Plantations to re-open

Robin Bromby reports on the resurrection of the derelict plantations of PNG’s New Ireland province.

ABANDONED and derelict

plantations in Papua New

Guinea’s New Ireland pro vince will be brought back to life by a major new palm oil and cocoa project.

Venture company Poliamba Ptv Ltd has secured a K 14.5 million loan from the European Investment Bank (a financial arm of the EEC) to fund the scheme which will be a major boost to the local economy and pro vide much-needed employment.

The region has been in decline for about ten years, due largely to a downturn of international copra prices. Planning for the new project nas been underway since 1986 and Poliamba has been buying up derelict plantations along the old (German-built Buluminski Highway 75 kilometres from the port of Kavieng, the capital of New Ireland. Some 4300 hectares of palms, an oil mill and about 1000 hectares of cocoa will be established on the plantations and surrounding bush ana scrub.

Most of the land has traditionally been used for growing coconuts and a small amount of cocoa. Total budget for the project is K 44 million, includ

ing a new wharf at Kavieng.

Poliamba’s general manager Martin Collins said tne Papua New Guinea government will have a share in the venture, as will the New Ireland De velopment Corporation and the Lon don-based Commonwealth Develop

ment Corporation.

The first palm oil is expected to be available in 1991 and tne mill will have the capacity to process 30 tonnes of fresh fruit bunches every hour.

When the plantation and mill reach full capacity in the year 2000, an annual output of 22,500 tonnes of oil, 5000 tonnes of palm kernels and ab out 750 tonnes of cocoa is expected.

But Mr Collins said these projections are too conservative and will be ex ceeded. Most of the produce will be exported to the US and Europe.

The rehabilitation of the old planta tions has boosted local employment opportunities, with about 1000 people

currently employed on the project. Mr

Collins expects most of the workers, including the manual labourers, will work on contract. “The New Irelan ders don’t mind wording, but they don’t like having to work,” he said.

Fish and fruit are plentiful so a daily wage is not a major or sufficiently ex citing incentive. Most workers have inbeen employed as contractors, giving them the feeling they are inde pendent entrepreneurs rather than wage earners.

Rather than live in a company com pound, local workers live in their own villages which are close to the planta tion area. Mr Collins said the company had been well pleased with the num ber of young New Irelanders who had signed work contracts with Poliamba.

Unlike copra, palm oil has been bringing good prices, with the Bank of Papua New Guinea’s first quarterly re port for 1988 indicating a steady rise in palm oil export prices fuelled by continuing strong demand from India, the worlds largest palm oil consumer, and fears of a coconut oil shortage. In the March 1988 quarter the f.o.b. price of palm oil averaged K 358 a ton ne (against K 226 for copra) and 28,000 tonnes was exported at a value of KlO million. It is anticipated that the New Ireland project will markedly increase PNG’s palm oil exports. □