150812 Investors welcomed
By Tapo Tovilu

Chinese investors have been now given the chance to start joint venture business with businessmen from Buin.
At the launching today in Buin Commerce and trade minister and ABG Member for Konnou Wilfred Comba expressed his joy at the official lunch of the joint venture business plan.
In his speech he thanked Investors’ police and ABG president for their efforts in providing the opportunity for the joint venture business for the people of South Bougainville.
He says that the Government is for the people and was put in place by the people so that such services can be provided.
He added that Bougainville now must fulfil the requirement of the Bougainville Peace Agreement and work together for progress
He also says that for Bougainville to be politically independent it must be first economically independent.
He assured the people of Bougainville that under his department there are rules and regulations, so investors now coming in have the blessing of the ABG.
Comba also says that both local and joint venture business will be at the same level which he explained that it will be at a level playing field in the business arena.
He revealed more good developments which under the planning of the ABG will start from next year onwards.
He appealed to the people of South Bougainville to look after these investors and other things the ABG is putting into place for their benefit.
He also called on the people to Support the work of the government so that both the ABG and the people of Bougainville can move forward.

Comments

[Jeff]

Yaphets, you can stay back in Malaysia or go elsewhere. Not Bougainville. You sound like someone who is just out to make a quick buck. Technical expertise, yes we will need it and respect people like the Japanese people through their government who are doing a lot of free will contribution to Bougainville's development.
Bougainville and Buin for that matter do not need dodgy trade store investors. Bougainvilleans can do that. Quality and service will improve as more Bougainvilleans create businesses and competition amongst themselves. ABG should only allow industry specific partnerships/joint ventures. Reserve trading and small businesses for Bougainvilleans. Yaphets, the likes of you are not welcome!

[Sebastian Hurokoli]

See this link as well. http://actnowpng.org/content/chinese-push-sez-laws-bougainville

[AKT]

If ABG hasn't got a policy on Foreign investment or Joint Venture arrangements then it should delay or imidiately stop their move in getting Chinese investors into Bougainville.

I said ealier in one of my comments that Chinese partnership will always have problems because these people don't follow rules and don't treat people properly. We are all aware of what is happening around PNG with regards to Chinese involvement in business. Why don't we learn from there and be abit more careful here in our own land.

Come on ABG and Bougainvillean business people who are supporting Chinese joint venture activities. Think about your future children and do the right thing NOW!

I totally disagree with joint venture arrangements to do with tradestores and hardware shops etc.. ABG should allow businesses that are not in Bougainville rather than ones already there.

Why China anyway? Na Australia na NZ or Israel nogut ah? ABG please lukluk gut na kisim ol gutpla investors kam insait. And I wonder if the decisions for Chinese investment in Bougainville is a one man decision or ABG as a whole.

[Sebastian Hurokoli]

I wonder how ABG is guiding the joint venture deal. Josephs' comment is correct that ABG has no policy on the ground steering the initiative. I suspect it has adopted the PNG investment policy in this current dealing with China. (see link: http://www.bougainvilletourism.org.pg/pdf/AUTONOMOUS%20REGION%20OF%20BOUGAINVILLE%20Investment%20Guideline.pdf ). I don’t know how the PNG investment policy was framed. With the continuous landowner instability throughout PNG where there are foreign companies working, one can sense the loop holes that investment policy could have.

I think Bougainville is different from PNG because it is an Autonomous Region. It supposed to have its own investment policy before entertaining foreign investors in the region. When there are no rules in place, can ABG think twice before letting Chinese investments in the Island? Stop rushing things. Taking development steps carefully is better than solving problems.

I also think Bougainville must have its business background strengthened before letting outsiders to be involved. If not, we will remain the forever spectators and slaves on our own land. I think we as Bougainvilleans should be taking very cautious steps in the development process we have at hand. If we make blind decisions today, we will suffer the consequences in the near future.

The only concern I have is seeing local people sweating their guts out to earn only 5%, 10%, 20%, 30% for a living while outsiders are enjoying the luxury. I hope what happened in Sri-Lanka also happens in Bougainville in the future with the Chinese investors. I'd like to pose a question that, are Bougainvilleans prepared for this step, or it is the ABG bulldozing things when Bougainvilleans are not aware. An informed decision leads to a prosperous future. Uninformed decisions and agreements always have negative results.

[joseph]

There is a lack of policy direction in Bougainville right now. The ABG is 7 years old (?), and they havent come up with any policy instruments on foreign investment as yet. This is an injustice to the people who they claim to represent.

Foreign investments take many forms. Some are partnerships at varying levels (50/50, 60/40/, 70/30, 80/20 etc). (It depends also on which party has the resources, in skills, technology, patents, money, etc. I also not forgetting the local resource owner). It is called a partnership because both parties stand to benefit from the investment. Under normal business circumstances, if either party feels that they will benefit,then the deal is signed but again if either party feels that they will not benefit, the deal will not go ahead. Its simple as that. Most of these partnerships should be directed by overarching government policy, which we current dont have. Our members have been sleeping in those guest houses, in BUKA, wasting public money doing nothing.

The other option that countries like Sri Lanka have done so successfully is the BOT (Build operate and transfer). This means that the investor builds and operates the business and over time makes enough profit, before transfering it to the local party. I suggest that we terminate the discussion on the matter here.

My view is that Bougainville should adopt an investor friendly policy, to attract foreign investors. This policy should also protect business interests of investors who want to do business in Bougainville (And also protect local interest). It is a balancing act, and to have an investor friendly policy. The world is getting very small. We must demonstrate trust to investors but also expect a fair share from these investments. The 'fair share' that I am talking about in NOT neccesarily money, it could be infrastructure, or social welfare etc...

Let me stop here! Ai Re KUKAHNA..

Joseph

[Sebastian Hurokoli]

Yaphets! I definitely knew you were not a Bougainvillian. You have your interest and that is not for developing Bougainville, but to prey on Bougainville. I just want to stress here that investors getting the biggest slice of the cake deals have ruined many developing countries. They invest in developing countries and get more rich while the native people continue to rely on their investment.

Yes they have the expertise and the capacity but what can you achieve with these qualities in a desert??? Absolute zero profit. Bougainville is a diffferent situation. We are rich in our resources. This is what I value most. The expertise and capacity you are talking about does not equally match with what we have on the Island. Anyone from Bougainville can have any form of expertise and build capacity anytime but most resources investors are tartgeting wont be replaced when exploited.

[Yaphets]

Also one thing the Bougainville people should know is that Bougainville isn't the only place in the world for investments. From the point of view of the investors, if I see an opportunity elsewhere that has better returns for my investments compared to Bougainville, I'll definitely invest there rather than in Bougainville.

[Yaphets]

Sebastian, I'm from Malaysia. Put yourself in the investors' shoes, when they invest money, they expect a return in their investment. They are not santa clauses giving out free money.

Would you give your money to lets say another 3rd world country and expect a 5% share of your investment and 95% to the government of said 3rd world country?

That's not business. I am certain investors will be looking at 70~85%. In this case, they are the ones with the expertise,experience and the capacity, why would they go into having only 5% stake?

[Euge]

Doing joint ventures in trade stores in Buin with the Chinese is joke and threatens the local trade store owners in Buin. The Chinese will start with wholesale then slowly start up retailing. What sort of business are the bougainvilleans going to do once and if they vote for independence when the Asians will be running the kai shops, trade stores,hardware shops etc. Come on Bougainville and ABG we need to do better then inviting foreigners to exploit us AGAIN. BCL exploited our resources and now the Chinese are going to exploit our small business.The trade stores businesses your,dad,mum,uncle, cousin etc have been running.

If its a technology transfer and benefit to all the people than its worth the joint venture. But we have no manufacturing industry on the island. There is no point in Chinese setting up wholesale/retail shop in Buin when a internet savvy businessman from Buin can directly import the same things from various manufacturers in China.

Be like the Japanese. Help us with the infrastructure and let us move on from there at our own development time scale and not to bully our mum & dad small businesses on Bougainville.

[Sebastian Hurokoli]

Thanks Yaphets. I cant understand you here? Are you from Bougainville? Bougainvillians/ABG must go for the best investment deal than cheaply selling ourselves, our resources to foreign investors. If you can not start talking higher, who will do it for you. We want independence it should start somewhere.

[Sebastian Hurokoli]

Thanks Yaphets. Where are you from?? Are from Bougainville? Bougainvillians/ABG must go for the best investment deal than selling ourselves, our resources to foreign investors. If you can not start talking higher, who will do it for you. We want independence it should start somewhere.

[Yaphets]

Dear Sebastian,

I'm sorry to say that with your mindset of 95% to ABG and 5% to investors, Sorry to burst your bubble but you can enjoy the long wait for an investor who is willing to go into that deal.

[felix kameking]

what about doing bisness with australians or new zealanders...?? ologeta taim ol chiness ,,mi just les lo ol..

[Sebastian Hurokoli]

I dont know how joint venture businesses operate. But before letting the chinese in ABG must have some ownwership in the investments they are going to partner with the Chinese on Bougainville. For Bougainvilleans to be the key players, ABG must have 95% onwership right and nothing less. If ABG can not afford to have 95% of total ownership, I suggest the ABG should forfiet this deal until later.

Pogera joint venture company started in 1990 in the Enga Province in PNG. After 22 years of operation in the Province, it changed nothing. The native landowners are still leaving in unpowered bush material homes. They do illegal activties like mining at the tailings, killing themslves to earn that money the so called POGERA JOINTVENTURE is banking from their own land.

Why didn't Enga Province develop? They have the joint venture investment there, which the ABG is dealing with the chinese?. The reason I guess is because the government have nothing to say on the majority of the money the company generates. The ownership rights they have is 95% for the company and 5% for the government.

Are we key players in this situation? No. We are slaves.

For Bougainville case I do not think 50%-50% will be a better deal the ABG can make. ABG going higher is much better.

I think buying and selling of gogeries and other goods be left entirely to the local people in Buin and in Buka or in Arawa. Chinese running canteens, and kai bars is taking that priviledge away from natives. ABG! representim gut ol pipol. Noken representim china long Buin or long Bougainville.