MENDI - The next boom town

by WILLIAM KEP

It was a proud occasion for all Mendis and Southern Highlanders witnessing the official opening by the Prime Minister, Peter O’Neill on the 10 of April 2015 in Mendi SHP of the newly built high end 18 room Mendi Travellers’ Inn. As put by the young entrepreneur and owner (a Mendi local) during the opening ceremony, he invested in building the accommodation facility at considerable costs with the sole motive to build business confidence in and for the Mendi Township. That speech and his positive initiative was well received and appreciated by the Prime Minister, The Provincial Governor and other guests and dignitaries present. All populace of Mendi will realise that investing in Mendi is not a bad business decision from this example. Such investments like Mendi Travellers’ Inn will ignite more Mendis and Southern Highlanders to invest more and explore the commercial opportunities available in Mendi Town.  Taking on from this, outlined (below) is the economic and commercial potential of Mendi and Southern Highlands Province (aside from the Oil and Gas related possibilities).

Mendi Town is strategically located to become the commercial and economic hub of the Highlands Region and more essentially the unofficial regional group known as “the Last Papua” in the next three years. It evident Mendi Town is a big roundabout or a road junction. Four different national roads are now meeting and interconnecting in Mendi Town hence a basis for its economic and commercial potential. One just has to search Google Earth on the web and view the road links into Mendi Town.

·         To the North-West. Mendi-Kandep-Wabag-Porgera Highway (sealed).

·         To the North-East. Mendi-Tambul-Mt. Hagen Highway (being sealed).

·         To the South-West. Mendi-Tari & Kutubu Highway (being sealed).

·         To the South-East. Mendi-Ialibu-Mt. Hagen Highway (Highlands Highway).

·         Addition to the above, Mendi, Iailbu, Kagua-Erave-Kikkori and on to Port Moresby to be completed and operational by 2017.

·         There are also trunk roads and feeders all connecting to Mendi Town being constructed; such as the Mendi-Munihu-Magarima-Nipa road, the Karinz-Mendi ring road and the redevelopment of Mendi town urban roads.

These road networks, when all complete will boost mobility, trade, access to markets and flow of government services. These road links are essential ingredients to business and investment for Mendi Town and the Southern Highlands Province.

The road link to Kikori, Gulf Province, already constructed (now being improved by the National Government) and utilised by the PNG LNG Project is an alternative access to the southern sea port and also a shorter distance than from Lae or Madang.  The Kikori Port is closer to Port Moresby, Australia and Asia than Lae. No doubt potential for the Kikori Port to develop further is imminent. Mendi Town with all utilities in place, being the closest Highlands Town to Kikori inflates its economic and commercial case.

A cause for further vote of confidence in the commercial and economic potential of Mendi Town is the relocation and construction of the new Mendi Airport and runway at Tikiri (Lower Mendi). This airport project will not only generate business activities during its construction and operations phases but also free up much needed to land in the commercial centre of Mendi Township (current airport land) for commercial investments.  Hence, the relocation of the airport alone will give a chance for Mendi Town to develop and expand considerably.

Another major economic booster in the Southern Highlands Province and only 35 minutes’ drive out of Mendi Town is the construction and establishment of the Western Pacific University of Technology. This project is into its design, planning and land mobilisation stages and full construction will resume shortly. This project will generate and maintain business activities over so many years to come for both Mendi and the Southern Highlands Province.

The Mendi General Hospital is also going through a rebuilding phase to make it a world class tertiary hospital offering all facilities and services. This is another major project that will bring in cash inflows into the Mendi Economy both during the construction and operations of the Hospital.

The ultimate injection that will fire up a blast of economic activities in Mendi and the Southern Highlands Province will be the 2018 PNG Games hosting. It is envisioned that over K1billion of National Government funding alone will be required to build all the sporting facilities in Mendi and throughout the Province and host the games. It is a fact from experience that over K100 million will be injected into the Mendi and Southern Highland Province economy during the two weeks competitions. That is a direct cash inflow into small businesses as the other 21 provinces spend for food, accommodation and necessities during the games. The icing on the cake will be that the sporting facilities after games will remain in the province allowing Mendi and the Southern Highlands Province to continue to host major games and events into the future.

The full potential of Mendi Town and thus the Province will never be realised if the Provincial Government and the elected leaders do not take bald and patriotic decisions now. The following are some suggestions for those in authority and public office to look at.

·         Appoint a competent and qualified Town Manager. He or she must have qualifications in town planning and urban development. There is no room for political cronyism and nepotism for this important position.

·         Equip and establish a proper Town Management Authority. The first task of the Town Manager will be to establish a self-funding and functioning town management authority. The Authority’ major task must be to clean up and beatify the township. In this proposition, the Town Management Authority must tore down and remove all bush material fencings and kunai grass houses within the urban areas of Mendi.

·         Establish an Asset Management System. The Provincial Administration must identify, assess and value all assets, projects and works in progress funded and owned by the Provincial Government. Using this data, the Provincial Government must develop and implement a computerised asset management system for the Province. This system will allow decisions to be made based on facts and live updated data. These system will also address the issue of Provincial Government houses being occupied by villagers and other illegal occupants.

·         The politicians for Mendi-Munihu and Imbongu to contribute K2.5 million kina each per year into Mendi Town related infrastructure projects. This money is to be parked with the Mendi Town Management Authority and it is to be the implementing agency of the town development projects expending the money.

·         The Mendi Town Management Authority to develop a town development, expansion and growth plan. The Town Manager must lead this planning and manage its implementation.

·         Provincial liquor ban must be lifted. The liquor ban has resulted increases in drug cultivation and usage and caused illegal alcohol brewing to flourish. Instead of reducing or curbing the problems related to alcohol usage, it has opened the door for other more deadly substances to enter the community and into the young vulnerable population. Further the Provincial government is missing out on taxes on liquor sales and liquor licensing fees. Therefore the blanket liquor ban must be lifted and allow for only properly licenced and managed sites and facilities to sell and serve liquor. Currently the illegally smuggled liquor, drugs and illegally brewed liquor is proving unmanageable, destroying the society, are a disturbance to peace and do not generate any revenue for the provincial government.

·         The Mendi Police to do more foot patrols and public awareness campaigns. The police in Mendi Town must be seen to be among the communities doing their policing work. Police must be in the midst of the common people in town, at the markets and suburbs on foot, not in the land cruisers only. The Police need to do more public awareness and educational promotions on safety, drags, alcohol, laws, road safety and others. Thus the police in Mendi need to build more relations with the community in a more professional and engaging manner.

·         Develop and establish the Mendi Business Development Centre. This centre is critical and pivotal to the economic and social development of Mendi and the Province. This centre will concentrate on business idea development, advice on doing business, assess operations of established businesses and develop business operational improvement plans and assist to implement these improvement plans. This centre, fully funded by the Provincial Government, is to employ and be staffed by qualified business advisors and also engage consultants as required basis to assist local Mendi and Southern Highlands businesses. This centre is to work in consultations with the Mendi Chamber of Commerce and the SME Development Authority.

·         Establishment of Agriculture Resource and Commercialisation Centre. It is paramount that agricultural development programs must be taken to the next level. The Agriculture Resource and Commercialisation Centre’s key goal must be to identify and work with key businesses to establish large scale commercial agriculture farms and processing plants in the Mendi Town precincts and the Southern Highlands Province. The age old practice of politicians handing out cash donations to villagers for small scale chicken, piggery and vegetable plots must cease as they have resulted in zero tangible outcomes, but only fuelled the hand out mentality. The Provincial Government and the politicians must now look at establishing large scale agriculture projects such as commercial chicken processing plants, vegetables and fruit farming and marketing companies. These proposals must be looked at under the Public-Private-Partnership (PPP) policy frameworks. The Provincial Government cannot do it alone and the Private Enterprises cannot do it alone too; both have to work together. These will encourage satellite feeder farms and agriculture based businesses by the local communities and villages.

·         Establishment and swearing in of the Provincial Lands Board and Physical Planning Board. For a long time now, unfortunately there is no existence of Lands and Physical Planning Boards for the Province. Consequently acquisition and development of land and construction of buildings and structures in the Mendi Town in the last 20 years has been unplanned, substandard, illegal, unmanaged and in most cases in chaos. The immediate establishment of these two board is paramount and must be acted up on urgently by the Provincial Government.

·         Establishment and construction of two tertiary colleges in the Mendi District. To bring more money and increase cash flows into the Mendi Commercial Centre and Township, the Provincial Government must construct at least two tertiary colleges within the vicinity and proximity of Mendi Town. For starters, the Provincial Government must take over the stalled construction of the Bela Don Bosco Technical College project. This project has seen couple of buildings constructed already but has ceased to progress further. The Provincial Government needs to take lead on the Bela Don Bosco College and also develop another college, preferably a business college to be located within the precincts of the Mendi Commercial Centre. 

·         Rural Health Outreach Programs through Mobile Hospitals. The Provincial Government, the Southern Highlands Health Provincial Authority and the Mendi General Hospital, all in partnership must establish the Rural Health Outreach Programs. There are new roads constructed and upgrades being done and professional health personnel and medical services must reach all the villages and the rural communities. The only way these heath outreaches can be achieved effectively is through the utilisation of mobile hospitals. In partnership with the private enterprises establishments the Mobile Hospitals are to be managed by the Mendi General Hospital and funded by the Southern Highlands Provincial Health Authority.  These mobile hospital outreach will complement the tremendous work by the health centres, community aid posts and resuscitate the defunct Mendi General Hospital Rural Outreach Program.

Indeed the Mendi Township is marked for a rapid and accelerated development and growth within the next three years. With the increased national government funding in infrastructure developments, opportunities for the private enterprises are abound and the Provincial Government needs be at the front seat negotiating every turns and corners ensuring opportunities are not missed but maximised.

A local councillor, Cr. Joseph Winpe spoke of infrastructure developments in his Mopa Konos Village Ward alone as rapid and astounding. He has never experienced or seen such in his life before. He said foot paths, local foot bridges, schools have desks and teachers are in classrooms, roads are sealed and electricity lines are going into his community, all within last two years. He also said there is large foreign owned road construction company leasing land and settled permanently, head quartered at his village. “People have truly been empowered and now are daring to dream big and who knows what’s going to happen in the next couple of years,” said Cr. Winpe.

In recent times, Mendi Town, the provincial centre of Southern Highlands Province was and has been spared from the foreign owned and operated mini stores and trade store booms and mushrooms occurring in the rest of the Country.  It is with pride to note that all major shops in Mendi Town are owned and operated by local Mendis and Southern Highlanders. This scenario is unique and rare in the fast developing Papua New Guinea and the Provincial Government and the Mendi Town Management Authority must zealously protect and uphold this status quo. There is a National Government draft policy (being debated) that all foreign business into the Country must carry a minimum investment value of PGK10 million. Thus the Southern Highlands Provincial Government, the Mendi Town Management Authority in consultation with the Mendi Chamber of Commerce must scrutinise and assess all foreign owned business entries into Mendi Town. Residents note the disturbing current construction of a trade store at the back of the Mendi Police Station by foreigner of Chinese origins. “Clearly not a foreign investment to take note of and appreciate,” said a Mendi Town resident, who wished to remain anonymous.

As the young owner of Mendi Travellers’ Inn rightfully pointed out on 10 April 2015, Mendi needs a shot in the arm to kick start commercial developments and business ventures. He has taken the lead, he put his money where his heart lays. Only time will tell if investing in Mendi has been worthwhile for him. However he has truly epitomised awakening of the spirit of entrepreneurship and investment in Mendi and the Southern Highlands Province and the business opportunities therein over the next three years are as wide as one’s imagination. 

William is an accountant working and living in Mendi, SHP.