Business Briefs

A new Web site aiming to be a "one stop shop" for information regarding business investment in the Pacific has been launched. www.investpacific.com provides linkages to the sites of 14 Pacific island Investment Promotional Authorities (IPAs). The site will help market and promote business opportunities in the region and is supported by the World Bank's Multilateral Investment Guarantee Agency, Commonwealth Secretariat and Forum Secretariat. Samoan company KVA Consult has been working with IPAs on technical and content management.

-SM

American Samoa

Owners of the Kentucky Fried Chicken (KFC) and Pizza Hut local franchises are looking at opening another popular American fast food chain in the territory in the next few months. Company official Avamua Dave Haleck says Taco Bell is expected to open in the territory around June 2005 in a new building attached to the Pizza Hut. It will include a drive through window. He says the building, estimated to cost about $100,000, will begin construction "as soon as plans and permits have been approved."

-FS

Samoa

Aluminium Designs, a new factory to manufacture and fabricate aluminum doors and windows in Samoa, opened for business in February. This is the third fabricator of aluminum products in the country. The latest is a business partnership between the Cafarelli family of Samoa and Italy and Fletcher Aluminium NZ. The company will concentrate first on meeting the growing demand for aluminum products for home construction.

-AT

Samoa's fishing industry took a hit from Cyclone Olaf. Forewarned about the approaching cyclone, a number of Samoa's fishing fleet headed north into open seas to escape. But Cyclone Olaf veered northward itself catching a number of boats. Tautai Ae II with a crew of six sank while its sister ship, the Coureur du Bois, was severely crippled. After 30 hours in the water, four sailors were rescued with the help of a New Zealand Air Force Orion aircraft. Two were never found and are presumed drowned.

-AT

February was a busy month for the port of Apia as three large cruise liners called. According to Minister of Tourism Joe Keil, the visits put T$2 million (US$750,400) into the local economy. Samoa Tourism Authority CEO Matafeo Reupena said the visits were part of the authority's efforts to attract more cruise ships.

-AT

Tonga

The Tonga Communications Corporation has launched its "Post Paid Mobile." Corporation General Manager Michael Skinner says the new mobile service allows subscribers to make calls and pay when they receive their monthly bills. Plans are also underway to introduce an international roaming system, which will allow subscribers to use their mobiles while traveling internationally.

-SM

The Shoreline Group in Tonga will install a new 3.0-megawatt diesel generator on Tongatapu and expects it to be working by June. Group Chairman HRH Crown Prince Tupouto'a says the US$3 million generator will substantially increase the available generating capacity and support the ongoing development of the Tongan economy.

-SM

CNMI

Continental Micronesia President and Chief Executive Officer Mark A. Erwin was named the 2004 Business Person of the Year by the Saipan Chamber of Commerce February 19. At the installation dinner, the chamber's new officers were sworn into office by Governor Juan N. Babauta. Continental Micronesia has grown under Erwin's leadership with the introduction of non-stop service from Saipan to Manila, Taipei and Hong Kong. Erwin was praised for his leadership in the face of a series of challenges.

-FSR

Palau

History Channel's Deep Sea Detectives series attempted, for the second time, to film a show based on the only U.S. warship lost in Palau in World War II. But rough water and dangerous currents prohibited the 265-foot deep-water dives on the USS Perry, a minesweeper that struck a mine in open water 700 meters off the coast of Angaur. Six divers including show hosts John Chatterton and Richie Kohler and dive master Matt Young, manager of Palau Technical Divers at Sam's Tours-who has logged 18 previous dives on the wreck-had planned to film the show and place a plaque in memory of the minesweeper crew and show host Michael Norwood, who drowned in December 2003 while attempting the dive.

-NC

After celebrating its best year in tourism ever with more than 80,000 tourists visiting Palau in 2004, Palau Visitors Authority announced that January 2005 figures recorded "one of the highest visitor arrivals in a month for years," with 8,581 people traveling to the Republic. For the first time since 2002, Japanese tourists outnumbered those from Taiwan. Inaugural activities that brought dignitaries from many nations including a delegation of over 100 who accompanied President Chen Shui-bian from the Republic of China accounted, in part, for January's high numbers.

-NC

Palau Broadband is getting close to a startup date that will bring enhanced Internet services to the Republic. MidCorp president Glenn Seid said equipment is being ordered and prices and costs are being finalized with vendors like AT&T and other companies that will supply services and satellite links. "We're shooting to start this project in the next two to three months," said Seid. Initially broadband will be available in Koror and Airai and, except in some remote areas, the coverage will eventually extend throughout Palau.

-NC

Guam

Quality Distributors of Guam received a $10 million contract to supply food to the Army, Navy and Air Force for one year ending in March 2006. The contract is the final option year of a four-year contract. The president of Quality Distributors is George Lai.

-FW

The real estate market in Guam showed dramatic growth during 2004, according to statistics released by local real estate consultant Nick Captain, president of The Captain Company. The annual sales volume for 2004 was $245 million, which is 68 percent higher than 2003 sales and nearly double the 2002 figure. Close to 40 percent of the sales-$95 million-took place during the final three months of 2004.While the increase in sales volume was primarily fueled by a number of particularly large transactions, it also reflects a rise in property values. During 2004, the median price of a single family home rose 9 percent and the price of condominiums increase 23 percent. "The real estate market has clearly passed through an unprecedented downturn and continued recovery should be expected," says Captain.

-FW

Marshall Islands

A large floating dry-dock, planned by the Taiwan-based Ching Fu Shipyard for Majuro, is becoming the focus of increasing concern and debate in the Marshall Islands. President Kessai Note's announcement in January that the 110 meter long dry-dock will be arriving in Majuro in May to be placed next to Uliga Dock in the heart of the downtown area has stirred questions and some opposition. Although the company says it will follow environmental guidelines, and government leaders say that the company must abide by all applicable rules and regulations, no environmental impact survey has been done. In late February, after noting the dry-dock's imminent arrival, President Note also said that the government would be seeking assistance from the South Pacific Geoscience Organization (SOPAC) and other regional groups for an environmental assessment. Government officials say that the dry-dock will generate desperately needed jobs and revenue for the country. Opponents charge that proper procedures to evaluate the impact of the facility on the downtown area of Majuro have not been followed by government.

-GJ

Cook Islands

The Cook Islands trade delegation to the Pasifika 2005 Festival in New Zealand has been cut back. Three businesses that were due to exhibit at the Festival were badly affected by the four cyclones that hit the Cooks early in 2004 and have opted to stay away. They are Jack Cooper, whose restaurant and bar was washed out by Cyclone Meena; Hugh Baker, a papaya vendor; and the traditional dancers of Rama Nui Performing Group.

-UKM

Papua New Guinea

The Papua New Guinea government has signed an agreement with Korean company Chanhae Ethanol Corporation to export raw cassava to Korea and set up an ethanol plant in PNG in a project valued at $US26 million. But the deal is dependent on the Korean company getting PNG raw cassava growers to meet a monthly export demand of 150,000 tons to Korea, and securing 20,000 hectares of cassava farmland in PNG. The PNG/Korean project has the potential to generate export earnings of US$15 million and give jobs to about 5,000 Papua New Guineans.

-AR

There are plans underway in Papua New Guinea to open two new gold mines after exploration studies revealed large gold deposits. Harmony Gold's Hidden Valley mine close to PNG's second largest city Lae, recently had its environmental impact statement approved by the PNG government. The Woodlark Island gold project, owned 100 percent by Canadian mining company BDI Mining Corp, is currently undergoing a 2,500 meters diamond-drilling program which would enable it to upgrade its 380,000 ounce gold resource.

-AR

Canadian company InterOil Corporation has secured US$125 million from international investors to continue its exploration program in Papua New Guinea.

Under investment agreements signed with institutional and accredited investors, InterOil agreed to give them an aggregate 25 percent indirect participation interest in the exploration program. The program comprises eight wells, six would be drilled at InterOil-selected locations and two at locations approved by the investors. InterOil holds three petroleum prospecting licenses in PNG. The investors reserve the right to participate pro-rata in the development of oil or gas fields if the exploration program concludes they contain commercial quantities.

-AR

Kiribati

I-Kiribati seamen working on foreign ships remit more than A$10 million (US$7 million) to their families in Kiribati, says Tearei Rauban, the assistant manager of South Pacific Marine Services in Tarawa. The $10 million is the average per annum recorded by the South Pacific Marine Services and the Bank of Kiribati. An estimated 1,100 seamen currently work abroad, although there are close to 2,000 trained seamen. Raubane adds: "SPMS doesn't see an increase of I-Kiribati seamen working abroad. In fact, it's the opposite. And why is this happening? Because an increasing number of our seamen are being fired from their jobs due to excess drinking and their inability to attend to their work." But, despite this drawback, Raubane says that I-Kiribati seamen are still top of the list for foreign shipping companies.

-BB

Contributors: Samantha Magick, Fili Sagapolutele, Afamasaga Toleanoa, Frank S. Rosario, Nancy Chism, Frank Whitman, Giff Johnson, Ulamila Kurai Marrie, Alex Rheeney and Batiri Bataua.