Landowner firms aim to revive Sogeri rubber
Copyright 2000 The National (PNG)
December 13, 2000
By BREMEBIL KUBLE AND ALFRED KENEDY
TWO Koiari landowner companies will revive the dissolved Sogeri Rubber Development Corporation (SRDC) in Central province.
Already the Koiari Holdings, the business arm of the Koiari Development Authority (KDA), and the Sirinumu Development Company (SIDCO), has put a program in place to take over the management of the SRDC and its seven plantations.
SIDCO's management has confirmed the takeover bid and said they will take control of three plantations early next year once a working plan is put in place while Koari Holdings will manage the rest.
The management of Koiari Holdings confirmed their participation but did not provide further details.
According to inside sources, Koiari will take charge of Ilolo and Girinumu plantations along the Kokoda Trail, and Subitana and Daredae while SIDCO will take charge of Ninoa, Eilogo and Monoro plantations.
Koairi Holdings is reported to have already come up with a management agreement with the Rural Development Bank and the former SRDC management.
In 1982, SRDC obtained a K1.3 million loan from the Rural Development Bank (former Agriculture Bank) but failed to repay it. The debt has since mounted with accumulated interest of about K3 million.
However, the RDB has reportedly agreed to write off the interest and Koiari and SIDCO would have to pay the initial loan to take over SRDC.
SIDCO chairman Albert Ugunnie said an initial amount of K500,000 would be paid to RDB and this money would be sourced from Elcom PNG where the Sirimuni dam landowners' royalties trust account is held.
Mr Ugunnie said RDB may make a partial sale to recoup some of its money if both SIDCO and Koiari Holdings were unable to come up with the K1.3 million.
He said he understood that world prices of rubber had fallen but added the two companies would work on the plantations over the next five to 10 years to give added value.
Cuplumps (crude rubber) will be sold to Doa Factory while avenues are sorted out for its export.
Currently, the price is 45 toea per kg in the local market. Rubber prices have fallen from their highs since the introduction of synthetic rubber.
The seven plantations in the Sogeri valley are expected to produce 400 tones annually.