25.10.2011
Source: Post-Courier
Bougainville deal with China fruitful
BOUGAINVILLE’S
China Cooperation Committee (BCCC) under the chairmanship of Autonomous
Bougainville Government vice President Patrick Nisira has done so much
since its approval in June this year.
Apart from facilitating
multi-billion kina companies from China to visit to help Bougainville,
the BCCC has also established entities which would also help boost the
economy of Bougainville and specifically to secure Chinese government
aid, promote commercial, technical and cultural exchange, develop
Bougainville China cooperation strategy, develop Bougainville social and
economic development strategy and policy and conduct awareness programs
related to cooperation with China among others.
According to
Bougainville China Economic Cooperation Strategy report obtained by the
Post- Courier, companies from China who visited to help Bougainville in
its economic prosperity, especifically to help build up strategic
partnership with China to secure Chinese Government aid, attract Chinese
investment and achieve direct trading access to China to cut off
middlemen and achieve full autonomy by implementation of Bougainville
Peace Agreement to allow the people to compare the autonomy and full
independence before referendum and see Bougainville China Cooperation as
a strategy to achieve the full autonomy. They include:
* Hosia Engineering Design Company and Ruike Construction Company;
*
Honghua Group – the Global Second Largest Manufacturer of Oil Drilling
Platforms (this company supplied drilling platforms to LNG Project) and
Hengsen Chemical – a famous company in China;
* [u]Tongling Nonferrous Group – the Second Largest Copper Mining Company in China[/u];
* Hunan Hydro & Power Design Institute – the Second Largest Institute in China
* Sun Innovation Group Company – a famous multi-industrial company based in Hongkong (they came by the private jet)
The
BCCC had developed and had BEC approved on mid July 2011 the package
strategy for establishing comprehensive economic structure and system in
Bougainville.
Because of Bougainville’s low revenue income, lack of
capacity (government and economy), low employment rate (25% employed in
formal sector) and big fiscal gap (K93,566,500 in 2010).
ABG’s legal arm approved BCCC on June 12, 2011.
This
economic system will enable Bougainville to accelerate economic growth,
achieve economic independence, and support Bougainville social welfare
development.
The report also details that BCCC over the last five months has:
*
Established Bougainville Public Investment Corporation Limited – 100%
ABG owned company. (This business arm provides a legal position for ABG
to go into any joint venture and creates the second source of revenue
for the goal of ABG fiscal self-reliance).
* Established Bougainville
General Development Corporation Limited – 52% ABG & 48% Chinese
investors. (This company will serve as a headquarter company and play a
leadership role in establishing every industrial development capacity
company in JV with Chinese investors.
* Established Bougainville
Import & Export General Corporation Limited – 60% Bougainvillean
& 40% Chinese investors. (This company will build up direct access
into Chinese manufacturers and market by cutting off all middlemen, so
as to reduce selling price in Bougainville, and increase Bougainvillean
products export volume to create direct and significant benefit for all
Bougainvilleans).
* Established Bougainville Energy & Water
Development General Corporation Limited – 15.6% ABG, 84.4% Chinese
investors. ABG can buy back more shares for a maximum 52% share of this
company in future. (This is a large capital and high expertise capacity
company for developing the hydropower and water conservancy
infrastructure projects, to build up Bougainville own power and water
supply systems).
BCCC will also take a great effort to develop proper
strategy and policy for development of the following
industries/sectors, and identify credible Chinese investors to establish
relevant joint venture capacity companies within 24 months in mining,
construction, bank, shipping, airline, tourism, Special Economy Zone
Development, agriculture, forestry, livestock, aquatic, legal service,
security service, academy of social and economy strategy planning.