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Major Mico-Loan Program Launched In Eastern Highlands

By Tereni Kens in Port Moresby
Monday: August 04, 2008

The Papua New Guinea National Development Bank (NDB) announced today it is ready to distribute K1 million (US$0.38 million) in the form of small loans to villagers in upper Asaro area of Daulo district in PNG’s Eastern Highlands province.

The funding is part of NDB's micro finance credit facility to help rural people obtain loans to start projects.

The bank’s Managing Director Richard Maru and the bank's manager - micro finance, Garima Tongia, led a delegation by road to Sihereni Coffee plantation at Upper Asaro to deliver the "good news" and also made awareness on the bank's micro finance facility.

Maru told the people of upper Asaro that he is ready to give out loans between K500 (US$194.3) to K3000 (US$1,165.50) to villages to start mini projects like poultry, piggery, trade stores, coffee rehabilitation, inland-fish farming and other agricultural projects.

Notably, the upper Asaro area is the first in the Highlands region to be considered for the micro finance pilot project. Maru said NDB considered the upper Asaro in Daulo district following successful operation and management of Sihereni coffee project currently under the leadership of a devoted Christian and local entrepreneur David Oromarie.

Oromarie had to put personal sacrifice and commitment in the last six years to revive a rundown and neglected coffee plantation in the Kwonggi No.2 area using limited resources and sweat equity.

His dedication and determination had paved way for him to now become a producer of high grade coffee that is currently marketed to a number of reputable coffee buyers in the world.

The NDB had recently assisted Oromarie to further his coffee project with a funding of over K280,000 (US$108, 780). The NDB managing director added the bank had a conviction that the Kwonggi community where Sihereni project is based is ready for the pilot micro finance project.

Maru's announcement took the rural people of Kwonggi No.2 by surprise and many were excited that such a facility was going into the area for the first time.

"I am ready to distribute K1-million (US$0.38 million) in the next six months in upper Asaro," Maru told the gathering of about 500 people.

He said the bank in its new reforms wants to help ordinary people improve their livelihood and therefore it is prepared to work together with the people in providing small loans to start up businesses.

However, NDB micro finance manager Tongia said people will have to go through training first before they borrow money. He added that there will be some requirements to see if the people are ready and that NDB in the next few weeks will be sending officers to conduct training which would require a fee of K200 (US$78) to attend the personal viability training.