Through as a logical development partner in PNG," Mr targeted programs focusing on PNG Country Coordinator a year ago when the Cusack said. "It is private sector based and has access to finance, tourism and Corporation decided to significantly boost its divisions that focus on infrastructure, energy, business climate development, involvement in the country. including rural electrification, sustainable forestry PEP-Pacific works with institutions, organizations and associations to But Mr Ranken's trip to PNG was more and other initiatives that coincide with IFC's strengthen and stimulate small and than a symbolic gesture. During the visit, mandate to promote private sector investment medium enterprises so that they to improve people's lives." can grow, helping create more and IFC's Director of East Asia and Pacific also better jobs, raise living standards finalised the Corporation's investment in PNG Accompanied during part of the visit to and alleviate poverty. Microfinance Ltd - a move that will result in far PNG by the IFC's Compliance Advisor/ reaching benefits for those people currently Ombudsman, Dame Meg Taylor, Mr Ranken Through PEP-Pacific, IFC serves member countries including Fiji, outside of the banking system, particularly also met with the Secretary of the PNG Kiribati, Marshall Islands, Federated those involved in micro-enterprises. Treasury and forged relationships with a States of Micronesia, Palau, Papua range of private sector leaders. New Guinea, Samoa, Solomon IFC will take a 19 percent stake in the new Islands, Tonga, Timor-Leste and PNG Microfinance bank worth about a million "Along with Timor-Leste, PNG will be a focus Vanuatu. US dollars and provide advisory services over for IFC in this part of the world, said Mr Cusack. the next three years. It is likely that IFC will "While he was here, Mr Ranken was also actively PEP- Pacific is structured to respond effectively to the disparate needs also increase its equity in the bank as other looking for investment opportunities and ways of the geographically, economically shareholders participate. to deliver advisory services programs." and socially diverse region in which "One of our priority strategies in PNG is to we operate. The visit by Mr Ranken was, Mr Cusack improve access to finance, particularly for micro, concluded, "clear demonstration of IFC's small and medium enterprises," said Mr Cusack. commitment to making a positive impact in "PNG is endowed with great natural resources PNG." General Manager's Review Q3 FY07 has witnessed an increased level of activity in the of IFC's Global Financial Markets team have been assisting region on the part of IFC's East Asia and Pacific regional us in the development of a program to improve the financial headquarters team based in Hong Kong. In March, our markets' infrastructure in the region. Staff visited Samoa and Regional Director Dick Ranken, visited Papua New Guinea Papua New Guinea to meet with members of the finance and the Sydney Office. Although Dick is no stranger to PNG, sector and the Central Banks to review the markets' needs this was his first visit in his capacity as Regional Director and it and the potential to assist with the possible development reflects the importance this region plays. In PNG, Dick visited of credit bureaus, fixed and movable asset registrars and members of government and clients in Port Moresby and took payments systems improvements. to the air to visit a number of existing and potential clients in rural PNG. Shortly after, Dick was joined in Australia by During the quarter, PEP-Pacific staff were actively involved Associate Director, Karin Finkelston, for meetings with key in developing IFC's new client centric Global Local initiative. players in the Pacific region. This initiative will result in a shift of resources from IFC's Headquarters in Washington to the region. This process has Following through from our earlier work on the Private Sector already commenced with the recent arrival in Hong Kong of Recovery Mission to Tonga, key members of our Corporate a number of key executives. When fully operational, after Advisory Services team visited Sydney, Nuku'alofa in Tonga, 1 July, 2007, we will have improved access to IFC's global and Port Vila in Vanuatu to obtain background information resources. Having people in the same time zone will also on possible assistance to help with access to finance after the greatly improve efficiencies. events of 16 November, 2006. Rob Simms In addition to the regional headquarters' staff, key members Acting General Manager Worldhotel-link Renews Commitment to Sustainable Development Four years have now passed since IFC launched Worldhotel- and economically sustainable tourism industry," Mr Perrottet link.com with a membership of just seven small hotels in said. the dusty Cambodian town of Siem Reap. Today, this unique information and booking engine provides travellers Worldhotel-link sites already provide information on hotel around the globe with instant access to nearly 18 hundred sponsored programs aimed at alleviating poverty. "The caring tourist enterprises in more than 250 destinations. for the destination area of a Worldhotel-link site provides an opportunity to explore what hotels are doing to ensure the Worldhotel-link, which was created by IFC, is a global network sustainability of their operations or improve the economic of country specific but interlinked websites for small independent opportunities for people who live in the destinations," Mr hotels that would otherwise find it impossible to reap the rewards Perrottet said. of internet marketing. "We now have members in locations as diverse as Swaziland and Latvia, Jordan as well as Samoa, Fiji and "Examples of this include a hotel that might be running a Vanuatu in the Pacific," said PEP-Pacific's Sydney based tourism tourism training school for kids off the street or a hotel that specialist John Perrottet. might be building a water well for people who have no access to clean water," he explained. "These programs can be identified During the quarter, Worldhotel-link returned to Siem Reap for a on the sites themselves so consumers can assess what hotels conference that saw the relaunch of the service's websites and the are doing to improve conditions in a destination as part of their adoption of a marketing strategy which strongly aligns the brand decision whether to make a booking." with sustainability in the tourism sector. In many cases, travellers are given an opportunity to make a "We want people to visit our sites not only because they are financial contribution to a project or to "stay another day" interested in travel but also because when they travel they are in order to inspect or even participate in a hotel sponsored contributing to the development of an environmentally, culturally project. PNGWorkshopEmpowersWomen people raise chickens for income," said Mr Cusack. "By producing the pellets our workshop participants learned in the Fisheries Sector practical value adding techniques as a business model." The National Fisheries College will now provide the 14 In Papua New Guinea, an IFC sponsored workshop workshop graduates with organisational and material has shown 14 women how to plan, start and operate support as they seek to transfer their newly acquired a seafood business. Taking a hands on approach, knowledge and skills to many other women across PNG. the women learned how to make chicken feed from seafood waste as an exercise in "value adding". Against This was the second IFC sponsored workshop to target a backdrop of widespread poverty, high unemployment women in the fisheries sector. The first in 2004, gave a and negligible participation in the cash economy, the group of rural women the basic skills needed to bridge number of workshop attendees may have been small, the gap between subsistence level fishing activity and the but it is expected that the skills learnt will eventually modern market economy. That four week workshop covered benefit hundreds perhaps thousands of women basic techniques and technologies for processing, preserving to succeed in what is currently a male dominated and transporting fish including hygiene, cleaning practices industry. and the use of ice. The seafood business workshop focused on adding value "Women in PNG are typically the ones who market and as a business model, and also provided participants with process seafood and it was clear from our research that training skills allowing them to run similar courses for women valued training in processing techniques and also in women in towns and villages across the country. the management of micro businesses," said Mr Cusack. "This course trained a small number of women so they Encouraged by the success of this latest workshop, the could become trainers themselves when they returned College has now established a women in fisheries business to their home provinces," said PEP-Pacific's PNG Country course as part of its core curriculum. Coordinator, Peter Cusack. "Some of our participants were roadside fish sellers, while others worked in small and large "In line with IFC's mission to alleviate poverty in the Pacific, seafood processing operations, but they all had the potential our aim in sponsoring these workshops has been to empower to be peer trainers down the track." women and give them more equity in the male dominated fisheries sector," Mr Cusack concluded. The three week course, held at the National Fisheries College at Kavieng in New Ireland Province, was built around the task of producing value added chicken feed from fish waste. Guided by international tutors, the participants were able to combine the waste with copra, cassava, banana and coconut oil to produce nutritionally balanced pellets which were successfully tested at a nearby chicken farm. "Chicken feed is an expensive commodity in PNG because its mostly imported and lots of Women in Fisheries participants displaying the chicken feed produced during the workshop Private Enterprise Partnership - Pacific IFCWorkstoBoostSkillsandInvestment in PNG's Tourism Sector Following the success of last year's control processes, the things that banks Tourism Project Development Work- need to look out for, the preparation of shop in the Papua New Guinea proposals, sustainable development and Highlands, which was aimed at marketing." providing participants with the Private Enterprise knowledge and practical skills "The presentation on project proposals and financial planning was of great help Partnership - Pacific to enable them to prepare and to me," said Bank of PNG analyst, Alfred evaluate viable tourism projects, Nants, one of 24 workshop participants. For further information contact IFC conducted a second workshop in "I will use these new skills when Level 18, 14 Martin Place March in the town of Kokopo on the reviewing project proposals submitted CML Building island of New Britain. by investors as well as residents seeking Sydney NSW 2000 offshore funding." Phone 61 2 9223 7773 The week long workshop was again organised in cooperation with the Tourism Participants also visited a tourism village Fax 61 2 9223 2533 Promotion and Investment Promotion and were asked to evaluate its long term Email peppacific@ifc.org Authorities. viability using their newly acquired skills. "The country has enormous tourism Significantly, the Kokopo workshop was potential but development proposals General Manager (Acting) attended by a delegation from the semi are often held up by an inability on the autonomous province of Bougainville. Robert Simms part of banks and governments to assess their viability," said PEP-Pacific's Sydney "With peace having returned to Operational Staff based tourism specialist, John Perrottet. Bougainville, the government there John Perrottet "This workshop was designed to give is very keen to promote the province Philip Olsen participants the skills and tools to take a as a tourist destination," Mr Perrottet tourism project forward." Peter Cusack said. "Indeed, we have been asked to run another workshop on the island of Rainer Venghaus "Kokopo Workshop participants were Bougainville itself." Alan Moody taken through a long checklist of those Jennifer Bartlett things that needed to be in place before a Representatives of PNG Microfinance Johanna Johansson tourism project could progress with some Ltd, an important source of capital for hope of success," Mr Perrottet said. "We small businesses, also took part in the Administration Staff covered business plans, accounting and workshop. Cathy St Ledger Arist Caruana Aphrodite Ioannou Jane Hulme Suzanne Harvey Nga Trinh Alberto Nunes