The Milne Bay province is among five provinces situated in the Southern region of Papua New Guinea. In mid-2005, the Milne Bay provincial capital, Alotau, hosted the Mila Mala Festival. Traditionally, a celebration of a good harvest of yams in Milne Bay culture, the Festival attracted cultural performances from all areas of the province. The humble root crop, yam, plans a significant part in the lives of the people and grows abundantly in Milne Bay. Mila Mala is a word in the Trobriand language of Milne Bay that relates to the period between the time the yam harvest commences and the time the yams are stored in the elaborately-built yam houses.

Fact Box 

• Location and size
• Climate
• Population
• Government
• Social Services
• Infrastructure
• Utility and Commercial Services
• Economy
• Investment Potential

Sanderson Bay, Alotau Town

The province’s topography is made up of mountains, lowlands, islands and villages inhabited by people from different ethnic groups. As the province is fragmented, the geographic boundaries enclose an approximate land mass of about 16,200 square kilometers. Approximately 25 percent of the total land mass is made up of 10 relatively large islands and 150 small islands and atolls.

Climate
The climate throughout Milne Bay is varied with distinct climate zones that are strongly related to topography. Generally, the province has an average rainfall of 2055mm per annum.

Population
Milne Bay has a population of 210,000 people and has an annual growth rate of 2.5 percent. Alotau, the major town, has 10,000 inhabitants. The population density is at 15 people per square kilometre.

Government
The Provincial Executive Council (PEC) makes up the governing body, the Provincial Government. The Governor, who is the Regional Member in the National Parliament, Mr Tim Neville, heads the provincial government. The Governor appoints members of the PEC from amongst the four Open electorate members in the National Parliament and the Presidents of the Local Level Governments. The President of the Alotau Urban Local Level Government is also the Lord Mayor of Alotau Town.

The administrative arm of the provincial government is headed by a Provincial Administrator. It is responsible for implementing the government policies, programs and initiatives.

Social Services
The major social services are provided through Health and Education divisions.

Health facilities are limited to primary health and preventative care with one provincial hospital in Alotau, two district hospitals, 35 health centres and 128 aid posts. The main providers of health services are the government and the churches, while some private organizations such as mining and oil companies provide health services on limited basis.

In education, Milne Bay province has one of the highest literacy rates in PNG of 77 percent and this is largely attributed to the churches and other non-government organizations that provide education services, apart from the government.

Infrastructure
Infrastructure development is of high priority to the National Government and this desire is also reflected in provincial planning. Therefore, the Milne Bay Provincial Government places as a priority the construction and/or upgrading of rural infrastructure. The province has a total road network of 400 kilometres, largely in need of maintenance.

The majority of the population is dependent on sea transport to gain access to markets and other means of service. Alotau is the main port which accepts local and international shipping services.

Gurney Airport, outside Alotau town, is of international standards, and caters for eight flights a week from the PNG capital, Port Moresby. The flights are operated by the national airline, Air Niugini. Airlines PNG (formerly Milne Bay Air) also operates two flights a week to Milne Bay.

Utility and Commercial Services

Alotau has adequate water and electricity supply. Provincial authorities believe there is a need to expand these services to the town in anticipation of an increase in population and business activities in the future. The extension of the rural electrification program is also being planned.

Two commercial bank, Westpac and Bank South Pacific, currently operate in Alotau, with automated telling machines (ATM) and EFTPOS facilities. The Rural Development Bank provides an avenue for loan facilities for local businesses requiring financial assistance for startup or expansion.

Like the rest of PNG, land in Milne Bay Province is 97 percent owned by the people and the State owns three percent. Infrastructure development is dependent on the local people providing land and being compensated adequately for its use. The people are now using the concept of forming Incorporated Land Groups and Cooperative Societies to undertake development by putting up their land as a form of collateral for partnership or joint venture.

Economy
Like all provinces in PNG, the investment environment is dictated generally by the National Investment Policy, and the provinces devise their plans based on this policy. In Milne Bay Province, this is known as the Milne Bay Administration Commerce and Industry Policy. The policy is administered by the Economic Facilitation Committee comprising representatives of the Provincial Administration, Chamber of Commerce and the Investment Promotion Authority. The Committee’s role is to coordinate the effective implementation of the policy.

The economy of the province is largely dependent on primary produce and the masses depend mostly on subsistence farming and fishing.

Agriculture

Agriculture continues to play an integral part of the livelihood of the various rural communities in the province. Some 97 percent of the rural population is absorbed by the agriculture system. Tree crop farming is a major revenue earner for the province and for many rural farmers.

Cocoa is planted widely in the province and extension work has been carried out by the Cocoa and Coconut Extension Agency. There are 555 cocoa growers in Milne Bay with an average 1.5 hectares each. There are 32 fermentaries. In 2004, smallholders produced an estimated total 10,000 tonnes of cocoa.

Copra was once the dominant industry in the province. In 1990, copra production was at its lowest at 1,127 tonnes, and then for the next seven years, increased to peak production of 6,092 tonnes in 1998, and then in 1999, production fell to 1,3-0 tonnes. In 2004, smallholder production was recorded at 513.04 tonnes.

Two varieties of Coffee are grown – Robusta in the lowlands and Arabica in the higher altitudes. In 2004, 31.4 tonnes of coffee parchment was produced and sold by 496 farmers from the villages.

Vanilla, nutmeg, chili, cardamom and other spices have been introduced by the Department of Agriculture and Livestock to encourage farmers to grow alternative crops.

Forestry

The province’s forest resource base is very small compared to other provinces. Traditionally, the forest is used for many things such as carvings, crafts, construction of dwellings, firewood, herbal medicine and food. For the modern value, the forest is harvested, processed and sold for economic benefit.

The province has a Provincial Forest Plan which details how the forest resources are protected and/or developed.

At present, Sagaria/Gadaisu Timber Resource Permit (TRP) is the only active logging project in Milne Bay. The two main large scale sawmills operating are Milne Bay Industries and South Pacific Timber Enterprises. There are several portable sawmills around the province. Currently, the total volume of log input for processing in the mills is about 20,000 cubic metres.

Fishing

The most fertile fishing ground in Milne Bay is the Orangerie Bay along the southern mainland coast where trawl nets are used to catch prawns. There is an abundance of finned fish found over the continental shelves through the province’s waters. Pelagic fish such as tuna, shark and Spanish mackerel, frequent near surface water and demersal fish visit the ocean floor.

Invertebrates of commercial importance, including clams, lobsters and crabs are abundant but make up only a small percentage by weight of catch.

A fast-growing business is the harvest of beche-de-mer stocks. This is managed and controlled under the Milne Bay Beche-de-mer Fishery Management Plan and is a cottaged business.

There is a successful Pearl Farm operating on Samarai Island since the late nineties.

Mining

The Misima Gold Mine - a major revenue earner for the province for the past 15 years – closed down in early 2006 upon reaching its maximum life of operation.

Tourism

Apart from the historical facts about World War Two remains, the major components of the tourism industry include transportation, accommodation, tours, cultural entertainment and catering.

Exporters

There is a group of licensed exporters of marine, agricultural and forest products in the province. These include Masurina, Alotau Enterprises, Coral Sea Delights, Asiapac Ltd, Kupta Resources and Allan Enterprises. They mainly export marine products such as shark fin, trochus shell, crocodile skin, copra oil, vanilla and exotic woods such as rosewood, kwila and eaglewood. Most of these exporters buy products off local people and export.

Investment Potential

Listed below are some investment opportunities that currently exist in the Milne Bay Province.

Like other island provinces of PNG, Milne Bay boasts tourism potential in its beaches and waters. There is an increasing interest in eco-tourism and the involvement of Conservation International as a monitoring agency augurs well for the future development of this sector. The NGO, the private sector and the Milne Bay Tourism Bureau have jointly undertaken tourism awareness programs incorporating simple business management practices and conservation of nature.

A) Ganaibeu Gueasthouse Project
The project aims to develop a guesthouse at Ganaibeu village near Alotau Town boundaries. The proponents are seeking a foreign investor who can fund the development. Total investment is around K270,000.

B) Coffee Mill
Milne Bay has potential to produce some of the best quality coffee in PNG. This potential is now realized because for many years now, parchments have been produced and sold to other provinces which, in turn, sell them as their products. Therefore, the province needs to set up a Coffee Mill and subsequently export coffee from Alotau. Total investment is estimated at K320,000.

C) Shrimp Farming
The project proposes to grow Black Tiger Prawns to a weight of 30-33 grams each for export. Supplies for this species of prawns will be sourced from Malaysia or Philippines. The project is seeking a joint venture partner with funding to progress the project. Total investment is valued at K1,000,000.

D) Cape Vogel Cattle Ranch Project
Feasibility studies were undertaken in 1979. Another study for meat industry in Milne Bay was done in 1980. The ranch was initiated in 1981 with the allocation of funds from the Provincial Government. Since then, the cattle have become wild and the ranch run-down.

The project seeks funding assistance with the aim of raining 20,000 heads of breeder cattle to provide beef for the province. An annual turnover of 6,000 beasts. A slaughterhouse is also planned to be built. Total investment is valued at K330,000.