Newsletter. Business & Professional Women s Club of Port Moresby

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1 Business & Professional Women s Club of Port Moresby Newsletter PRESIDENT S CORNER In September, Susil Nelson, our Deputy President and Manager of Corporate Governance at PNG Sustainable Development was equally inspirational in her story as a young women moving into the corporate world in PNG. Both Mrs Corbin-Taylor and Susil Nelson were inspirational not least because they were educated at different times in their respective countries at a time when the education of women was not a high priority for the country. Presidents report This newsletter comes to you after the August annual recipients meeting and the September meeting. The August meeting was inspirational and attended by over 150 people with a packed auditorium of younger and older women, family members of recipients, and other guests who came to hear the recipients speak or to hear about our work. Each year this event gets bigger and this year we have over 150 scholarship recipients already and are well on our way to achieving our target of 200 scholarships this year. Our August guest speaker, Mrs Antoinette Corbin-Taylor, inspired us with her personal story of education, learning, travel and service to her country. One of our recipients who spoke, is now a civil engineer with Global Construction who attended with her parents. The recipients and our major sponsors, AusAID and PNGSDP, and other local sponsor such as City Pharmacy attended and we again take this opportunity to thank them for their ongoing support for the education of women in PNG. They both faced challenges as women breaking new ground in education and women s employment. Their respective families valued education and supported their daughters into tertiary training and into senior leadership positions. Severina Luciano from West New Britain also recently spent two weeks in POM working with us on her efforts to get a chapter of BPW started in WNB. Severina demonstrates the energy and goodness of many women who are trying to make a difference to women s lives in their communities across PNG. This edition of the newsletter also has a major article on the LNG project. This is our contribution to helping our members understand the significance of this project for PNG and for the women of PNG. We look forward to your feedback and comments. Michaela Dion President Business and Professional Women of Port Moresby September/October 2010 Page 1

2 BPW AUGUST MEETING August Scholarship Recipients Meeting The guest speaker for this annual event was Mrs Antoinette Corbin-Taylor, the wife of the American Ambassador to PNG. Mrs Corbin- Taylor gave a personal story of her journey as a black womna in America. She grew up in Washington, DC around the time of the civil rights movement in America. She was one of 6 children. Her parents were not well educated but they encouraged all of their own children into education. She attended college and was one of the top students in her class. She went on to do a Bachelor of Arts in Psychology and graduate studies in Business Administration. She joined the foreign service specialising in human resources. Her role as the wife of the US Ambassador comes very naturally to her given her extensive experience in the foreign service. She currently works in human resources for other US Embassies in East Asia and the Pacific region. Mrs Corbin- Taylor identified her parents as her role models. From her humble beginnings her journey inspired the women present (both younger and older). Her upbringing supported her becoming educated and her determination and intelligence has helped her to achieve leadership in many different roles across her life, not all of it formal leadership. Mrs Corbin-Taylor s message to the young women present was to persevere in whatever they chose to do and to value education as a path to achieving their own goals and developing their own country. She concluded with a poem she was given and adapted to her own life s journey. BPW SEPTEMBER MEETING Susil Nelson, PNG Sustainable Development Susil is the Vice President of BPW and the Manager of Corporate Governance in PNG Sustainable Development (PNGSDP). She gave a briefing on the work of PNGSDP which was established by an agreement between the Government of PNG and BHP Biliton. It was incorporated in Singapore on October 21 st 2001 as a not-for-profit company and registered as an overseas company operating with its head office in PNG. Its mandate is to promote sustainable development in the Western Province before and beyond the life of Ok Tedi mine (which operates in the Western Province). The goals of PNGSDP are to: 1. Improve the lives of the people of PNG especially those of Western Province, and 2. Reduce the impact of Mine Closure on communities (likely to be by 2030). PNGSDP has a number of transformational projects including: A series of road projects to improve transport and trade across the province Communication Agriculture and forestry Aquaculture Rural electrification Micro finance Water supply and sewerage Community support improvements and programs including a range of health programs such as HIV & AIDS Community Conversations Response (CSIP). These projects have been rolled out since 2002 and many are ongoing. Many of these projects involve working with women in Western Province and they have opened resource centres in many communities especially for women. Susil was the first female senior manager in the company and came to PNGSDP via tertiary training in accounting, commerce and IT. She worked for 16 years in secretarial positions with LJ Hooker before completing her Bachelor of Commerce in Canterbury in Christchurch New Zealand in She then worked for Price Waterhouse Coopers until 2006 when she moved to PNGSDP. She found PWC very supportive and challenging but wanted to take on a more senior role in her current employment. She described the support offered by the company and the importance of her family in supporting her education and work in a senior management role. Her story was an inspiration to all of us present. Business and Professional Women of Port Moresby September/October 2010 Page 2

3 Susil is from East Sepik Province, Warabung village in Yangoru District. She is the oldest of 10 siblings with both parents tertiary educated. Her family are very committed to education of women with her mother and 5 sisters all being university graduates and the younger members of her family still at uni or at school. Her decision to take up the position with PNGSDP was based on her interest to be more involved in the development of the country, a position her family supported. She also described her father as a mentor of women in the public service and as a gender campaigner. She also described her mother as a role model for her and her sisters. BPW is very fortunate to have Susil as Vice President and she brings formidable skills and knowledge of the private sector to her role. SCHOLARSHIP SUB-COMMITTEE REPORT FOR AUGUST/SEPTEMBER The Scholarship Committee continues to receive applications for this year and we have almost achieved our target of 200 scholarships for BPW POM MEETINGS 2010 Meetings first Saturday of the month November 6 th - Dr Pilly Mapira December 4 th Christmas lunch LIQUIFIED NATURAL GAS PROJECT WHAT IS IT? What is the LNG project? LNG stands for the Liquefied Natural Gas project. The Papua New Guinea LNG project is a commercial venture undertaken by Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation, to construct and operate the project on behalf of its co-venturers Oil Search Limited, Kroton No 2 Limited, Santos, JX Nippon Oil and Gas Exploration Corporation, Mineral Resources Development Company, and Eda Oil. Kutubu, Agogo, Gobe, and Moran in the Southern Highlands Province and Western Province of PNG. The gas will be treated at a gas conditioning plant at Hides, then transported via pipeline to a 6.6 million tonne per annum LNG liquefaction and storage facility currently being constructed at a location 20km north west of Port Moresby. Currently in its construction phase (2009 to 2013), the operator, Esso Highlands Ltd, is committed in delivering on its commitments in the areas of safety, security, health, environment and social management. The LNG project is one of the largest resource projects in the world and one of the largest PNG has engaged in to date. It has an initial timeframe of 30 years. The direct income from the sale of LNG will commence in It has so far established project teams and is building the necessary infrastructure within PNG. Construction activities, detailed engineering, execution planning and procurement activities, are all progressing. What is the technical process of getting gas from here to other countries? LNG is produced by cooling natural gas to - 160C and storing it at atmospheric pressure. This reduces its volume by 600 times providing a safe way to transport it by ship. LNG is used by many countries including Japan, Taiwan, China and the United States, for gas-fired electricity generation or residential, commercial or industrial processes. LNG has been produced and delivered safely around the world for decades. What are the environmental and social issues involved? The Environmental Impact Statement for the LNG was delivered in January Twenty environmental projects have been established. A social assessment process has been occurring for many years and teams of people are working on both community, land and social issues across all of the sites noted above. The project will commercialise the Hides, Angore, and Juha fields, including natural gas resources from currently operating oil fields of Thirteen social projects have been established. Two Quarterly Environmental and Social Reports have been provided in Business and Professional Women of Port Moresby September/October 2010 Page 3

4 The LNG project has great potential for the people of PNG, but it also carries some risks. Resource projects across the world have been grappling with these risk issues for most of the past century, and, particularly for last 20 years, these risks have been high in people s awareness of resource projects. The oil spill in the Gulf of Mexico and the Chilean mine disaster are very recent examples of the risks involved with resource projects. The role of business partners and governments in recognising and managing environmental, safety and the resultant social issues is very important. Managed well, resource projects can deliver improved economic and social benefits to the citizens of any country engaged in using its natural resources. The environmental issues include the use of agricultural land, deforestation, the destruction of natural habitat for animals and birds and marine life, the physical impact of large scale infrastructure and construction of facilities in remote and/ or natural settings, the use of water, the management of waste, emissions, cultural impacts, and noise and air pollution. The social issues include health and safety, security, community well being, resettlement, working conditions, and cultural disturbance/dislocation. The other major social issue is the distribution of wealth generated through major resource projects and who benefits most. These are not arguments for not embarking on natural resource projects. But they are good reasons to address the roles and responsibilities of all levels of government to regulate and dictate the terms under which corporations engage in these projects and to ensure all citizens share in the benefits and wealth generated. They are also good reasons to demand a high level of social and environmental responsibility from corporations and governments engaged in extracting and using natural resources. Esso Highlands Ltd seems to be focusing on delivering on its responsibilities in both of these identified risk areas. What are the economic impacts and issues? The LNG project offers a means of unlocking value from the extensive gas resources of the Southern Highlands Region. It has the potential to transform the economy of PNG, boosting Gross Domestic Product (GDP) and export earnings, providing a major increase in government revenue, royalty payments to landowners, creating employment opportunities during construction and operation and providing a catalyst to further gas-based industry development. There will be both direct and indirect benefits. Direct benefits: The potential direct benefits offered by the LNG project are expected to flow from: Capital investment in LNG production and support facilities, upstream gas production and processing development, pipelines, storage, and other infrastructure Employment Direct cash flows to government and landowners in the form of taxes, royalties, development levies, and other charges and returns on equity participation Potential for increased petroleum exploration and production (E&P) activity in the country. The project is forecast to deliver direct capital investment of US$10 billion (K36 billion) in real terms, over the 30-year life of the project. Indirect benefits: The potential indirect benefits include: Potential to influence economic performance throughout the economy indirectly as a result of flow on into other industry sectors, for example, real estate, retail, hospitality and tourism, banking etc. Opportunities for local businesses, these opportunities include outsourcing of services such as catering, engineering, security, fuel supply, managerial and technical assistance Business and Professional Women of Port Moresby September/October 2010 Page 4

5 The project will put upward pressure on the exchange rate causing the kina to appreciate which although positive, can also carry a new risk. Economic risk: A stronger kina, together with a tendency for the gas development to draw capital and labour away from primary production sectors, such as agriculture and forestry, has the potential to reduce the export competitiveness of those sectors. These potential adverse impacts are typical of the so-called Dutch Disease effects that have been noted in other countries where large resource projects have led to strong revenue inflows. Social development benefits: The project is focused on strengthening the local economy through skills development, job creation, purchase of local goods and services, and creating opportunities for investment. Termed the National Content Development, the first component is the new Enterprise Centre which was opened in April 2010 at temporary premises at the PNG Institute of Bankers and Business Management in Port Moresby. This centre is to assist PNG Landowner Companies enhance their business management skills. So far 1,750 visits from PNG entrepreneurs seeking information on the project, and 700 businesses and companies, have registered with the PNG LNG Supplier Data Base. The project has so far invested more than K460 million (US$170 million) in PNG service contracts for the supply of goods and services. The other key component is the recruitment and training of PNG citizens; the project is forecast to require approximately 12,000 workers. Currently the project is employing 2,300 PNG citizens which represents approximately 80% of the project s total construction workforce. In its efforts to develop the technical and professional skills the project is currently constructing two training facilities at Juni in SHP and Port Moresby Technical College which is a temporary training facility. The training is for a civil construction laborer qualification and 48 trainees have graduated. including 8 women, in June The training of Process Operations and Maintenance trainees has also commenced in Port Moresby. Of the first 48 trainees for this qualification, 19 are women. What are the implications for the women of PNG? The benefits and risks for women of major resource projects have become a major focus of corporations, governments and researchers for the past 30 to 40 years. There is a high level of awareness of the impact of major energy and resource initiatives on the lives and well being of women across the world. The potential positive benefits include: Women sharing the economic wealth and employment opportunities available through the project and the responsible use of national income to governments to improve service delivery Women being directly involved in companies which benefit from the project either alone or as partners Improved education opportunities which flow from a nation using its resources to improve education Improved health as the standard of living improves over time and health services are better funded A more stable and wealthy democracy usually involves a stronger focus of law and order and leads to increased awareness on the rights of women and children. These benefits can be offset by the increased risks for women if resource projects are not well managed by government, if corruption is high, if the benefits are not equally shared, and if corporations fail in their social responsibilities to a country s citizens where they are extracting resources. The LNG project is implementing a number of social programs aimed at minimizing some of the risks and maximizing the opportunities. Some of the identified risks for women include: Women being marginalized in planning and decision making regarding the use of resources and land Business and Professional Women of Port Moresby September/October 2010 Page 5

6 Lack of respect for women s knowledge and experience in managing natural resources and/or their environment is a significant focus of current research in resource development projects Women missing out on the employment opportunities Increased violence and sexual assault against women through fly in-fly out predominantly male workforce Women being excluded as landowners or as people with a significant stake in land owner decisions during public consultations international research suggests that some large companies seek out male spokespeople, and often fail to understand traditional land ownership models, which impacts on women Increased spread of HIV and AIDS impacting heavily on women Adverse environmental results often impact heavily on women who manage domestic or communal activities which suffer through resource extraction waste, water and land use, land degradation issues, and resettlement. These activities include access to water, gardening, household tasks such as washing, cooking, personal hygiene etc. Many of these risks are at the forefront of the 13 projects comprising the broad social program being undertaken through the LNG project. and benefiting from the LNG project. Our role is to support women to gain the skills and confidence to take up those roles as leaders and as employees in the various industries and sectors. They must also play a role as local and national leaders in keeping the government accountable for the responsible use of revenue and the fair distribution of the benefits from the project. This draws to an end our first attempt to inform our readers of the LNG project in PNG. If you want to know more about the project go to the LNG website. We would like to encourage a dialogue between our members on how we can ensure the women of PNG do see the benefits of the LNG project realized. If you have a perspective you want to share, or questions you would like answered, please one of us and we will try to find out the answer and publish a sample of these in future newsletters. BPW wants to encourage good governance and strong economic performance by PNG and to see the LNG project benefit everyone. We will also invite expert comment on key issues regarding the LNG over the next year. It is very important to PNG s development and ultimately to the women of PNG. FROM YOUR BPW NEWSLETTER GROUP: Elizabeth Morgan, Brenda Auhava If you have a story, a fact, or an issue you would like us to address please mail either Elizabeth elizabeth.morgan@paljp.org.pg or Brenda brendalaufa@yahoo.com Over time PNG will need to monitor the impact of the LNG project on all of its citizens and in particular the impact on women. PNG is at the brink of major transformation and the LNG project is a significant factor in that process. BPW is committed to keeping women informed and aware of economic and educational opportunities in PNG. The LNG project offers both. Many PNG women have the skills and potential to play a leadership role in the many fields and sectors engaged in BPW WEBSITES: BPW Port Moresby BPWportmoresby@gmail.com BPW international Business and Professional Women of Port Moresby September/October 2010 Page 6

7 PHOTOS FROM THE AUGUST AND SEPTEMBER BPW MEETINGS Scholarship recipients comment on the benefits to them Brian Riches and Michaela Dion at the August meeting Mrs Antoinette Corbin Taylor speaks to the recipients and guests at August meeting Susil Nelson presents at the September meeting of BPW A full house at our August meeting Michaela accepts a gift from Mabata Gamoga, a former scholarship recipient, at the September meeting Recipients photo shot! Business and Professional Women of Port Moresby September/October 2010 Page 7