Sustainable Development Programs

The Company continued to pursue its strategy of supporting investment in economic and key supporting infrastructure in partnership within all levels of government, the private sector, non-government organisations, and the community. During 2004, the Company focused its attention and efforts on several strategic sustainable development program initiatives targeting the community and village level, and several major projects involving significant investment and participation of development partners. Considerable attention was given to initiatives within Western Province during the year.

The Company's strategy and sustainable development program initiatives fall within the development priorities at the national level, set out in the PNG Goverment's draft Medium Term Development Strategy, and are consistent with the priorities at the national level, set out in the PNG Government's draft Medium Term Development Strategy, and are consistent with the priorities announced by the Western Provincial Government.

These strategic initiatives relate to agriculture, forestry, tourism, financial services, communications, energy, shipping, port infrastructure, health, education, and capacity-building. Several are well advanced whilst others are under further investigation and discussion with potential partners. Experience during the year reaffirms the model adopted by the Company to work in partnership with established business enterprises and community level institutions, especially church agencies, in promoting economic and social development on a sustainable basis, with government providing a critical supporting role.

By 31 December 2004, the Company had approved funding for development projects totalling US$10.0 million (K32 million) from the Development Fund, with US$4.4 million (K14.1 million) directed to projects within Western Province, and $US5.6 million (K18.1 million) to projects in other parts of Papua New Guinea.

Since commencing operations in 2002, the Company committed a total of US$16.3 million (K52.9 million) to sustainable development programs including at the general program and major projects level by 31 December 2004. These commitments are from the Development Fund for the following programs and projects:

Criteria for Support of Programs and Projects

The Company seeks to ensure the programs and projects it supports meet four principles and objectives:

• Effective participation of local communities in the project, especially by ensuring;
  • proper awareness of, and commitment to, projects through close consultation and involvement;
  • maximum engagement in all facets of projects, from planning, development, construction and maintenance through to production and marketing;
  • employment and training for communities in skills associated with the project or other alternative employment and life skills;
• Demonstrated benefits to the local communities specifically by
  • increasing the number of sustainable minimum family income units;
  • improving access to and quality of education and health services;
  • spreading risk and encouraging high levels of performance;
  • strengthening local leadership and capacity;
• Demonstrated managerial, financial, technical, marketing, and environmental capability to sustain operations or continuation of the benefits from the project for the long term;
• Compliance with international best practice and human rights, cultural, social, economic, gender and environment standards.

The Company will further develop and publicise its criteria and advance towards meeting these criteria during 2005.