Statement by
Grand Chief Sir Michael Thomas Somare
Prime Minister
On the Groundbreaking for Vision City Waigani Mega Mall
Tan Sri Datuk Tiong Hiew King - Chairman of the Rimbunan Hijau Group
Mr. James Lau - Managing Director of the Rimbunan Hijau (PNG) Group
Cabinet Ministers
Excellencies and Members of the Diplomatic Corps
Distinguished Guests
Ladies and Gentlemen
I am delighted to witness the groundbreaking for Vision City Waigani Mega Mall this morning.
Last month, I witnessed the signing of the biggest private investment project ever in this country and perhaps the Pacific region – the Papua New Guinea LNG Project – with our private sector development partners – Exxon Mobil and its co-partners.
That was a significant show of confidence in our economy and our leadership.
Then, just last week, I witnessed another two significant events.
The first was the diversification of investments in PNG by Ramu Agri Industries Limited – a long term investor in our country.
This was followed by the signing of the Financing Agreement for the multi-million Kina Lae Port Development Project with the Asian Development Bank.
Today, we are witnessing the launch of yet another investment project in our economy – a traditional private investment initiative – by another private company which has had a long term relationship with PNG.
There is no doubt these four investments – three private and one public – are great votes of confidence in our economy to date.
I congratulate the Board of Directors of Rimbunan Hijau Group of Companies for its confidence in the Government and the people of Papua New Guinea to invest in this project.
I also take this opportunity to express my appreciation for your decision to diversify your investment – which is a clear expression of your vision to remain a major long term private sector partner for Government and the people, in our endeavor to build this nation together.
Your long term partnership with the Government and the people has been clearly demonstrated by your decision to remain in the country through both trying and good times.
Ladies and gentlemen;
I recall that prior to the 2002 general elections, a lot of businesses were shutting down their operations and leaving - given the prevailing economic climate at that time.
Few of these companies had the willpower to continue to do business here, except companies like the Rimbunan Hijau Group and Ramu Agri Industries.
Today, Rimbunan Hijau Group of Companies is reaping the rewards of its perseverance, trust, and loyalty in our economy – and confidence in the leadership of my Government.
Importantly, the Rimbunan Hijau Group of Companies has ventured beyond its traditional domain of business, which sends a strong positive signal to the Government and the people of this country that they have enormous confidence in the potential and the future of PNG.
The company has seized the opportunity made possible today to diversify its business and invest heavily in new ventures – such as this Vision City Waigani Mega Mall project.
Ladies and Gentlemen;
What the events over the part four weeks are telling our people and the rest of world is that the Papua New Guinea economy has truly rebounded from the brink of collapse.
The sinking ship that my Government promised to salvage after the 2002 elections is well and truly afloat, and we are destined for much better times – never before seen or experienced in our history.
What my Government has resolved to do is build Papua New Guinea to be a better place, where everyone would have equal opportunity to participate in building their homes, villages, communities, and the country as a whole.
I made this promise in September last year, when I led the Government to office, for a successful uninterrupted second term.
Ladies and Gentlemen;
The second promise is perhaps more challenging – however, not impossible to achieve. What we all need is stronger resolve, partnership, and commitment.
Government in the Lead
My Government has led the way by making solid progress in providing an enabling environment for private sector-led economic growth – which has been my Government’s agenda since 2002.
And I believe the strategies - complemented by political and policy stability is working - as shown by the broad-based nature of growth, seen in both the public and private sectors.
Talking about bridging this important partnership, I announced in Lae last week that the Government has commenced work on the formulation of a National Public/Private Partnership Policy.
This is aimed at transforming how our State entities will transform their capacity to roll out essential services, including community service obligations, throughout the country.
Ladies and Gentlemen;
I emphasize the Government’s belief that the public/private partnership approach is the most relevant given our development context, demonstrated by low income levels and low ability to pay which underpins the size and absorptive capacity of our market.
Based on this approach, the public sector brings to the partnership its "public good" products, plus its ability to mitigate political risk and bear long payback on investments.
The private sector brings its business talent, and commercial and financial skills.
This is a recipe for success if the following ingredients are also tossed in:
- Strong political ownership and leadership;
- Clear policy and regulation;
- Trust and clear responsibilities and accountabilities; and
- Correct assignment of risk, with the various risk elements assigned to those parties most capable of shouldering them.
As such, cooperation between public and private sectors in our economy is an area where the optimal use of public and private sector resources can create added value for the Papua New Guinea society as a whole – as well as to propel our economy further forward into the future.
In conclusion, this morning’s groundbreaking ceremony is a significant demonstration of private sector confidence in our economy – both today and into the future.
It is the result of Government policy and reform measures we have put into place since 2002.
Together with our partners, are now reaping the benefits. For this, I thank all our investment partners.
I also commend the Chairman of the Rimbunan Hijau Group of Companies and the Vision City Project team for your determination and confidence in PNG.
You have the Government’s support for success in your latest investment venture, the Vision City Waigani Mega Mall.
Thank you.
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