ASSISTANCE TO THE PRIVATE SECTOR IN THE SOUTH PACIFIC

Ten training and business development grants to support private sector development in six Pacific Island countries were announced today by Associate Minister of Foreign Affairs and Trade the Hon Matt Robson.

The grants, totalling NZ$388,873 come under the Pacific Islands Investment & Development Scheme (PIIDS), part of New Zealand’s Official Development Assistance (NZODA) programme.

PIIDS is a development programme which relies on private sector initiatives. It provides an opportunity for the New Zealand private sector to be involved in assisting our South Pacific neighbours to meet their developmental needs.

Grants were allocated according to each proposal’s development merit, commercial viability and the likely long-term economic and employment benefits for the recipient country. Proposals were assessed by a panel including development specialists, and New Zealand private sector representation.

Proposals for the next round of PIIDS grants should be sent to the Development Cooperation Division of the Ministry of Foreign Affairs and Trade by 28 July 2000.

Enquiries: James Funnell 473-2138
List of grant recipients and background note attached.

PIIDS Development: Advisory Mission

1 Niue: Bioglobal Consultancy: Organic Workshop

Chris May, the Managing Director of the New Zealand based firm, Bioglobal Consultancy, will travel to Niue to provide support to the Niue Organic Group & MAF to develop their awareness of organic techniques and certification requirements.

In addition Mr May aims to identify and prioritise the actions required to set in place a national organic standard.

Bioglobal have been delivering assistance in this field for a number of years and have previously worked with PIIDS on a variety of horticultural projects.

2 Cook Islands: Bioglobal Consultancy: National Guidelines for Organic Food Production and Processing

Chris May, the Managing Director of the New Zealand based firm, Bioglobal Consultancy, will travel to the Cook Islands to provide support for the Cook Islands Organic Association, the Noni growers group and the Ministry of Agriculture to design and write national guidelines for the production and processing of organically produced crops and products. The project will also provide direction and support for the development of organic product verification and audit procedures (specific to the Cook Islands).

3 Federated States of Micronesia (FSM, Pohnpei):Tourism Resource Consultants: Provide Business Advice to Members of the Tourism Industry

Tourism Resource Consultants (TRC) in cooperation with the Pohnpei Visitors Bureau (PVB), will provide practical tourism business advice to members of the tourism industry. Specifically TRC will travel to Pohnpei for approximately three weeks during which time they will provide one - on - one advice and training to local tour operators, an introductory product development and marketing workshop, a guide training workshop and advise to the industry.

TRC have worked in this region before, successfully providing a similar training programme in the state of Kosrae in 1998.

PIIDS Development: Training Programme

1 Fiji: Kiwibird Creations: Product Design an Development

Corrine Charan of Auckland will travel to Nadi , Fiji to run a training programme for the Nadi Women's Council in designing handicrafts using locally available resources.

The training programme is aimed at training people to be trainers and, assisting the development of women build and establish their own businesses

2 Federated States of Micronesia (FSM): Metier Consultants: Accounting for Small Business Seminar

Metier Consultants (Auckland), who have previously worked with PIIDS in the Pacific region, will research, write and present a seminar in Chuuk state entitled Accounting for Small Business for the Federated States of Micronesia Development Bank (FSMDB). The aim will be to enhance the ability of the bank’s clients (small business personnel) to; prepare cash receipts and cash payment journals, prepare balance day adjustments and final accounts, prepare payroll and stock control systems, understand commercial mathematics and prepare budgets from annual accounts.

Metier Consultants previously ran a similar course earlier this year in Pohnpei. The course was a success and as a result Metier have been invited to return to the FSM by the FSMDB.

3 Tonga: Hort + Research: Improve Quality of Papaya Exported

The Horticulture and Food Research Institute of New Zealand (Hort+Research) will provide training to the Landstar Export Co and staff at the Tongan Ministry of Agriculture and Forestry that will enable them to ensure product quality through improved production & postharvest practices. This training will provide the basic understanding necessary to produce good quality fruit and maintain that quality during handling and packing operations. Particular emphasis will be placed on training those personnel involved in handling and packing operations at the heat treatment plant in Nuku’alofa, which Hort+Reseach have had been involved in establishing.

PIIDS Investment: Equity Grant

1 Samoa: South Pacific Project Facility: Financing Proposal for the Expansion of a Domestic Snackfood Company

Fereidoun Yazdani (Samoa) and Bruce Hancock (New Zealand) will form a joint venture company (Tafaoata O Samoa Ltd, based in Apia) supplying and selling taro and banana chips to Samoa and exporting to New Zealand and American Samoa. The Equity Grant will be applied as a contribution toward the expansion of the existing taro and banana chip manufacturing operation of Tafaoata O Samoa.

2 Tonga: Norsa Enterprises: Growing of all types of agricultural products - local & export

Brett Norager (Tongan) and Philip Norager (New Zealand) will establish a business partnership (Norsa Enterprises) supplying and selling plants from their nursery on Tongatapu. The PIIDS equity grant will be used as funding to support the expansion (extension of the shade house and other facilities) of the nursery to meet a contract opportunity for the nursery propagation of coffee plants.

3 Cook Islands: Equity Access Pacific: Nono Franchising Venture

Danny Matora and Bradley Stafford (Cook Island partners) and Elizabeth Godfrey (New Zealand) will form a venture creating a nono franchise where individual growers come under the wings of the venture subject to strict controls and receive in return assistance in establishing plantations, training & on the spot payment for fruit at harvest.

The PIIDS equity grant will be used to finance the following:
 Storage drums
 Delivery truck
 Fruit Press
 Computer system
Storage / Processing shed

4 Fiji: James Siers Enterprises Ltd: Anglers Paradise

Ikbal Jannif (Fiji) and James and Conrad Siers (New Zealand) will form a joint venture company (Anglers Paradise) providing specialist fishing experiences in Fiji. The venture will be based at Vatia, Western Division, Fiji Islands. The Equity Grant will be applied as a contribution toward the expansion and development of guest accommodation, a variety of marine safety items, supporting the acquisition of a third fishing vessel and marketing.

Background Note: The Pacific Islands Investment & Development Scheme (PIIDS)

The scheme has developed from a combination of the old Pacific Islands Industrial Development Scheme, and the South Pacific Development Assistance Facility (SPDAF). It is funded as part of the New Zealand Official Development Assistance (NZODA) programme.

Basic Objectives Of PIIDS

 To encourage private sector development in Pacific Island Countries in partnership with the New Zealand private sector.

 To encourage the development of employment and economic growth in the South Pacific based on Pacific Island economies’ comparative advantages.

 To encourage New Zealand private sector investment in the Pacific Islands.

 To facilitate the transfer of knowledge from New Zealand to the South Pacific through the provision of training, marketing, technical, and managerial support.

How the Scheme Works

The scheme aims to meet the needs of the private sector directly. PIIDS has been designed to be flexible with a range of funding options available including training, feasibility, and equity assistance.

There are six separate grants available under the scheme. PIIDS Investment allows for the funding of up to 50% of the cost of a feasibility study to a maximum of $10,000 and may contribute up to $75,000 as an Equity Grant to the new venture on a dollar for dollar basis. PIIDS Development can provide grants of up to $25,000 to facilitate Training Needs Analyses, Training Programmes, Advisory Missions, and Personnel Attachments to New Zealand.

PIIDS proposals are assessed by a panel made up of Development Division staff and an independent private sector consultant during three competitive assessment rounds each year. Proposals are assessed on the basis of their developmental merit, and in the case of PIIDS Investment - their commercial viability.

The total 1999/2000 PIIDS allocation is $1.5 million.

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