investment opportunities in the pacific islands 2011

Investment Opportunities

in the Pacific Islands | 2011

3

6 About Pacific Islands Trade & Invest

7 Introduction: The Pacific Islands economy

11 Investment opportunities by country

12 Cook Islands

14 Fiji

17 Federated States of Micronesia

18 Kiribati

20 Marshall Islands

21 Nauru

23 Niue

25 Palau

27 Papua New Guinea

30 Samoa

32 Solomon Islands

34 Tonga

37 Tuvalu

38 Vanuatu

42 Map of the Pacific Islands

Contents

Kayaking on Espiritu Santo, VanuatuCredit: Vanuatu Tourism Office

4

Investment Opportunities in the Pacific Islands

is published by

Pacific Islands Trade & Invest

(an arm of the Pacific Islands Forum Secretariat),

PO Box 109-395, Newmarket, Auckland,

New Zealand

This publication is available free online at

www.pacifictradeinvest.com. All enquiries

relating to this publication should be sent to

email [email protected].

© Copyright 2011 Pacific Islands Trade & Invest/

Business Advantage International Pty Ltd

ISBN 978-0-9871678-1-1

Editorial contributor: Pacific Islands Trade &

invest

Produced for Pacific Islands Trade & Invest

by Business Advantage International,

www.businessadvantage.co

Cover image reproduced by kind permission of

the Samoa Tourism Authority.

Printed in Australia. Both printer and paper

manufacturer for this publication are accredited

to ISO14001, the internationally-recognised

standard for environmental management.

This publication is printed using vegetable

inks and the stock is elemental chlorine free

and manufactured using sustainable forestry

practices.

The work of Pacific artists that appears

throughout this publication appears by kind

permission of Okaioceanikart. Okaioceanikart is

the world’s only Pan-Pacific gallery representing

established and emerging artists of Polynesian

and Melanesian heritage. Assisting artists of the

region and elsewhere to earn a living by their

artmaking contributes to the development of

creative industries of the Pacific. Viewing by

appointment at okai@Reef Gallery, 69 Beach Rd,

Auckland, New Zealand, tel +64 27 2854350 or

visit www.okaioceanikart.com.

Currency exchange rates provided are as of

August 2011.

The information in this publication (Information)

is for general information purposes only. The

Information does not constitute an advice,

advertisement, invitation, offer, solicitation,

prospectus or a recommendation by Pacific

Islands Trade & Invest nor any of its employees,

contractors or officers (PT&I) to buy or sell any

product or security or to offer any investment

or financial service or facility by PT&I. You

should seek professional advice and undertake

appropriate due diligence before making any

investment decisions.

a) PT&I endeavours to ensure that the Information

is up-to-date at the time of publishing, however:

b) PT&I does not make any express or implied

representations or warranties regarding the

Information;

c) PT&I does not accept any liability, for any

reason whatsoever, for any loss, claim, action or

damage which may arise in any way from:

- use of the Information; or

- errors in, or omissions from, the Information;

d) PT&I is not responsible for the content of any

websites or references linked to, or referenced in

the Information. The inclusion of, or reference to

any link to another website, or reference to any

specific investment, product or service, whether

by trade name, trade mark, manufacture, or

otherwise, does not constitute an endorsement,

verification or recommendation by this

publication or PT&I;

e) PT&I does not endorse any business or

investment opportunities featured in the

Information;

D I S C L A I M E R

f) the Information should not be construed

as investment, legal, financial or professional

advice of any type whatsoever; and

g) each and every part of the publication must

be read in conjunction with this disclaimer.

The distribution of the Information in

jurisdictions outside Australia and New Zealand

may be restricted by law. Any failure to comply

with these restrictions may constitute a

violation of the laws of an applicable jurisdiction.

International investors are reminded of the risks

inherent in international investments, such as

currency fluctuations and economic conditions,

which may adversely affect the value of the

investment.

5

F O R E w O R D

Let’s help you explore the Ocean of Opportunity …

the vast Pacific Islands region is home to

some of the world’s most diverse cultures

and history. The Pacific represents one of

the world’s least explored regions – both for natural

resources and for the potential it offers in a range of

investment sectors in one of the most peaceful and

beautiful environments anywhere on earth.

The Pacific Island nations are working hard

to attract investment into their countries. while

their populations are often small, herein lies their

most distinct advantage. These smaller economies

offer opportunities usually only available to large

multinationals and big government in larger, more

developed countries. Equally, it offers a world-class

product in some of its more developed industries,

such as tourism.

Pacific Islands Trade & Invest (PT&I) is the

Trade Commission of the Pacific Islands Forum

Secretariat and represents the 14 Pacific Islands

nations and their trade and investment needs. Over

the past six months, we have worked closely with the

representative investment boards and private sector

organisations of these countries to document a list

of projects we think are ready for investment—the

first time such a prospectus has been produced in

the Pacific. we extend our invitation to look at the

Pacific and its many nations and to contact us if you

have an interest in the opportunities listed here.

Projects cover a range of industries: minerals

and mining, infrastructure, tourism, agriculture,

real estate and renewable energy, to name a few.

It is by no means a final list and we invite you to

view an expanded list on our website, www.invest.

pacifictradeinvest.com. This publication is designed

to assist you in identifying potential projects and

progressing with an enquiry.

The Pacific is a place of clean, green and organic

living. It has endless summers, clean waters and rich

volcanic soils perfect for growing. It is a safe place full

of friendly and welcoming people who live together in

a rich and diversified culture.

It is an Ocean of Opportunity.

Caleb JarvisTrade CommissionerPacific Islands Trade & Invest, Australia

Adam DennissTrade CommissionerPacific Islands Trade & Invest, New Zealand

Caleb Jarvis Adam Denniss

66

pacific Islands Trade & Invest is the region’s

lead export facilitation, investment and

tourism promotion agency.

As an arm of the Pacific Islands Forum

Secretariat based in Fiji, we focus on export-capable

businesses and the international promotion and

support of exporters in Pacific Island countries.

we are the only Pacific Islands agency tasked by

leaders to develop, grow and promote industry and

the businesses of all 14 Pacific Island countries in

export, investment and tourism promotion across

international markets.

Our offices in Auckland, Sydney, Beijing and

Tokyo work with exporters from the Pacific Islands

to promote their products and services as well as

attract investment to Pacific Islands businesses.

we do this by:

• Developing export-capable businesses

• Promoting and connecting export-ready

businesses

• Connecting exporters with international buyers

• Facilitating the marketing of niche Pacific Island

tourism services and products

• Introducing potential investors to the Pacific Islands

• Providing promotional support, networks and

technical expertise

• Facilitating shared understanding between markets

By facilitating successful partnerships between

the private sector and government agencies, and

between exporters and overseas buyers, we are able

to extend the potential of our service offering and

the business outcomes for our clients.

About Pacific Islands Trade & Invest

Our partnership philosophy is based on

effective communication, capacity building and

a commitment to developing and strengthening

relationships for sustainable economic growth in the

Pacific region.

Our work would not be possible without the

support of our strategic partners including:

• Pacific Island governments

• Governments of China, New Zealand, Japan

and Australia

• Donor-funded projects

• Multilateral agencies

• Non-government organisations

• Regional organisations

• Associations

• Service providers

Email us at

[email protected] (investment opportunities)[email protected] (general enquiries)

Or for more details visit

www.invest.pacifictradeinvest.com

Contact us by phone

Auckland +64 9 529 5165Beijing +86 10 6532 6622Sydney +61 2 9290 2133Tokyo +81 3 5259 8419

OUR VISION

we work together to create greater international

opportunities for Pacific Islands businesses

in order to build a better future through more

sustainable communities and greater prosperity.

OUR MISSION

To contribute to the sustainable economic

development of the Pacific Islands countries,

by creating opportunities for successful

connections for exporters, investors and

stakeholder organisations.

77

the Pacific Ocean covers about 30% of the

world’s surface—a massive 169.2 million

square kilometres. Scattered across this

massive expanse of water are almost 30,000 islands,

only 2000 of which are inhabited. These islands are

grouped into three regions—Micronesia (north of the

equator), Melanesia (south of the equator and in the

western Pacific) and Polynesia (covering the central

South Pacific).

Geographic remoteness and small population

are undoubtedly the major reasons why the

Pacific has not traditionally been seen as a major

business destination. The prevailing tenure of

land by communities, rather than individuals, can

I N T R O D u C T I O N

The Pacific Islands economyIn spite of some challenges, the Pacific Islands have many natural advantages when it comes to investment.

also mitigate against investment. However, many

companies across sectors as diverse as tourism,

mining and petroleum, agribusiness, fisheries,

forestry, building and construction, transportation,

logistics and communications are doing good

business in the Pacific.

The Pacific’s advantageThe reasons are many. Their pristine and

picturesque environment has made the Pacific

Islands the ultimate destination for tourists of all

kinds. Their vast, unpolluted waters contain some of

the world’s largest fish reserves and potentially cover

significant mineral deposits. The region contains

Port Vila harbour and Iririki Island, VanuatuCredit: Vanuatu Tourism Office

88

a disproportionate share of the world’s mineral

wealth. Its fertile soils, sustainable farming methods

and warm climate make it a potential agricultural

powerhouse, especially for organically certified

produce. It is also a peaceful and largely stable

region with low labour costs. Lastly, as a developing

market it has the potential to deliver a higher return

on investment—although sometimes at a higher risk

profile—than a first world economy.

The Pacific Islands as part of the global economyIn the western and southern Pacific, Australia and

New Zealand are not only major aid donors but also

major trading partners with, and investors in, the

Pacific Islands. Both Australia and New Zealand

now have schemes to bring Pacific workers into

their countries for agricultural labouring and both

are pushing for a new trading relationship with

the Pacific through a new trading instrument, the

Pacific Agreement on Closer Economic Relations

(PACER) Plus.

At the same time, the participation of

Singaporean, Malaysian, Philippines, Korean,

Japanese and Chinese investors in the region is

increasing—across sectors as diverse as retail,

fisheries, mining and petroleum, hospitality, forestry,

agribusiness and construction.

Improved communicationsOne of the most striking recent developments in

the Pacific Islands economy has been the great

strides made in communications and transport,

making the region more accessible to international

markets but also encouraging intra-island trade and

investment.

while regular shipping services continue to

facilitate regional trade, big gains have been made

in an increasingly deregulated aviation sector. An

increase in the number of airlines servicing the region

has driven competition, lowering both the cost of

travel and the frequency of air services.

Meanwhile, deregulation in the region’s

telecommunications sector has seen mobile phone

penetration grow exponentially over the past five

years (for example, mobile phone use in Vanuatu

grew from 11% of the population to 57% within 12

months of the arrival of a second operator).

Great progress has also been achieved with

internet connectivity, with undersea cables reducing

the region’s reliance on costly satellite services and

opening the opportunities for internet-enabled

enterprises such as internet banking and call centres.

Such advances have enabled the region’s three

major banks, for instance, to significantly improve

services across the region.

The 14 Pacific Island Countries featured in this publication

Micronesia

Federated States of Micronesia

Kiribati

Marshall Islands

Nauru

Palau

Melanesia

Fiji

Papua New Guinea

Solomon Islands

Vanuatu

Polynesia

Cook Islands

Niue

Samoa

Tonga

Tuvalu

Credit: Pacific Islands Trade & Invest

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infrastructure inevitably pose challenges, the

prevalence of organic farming methods provides

an opportunity for producers to tap into high-value

niche international markets.

The region’s manufacturing sector primarily

satisfies local demand for FMCG (fast moving

consumer goods) staples, eg food and beverage,

but there are also some notable export successes.

Among them are brands like Fiji water, Samoa

Artesian water and Pure Fiji, all of which skillfully

leverage the region’s pristine and exotic image.

9

The Pacific’s key industries

Credit: PNG Tourism Promotion Authority

Credit: Cloudy Bay Sustainable Forestry

TourismTourism is considered the sector with the most

growth potential across the region as a whole. The

Pacific Island countries already receive well over

one million visitors per year, and all 14 countries are

actively seeking to increase that figure.

For countries such as Fiji, Vanuatu and the Cook

Islands, tourism is already the most important sector

of the local economy, while others are carving out

special interest niches (eg whale watching in Tonga,

birdwatching in Papua New Guinea and bone-fishing

in Kiribati).

The Pacific’s intrinsic competitive advantage

in tourism is evident. A largely pristine environment

with clear lagoons, palm trees and sandy beaches;

intact traditional cultures; and a warm climate make

the Pacific an ideal destination all year round.

And yet it is worth noting that it was actually

the deregulation of air travel over the past decade

that paved the way for a significant portion of the

development of this sector. That growth may have

been subdued somewhat in recent times by the

global recession, but there is clearly enormous

scope for future expansion.

Agribusiness and manufacturing The vast majority of the region’s population derive

their livelihoods, at least in part, from agriculture.

while this is typically on a subsistence basis, a

number of successful agribusinesses also operate

in the region. For instance, New Britain Palm Oil Ltd,

which operates exclusively in Papua New Guinea

(PNG) and the Solomon Islands, is a world leader in

its field and is listed on the London Stock Exchange.

Growing conditions in the Pacific Islands are

generally excellent, with reliable rainfall, rich soils and

warm temperatures. Besides palm oil, important cash

crops include cocoa, coffee, sugar and copra, as well as

a wide array of tropical fruits, vegetables and spices.

If distance to market and underdeveloped

1010

Fisheries Many of the world’s marine species are found in the

territorial waters of the 14 Pacific Island Countries

which do, after all, cover the largest water body on

earth. It is tuna, however, which dominates the region’s

fishing industry. Over 50% of the world’s tuna comes

from the South Pacific, with the Nauru Agreement

regulating fishing activity across the region.

The twin challenges facing the Pacific Island

Countries are to add as much value as possible to the

fish caught in their waters (as opposed to accepting

lower revenues from the license fees paid by foreign

fishing vessels), while also ensuring that the industry

operates in a sustainable manner. Besides fish

processing, opportunities also exist in aquaculture.

ForestryThe exceptionally low land-to-water ratio in the

Pacific means forestry is restricted to a handful of

countries. Overproduction by international logging

firms has led to sustainability concerns in both

Papua New Guinea and Solomon Islands. Improved

supervision of the sector appears finally to be turning

the tide in favour of sustainable practices. As a result,

investment opportunities are emerging in plantation

forestry and downstream processing.

Mining and energywhile the Pacific Island countries are net importers

of oil, the region is a major source of other minerals,

most notably natural gas, gold, copper and nickel.

As commodity prices have rebounded following

the global financial crisis, activity in the sector has

risen sharply, most notably in Papua New Guinea, but

also in the Solomon Islands, Fiji and Tonga. As well as

onshore operations, there is a promising but as yet

nascent undersea mining sector in the Pacific.

Papua New Guinea has the region’s largest

mining and petroleum sector. The giant Ok Tedi

copper mine alone accounted for 17% of the PNG’s

GDP in 2009, while Lihir and Porgera are major

gold mines. while new world-class mining projects

such as Ramu Nickel, Hidden Valley, Nautilus

Minerals’ Solwara 1 and Xstrata’s Frieda River are in

development, they are somewhat overshadowed

by the uS$15 billion PNG LNG Project, led by

ExxonMobil. This enormous 30-year liquefied natural

gas (LNG) project is now under construction, with

first gas shipments expected in 2014.

Fuel imports remain a heavy burden on most

Pacific Island countries. Accordingly the exploitation

of local renewable energy resources is a priority for

the region’s leaders.

Investing in a slice of paradise

A European union-funded

study of the tourism sector in

the Pacific Islands has mooted

a $uS50 million investment

vehicle to boost the sector in

the region.

In most Pacific Islands,

tourism is either the highest or second highest

revenue earner and is certainly the largest single

employer.

The study, commissioned by the Bangkok-

headquartered Pacific Asia Travel Association

(PATA), was headed by Sydney-based John

Perrottet, who has spent several years with the

International Finance Corporation (IFC), the world

Bank’s private sector investment arm, working

on the financing of tourism projects in the Pacific

region.

The conclusion of the second and final stage of

the Tourism Investment Vehicle initiative has now

been completed and submitted to the European

union’s Centre for Development of Enterprise.

The findings of the report were overwhelmingly

positive for the creation of a structured investment

vehicle that would provide a funding platform for

approved tourism and hotel developments.

Investments could include the financing of new

projects as well as the expansion, upgrading and

refinancing of existing assets. The vehicle would be

managed externally and mirror similar investment

structures more suited to the needs of both

financial institutions and/or individual investors.

‘There is strong demand for finance in the Pacific

tourism sector and an appetite among investors to

increase exposures. what is missing is an effective

mechanism for investors to participate in a way that

manages risk. This initiative will directly meet that

challenge,’ said the report’s author, John Perrottet.

John Perrottet

© Copyright 2011 Business Advantage International Pty Ltd

1111

Investment opportunities

by country

Pictures (clockwise from top left): Vava’u, Tonga (credit: Tourism Tonga); Port Moresby, Papua New Guinea; building in Nuku’alofa, Tonga (both credits: Business Advantage International ); Espiritu Santo, Vanuatu (credit: Vanuatu Tourism Office)

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Population: 13,200 (2009)

Capital: Avarua, Rarotonga

Surface area: 240 sq km

Business language: English

Political status: self-governing nation in free association with New Zealand

Nominal GDP: uS$206.5 million (2009)

Currency: New Zealand dollar (NZD)

Major industrial sectors: tourism, black pearls, offshore finance centre, fruit (fresh and tinned), fish and clothing

Exports: pearls, pawpaw, clothing

Major export markets: Japan, New Zealand, Australia, Hong Kong, uSA

Imports: food, animals, machinery, mineral fuels

Major import markets: New Zealand, Fiji, Australia

Named after Captain Cook, who visited in

1770, the Cook Islands consists of 15 widely

dispersed islands, situated between Fiji and

French Polynesia. Cook Islanders hold New

Zealand citizenship and many have migrated

over the past decade. In spite of this, the

nation’s tourism industry is flourishing

(it receives around

100,000 visitors per

year) and is well-

placed to expand.

Cook IslandsCredit: Pacific Islands Trade & Invest

Jeke Lagi, ‘Hidden paradise’ (painting, acrylic on canvas)Credit: Okai Oceanik Art

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Day Dreamers

Expansion and upgrade of existing resort

Sector: Tourism

Location: Rarotonga

Project size/Investment value: NZD$850,000 (uSD$698,000)

Proposed financing structure: Equity participation

Notes: 60-year lease

Frangi

Expansion and upgrade to an existing building

Sector: Commercial Property

Location: Rarotonga



Raro Cars

Leading car dealership for sale

Sector: Automotive

Location: Rarotonga

Project size/Investment value: NZD$275,000 (uSD$226,000)



Black Rock Villas

Luxury villa development as part of a new resort

Sector: Tourism

Location: Rarotonga

Project size/Investment value: NZD$1,500,000 (uSD$1.,230,000)


Notes: 60-year lease secured

Want to know more?Email [email protected]

invest.pacifictradeinvest.com

14

Population: 883,000

Capital: Suva

Surface area: 18,376 sq km


Nominal GDP: uS$3.2 billion (IMF forecast 2010)

Currency: Fiji dollar (FJD)

Major industrial sectors: tourism, sugar, garments, gold, timber, ICT, agribusiness, fishing

Exports: agribusiness, sugar, garments, gold, timber, fish, services

Major export markets: uSA, united Kingdom, Australia

Imports: manufactured goods, machinery and transport equipment, petroleum products, food, chemicals

Major import markets: Singapore, Australia, New Zealand

The communications hub of the Pacific, Fiji’s

economy has stalled since a military coup

in 2006. It still boasts the region’s largest

tourist industry with around 600,000 visitors

per year. while traditional sectors such as

garments and sugar are in decline, the Fiji

economy is mature by regional standards,

and its economy is broad-based. Besides

tourism, Fiji’s well-educated English-speaking

workforce and good infrastructure mean its

services sector (including information

and communications

technology) has strong

growth potential. Its

mining sector also has

potential to grow from

a low base.

FijiCredit: Pacific Islands Trade & Invest

Peni (Ben) Saimone Fong, ‘The Journey’ (drawing, ink and acrylic on paper)Credit: Okai Oceanik Art

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Malolo Surf Co.

Equity partner or JV sought for existing charter vessel business

Sector: Marine Tourism

Project size/Investment value: uSD$2,000,000

Notes: Inventory includes 60 foot sailing catamaran and two auxiliary craft.

www.malolosurf.com

Vuda Marina Expansion

Equity partner or JV in super yacht marina expansion project

Sector: Tourism/hospitality

Location: Vuda, Viti Levu


www.vudamarina.com.fj

Fiji Crab

Equity partner or JV sought for mud crab start-up business

Sector: Aquaculture


Notes: A fully integrated farming system which includes hatchery, nursery, and eco-friendly farm production of mud crabs, company’s own farm sites, contract farmers and centralized high quality processing and marketing.

First Landing Resort Expansion Project

Integrated resort development on Viti Levu island


Location: Vuda

Project size/Investment value: FJD$113,000,000 (uSD$63,700,000)

Notes: First Landing seeks to expand and accelerate its project in a staged development. The adjacent Vuda Yacht Marina is planning to develop a second marina to cater for super yachts.



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Future Forests Fiji Ltd

Established teak plantation company planning IPO on the South Pacific Stock Exchange

Sector: Forestry

Location: Suva

Project Size/Investment value: FJD$4,900,000 (uSD$2,764,000) if only shares are issued; FJD$6,125,000 (uSD$3,454,000) if only notes are issued

Notes: The company’s vision is to become an internationally recognised, high-value Teak plantation company. It is implementing a pragmatic mix of high silviculture standards, sound business economics, environmental certification and social responsibility to establish and manage a minimum of 3,000 hectares of Teak plantations.

www.fff.com.fj

Raintree Lodge

Established eco-resort on the edge of Fiji’s capital for sale by tender


Location: Colo-I-Suva, Suva area

Notes: Raintree Lodge occupies a 3-acre site on the Princess Road at Colo-I-Suva. It is considered Fiji’s premier ecotourism resort. The land lease has another 86 years to run and the business is mortgage-free.

www.raintreelodge.com

Palm Grove

A new hotel development adjacent to Denarau Island

Location: Nadi


Project size/Investment value: TBC

Notes: The property comprises Freehold Title and a Crown Foreshore Development lease. The Outline Planning Application allows for a maximum density of 300 bedrooms and integrated tourism facilities including a 250-seat conference centre, retail centre, wellness centre, river front restaurant and bar, landscaped swimming pool, boatshed and marina berth.

Want to know more?For information on these and other investment opportunities in the Pacific Islands, email [email protected]


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The Federated States of Micronesia (FSM) is

a group of 607 small islands in the western

Pacific subregion of the same name, about

6000 km southwest of Hawaii. while the

country’s total land area amounts to only

702 sq km, its vast Exclusive Economic Zone

(EEZ) straddles the migratory tuna path.

Relatively little value to the annual catch is

currently added onshore however. Extracting

more value from its EEZ, and developing the

tourism sector are potential growth areas.

Population: 110,899 (2009)

Capital: Palikir

Surface area: 702 sq km, EEZ 2.9 million sq km

Language: English

Political status: independent democracy in association with the uS

Nominal GDP: uS$ 253.5 million (2008)

Currency: uS dollar (uSD)

Major industrial sectors: fisheries, tourism, copra

Exports: fish, banana, copra, trochus shells/ meat, kava and betel nut

Major export markets: Japan, uSA

Imports: food and live animals, mineral fuels, machines, transport and equipment, manufactured goods, textiles, beverages and tobacco

Major import markets: uSA, Australia, Japan

Federated States of Micronesia


Pacific Skylite Hotel

Sale of established 18-room hotel


Location: Pohnpei

Project size/Investment value: uSD$150,000

Notes: Three storey hotel comprising of 18 rooms all with private bath facilities, balconies, and interior access. The property is located near Kolonia and government complexes and only 5 minutes from the International Airport, making it very attractive for business and government travellers. The hotel was constructed in 1995 and features reception-area drop off point as well as a restaurant, conference rooms, bar and parking area.

Ulithi Adventure Resort

Sale of established 10-room hotel


Location: Yap State, ulithi Atoll

Project size/Investment value: uSD$150,000

Notes: The business includes a 10-room furnished oceanfront hotel and restaurant that has been in operation since 1998. ulithi Lagoon is popular with scuba divers (ww2 wrecks) and fishers and the hotel is perfectly located on the lagoon to attract this clientele. The resort is minutes away from ulithi Airport, with flights arriving and returning on Mondays and Fridays from Yap Island, a short 45-minute flight.

Ruins of the ancient city of Nan Madol, PohnpeiCredit: Pacific Islands Trade & Invest

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Kiribati is a group of 33 islands (23 inhabited)

located about halfway between Hawaii and

Australia, spread over a 3.5 million sq km

EEZ, which is equivalent to the landmass of

New York City spread out across the width

of continental uS. The low-lying country

faces significant challenges in the form of its

isolation, highly dispersed population and,

looking forward, climate change. Nonetheless,

its capacious territorial waters are abundant

with seafood and mineral resources. Tourism

is another sector of interest.

Population: 108,000 (2009)

Capital: Tarawa


Language: English/Gilbertese

Political status: independent republic

Nominal GDP: uS$152 million (2010 est.)

Currency: Australian dollar (AuD)

Major industrial sectors: tourism, fisheries, agriculture, remittances, copra

Exports: fish, copra, coconut oil, seaweed

Major export markets: uSA, Belgium, Japan, Australia, Bangladesh

Imports: food and live animals, machines, transport equipment, manufactured goods, mineral fuels, beverages and tobacco

Major import markets: Australia, Fiji, Japan, New Zealand, Taiwan

KiribatiCredit: Swire Shipping

Jon Jay, ‘Creations’ (painting, acrylic on canvas)Credit: Okai Oceanik Art

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Cassidy International Airport Upgrade

Seeking investor for rehabilitation of the existing runway, upgrade to the runway, lighting, fencing and major reconstruction of the terminal facilities

Sector: Infrastructure/aviation

Location: Kiritimati Island (Christmas Island)

Project size/Investment value: AuD$1,100,000 (uSD$1,147,000)

Notes: Proposed financing structure: loan/grant. The Kiribati Ministry of Communications, Transport and Tourism Development are currently undertaking engineering support analysis to scope the development of the runway rehabilitation. Funding for this rehabilitation may have been secured, however, funding of the cost of the terminal building has not and as such makes up the bulk of the financial costing of this project.

Teikabuti Fishing Company Ltd

Joint Venture in tuna processing/export project

Sector: Fisheries

Location: Tarawa

Investment value: AuD$500,000 (uSD$522,000) for 49% joint venture shareholding

Notes: Teikabuti Fishing Company Ltd was established in 1990 as a foreign private sector business in Kiribati and is a fully legal and registered commercial fishing and fish processing entity. The company wishes to expand operations into commercial long lining, to achieve exports of high value tuna and value-added tuna products. The company has the technology and experience to value-add all by-catch products, thereby turning reject fish into profitable products.



Phoenix and Line Islands Air Service

Joint venture opportunity to provide air transport services

Sector: Transport

Location: Tarawa

Investment value: AuD$5,000,000 (uSD$5,217,000), cost of aircraft as well as AuD$1,000,000 (uSD$1,040,000) to establish business operations)

Notes: The promoter (an experienced international pilot) is currently operating regular air services to 17 airstrips within the Gilbert Island Group in Kiribati. The company is seeking to obtain additional suitable aircraft to provide air service to the Line and Phoenix Island groups. These connections would present an opportunity to expand services to areas of high tourism potential (bone fishing, ww2 history, Phoenix Island Protected Area). The aircraft could also be utilised to provide Marine Air Surveillance (PIPA and Aerial Patrol – Illegal Fishing) as well as introducing the Pacific Flying Doctor Service (PFDS) - Medivac / Search and Rescue (SAR) services.

www.coralsunairways.com

20

The Republic of the Marshall Islands (RMI)

is located in Micronesia, about 3700

km southwest of Hawai’i. The country is

composed of two nearly parallel chains of low

coral limestone and sand islands, dispersed

over a wide EEZ. Key sectors are fisheries

(mainly fees paid by international tuna

fleets to access fish resources in the EEZ),

copra production and adventure tourism

(principally diving and game fishing). The

country is currently making great progress in

developing a black pearl industry.


Capital: Majuro


Language: English

Political status: democracy in free association with the uS since 1986

Nominal GDP: uS$166 million (2009)


Major industrial sectors: copra, tuna processing, tourism, craft items from seashells and pearls

Exports: copra, crude coconut oil, chilled and frozen fish, handicrafts, trochus shell/meat

Major export markets: Australia, Fiji, Guam, Japan, Hong Kong, New Zealand, Philippines, Singapore, Taiwan, uSA

Imports: mineral fuels and live animals, machinery and transport equipment, crude materials, manufactured goods, beverages and tobacco

Major import markets: Australia, Fiji, Guam, Japan, Hong Kong, New Zealand, Philippines, Singapore, Taiwan, uSA

Credit: Bryan Lever


Marshall Islands

EneKalamur Island Resort

JV opportunity to develop an eco-friendly overwater bungalow resort

Sector: Tourism

Location: Majuro Atoll

Project size/investment value: uSD$1,500,000

Notes: Enemanit-Latuma Extended Family Association (ELEFA) seeks a JV (preferably with established Pacific hotel operator) for the development of an eco-friendly island resort property comprising of 5 overwater bungalows, including mini-kitchenettes. The ideal investor will provide and promote clean energy, energy efficiency and climate friendly operations. It is anticipated the investor will develop and accommodate water-based activities not endangering coral heads and their living ecosystems, maintain sustainable clean water supply, and maintain sanitary upkeep of island and facilities including garbage collection and separation systems. Transportation to and from the main island of Majuro will also be required. This project is a new development utilizing a single family owned island on Majuro Atoll.



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Nauru is a tiny, oval-shaped island located

in the Micronesian subregion of the central

Pacific, just south of the Equator and some

3500 kilometres directly north of New

Zealand. It has a total land area of only 21

sq km, making it the smallest independent

island nation in the world. Nauru’s lucrative

phosphate reserves were depleted in the

1980s but mining resumed on a smaller scale

in 2006. Foreign exchange is also earned

through fishing license fees.

Population: 14, 264 (2010)

Capital: Yaren (unofficial)


Language: English

Political status: independent democratic republic since 1968

Nominal GDP: AuD$55 million/uSD$57 million (2009)

Currency: Australian dollar (AuD)

Major industrial sectors: phosphate mining, financial services, coconuts

Exports: phosphates, coconuts

Major export markets: South Africa, India, Canada

Imports: food and live animals, manufactured goods, building materials, fuel and machinery

Major import markets: South Korea, Australia, uSA, Germany


Reuben Friend, ‘I am’ (painting, acrylic on canvas)Credit: Okai Oceanik Art

Nauru

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Nauruans Rock

Equity partner required to develop a factory for phosphate cutting, polishing and shaping for trophies, ornaments and jewellery, furniture and tiling

Sector: Manufacturing

Project size/investment value: AuD$60,000 (uSD$62,600)

Notes: Privately-owned Petrified Rock stockpile.

Bytekiwi

Partner required in project to fabricate and produce an innovative coconut scraper/oil milk extractor tool for use around the Pacific region



Halstead Cinema

Equity or JV partner to construct and operate a cinema

Sector: Leisure and entertainment

Project size/investment value: AuD$80,000–AuD$100,000 (uSD$83,500–uSD$104,300)

Halstead Printing & Publishing

Equity or JV partner for Nauru’s first printing business

Sector: Business Services

Project size/investment value: AuD$200,000–AuD$$500,000 (uSD$208,700–uSD$522,000)



23

Niue is a self-governing state in free

association with New Zealand. It is located to

the north-east of New Zealand, a three-hour

(weekly) flight away. Niueans are New Zealand

citizens with the right of free access to New

Zealand, which also provides substantial

economic and administrative assistance.

Niue’s population is around 1600 but

more than 20,000 Niueans actually live

in New Zealand. Remittances are thus a

major contributor to the local economy. Its

economy is remarkably

well-developed, with

established tourism,

fisheries and

manufacturing

sectors.

Population: 1470 (2010 est.)

Capital: Alofi

Surface area: 260 sq km

Language: English

Political status: self-governing parliamentary democracy in free association with New Zealand

Nominal GDP: NZD$20.5 million/uSD$16.8 million (2006)

Currency: New Zealand dollar (NZD)

Major industrial sectors: tourism, handicrafts, food processing

Exports: canned coconut cream, copra, honey, vanilla, pawpaw, root crops, limes, stamps, handicrafts, fish

Major export markets: New Zealand, Fiji, Cook Islands, Australia, uSA

Imports: food, live animals, manufactured goods, machinery, fuels, lubricants, chemicals, pharmaceuticals

Major import markets: New Zealand, Fiji, Japan, Samoa, Australia, uSA

NiueCredit: Chris Burt

Kopotama Jacobson, Angle grinder (ink on paper)JPGCredit: Okai Oceanik Art

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Monuina Fishing

Expansion of value-added products

Sector: Fish processing/manufacturing

Notes: Fishing, fish processing, fish burgers and sausages

Colonial Commodities Limited

Equity in project to manufacture & market premium Pacific gin


Project size/investment value: NZD$500,000 (uSD$411,000)

Notes: Development phase completed. Investment-ready start-up.



T iny Niue is one of the world’s smallest territories,

with a population of just 1500. Most Niueans,

however, live in New Zealand, with which Niue is in free

association, giving it a special status in terms of shared

residency rights, currency and legal systems.

The island has enormous tourism potential as

a diving destination and there are now efforts to

promote it as one of the world’s best ecotourism

spots. Pacific Island Trade & Invest’s Return to Roots

Mission to Niue in 2009 aimed to highlight its potential

for gainful investment in a number of areas.

Alex Talopau, who lives and works in Auckland, was

one of the members of this mission. He is a qualified

accountant and a Registered Financial Adviser. with his

Niuean born wife, he runs a successful accounting and

consultancy firm with a couple of offices in Auckland

and one in wellington.

‘At the end of the trip, I was convinced Niue needed

an accountancy firm onshore. You can think and have

all sorts of scenarios going on in your mind, but it’s

when you are actually there and meeting the residents,

that decisions become a reality.’

He incorporated the business in Niue, the first

professional accountancy firm on the island, about a

month and a half after the mission. Alex plans to spend

more time on his new Niuean enterprise in the coming

months, garnering government and private business,

which was earlier outsourced.

Meanwhile, the New Zealand Government is

planning a number of initiatives to develop Niue’s

tourism potential—something that will bring greater

opportunities to his business, says Alex.

‘Our islands are looking to those of us who have

been educated and are experiencing success overseas

to bring the same back home and share it with

everyone for the benefit of our people and our island

countries. The potential for business is enormous. You

just have to have the commitment,’ he says.

Case study: Alex adds up the numbers in Niue

25

Palau consists of over 340 islands, of which

only nine are continually inhabited. A strategic

location close to the Philippines and strong

infrastructure has enabled it to develop a

thriving tourism sector. Palau has one of

the world’s most diverse marine habitats

guaranteeing its appeal to diving enthusiasts,

but is also making good

progress in

diversifying its

product. Fish

exports are the

country’s other

main income

earner.


Capital: Melekeok

Surface area: 458 sq km, EEZ 629,000 sq km

Language: English

Political status: independent republic in free association with the uS since 1994

Nominal GDP: uSD$178.4 million (2009 est.)


Major industrial sectors: agriculture, tourism, subsistence fishing

Exports: handicrafts, agricultural goods, taros and coconuts

Major export markets: uSA, Japan, Singapore

Imports: mineral fuels, manufactured goods, machinery, food

Major import markets: uSA, Japan, Singapore

PalauAerial view of Koror

Credit: Meuns Bay Villas

Laben Sakale John, ‘Times are hard’ (painting, acrylic on canvas)

Credit: Okai Oceanik Art

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Aman Resorts Palau Project

Equity partner required to construct and operate a world-class resort, comprising of 28 guest rooms as well as a lobby, restaurant, and spa facilities

Sector: Tourism

Location: Koror State


Notes: Proposed funding model: joint venture/equity partnership/loan. Aman Resorts Palau is operated under the leadership and branding of the Aman Group—one of the world’s most successful high-end resort chains. The Aman business development model is locally-based, and the project will be built by a local contractor, employ local staff, and will utilise local products to the extent possible. This approach will bring many benefits to Palau and its population. Land leases and water use rights have been secured. The major environmental approvals and other licences have been issued and foreign investor permits have been issued. Financing is needed to get the project started and promoters are seeking a JV, partnership, loan or equity partner to construct and operate the property on the site of old Nikko Hotel.

www.amanresorts.com

Ngermid Bay Resort

Equity partnership in new eco-friendly bungalow-style resort

Sector: Tourism



Notes: Private lease (75 years remaining). Ngermid Bay Resort will be the only eco-friendly, bungalow-style accommodation with waterfront access in Palau. Plans include 10 tropical timber duplex bungalows with 20 units. 5,593 square metres of land in Ngermid, Koror has been secured on the hillside overlooking the beautiful Nikko Bay. The National Development Bank of Palau (NDBP) is willing to fund up to uSD$3,000,000 so proponents are seeking an additional uSD$1,000,000. The investor will be a shareholder owning up to 25% of the corporation. The Resort will have close ties with Sam’s Tours, the leading tour operator in Palau.

Carolines Resort

Opportunity to purchase unique resort

Sector: Tourism



Notes: Private Lease. The Carolines Resort is unique in Palau. All rooms are hand-crafted bungalows, each of which are modelled after traditional Palauan architecture using local materials such as bamboo, mahogany and mangrove. Each bungalow is equipped with air conditioning, TV and VCR, refrigerator, mini bar and private bath and guests have access to the only private beach in Koror. The owners are seeking investors for expansion and upgrade of resort facilities.

www.carolinesresort.com



The Meuns Bay Villas of Palau

New high-end property development of villas, townhouses and condominiums

Sector: Real estate/tourism



Notes: Private lease. A high-end gated community to serve the needs of executive-level residents and long-term visitors to Palau. It is a new development however the land has already been secured. The proponents are exploring opportunities for JV, partnership, loan, equity partner for site development (power, water, earth moving) and construction.

www.meunsbayvillas.com

27

The region’s largest economy is also its

fastest growing. The Independent State

of Papua New Guinea (PNG) in Melanesia

is situated strategically between Australia

and New Zealand to the south, the ‘tiger

economies’ of south-east Asia to the north

and west, and the rich fishing grounds of

the Pacific to the east. PNG is experiencing

a sustained surge of economic growth,

propelled by a world-class mining and

petroleum sector. Other opportunities

exist in agribusiness, sustainable

forestry, tourism

and

services.

Population: 6.7 million (2009)

Capital: Port Moresby

Surface area: 463,000 sq km


Political status: parliamentary democracy

Nominal GDP: uSD$12.65 billion (2010)

GDP growth: 8% (2010, source: Bank of PNG)

Currency: kina (PGK)

Major industrial sectors: mining, crude oil petroleum refining, copra crushing, palm oil, plywood and wood chip production, construction, fisheries, tourism

Exports: oil, gold, copper ore, logs, palm oil, coffee, cocoa, seafood

Major export markets: Australia, Japan, China

Imports: machinery and transport equipment, manufactured goods, food, fuels, chemicals

Major import markets: Australia, Singapore, China

Papua New GuineaPNG’s capital, Port Moresby, has experienced a construction boom in recent years.

Credit: Business Advantage International

Henry Iyaro, ‘Hiri trade’ (painting, acrylic on canvas)Credit: Okai Oceanik Art

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Sogeri Spices

Equity stake offered in spice and fruit agribusiness firm seeking to expand

Sector: Agribusiness

Location: Sogeri, Central Province

Project size/investment value: PGK2,500,000 (uSD$1,125,000)

Notes: Sogeri Spices Ltd has been operating for more than 20 years and promotes local produce operating close to the city in the rich Sogeri Plateaus. The company grows its produce organically and supplies restaurants, shops and hotels in PNG’s capital, Port Moresby. Currently the company produces organic fresh pineapple juice, pineapple jam and peanut butter. Because of strong demand, the company is looking to expand its current operations.

The Seraji Extension (Pondo) Timber Project

Investment sought for expansion of forestry operation

Sector: Forestry

Location: Kokopo, East New Britain Province


Notes: The Seraji Extension (Pondo) Timber Project is located in the Baining District, approximately 100 kilometres from the Kokopo township. Gross timber area considered productive is about 120,000ha or net volume of 653,142,000 m3. Common species include tanu, walnut, cryptocarya, erima, calophyllum, basswood, heriteisa, kwila, rosewood, watergum, sloanea, white mix, red mix, canarium and amboroi. The project has an existing timber permit and land title. Forestry permits and company certification have been issued by relevant government agencies.

Driftwood Resort

Investment to expand unique resort

Sector: Tourism

Location: Alotau, Milne Bay Province

Project size/investment value: AuD$2,000,000 (uSD$2,085,000)

Notes: Driftwood Resort is a unique resort with eight Cape Cod-style bungalows and direct waterfrontage to Milne Bay. we are looking for investors to build a further 7 bungalows and a conference centre. Driftwood Ltd is an approved international enterprise and the development was started four years ago and occupies traditional land with a 25-year renewable Lease. we are seeking a JV or equity partner to add additional bungalows and related services, a conference centre and a franchise centre (which are already in the process of construction approval). No additional licences or approvals are required other than the Physical Planning Approval for construction. All foreign investor and incorporation requirements are in place. www.driftwoodpng.com


29

Sama Holdings Ltd

Established company seeks investor to expand its sawmill operations

Sector: Forestry

Location: Balimo, western Province


Notes: Sama Holdings Limited is a family business established to export sawn timber in 2007. The company was awarded a timber permit from the National Forest Authority in March 2011 covering over 100,000ha of forested land in Adiba and surrounding villages of the Balimo District of the western Province in PNG. Species to be harvested and exported are rosewood, kwila/merbau, taun, malas, watergum, walnut, as well as various species of tropical hardwood and softwood species such as eucalyptus, mersawa, pencil cedar, brown podocarp. The company currently operates a small-scale village-based sawmill (chainsaw) operation however it now plans to construct and operate commercial sawmill operations. The promoter is seeking loan-financing to purchase plant and machinery from local suppliers or Joint Venture collaboration with interested partners. Projected monthly average sales are PGK750, 000 (uSD$338,000), which is adequate to recover loans. Company certificate and timber permit have been issued by the respective government agencies.




HR and IT Consulting and Outsourcing Business

HR Information Technology and Consulting specialising in HR Systems, Remuneration Consulting and Recruitment seeking JV, equity partner or outright purchase of the business.

Sector: Business Services

Location: Port Moresby


Notes: There is an opportunity for an international firm looking for a footprint in Papua New Guinea to take advantage of the boom in resource developments, in particular the PNG LNG Project currently under construction. Outsourcing is a viable option for many organisations, particularly those that are only involved in the construction phase of the projects. There is a shortage of qualified personnel in IT, HR and Finance and this provides an excellent opportunity.

www.concept.com.pg

www.psp.com.pg

30

The Independent State of Samoa (formerly

western Samoa) is a picturesque, fertile,

politically and economically stable nation with

two main islands strategically positioned at

the centre of the South Pacific. Samoa was

the first Pacific Island country to achieve

independence in 1962 and has subsequently

led the way in terms of economic reform.

On the back of sound infrastructure,

it is building a robust tourism industry,

but there are also niche

opportunities in areas

such as agribusiness

and manufacturing

where Samoa has a

innovative track-

record.

Samoa

Area 2944 sq km

Population 181,000 (2009)

Capital city Apia (40,000)

Official languages English and Samoan

GDP uSD$588 million (IMF, 2009)

GDP growth 3% (2010 Central Bank projection)

Currency Tala (wST)

Major industrial sectors: tourism, food processing, building materials, automotive parts

Exports: fish, coconut oil and cream, copra, taro, automotive parts, garments, beer

Major export markets Australia (42.8%), American Samoa (29.1%), uSA (3.3%)

Imports: machinery and equipment, industrial supplies, foodstuffs

Major import markets New Zealand (21.3%), Fiji (14.6%), Singapore (13.1%), Australia (8.6%)

30

Samoa’s capital, ApiaCredit: Business Advantage International

Fatu Akelei Feu’u, ‘Lapita Green’ (print)Credit: Okai Oceanik Art

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Paramount Industries Ltd

Established manufacturer seeks investor to finance expansion


Location: Vaitele, Apia

Project size/investment value: NZD$100,000 (uSD$82,000)

Notes: Production of water and septic tank and fabrication of other plastic products

Savaii Farms

Established agribusiness concern seeks investor to expand and diversify its range of export-oriented products


Location: Savaii

Project size/investment value: wST$100,000 (uSD$45,000)

Notes: Export of cocoa beans, coconut oil, vanilla beans and manufacturing of soaps and lotions.

www.savaiifarms.com

Le Spa Lelalelei o Samoa Lodge

Existing spa/lodge seeks investor to fund expansion


Location: Apia

Project size/investment value: wST$375,000 (uSD$168,000)

Notes: Business expansion to construct five premier suites, changing rooms, two treatment rooms and other facilities. www.le-spa-lelalelei.ws



32

The Solomon Islands is a collection of about

900 coral islands in the Melanesian Pacific.

The country is recovering well from over a

decade of social, political and economic

volatility, with the 15-nation RAMSI security

contingent still providing civil security and

economic stabilisation. Although the key

forestry sector is in

decline, the outlook

for its mining sector

is positive. Tourism

and agribusiness

have significant

growth potential.

Population: 609,794 (2010)

Capital: Honiara

Surface area: 28,900 sq km, EEZ 1.5 million sq km

Language: English/Pijin

Political status: parliamentary democracy

Nominal GDP: uSD$668 million (2009)

Currency: Solomon Islands dollar (SBD)

Major industrial sectors: fish (tuna), mining, timber, agribusiness, tourism

Exports: timber, fish, copra, palm oil, cocoa

Major export markets: China, Korea, Japan, Philippines, uK

Imports: food, plant and equipment, manufactured goods, fuels, chemicals

Major import markets: Australia, Singapore, Japan, New Zealand, uSA

Solomon IslandsThe Gold Ridge gold mine, the country’s largest, was bought by Australia’s Allied Gold in 2010.

Credit: Australian Solomons Gold

Ellie Fa’amauri, ‘Intertwine’ (painting)Credit: Okai Oceanik Art

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SI Flour Technology (SIFT) Project

Established agribusiness company seeking partner to establish a cassava plantation to supply domestic and export markets


Location: Guadalcanal Province


Notes: Proposed financing structure: direct equity direct investment via preference shares in CT Farm and Flour to give investors up to 40% of the overall project and first call on dividends. CassTech Limited, a public unlisted Australian company and majority owner of CT Farm and Flour, has developed mechanised cassava farming technology and agronomic practices. Cassava is widely grown in the Solomon Islands. CT Farm and Flour (a Solomon Islands company) is looking to establish a cassava plantation that (along with purchased roots) will feed a 10,500 tonnes per annum gluten free tapioca flour factory. The flour will be sold domestically and into Australia for the health food and fermented beer markets. Customer trials have demonstrated excellent performance in a range of food recipes overcoming many of the deficiencies of conventional wheat flour replacements. Parcels of land have been identified but a buy or lease decision is yet to be made. Investment of approx AuD$4,500,000 (uSD$4,690,000) will be sufficient to cover the purchase of land (if deemed appropriate), installation of flour making machinery and equipment and working capital.

www.casstech.com.au



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Surf Solomons

Opportunity to invest in established niche provider of tourism accommodation in various locations around the Solomons

Sector: Tourism

Project size/investment value: AuD$250,000–AuD$400,000 (uSD$261,000–uSD$417,000)

Notes: Operating since 2007, Surf Solomons is a social enterprise developing adventure surf tourism products to mid-to-high-end international markets in partnership with indigenous Solomon Islanders. The company is seeking a joint venture, equity investor, or strategic partner investment to expand surf camps into new sites at locations offering world-class, and as yet, undiscovered waves. The project is foreign investment approved and has all relevant licences.

www.surfsolomons.com

34

The Kingdom of Tonga is made up of 176

islands and has close ties with New Zealand.

Located just south of Samoa in Polynesia,

it has recovered strongly from civil unrest

in 2006 and held landmark democratic

elections in late 2010. Tonga’s tourism

industry has great potential (it is already

a whale-watching mecca), while other

prospective sectors

include fisheries,

agribusiness and

undersea mining.

Population: 104,000 (2009)

Capital: Nuku’alofa


Business language: English/Tongan

Political status: sovereign monarchy

Nominal GDP: uSD$378 million (2011, IMF forecast)

Currency: Tongan pa’anga (TOP)

Major industrial sectors: tourism, agriculture, fishing

Exports: squash, fish, vanilla beans, root crops, coconut, tuna.

Major export markets: uSA, Japan, NZ, Korea

Imports: foodstuffs, machinery and transport equipment, fuels, chemicals

Major import markets: NZ, Fiji, uSA, Australia, China, Singapore, Japan

Tonga

Tonga’s Royal PalaceCredit: Tonga Visitors Bureau

Dagmar Vaikalafi Dyck, ‘Identity’ (screenprint on paper)Credit: Okai Oceanik Art

Tonga’s Royal Palace, Nuku’alofaCredit: Tonga Visitors Bureau

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Fuel and Gas Storage Facilities

Equity partner required for the establishment of a new facility

Sector: Energy

Location: Nuku’alofa

Project size/investment value: TOP10,700,000 (uSD$6,470,000)

Notes: Land secured.

Lomipeau Marina Resort Holding Ltd

Project to establish an over-water ‘fale’ resort seeks equity partner

Sector: Tourism



Notes: Development of first class multi-function international tourism resort at Fanga’uta Lagoon.

Cassava Starch Processing

Investor sought for new cassava processing venture


Project size/investment value: TOP500,000 (uSD$302,500)

Notes: Own land

Paradise Properties Limited

Property for sale

Sector: Real estate/property


Project size/investment value: TOP500,000 (uSD$302,500)

Notes: Property consists of a steel-framed building, with concrete and steel cladding over a footprint of approximately 1500 sq.m.

Kupu House

Commercial building for sale

Sector: Real estate/property



Notes: Private lease.



36



George Niuhulu (pictured below) came to

Auckland from Tonga as a young man in search

of opportunities. working hard as a daily wage earner

painting and plastering homes, he soon set up his own

business and began to raise a family.

A sincerity of purpose, sheer hard work and

astute business acumen saw the start-up grow into a

substantial business over the next few years. George

also began to accumulate a property portfolio, acquiring

run down homes, refurbishing and on-selling them.

It was only a year ago that George decided to

put to use his considerable business skills to start an

enterprise back in Tonga. After much information

exchanges, discussions and some research with PT&I’s

help, George zeroed in on the idea of starting a beef

farm on Tonga’s main island of Tongatapu, not far from

its capital Nuku’alofa.

He acquired a large tract of land, close to his

ancestral village and followed that up with planting

a nutritious variety of grass to feed the cattle, which

he would purchase as soon as the planting was

completed. Since then, he has bought a substantial

herd of cattle from local farms.

George looks forward to his visits to Tonga and has

picked up a number of new skills in cattle farming:

‘I knew nothing about it before. But it is so

interesting to learn.’

The farm has brought employment to several

young men in Tongatapu. First they were involved in

planting grass across the land where the cattle forage.

Now they tend to the livestock everyday and manage

resources at the farm.

‘It is a great feeling to start a business in your home

country after living overseas for such a long time. It not

only helps the local economy and provides employment

but also throws up ideas for young people and brings

enthusiasm in the community to seek out a path in

entrepreneurship, while making a decent profit,’ he says.

Case study: Beefing up business in the islands

37

Tuvalu, formerly the Ellice Islands, became

independent from the united Kingdom in

October 1978. Its nine coral atoll islands are

located about halfway between Hawaii and

Australia, scattered across an expansive EEZ.

Sectors with growth potential include eco-

tourism and increased commercialisation of

its fisheries sector.


Capital: Funafuti



Political status: independent democratic government since 1978

Nominal GDP: uSD$29 million (2009)

Currency: Tuvaluan dollar (TVD)

Major industrial sectors: fishing fees, remittances, copra

Exports: copra, stamps, handicrafts, garments

Major export markets: Fiji, Germany, Italy, Japan, Australia

Imports: food and live animals, manufactured goods, mineral fuels and machines, transport and equipment

Major import markets: Australia, Fiji, New Zealand, Japan, China


Fualefeke Resort

Project to create eco-style resort

Sector: Tourism

Location: Fualefeke Island

Project value/investment required: AuD$400,000 (uSD$419,000)

Notes: Equity partner/JV sought to expand our tourism industry in Tuvalu and promote our beautiful and diverse culture to the whole world.


Tuvalu



Leua Latai Leonard, ‘Self Portrait: A

Samoan woman with a hibiscus on her

forehead’ (photograph collage on canvas)

Credit: Okai Oceanik Art

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Located roughly halfway between Australia

and Fiji, Vanuatu retains a charming French

flavour after gaining independence from joint

administrators France and the uK in 1980.

Despite lacking the natural resources of some

of its neighbours, its economy has flourished

in recent years with strong investment in

tourism and real estate. Vanuatu’s status

as a tax haven provides the platform for an

international finance centre.

The Y-shaped archipelago

is also renowned for

exporting some of the

world’s best beef.

Population: 221,552 (2010)

Capital: Port Vila

Surface area: 12,200 sq km, EEZ 68,000 sq km

Business language: English/French

Political status: parliamentary republic

Nominal GDP: uSD$767 million (2011, IMF forecast)

Currency: Vanuatu vatu (VuV)

Major industrial sectors: tourism, agriculture, offshore financial centre, fisheries, forestry

Exports: copra, beef, cocoa, timber, kava, coffee

Major export markets: Thailand, India, Japan, Australia, Eu

Imports: machinery and equipment, foodstuffs, fuels

Major import markets: Australia, Japan, Singapore, New Zealand, Fiji

VanuatuPort Vila harbour

Credit: Business Advantage International

Andrew Tovovour, ‘untitled’ (mixed media)Credit: Okai Oceanik Art

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Vanuatu Geothermal

Australia-based KUTh Energy seeking equity partner for landmark geothermal energy generation project

Sector: Energy

Location: Takara, Efate


Notes: Development of geothermal resources in the Takara area to supply electric power to Port Vila and the rest of Efate. Seeking JV, partnership, equity partner or loan.

Manuro Shores

Resort seeking JV, partnership or equity partner to fund subsequent stages

Sector: Tourism

Location: Port Vila

Project size/investment value: AuD$3,000,000–AuD$10,000,000 (uSD$3,160,000–uSD$10,490,000)

Notes: Private lease (75 years). Manuro Shores is a unique and luxurious residential lifestyle, golf and hotel resort development located only 35 minutes from Port Vila. The features include 228 home sites, an 18-hole golf course, a marina, a village centre with shops and offices, a large resort and a unique 20 hectare nature reserve. Recently, the first stage has been completed. In place is a strata subdivision of 71 oceanfront lots with water and power including internal unsealed roads and detailed planning of an 18-hole golf course and hotel site. The land is owned by the development company, and the business has been established over the last 4 years. Seeking JV, partnership or equity partner to fund subsequent stages such as construction of the golf course and marina. All licences and approvals are in place for the development. The company is incorporated in Vanuatu.

www.manuroshores.com

Vanuatu Virgin Coconut Oil Ltd

Existing coconut oil producer/exporter seeks investor


Location: Luganville, Espiritu Santo

Project size/investment value: AuD$250,000 (uSD$261,000) for contract finance or equity share.

Notes: VVCOL has the capacity to produce high quality Virgin Coconut Oil from whole coconuts and fresh coconut meat. The Virgin Coconut Oil (VCO) is produced using the unique Bowker process, pressing the oil within one hour of opening. Strong local and internationally branded sales are testimony to the high quality and excellent taste of this virgin coconut oil. The operation of VVCOL does not only deliver strong potential export growth for Vanuatu, but at full production can deliver increased earnings and improved livelihoods for up to 5000 coconut growers on Espiritu Santo. All business licences and approval processes are in place.

www.nuicoconut.com Want to know more?Email [email protected]


40

Lapita Boutique Resort

New resort development on the island of Santo

Sector: Tourism

Location: Espiritu Santo

Project size/investment value: Residential Lots AuD$80,000–AuD$140,000 (uSD$83,400–uSD$146,000); Resort Sites AuD$850,000+ (uSD$886,000+); Investment in Resort AuD$6,500,000 (uSD$6,780,000)

Notes: Private lease (73 years remaining with option for additional 75 years). Lapita is a managed eco-friendly residential/resort development located one of the most beautiful tropical coastlines in the South Pacific. It will consist of private residential land holdings and three resort developments – one of which will include an international standard 18-hole golf course. Stage 1 of the development, Lapita Boutique Resort, will offer 30 luxury independent villas surrounding large tropical feature pools, bars, restaurant and luxury guest amenities.

www.lapita.com.au

Moorings Hotel

Established property seeks investor to facilitate expansion to meet rising demand

Sector: Tourism

Location: Port Vila

Project size/investment value: AuD$2,000,000 (uSD$2,080,000) (Stage 1 Additional Rooms), AuD$11,000,000 (uSD$11,460,000) (Stage 2 Strata Title)

Notes: Land is by private lease (71 years remaining, renewable). Moorings Hotel was established in 2007 and comprises 30 studio rooms and a 60-seat restaurant. Due to strong occupancy pressure, an opportunity exists to further develop the existing site with the addition of a further 20 rooms. Furthermore, vacant land adjoining the site is available for strata titled development of 30 saleable lots that will enhance the core hotel business. All building and municipal permits and other operating permits are secured.

www.mooringsvanuatu.com

The Havannah Resort

Luxury resort and going concern; 16 rooms, 45 acre beach front property

Sector: Tourism

Location: Port Vila


Notes: Currently on offer. 30% equity AuD $1,200,000 (uSD$1,250,000) net of debt. Required investment of approx another AuD$1,000,000–AuD$1,500,000 (uSD$1,040,000–uSD$1,560,000) for 100% stage three. Seventy-five year lease (68 years remaining).

www.thehavannah.com



41

To encourage high-quality tourism investment

in Vanuatu, the IFC, a member of the world

Bank Group, together with the Vanuatu Investment

Promotion Authority and the Vanuatu Department of

Tourism, has identified and scoped a limited number

of investment opportunities across the country. with

the support of Pacific Islands Trade & Invest (PT&I),

these sites are showcased below for interested

investors.

The sites are suited to investors specializing in

4+ star accommodation and range from 12-room

boutique hotels to large scale resorts with 150+ rooms.

Located on the islands of Efate, Espiritu Santo and

Tanna, the sites have been selected in consultation

with the Vanuatu Government. Evaluations have

been completed based on the following criteria:

infrastructure, site characteristics, development

viability, tourism potential, and environmental and

social factors. IFC has verified that each site has

Government approval, clear land titling and meets

market demand, leaving them free and available for

immediate investment.

Golden Beach, Hog Harbor, East Santo

The site itself is very picturesque with a white sand

beach and an outlook to further islands. The location is

five minutes travel from Champagne Beach, a popular

destination for travellers, and also receives visiting

cruise ships. The site is located approximately 60

minutes from Luganville on a sealed road. Total land

area is approximately 49 hectares with 470 meters of

waterfront.

Forest Resort, Aore Island, Santo

Sand beach frontage with sheltered

water. The site includes deep water

to the front, allowing large vessels

access to the shore for jetty use.

North facing towards Luganville,

the site has an abundance of

natural features that make it a

prime location for development.

Suggested approvals and casino

licence in place. Boat access

from Luganville consists of a 1.6 km crossing. There is

internal road access on the island.

Barasira, Aore Island, Santo

white sand beach, with protected front with a

northwest aspect back towards Santo. Deep water in

front is suitable for larger boat access. Site is flat and

suitable for development, with further surrounding

resorts within short travel on the island or boat. Road

access to boat is on sealed road and 10 minutes travel

from Luganville. Boat access from Santo, is 1 km at its

closest point. Estimated land area is 80 hectares.

White Grass, Tanna

Tanna Island is one of the southernmost islands of the

Vanuatu archipelago. The new restaurant, bar, kitchen,

and reception were built in late 2009, and the 14

bungalows were extensively upgraded during that time.

The property includes a swimming pool, golf course

and tennis court and jetty. There is an array of unique

activities close by including volcano and rainforest

treks and snorkelling. High potential for fishing and

scuba diving activities. The resort consistently

operated with 70% + occupancy from 2005 to 2009

and was voted Vanuatu’s best island resort in 2008.

International airport is located 2 km from the resort.

IFC identifies premium tourism opportunities in Vanuatu

Further information can be obtained from:

• Smith Tebu, Vanuatu Investment Promotion Authority: [email protected]

• George Borugu, Department of Tourism, Vanuatu: [email protected]

• Kathy Khuu, IFC: [email protected]

• Christopher Bleakley, IFC: [email protected]

Scuba diving on Espiritu SantoCredit: Vanuatu Tourism Office

Custom dress on Tanna Island Credit: Vanuatu Tourism

Office

42

Sulu Sea

Wallis andFutuna

PALAU

PAPUA NEW GUINEA

EAST TIMOR

AUSTRALIA

Tokelau

Ceva-i-Ra

Kingman Reef

Santa Cruz Islands

Norfolk Island

SAMOA

SOLOMONISLANDS

NAURU

FIJI

FEDERATED STATES OF

MARSHALL ISLANDS

NEW CALEDONIA

KIRIBATITUVALU

VANUATU

MICRONESIA

ÎLES TUBUAI

SOCIETYISLANDS

NIUE

Minerva Reef

Rawaki(Phoenix Islands)

TONGA FRENCH POLYNESIA

COOK

ISLANDS

Palmyra Atoll

Baker IslandHowland Island

Jarvis Island

Kermad

ec Is

lands

New Zealand

VIETNAM

Manila

Wewak

Lae

Majuro

Funafuti

Port Moresby

AvaruaNouméa

Honolulu

Fuzhou

Wenzhou

Madang

Yaren

Honiara

Hawaii

Oahu

Maui

Eniwetak

Kwajalein

Tarawa

Banaba

Luzon

Guadalcanal

0 500 Km

Suva

KepulauanAru

SULAWESI

Kepulauan Tanimbar

Apia

Papeete

TahitiPort Vila

Alofi

Nuku’alofa

Mata-Utu

PalikirKoror

Viti Levu

VanuaLevu

Rotuma

Kiritimati(Christmas Island)(KIRIBATI)

KIRIBATI(Gilbert Islands)

Ashmore and Cartier Islands(AUSTRALIA)

Okino-tori-shima

Caroline Islands

AmericanSamoa

KIRIBATI

ÎLES MARQUISES

Yap

ARCHIPEL DES TUAMOTU

Adamstown

Banda Sea

Ceram Sea

Equator

Hagåtña

New Britain

CHATHAMISLANDS (N.Z.)

Lord Howe Island

Coral Sea

Solomon Sea

Bismarck Sea

Rapa

Arafura Sea TorresStrait

Coral Sea Islands

North Pacific Ocean

South Pacific Ocean

Pitcairn Islands

Tasman Sea

BouganvilleNew Ireland

Luzon Strait

INDONESIA

Wake Island

South China Sea

Saipan

P h i l i p p i n e S e a

Melekeok

Timor Sea

GUAM

Port Vila

Want to know more?For information on investment opportunities in the Pacific Islands, email [email protected]


43

Sulu Sea

Wallis andFutuna

PALAU

PAPUA NEW GUINEA

EAST TIMOR

AUSTRALIA

Tokelau

Ceva-i-Ra

Kingman Reef

Santa Cruz Islands

Norfolk Island

SAMOA

SOLOMONISLANDS

NAURU

FIJI

FEDERATED STATES OF

MARSHALL ISLANDS

NEW CALEDONIA

KIRIBATITUVALU

VANUATU

MICRONESIA

ÎLES TUBUAI

SOCIETYISLANDS

NIUE

Minerva Reef

Rawaki(Phoenix Islands)

TONGA FRENCH POLYNESIA

COOK

ISLANDS

Palmyra Atoll

Baker IslandHowland Island

Jarvis Island

Kermad

ec Is

lands

New Zealand

VIETNAM

Manila

Wewak

Lae

Majuro

Funafuti

Port Moresby

AvaruaNouméa

Honolulu

Fuzhou

Wenzhou

Madang

Yaren

Honiara

Hawaii

Oahu

Maui

Eniwetak

Kwajalein

Tarawa

Banaba

Luzon

Guadalcanal

0 500 Km

Suva

KepulauanAru

SULAWESI

Kepulauan Tanimbar

Apia

Papeete

TahitiPort Vila

Alofi

Nuku’alofa

Mata-Utu

PalikirKoror

Viti Levu

VanuaLevu

Rotuma

Kiritimati(Christmas Island)(KIRIBATI)

KIRIBATI(Gilbert Islands)

Ashmore and Cartier Islands(AUSTRALIA)

Okino-tori-shima

Caroline Islands

AmericanSamoa

KIRIBATI

ÎLES MARQUISES

Yap

ARCHIPEL DES TUAMOTU

Adamstown

Banda Sea

Ceram Sea

Equator

Hagåtña

New Britain

CHATHAMISLANDS (N.Z.)

Lord Howe Island

Coral Sea

Solomon Sea

Bismarck Sea

Rapa

Arafura Sea TorresStrait

Coral Sea Islands

North Pacific Ocean

South Pacific Ocean

Pitcairn Islands

Tasman Sea

BouganvilleNew Ireland

Luzon Strait

INDONESIA

Wake Island

South China Sea

Saipan

P h i l i p p i n e S e a

Melekeok

Timor Sea

GUAM

Port Vila

Map © Copyright 2011 Business Advantage International Pty Ltd

Contact us by phone

Auckland +64 9 529 5165

Beijing +86 10 6532 6622

Sydney +61 2 9290 2133

Tokyo +81 3 5259 8419

Email us at

[email protected] (investment opportunities)

[email protected] (general enquiries)

www.pacifictradeinvest.com

investment opportunities in the pacific islands 2011

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