Business Briefs

CNMI

The CNMI Attorney General's office has filed a complaint with the U.S. Federal Trade Commission saying the price of gasoline sold by Mobil and Shell is "very high." Consumer counsel Brian Caldwell stated in his letter to the FTC's Bureau of Competition in Washington, D.C. that this is the fifth gas price increase this year, "bringing the total year-to-date increase to 22 cents per gallon." The average price per gallon for regular unleaded and super unleaded at full service pumps is $2.53 and $2.62, respectively.

-FR

Guam

On April 8, the U.S. Navy released a Request for Proposals (RFP) for the Base Operating Support contract currently held by Raytheon Technical Services Guam. The RFP had been scheduled for release in October 2003, but was delayed, reportedly because Raytheon lobbied in Washington to have its contract renewed. The value of the contract is estimated between $40 million and $75 million annually. The contract will have a one-year base period with four one-year options and possible further extensions. The contract is expected to be awarded in December and be in full operation by April 2005. While no local company is capable of bidding as a prime contractor, many Guam businesses are positioning themselves to participate as subcontractors in the most promising economic sector in Guam. Raytheon has indicated it will not bid on the new contract and has reduced its payroll in recent months.

-FW

Papua New Guinea

A provincial government in Papua New Guinea still intends to purchase an additional 5 percent in the Porgera Joint Venture (PJV), the managing company of the world-class Porgera gold mine in the highlands of PNG. This is despite the decision of South African gold miner Durban Roodepoort Deep (DRD) to rescind its earlier plan to sell 5 percent interest in the mine to Mineral Resources Enga (MRE) for $US22.5 million in February under a conditional sale agreement. MRE, owned by Enga provincial government and landowners, already owns 5 percent of PJV and was seeking to increase its stake to 10 percent with funding to come from an Australian financier.

-AR

Marshall Islands

The first bid notices for United States-funded school construction projects in the Marshall Islands under the newly implemented Compact of Free Association will be issued from June, according to Public Works Minister Mattlan Zackhras. These will be the first of about $14 million provided this fiscal year through the Compact focusing on education improvements.

-GJ

American Samoa

The research vessel 'Townsend Cromwell,' owned by the American Samoa Government and valued over two years ago at about $700,000, has been sold to Samoa-based Pacific Commercial (Shipping) Ltd. for $100,000. Previously owned by the National Oceanic and Atmospheric Administration (NOAA), it was turned over to American Samoa in late 2002. Pacific Commercial Ltd. spokesman Ian Black says the vessel will be used to "to provide freight, cargo and passenger services to neighboring islands of the Pacific."

-FS

American Samoa-based Safari Pacific Airways and Alaska-based Village Aviation have joined forces to provide domestic air cargo flights for the territory. The move comes amid uncertainty faced in the territory over air services. The Samoan government-owned Polynesian Airlines operated domestic flights in April and May after Pago Pago-based Inter Island Airways suspended service while its aircraft undergoes annual inspection. Safari Pacific president Preston Myers says his company has a lease option utilizing Village Aviation's CASA 12 aircraft for the air cargo service. Myers says the airline plans to expand air cargo charter service to Samoa. Meanwhile, Hawaii-based Pacific Wings airline is awaiting final approval from the FAA to operate the territory's domestic passenger flights using a nine-seat aircraft.

-FS

Samoa

The government of Samoa is negotiating with Carlton United Breweries (CUB) over the sale of Samoa's remaining 15.5 percent shares in Samoa Breweries Ltd, which produces the popular Vailima beer, soft drinks and other products. "An offer has been received from CUB to negotiate an appropriate price for these shares," Minister of Finance, Misa Telefoni, says. Much of CUB's operations in the South Pacific are run from Fiji under Carlton Brewery Fiji Ltd. Carlton Fiji's financial controller, Alfred Chan, says, " if the company is successful in its bid, its shareholding in SBL (Samoa Breweries Ltd) will increase from the existing 78.3 percent to 94.05 percent" Individual local investors hold the rest of the shares.

-FS

Contributors: Frank Rosario, Giff Johnson, Olivier Wortel, Frank Whitman, Alex Rheeney, Nancy Chism and Fili Sagapolutele