West Pomio mediation conducted

From March 26th- 27th 2018, a mediation was conducted at Kokopo to address the issues relating to the Sigite Mukus Oil Palm Project in West Pomio.

The mediation was conducted by external accredited mediator, Craig Jones.

In a statement, the Archbishop of Rabaul, Francesco Panfilo, said this project is being undertaken by Gilford Ltd, a wholly owned subsidiary of Rimbunan Hijau.

The project area covers a large area of 55,400 hectares, broken into four blocks which are owned by 4 respective local landowner companies (LCO) as follows:

  • Pomata Investments Ltd; (15,000 hectares);
  • Ralopal Investments Ltd; (11,300 hectares);
  • Nakiura Investments Ltd; (16,100 hectares);
  • Unung-Sigite Investments Ltd. (13,000 hectares).

“As the project area is mostly forested, logging has been undertaken pursuant to Forest

Clearing Authorities (FCAs),” said the Archbishop.

“There has however, been a number of issues in relation to the project which has caused considerable tension within the communities in the project area, and between the land owners and the developer (Gilford Limited).

“This eventually led to legal proceedings being instigated by the land owners in November 2016 and, as a result, mediation of the issues was directed by the National Court.

“As no development had commenced in Unung-Sigite, it was agreed that the current agreement be rescinded and a new agreement be negotiated with Unung-Sigite placing a development proposal to Gilford Ltd by 31st May 2018.

“The significant point here is that, it is the landowner company that is taking the lead with regards to the development proposals.”

With the three other landowner companies of Pomata Investments Ltd, Ralopal Investments Ltd and Nakiura Investments Ltd, the developer, Gilford Limited, has made a commitment to renegotiate the current project development agreement and sub-lease agreement in 2020. 

To prepare for this, the landowner companies acknowledge that they need to address governance issues in the companies, such as fair and proper representation of the clans within the project areas, either through registration and shareholding of different Incorporated Landowner Groups (ILGs).

“Issues of management structure and practice, transparency and the like also need to be addressed to ensure that the landowner companies can be ready for the renegotiation in 2020,” Panfilo stated.  

It was agreed at the mediation that the negotiations for the new project development agreement and sub-lease agreements will address the following issues:

  • Benefits–rental, royalty, contribution to infrastructure and community development;
  • Operation of the project;
  • Scope;
  • Conduct of the parties to the agreements;
  • Communications;
  • Social and economic impact of the project and how to manage it in a beneficial manner for all parties;
  • Environmental issues.

While the agreement is being renegotiated in 2020, Gilford will consider landowner proposals before then. 

“All of this process will be overseen by the Court appointed mediator, Craig Jones,” said the Archbishop.

“This mediated arrangement opens the door to effectively address all of the issues, concerns, and tensions that relate to the project.

“It allows both parties to negotiate on equal terms and enables the landowners to take the lead in proposing the terms and conditions of the new agreements based on equity, justice, sustainability and with an emphasis on the need for environment awareness and protection.

“The work ahead is immense and difficulties are anticipated, but it is encouraging that both parties have agreed to move forward and work cooperatively, respectfully and in good faith,” said the Archbishop.

“The Archdiocese of Rabaul, faithful to the Gospel of Jesus Christ and in accordance with the social teaching of the Church, especially with Laudato Si’ of Pope Francis, responded to the cries of the West Pomio people and initiated this process and is committed to see this through to conclusion.”

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Author: 
Press release