Table of Contents · | 4 Indonesia. (Please see attached report: “The Marine Aquarium Trade in...

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Table of Contents

Background ................................................................................ Error! Bookmark not defined.

List of Charts

PNG SEASMART Marine Aquarium Industry: Ten Year Output Value Overview ......................... 13

Overview of Total PNG Kina Export Value and PNG % of Global Marine Aquarium Trade in 2020 ..................................................................................................... 14

SEASMART New Full FMA Expansion Overview .......................................................................... 17

SEASMART New Fisher/Coral Gardener Participation Overview .................................................. 17

SEASMART Fisher and Fisher Community FMA Income Potential Overview ............................... 19

POM Central Export Facility(s) and Provincial Facilities Gross Income Potential Overview ............................................................................................................. 24

POM Central & Provincial Facility(s) Owners Net Kina Income Potential Overview ...................... 28

Provincial Company Trust Board Composition Chart ..................................................................... 33

Draft POM Central Company Board and Facility Core Staff Organization Chart ........................... 34

Facility Export Profitability Volume Requirements at Different Export Box Values ........................ 35

SEASMART Fishery Management Area (FMA) Development Team, SEASMART FMA Extension Service, & Facility Staff Requirements............................................. 36

PNG SEASMART Program Provincial Expansion, Privatisation and ............................................. 37

Equity Trusts Income Flow Overview ............................................................................................. 37

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A PNG SEASMART Marine Aquarium Industry:

A Sustainable Prosperity Opportunity for PNG Coastal Communities

BACKGROUND

To enable PNG NFA and the Provincial Governments to visualize the opportunities existing

within the marine aquarium trade for Papua New Guinea, EcoEZ has prepared a range of charts

and supporting chart notes that provide an overview of one option of development for PNG. The

charts take a template structure that allows for the changing of numerical representations or

other values parameters.

OVERVIEW OF THE GLOBAL MARINE AQUARIUM TRADE The global marine aquarium trade in live organisms is between US$200 million and US$330

million annually. The marine aquarium industry is global in its outreach, with fish and

invertebrates collected and exported from Southeast Asia, the Pacific Islands, Australia, Hawaii,

Florida, Mexico, the Caribbean, Brazil, South Asia, the Indian Ocean, East Africa, and the Red

Sea. The Asia/Pacific region's center of marine biodiversity is the primary source for the bulk of

the trade in marine aquarium organisms. The Philippines annual trade is valued at over US$100

million a year. Indonesia is about the same. The trade in Fiji is estimated to be worth about

US$9 million annually. The Philippines, along with Indonesia, supplies the majority (estimated at

85%) of marine ornamental fish exports, over 98% of which come from the wild. The United

States (65%) and European Union are the world’s largest importers of marine aquarium

organisms. The trade also provides the primary source of cash income for ten’s of thousands of

fishers in some of the poorest areas of the world. It is also a substantial source of foreign

revenue for the resource countries.

Thus said, it must be cautioned that much of the trade in marine aquarium organisms is price

driven, with exporters, importers, retailers and hobbyists constantly seeking out a lower priced

fish. Indonesia and the Philippines are the main suppliers to this market. The supplies from

these countries are generally suspected of being cyanide caught and of poorer quality creating

an endless cycle of low prices, diminishing resources, fished ever more heavily with dangerous

and illegal chemicals such as cyanide. Traditionally exporters have been the main suppliers of

cyanide to these fishers. While this tradition is no longer so public in its activities, it is still widely

practiced in both of Papua New Guinea’s primary industry competitors, the Philippines and

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Indonesia. (Please see attached report: “The Marine Aquarium Trade in Indonesia and the

Philippines: A Cautionary Tale”)

In no major supply country do the local fishers have an equity stake in the most lucrative part of

their country’s trade, export. Most export companies and all of the large ones are primarily

foreign owned or owned by non-fishers or resource owners. In most countries, the trade is

exploitive or highly exploitive of the fishers and resource owners/managers. This undervaluing of

fisher harvests leads to a vicious cycle of overfishing, use of destructive fishing practices, and

black markets to make up for the lower income the fishers receive for their efforts.

A number of importing countries (US and in the EU) are considering full or partial bans on the

import of marine aquarium organisms unless they are from a proven sustainably managed

source. Some of the major issues of concern to these countries include the need for science-

based fishery area management plans, the non use of destructive fishing practices, and the

creation of suitable species lists to limit the trade in dangerous or endangered marine aquarium

species.

ECOEZ SEASMART PROGRAM In 2008, NFA contracted EcoEZ Inc. to carry out a one-year trial nationwide SEASMART

program, starting in NCD/Central Province, to establish technical, environmental, and

management best practice guidance for the development of the marine aquarium trade in PNG.

EcoEZ Inc. was also contracted by NFA to adapt EcoEZ Inc.’s, web-based monitoring and

management software, TRADE Management, to the management of a marine aquarium

fisheries adapted to PNG conditions and requirements. The trial program was extended two

more years due to the complex nature of the industry, the evolving nature of the program itself

and the lack of trained expertise in-country as both trainers and fishers requiring extended

training periods to be truly effective, culminating in the development and trialing and market

testing of the PNG SEASMART brand and tagline.

Papua New Guinea Marine Aquarium Life…Sustainable, Equitable, Affordable

Through guidance from NFA and the NFA Board, SEASMART sought to develop this industry in

ways that would compliment traditional resources rights and customary ownership while

ensuring product traceability, quality and ability to brand, and resource access and management

responsibilities based on customary rights, and sustainability based on sound scientific

management systems.

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The EcoEZ SEASMART Program went from being a relatively quick planning exercise to the

understanding that much more training, higher level industry development and promotional work

needed to be done such as site specific resource assessments, fisher/trainer training, FMA

mapping, animal holding and husbandry systems, monitoring and management systems,

product traceability and branding, market creation and promotion, and more if this industry was

going to develop differently from almost all past artisanal fisheries in PNG. Through the PNG

SEASMSART program, this new fishery would be sustainable, equitable and capable of

sustained profitability. For change to be allowed to happen, an innovatively new system of

coastal fisheries development, monitoring and management was needed. A system that actively

involved resource owners, fishers, private sector, and Government in the management and

benefits of this new trade was needed. It was to assist with this need that the SEASMART

program was developed and has been implemented.

What Does SEASMART Do?

Sustainability, Equitability and Profitability are the three core goals of the SEASMART program

in the development of a marine aquarium trade in Papua New Guinea (PNG). Building on local

tradition and customs, supported by international market demand, and utilising cutting edge

technology and traceability mechanisms, the SEASMART Program is creating a new natural

resource trade in PNG that is changing the way natural resource exploitation is carried out,

ensuring local management control, resource extraction sustainability, product traceability and

branding, transparent business best practices, and ultimately, stable industry

profitability…breaking the boom and bust cycles so common in PNG’s artisanal fisheries such

as beche de mer and live reef food fish.

The SEASMART Program covers the following general areas of national industry development

from community and fisher owned Fishery Management Areas (FMA) to export.

Resource Assessment & Management (RAM)

Management Area Planning (MAP)

Fisher & Fishery Development (FFD)

Mariculture, Aquaculture and Restoration (MAR)

Export and Facility Development (EFD)

Smart Business Development (SBD)

TRADE Management System

Traceability, ISO & Marine Aquarium Council (MAC) Certification

Communication, Branding and Promotion

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Traditional Resource Rights and Tenure Systems as Modern Management Tools

Papua New Guinea is one of the few countries in the world with such strong land tenure and

customary resource ownership systems. These customary systems are centuries old and have

proved to be a very effective home for the sustainable management and equitable use of a

community’s shared natural resource base such as coral reefs or other coastal ecosystems. A

community’s strength lies in them being able to use their entire marine resource base in ways

that are more sustainable and equitable than past coastal fisheries. There are large and growing

markets willing to pay for a product coming from a community-owned source because it has

been managed, harvested, and or handled in a certain way, the PNG SEASMART way. The

marine aquarium trade, as being developed by EcoEZ Inc. and the SEASMART Program,

integrates tradition and natural resource ownership with modern management, cutting edge

technology, and expanded human growth potential by satisfying and leading market needs and

trends.

The EcoEZ PNG SEASMART program has successfully trialed a manageable and marketable

approach in establishing community based marine aquarium Fishery Management Areas

(FMAs). It has empowered the fishers with necessary skills to actively participate in the fishery

and harmonized existing traditional resource management systems to generate income for

people and revive local commercial activities. Active resource owner involvement in this fishery

from ground level up is key to the long-term sustainability of this industry. The SEASMART

system provides the fishers and their communities, exporters and private sector suppliers, and

local Government with the crucial guidance, skills, and economic and conservation opportunities

required to attain sustainable prosperity.

Fishers (male and female) from existing eight (8) FMAs (2 FMAs involve more than 1 village and

are called United FMAs) have acquired skills comparable to other fishers in the world.

Communities now have a better understanding of the true value of their coastal marine

resources, and the vital ecosystems that support marine life and ultimately the community’s

livelihood.

PNG BRANDING The PNG SEASMART Program has within a short period of time successfully demonstrated the

real value of promoting the PNG brand in the world market. Our entry into renowned world

markets during this trial period has placed PNG amongst the privileged few. This dominance in

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global expertise will only grow as this trade evolves further in PNG. (See attached MACNA Trip

Report).

In order to be successful in its attempt to develop a sustainable, equitable and profitable marine

aquarium trade, PNG will need to differentiate its products from those of its competitors in ways

that allow for profitability throughout the market chain, sustainability of the resources base, and

the stable economic development of the fishers and their participating community FMA’s.

Sustainable prosperity is the SEASMART Program’s goal for participating fishers and their

communities.

PNG’s competitors (Indonesia and Philippines) operate primarily as supplier of low cost, lower

quality fish and corals. Both countries “Brands” have been devalued over time through the

widespread use of destructive fishing practices, poor resource management, inequitable

distribution of financial benefits of the trade, and bottom-line poor quality and high mortality rate

of their products. They’re marine aquarium products are sold without the added description of

where they come from because it would have the effect of lowering even further the value of

their product. Countries with higher standards such as Fiji and PNG, have their country’s names

listed along with the species names being sold, thus able to command a higher price for many

species.

Maintaining brand integrity is not easy and must be monitored and managed like any other

important business component. Once the value of the PNG brand becomes devalued, a vicious

cycle results of lower prices to both fishers and importers and increasing laxity in standards

resulting in an ever inferior product commanding ever lower prices or prices that never change

despite long term negative currency fluctuations. Both the Philippines and Indonesia operate this

kind of industry. Both countries will find it very hard to restore lustre to their brands and compete

with PNG for the market we are initially targeting.

PNG marine aquarium life has a solid industry reputation now for producing high quality fish at a

reasonable although not cut rate prices. We have a series of articles on the PNG SEASMART

Program coming up with a very prestigious industry magazine, “Coral.” These articles will be

accompanied by articles in other frontline industry magazines like Tropical Fish international and

FAMA. Our market outreach has gone into high gear with additional outreach and positive

feedback coming from the SEASMART program’s Facebook page, Youtube channel, and blog

site. (See www.seasmart.ecoez.com for more info.)

http://www.seasmart.ecoez.com/

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It is the intention of the SEASMART Program to lead PNG into global dominance of this trade.

That is our long-term goal. It is an achievable one if we plan carefully for the long term; provide

adequate funding; train trainers, fishers and others well; incorporate committed private sector

investment efficiently; monitor effectively; and market aggressively. To do this, however, will

take concentrated Government commitment and support for up to ten (10) years or more if new

fishers, communities and outer Provinces are brought in to ensure nationwide wide coverage of

the PNG SEASMART management and production system.

PNG is doing something that no other resource supply country has ever done in the marine

aquarium trade. It has in fact devised a unique development system that will provide the global

trade with a model program to show legislators that this trade can work for the benefit of the

environment as well as the people involved throughout the production and market chain.

PNG INDUSTRY GROWTH AND OUTPUTS MODEL OVERVIEW

The outputs are presented in a standardised format to make projections easier, they do not

reflect actual numbers of FMA’s produced in any one Province, but the number of FMAs that

can be produced in one year by one FMA Development Team. FMAs may be developed in

different provinces in the same year by the same FMA Team. Larger maritime provinces will

necessarily have more FMA community sites so the numbers reflecting the early adopter

Provinces do reflect an accurate development opportunity. Smaller provinces or those with less

marine aquarium habitat, should go to the provincial numbers in the lower (later adopter) part of

the charts to get a better understanding or what their provincial opportunities might be. A

province with a physically smaller size resource base may still contain some very valuable

species providing a better than expected market return. The charts are as follows:

1. PNG SEASMART Marine Aquarium Industry: Ten Year Output Value Overview

2. Overview of Total PNG Export Value and PNG % of Global Marine Aquarium Trade

in 2020

3. SEASMART New Full FMA Expansion Overview

4. SEASMART New Fisher/Coral Gardener Participation Overview

5. SEASMART Fisher and Fisher Community FMA Income Potential Overview

6. POM Central Export Facility(s) and Provincial Facilities Gross Income Potential

Overview

7. SEASMART Fishery Management Area (FMA) Development Team, SEASMART

FMA Extension Service, & Facility Staff Requirements

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8. PNG SEASMART Program Provincial Expansion, Privatisation and Equity Trusts

Income Flow Overview

A Precautionary Approach taken to Industry Modeling

This report shows that not only is the marine aquarium trade a viable industry for PNG but that it

is also a substantially valuable trade (if done the PNG SEASMART way) to all PNG links in the

market chain. The overall figures for this development option are contained in charts 1 & 2

above. The rest of the charts depict the different values sections of the trade reflected in charts

1 & 2. The precautionary principle was used in all of the charts, settling on the lower option of

any set of numbers used to calculate market size. Examples of this include:

the size of the global trade is between US$200 million and US$330 million, we used

US$ 210 million as our baseline amount;

the value assigned to Provincial fisher income per week is K75 for the first yr and

K95 for the second year. This compares to an average of K100/wk for active fishers

fishing in present trial FMAs and doesn’t involve the sale of coral that is about 50% of

the global trade in marine aquarium organisms;

There are twenty fishers per FMA working 2 days a week for 26 weeks of the year;

These are only a few of the precautionary approaches taken to this document. It is designed to

be a guide to what is possible and what kind of personnel and outputs will be required to make

this possibility a reality. By any measure though, this trade has a good future in Papua New

Guinea if done the SEASMART way. It will be one of the largest and most sustainable income

producers for coastal peoples in PNG.

Industry Stakeholder Opportunities

Fishers and their Communities

Through the SEASMART Program, PNG will take the lead in a global coastal fishery. PNG will

lead the market curve in a very receptive and high value international market that places

economic value on local issues such as sustainability, and fishers and their communities

managing their own resources and receiving a stable, significant income for their efforts. This is

a rare opportunity for 100’s of coastal communities around PNG, presently isolated from active

participation in the global economy, to enter a global market on their own terms and at their own

pace. This trade also offers women a real role in the operation of a major industry since they

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make up at least half the fishers/coral farmers working. Women are presently the highest

income earners in the trade in PNG.

National and Provincial Governments

It is also a rare opportunity for Provincial and National Governments to actively participate as an

indirect equity and dividend partner in an industry with such a wide positive economic impact.

This model allows for Provincial and National Governments to have a source of income

sufficient to support their industry extension, management and monitoring services. A PNG

SEASMART marine aquarium industry will allow for relatively easy Government monitoring and

management of this very complex and possibly destructive trade. Simply put, the Government

partners in the trade are responsible for managing the trade and its resource base while the

private sector investment partners are responsible for the managing the business side of the

industry.

The SEASMART development model is supported by the EcoEZ TRADE Management

information management system. Through TRADE, National and Provincial officials can enter

password protected sections of TRADE to access data from fisher specific information to FMA

and species TACs figures to export numbers to information on almost any aspect of the trade. A

SEASMART marine aquarium trade is a transparent, easy to monitor and manage trade.

Through TRADE, a SEASMART marine aquarium industry can deliver paperless data at every

link of the market chain. This means no more data transference and time loss from pencil in the

field to computer in the office.

Educational Institutions

The PNG SEASMART marine aquarium industry will require over ten (10) resource assessment

diver scientists over the next five years and double that for fisher trainers, MAP developers, IT

specialists, etc. EcoEZ and its PNG SEASMART Program is presently working with UPNG on

the development of cross course training, student interships, research, and a host of other

issues. In the model that follows, a trust is set up to support PNG student scholarships, in-

service and overseas training, and applied research. These efforts should be expanded to

UNITECH and the Fisheries College to ensure that PNG’s future needs for facility managers and

personnel, resource scientists, fisher trainers, web designers, marketers, IT specialists, etc.

Coral Reef and Coastal Habitat Conservation

A SEASMART fishery management area (FMA) integrates into its resource management

system the need to really understand what is being managed. In each FMA, thorough resource

and habitat surveys are carried out, GIS mapped, individual species assigned TAC’s (total

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allowable catch) limits, dive spots, turtle hatching and other conservation areas mapped out and

removed as fishing area options. Any area of conservation importance locally, nationally or

internationally can be integrated into an FMA’s management area plan (MAP), and product

promotion activities. Through the PNG SEASMART system, Papua New Guinea will very soon

be home to worlds largest system of marine protected areas….all supported by the marine

aquarium and other developing SEASMART FMA managed trades.

Other Private Sector Opportunities

The PNG SEASMART industry will require thousands of boxes, liners, bags, tank glass, nets,

pumps, fuel, vessels/vehicles and so forth every year providing a substantial opportunity for

local suppliers of these products. The opportunity is great to develop new, PNG boat designs

more applicable to use in the trade and capable of being manufactured/built in PNG.

A Way Forward

This PNG SEASMART Marine Aquarium Industry: A Way Forward to Sustainable Prosperity for

PNG Coastal Communities document highlights a possible and achievable goal for PNG in the

development of this new industry and an adjustable template for forward planning. If you would

like more information on or would like to talk with us about SEASMART please contact us below.

Thank you.

EcoEZ SEASMART Program

Addresss

Other info

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Papua New Guinea Way Forward

Attachments

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Attachment One

PNG SEASMART Marine Aquarium Industry: Ten Year Output Value Overview

# Old FMAs

# New FMAs

# New Fishers

# Facility

Staff

# FMA Dev Staff

# FMA Ext

Staff

10 Yr PNG Gross Total Fisher/FMA

Income

10 Yr PNG Gross Total

Export Income

10 Yr PNG Total Gross

Industry Income

Province 1 0 78 1,560 15 11 7 16,941,600 35,577,360 52,518,960

Province 2 0 78 1,560 15 7 16,941,600 35,577,360 52,518,960

Province 3 0 78 1,560 15 7 16,941,600 35,577,360 52,518,960

Province 4 0 70 1,400 15 11 7 13,837,200 29,058,120 42,895,320

Province 5 0 70 1,400 15 7 13,837,200 29,058,120 42,895,320

Province 6 0 70 1,400 15 7 13,837,200 29,058,120 42,895,320

Province 7 0 62 1,240 15 11 6 11,044,800 23,194,080 34,238,880

Province 8 0 62 1,240 15 6 11,044,800 23,194,080 34,238,880

Province 9 0 62 1,240 15 6 11,044,800 23,194,080 34,238,880

Province 10 0 54 1,080 15 11 6 8,564,400 17,985,240 26,549,640

Province 11 0 54 1,080 15 6 8,564,400 17,985,240 26,549,640

Province 12 0 54 1,080 15 6 8,564,400 17,985,240 26,549,640

Central Province 5 12 294 6,331,000 0 6,331,000

NCD 3 2 146 2,223,000 0 2,223,000

POM Central Facility 36 11 4 317,694,000 317,694,000

PNG Totals 8 806 16,280 180 44 78 159,718,000 635,138,400 794,856,400

Average Kina Income per FMA per Annum in Yr 2020 40,419 These #'s reflect a relatively low level of fishing effort by FMA fishers & communities. Average Kina Income per Fisher per Annum in Yr 2020 2,021

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Overview of Total PNG Kina Export Value and PNG % of Global Marine Aquarium Trade in 2020

Kina Value of Year 2020 Global Trade in Marine Aquarium Organisms 656,211,164

Kina Value of Year 2020 PNG Trade in Marine Aquarium Life (PNGK3.00:US$1.00) 131,041,560

PNG % of Global Marine Aquarium Trade in Year 2020 20%

PNG Marine Aquarium Industry Facility Equity/Investor Shareholder Total Net Kina Income 10 Yr Net K

Inc

Fishers/Fisher FMAs: Fisher FMA Trust: Profit Sharing 12,678,120

Provinces: Provincial Trust: Industry Support 20,041,158

NFA: NFA Trust: Industry Management 15,416,076

International and National Investors: Other Investors: Profit Sharing 55,163,767

Central Prov/NCD & Fishers/FMAs: Central/NCD Prov/Prov Fisher/FMA Trust: Industry Sup/Profit Sharing 9,279,995

Employment: Industry Skills Education & Research Trust: Industry Support through Skills Development 9,898,662

FMA = Fishery Management Area - Community Owned and Managed and PNG's Base Industry Management Unit

UNEP/WCMC = United Nations Environment Programme/World Conservation Monitoring Centre

RAM = Resource Assessment and Management - a SEASMART Program division

FFD = Fisher and Fishery Development - a SEASMART Program divisions

MAP = Management Area Planning/Plan - a SEASMART Program division and the name of an FMA's management plan.

MAR = Mariculture, Aquaculture and Restoration - a SEASMART Program division

SBD - Smart Business Development - a SEASMART Program division

PNG SEASMART Marine Aquarium Industry 10-Year Expansion Program Overview Notes: * This is a modeling exercise with assumptions made at each link in the model market chain. All assumptions are based in present market and transportation realities but with the assumption that they will stay the same (international airfreight) or will improve (internal airfreight). This model does assume a higher than competitive cost for local airfreight.

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* Global Industry Annual Totals based on UNEP/WCMC 2002 Report on the state of the industry in which it valued the trade in marine aquarium organisms at between 220 and 300 million US dollars annually. In an industry rife with underreporting and non reporting, the UNEP/WCMC report is the most accurate global market report on the marine aquarium industry available. We have used a lower end world market average baseline figure of US$210 million (K600 million depending on exchange rate) for our calculations. Global Marine Aquarium Industry growth assumed to be, on average, 1% per annum.

* Data used does not reflect competitor nations closing down all or parts of their resource base as the Philippines is contemplating nor do they reflect possible legislative activities by buyer nations to control the trade from non sustainable sources. PNG will be one of the very few countries left allowed to sell to that market.

* Valuations and growth rates assume competitive internal and external airfrieght rates and scheduling or at least close enough to adjust product pricing and scheduling and still remain economically viable for fishers and exporters.

* Fisher and FMA income average is assuming a relatively low fishing effort by each fisher, 2 fishing days per week at 5 hours per day. Better fishers today in PNG (often women), can make upwards of K500/wk making their annual income closer to K8,000/annum. Fishers can basically make what they want to expend the effort to make. This is mostly dependent of fisher, skills, interest and effort. These calculations also do not include coral which can double the income of a particpating fisher/coral farmer.

* Facility(s) and SEASMART FMA Development Staff, and SEASMART FMA Extension officers numbers as of year 2020.

Acronyms Used

FMA Fishery Management Area - Community Owned and Managed and PNG's Base Industry Management Unit

UNEP/WCMC United Nations Environment Programme/World Conservation Monitoring Centre

RAM Resource Assessment and Management - a SEASMART Program division

FFD Fisher and Fishery Development - a SEASMART Program division

MAP Management Area Planning/Plan - a SEASMART Program division and the name of an FMA's management plan.

MAR Mariculture, Aquaculture and Restoration - a SEASMART Program division

SBD Smart Business Development - a SEASMART Program division

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Attachment Two

PNG SEASMART Marine Aquarium Industry 10-Year Expansion Program Overview Notes: * This is a modeling exercise with assumptions made at each link in the model market chain. All

assumptions are based in present market and transportation realities but with the assumption

that they will stay the same or will improve. This model does assume a higher than competitive

cost for local airfreight.

* Global Industry Annual Totals based on UNEP/WCMC 2002 Report on the state of the industry

in which it valued the trade in marine aquarium organisms at between 220 and 300 million US

dollars annually. In an industry rife with underreporting and non-reporting, the UNEP/WCMC

report is the most accurate global market report on the marine aquarium industry available. We

have used a lower end world market average baseline figure of US$210 million (K600 million

depending on exchange rate) for our calculations. Global Marine Aquarium Industry growth

assumed to be, on average, 1% per annum.

* Data used does not reflect competitor nations closing down all or parts of their resource base

as the Philippines is contemplating nor do they reflect possible legislative activities by buyer

nations to control the trade from non sustainable sources. PNG will be one of the very few

countries left allowed to sell to any market sustainability.

* Valuations and growth rates assume competitive internal and external airfrieght rates and

scheduling or at least close enough to adjust pricing/scheduling and still remain economically

viable.

* Fisher and FMA income average is assuming a relatively low fishing effort by each fisher.

Better fishers today in PNG (often women), can make upwards of K500/wk making their annual

income closer to K8,000/annum. Income earning potential is dependent on fisher, skills, interest

and effort. These calculations also do not include coral which can double the income of a

participating fisher/coral farmer.

* Facility(s) and SEASMART FMA Development Staff, and SEASMART FMA Extension officer

numbers as of year 2020.

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SEASMART New Full FMA Expansion Overview

Province Trial Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 New FMA Totals

Province 1 6 8 8 8 8 8 8 8 8 8 78

Province 2 6 8 8 8 8 8 8 8 8 8 78

Province 3 6 8 8 8 8 8 8 8 8 8 78

Province 4 6 8 8 8 8 8 8 8 8 70

Province 5 6 8 8 8 8 8 8 8 8 70

Province 6 6 8 8 8 8 8 8 8 8 70

Province 7 6 8 8 8 8 8 8 8 62

Province 8 6 8 8 8 8 8 8 8 62

Province 9 6 8 8 8 8 8 8 8 62

Province 10 6 8 8 8 8 8 8 54

Province 11 6 8 8 8 8 8 8 54

Province 12 6 8 8 8 8 8 8 54

Central Province 5 3 3 2 2 2 12

NCD 3 1 1 2

Total FMA's 8 22 46 68 92 98 96 96 96 96 96 806

SEASMART New Fisher/Coral Gardener Participation Overview

Province Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 New Fisher

Totals

Province 1 120 280 440 600 760 920 1,080 1,240 1,400 1,560 1,560

Province 2 120 280 440 600 760 920 1,080 1,240 1,400 1,560 1,560

Province 3 120 280 440 600 760 920 1,080 1,240 1,400 1,560 1,560

Province 4 120 280 440 600 760 920 1,080 1,240 1,400 1,400

Province 5 120 280 440 600 760 920 1,080 1,240 1,400 1,400

Province 6 120 280 440 600 760 920 1,080 1,240 1,400 1,400

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Province Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 New Fisher

Totals

Province 7 120 280 440 600 760 920 1,080 1,240 1,240

Province 8 120 280 440 600 760 920 1,080 1,240 1,240

Province 9 120 280 440 600 760 920 1,080 1,240 1,240

Province 10 120 280 440 600 760 920 1,080 1,080

Province 11 120 280 440 600 760 920 1,080 1,080

Province 12 120 280 440 600 760 920 1,080 1,080

Central Province 54 114 174 214 254 294 294 294 294 294 294 294

NCD 106 126 146 146 146 146 146 146 146 146 146 146

Total Fishers Participation 160 600 1,520 2,880 4,720 6,680 8,600 10,520 12,440 14,360 16,280 16,280

NOTES:

* # of Fishers in each community = 20. We have averaged low. Presently PNG has FMAs with up to 36 fishers and coral farmers and as low as 20 w/

an average of 25 fishers & coral farmers/FMA. Additional coral farmers may add to this number as well. But to take a precautionary approach, we have

settled on 20 trained fishers in each FMA in the calculation formulas (shown as 120 (Yr 1) & 160 (Yr 2 on). The overview can be easily revised as

actuals become available. Some trained fisher communities such as Kouderica have not been very active with few, if any, fishers fishing at any one

time. Other FMA's like Fisherman's Island have been very active with the most (30+) fishers fishing.

* 1st yr=6 FMAs developed @ 20 fishers/FMA; 2nd yr on=8 FMAs developed /yr @ 20 fishers /FMA. This number may adjust up and down depending

on Provincial and market conditions but this is a workable average.

* Central Province carries over 54 SEASMART trained fishers and NCD carries over 106 SEASMART trained fishers from the trial program.

| 19

SEASMART Fisher and Fisher Community FMA Income Potential Overview

Province Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Total

Province 1 14181.8182

New FMAs 234,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 3,042,000

Old FMAs 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 2,792,400 13,899,600

Prov 1 Totals 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 2,792,400 3,104,400 16,941,600

Province 2

New FMAs 234,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 3,042,000

Old FMAs 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 2,792,400 13,899,600

Prov 2 Totals 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 2,792,400 3,104,400 16,941,600

Province 3 16,941,600

New FMAs 234,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 3,042,000

Old FMAs 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 2,792,400 13,899,600

Prov 3 Totals 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 2,792,400 3,104,400 16,941,600

Province 4 16,941,600

New FMAs 0 234,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 2,730,000

Old FMAs 0 0 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 11,107,200

Prov 4 Totals 0 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 2,792,400 13,837,200

Province 5 13,837,200

New FMAs 0 234,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 2,730,000

Old FMAs 0 0 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 11,107,200

Prov 5 Totals 0 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 2,792,400 13,837,200

Province 6 13,837,200

New FMAs 0 234,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 2,730,000

Old FMAs 0 0 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 11,107,200

Prov 6 Totals 0 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 2,792,400 13,837,200

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Province 7 13,837,200

New FMAs 0 0 234,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 2,418,000

Old FMAs 0 0 0 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 8,626,800

Prov 7 Totals 0 0 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 11,044,800

Province 8 11,044,800

New FMAs 0 0 234,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 2,418,000

Old FMAs 0 0 0 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 8,626,800

Prov 8 Totals 0 0 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 11,044,800

Province 9 11,044,800

New FMAs 0 0 234,000 312,000 312,000 312,000 312,000 312,000 312,000 312,000 2,418,000

Old FMAs 0 0 0 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 8,626,800

Prov 9 Totals 0 0 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 2,480,400 11,044,800

Province 10 11,044,800

New FMAs 0 0 0 234,000 312,000 312,000 312,000 312,000 312,000 312,000 2,106,000

Old FMAs 0 0 0 0 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 6,458,400

Prov 10 Totals 0 0 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 8,564,400

Province 11

New FMAs 0 0 0 234,000 312,000 312,000 312,000 312,000 312,000 312,000 2,106,000

Old FMAs 0 0 0 0 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 6,458,400

Prov 11 Totals 0 0 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 8,564,400

Province 12

New FMAs 0 0 0 234,000 312,000 312,000 312,000 312,000 312,000 312,000 2,106,000

Old FMAs 0 0 0 0 296,400 608,400 920,400 1,232,400 1,544,400 1,856,400 6,458,400

Prov 12 Totals 0 0 234,000 608,400 920,400 1,232,400 1,544,400 1,856,400 2,168,400 8,564,400

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Central Province

New FMAs 117,000 117,000 78,000 78,000 78,000 0 0 0 0 0 468,000

Old FMAs 247,000 364,000 481,000 559,000 637,000 715,000 715,000 715,000 715,000 715,000 5,863,000

Central Prov Totals 364,000 481,000 559,000 637,000 715,000 715,000 715,000 715,000 715,000 715,000 6,331,000

NCD

New FMAs 39,000 39,000 0 0 0 0 0 0 0 0 78,000

Old FMAs 148,200 187,200 226,200 226,200 226,200 226,200 226,200 226,200 226,200 226,200 2,145,000

NCD Totals 187,200 226,200 226,200 226,200 226,200 226,200 226,200 226,200 226,200 226,200 2,223,000

Total Income 1,253,200 3,234,400 6,073,600 9,848,800 13,858,000 17,602,000 21,346,000 25,090,000 28,834,000 32,578,000 159,718,000

Average Kina Income per FMA per Annum in Yr 2020 40,419

Average Kina Income per Fisher per Annum in Yr 2020 2,021

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Attachment Three

10 YEAR EXPANSION PROGRAM FISHER/FMA GROSS INCOME OVERVIEW

NOTES:

* The Fisher and FMA Income Overview takes a precautionary and yet aggressive approach to

the values placed in this overview. It is precautionary in the values we assigned to fisher/FMA

weekly income, number of fisher/coral farmers in each FMA, and growth in fisher income

potentials due to improving skills in these areas. We have taken a more aggressive approach in

the assumptions that we've made in regards to market growth based on overall size of the

market, declining resources and future full or partial bans on industry by competitor resource

countries, fast growing PNG brand promotion, recognition and demand for PNG product, and

improving air freight cost, schedule, and reliability conditions.

* This overview does not incorporate independently financed efforts to develop FMAs such as

those done outside of the Program (that would later need to be assessed for compliance to NFA

regulations/SEASMART criteria) but does include the option of having teams from different

companies or organisations producing SEASMART FMAs for NFA and the Gov't under contract.

* Some provinces will have more FMAs than others (compare Milne Bay (many) to Western

Province(few)), this overview tries to incorporate this structurally through it's staggered

expansion format but the ground reality is that FMA Development teams will move to a new

Province when the Province they are working in is complete. There may be two (2) or more FMA

Development Teams at a time in a Province. This may be sooner or later than outlined above

but a balance incorporating these two issues is what we try to present in this overview. This

overview is designed to assist the reviewer to get a complete view of the potential income from

this industry through the life of the SEASMART Countrywide Expansion program.

SEASMART FMA Development Team & FMA Extension Personnel

Requirements

* 4th, 5th, & 6th FMA Development Teams would need to be trained by Year two (2) and 7th, 8th

& 9th FMA Development Teams to maintain expansion efforts. Support extension staff trained &

responsible for follow up capacity building of fishers and FMAs. Each extension agent capable

of working with two ( 2) FMAs at one time for first 4.5 months after FMA training; this would

evolve to supporting four (4) newer FMAs for the next 6 months; from year two (2) on, one (1)

| 23

agent would be responsible for supporting eight (8) old FMAs.

* Training and follow up extension services critically important to the success and integrity of

industry and brand development in PNG. In-depth training/educational/degree programs, in

collaboration with UPNG, UNITECH, and Fisheries College need to be developed and

supported for PNG to produce the types of skills sets needed by Papua New Guineans to

develop and manage this trade.

Fisher Income Notes

Fisher and FMA income average is assuming a relatively low fishing effort by each fisher.

Better fishers today in PNG (often women), can make upwards of K500/wk. We for see

some fishers making very good money and others less so. This is mostly dependent of

fisher, skills, interest and effort.

Yr 1 based on K75/wk * 26 weeks * 20 fishers/FMA * No. of FMA's. Central/NCD based on

K95/wk * 26 wks * 20 fishers/FMA * No. of FMAs. Value differential between Central/NCD &

Provinces is due to air freight costs being incorporated into fisher pricing in the Provinces.

Yr 2+ based on K95/wk * 26 wks * 20 fishers/FMA * No. of FMA's. Central/NCD based on



Improvement in fishing skills leading to a higher income is not included in calculations except

between year 1 & 2 where the increase is a modest K20/week. Individual fisher skill

improvement is not taken into account from year 2 on so the income/wk value placed on a

fishers effort does not change from yr 2 onwards.

Old, Trial Program SEASMART FMAs

Central Province adds 3 new FMAs per year - starting w/ 5 FMAs - Additional coral growout

options not included (Central/NCD as prime PNG coral growers).

NCD starts w/ 3 FMAs - only 2 new FMAs added for NCD but potential for expanded coral

farming growth good.

| 24

POM Central Export Facility(s) and Provincial Facilities Gross Income Potential Overview


Province 1 Facility

Direct Export 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 2,094,300 2,328,300 12,706,200

Tranship via POM Central(s) 140,400 365,040 552,240 739,440 926,640 1,113,840 1,301,040 1,488,240 1,675,440 1,862,640 10,164,960

Direct Sale to POM Central(s) 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 2,094,300 2,328,300 12,706,200

Province 1 Facility Totals 491,400 1,277,640 1,932,840 2,588,040 3,243,240 3,898,440 4,553,640 5,208,840 5,864,040 6,519,240 35,577,360

Province 2 Facility

Direct Export 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 2,094,300 2,328,300 12,706,200




Province 3 Facility

Direct Export 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 2,094,300 2,328,300 12,706,200




Province 4 Facility

Direct Export 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 2,094,300 10,377,900

Tranship via POM Central(s) 0 140,400 365,040 552,240 739,440 926,640 1,113,840 1,301,040 1,488,240 1,675,440 8,302,320

Direct Sale to POM Central(s) 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 2,094,300 10,377,900

Province 4 Facility Totals 0 491,400 1,277,640 1,932,840 2,588,040 3,243,240 3,898,440 4,553,640 5,208,840 5,864,040 29,058,120

Province 5 Facility

Direct Export 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 2,094,300 10,377,900


Direct Sale to POM Central(s) 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 2,094,300 10,377,900


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Province 6 Facility

Direct Export 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 2,094,300 10,377,900


Direct Sale to POM Central(s) 0 175,500 456,300 690,300 z 1,158,300 1,392,300 1,626,300 1,860,300 2,094,300 9,453,600


Province 7 Facility

Direct Export 0 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 8,283,600

Tranship via POM Central(s) 0 0 140,400 365,040 552,240 739,440 926,640 1,113,840 1,301,040 1,488,240 6,626,880

Direct Sale to POM Central(s) 0 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 8,283,600

Province 7 Facility Totals 0 0 491,400 1,277,640 1,932,840 2,588,040 3,243,240 3,898,440 4,553,640 5,208,840 23,194,080

Province 8 Facility

Direct Export 0 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 8,283,600




Province 9 Facility

Direct Export 0 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 1,860,300 8,283,600




Province 10 Facility

Direct Export 0 0 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 6,423,300

Tranship via POM Central(s) 0 0 0 140,400 365,040 552,240 739,440 926,640 1,113,840 1,301,040 5,138,640

Direct Sale to POM Central(s) 0 0 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 6,423,300

Province 10 Facility Totals 0 0 0 491,400 1,277,640 1,932,840 2,588,040 3,243,240 3,898,440 4,553,640 17,985,240

| 26



Direct Export 0 0 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 6,423,300

Tranship via POM Central(s) . 0 0 140,400 365,040 552,240 739,440 926,640 1,113,840 1,301,040 5,138,640




Direct Export 0 0 0 175,500 456,300 690,300 924,300 1,158,300 1,392,300 1,626,300 6,423,300

Tranship via POM Central(s) 0 0 0 140,400 365,040 552,240 739,440 926,640 1,113,840 1,301,040 5,138,640



Province Facility Totals 1,474,200 5,307,120 11,105,640 18,869,760 26,200,980 34,987,680 42,850,080 50,712,480 58,574,880 66,437,280 316,520,100

POM Central Export 3,759,600 9,703,200 18,220,800 29,546,400 41,574,000 52,806,000 64,038,000 75,270,000 86,502,000 97,734,000 479,154,000

Direct NCD/Central Export 1,653,600 2,121,600 2,355,600 2,589,600 2,823,600 2,823,600 2,823,600 2,823,600 2,823,600 2,823,600 25,662,000

Tranship Prov Facility Export 421,200 1,516,320 3,173,040 5,391,360 7,750,080 9,996,480 12,242,880 14,489,280 16,735,680 18,982,080 90,698,400

Direct From Prov Facility Export 702,000 2,878,200 6,552,000 11,629,800 17,058,600 22,206,600 27,354,600 32,502,600 37,650,600 42,798,600 201,333,600

POM Central Facility(s) Totals 2,776,800 6,516,120 12,080,640 19,610,760 27,632,280 35,026,680 42,421,080 49,815,480 57,209,880 64,604,280 317,694,000

PNG Total Income 4,251,000 11,823,240 23,186,280 38,480,520 53,833,260 70,014,360 85,271,160 100,527,960 115,784,760 131,041,560 634,214,100

Global Industry Yrly Totals 600,000,000 606,000,000 612,060,000 618,180,600 624,362,406 630,606,030 636,912,090 643,281,211 649,714,023 656,211,164 6,277,327,525

PNG % of Global Trade Less than 1%

2% 4% 6% 9% 11% 13% 16% 18% 20% 10%

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Attachment Four

10 YEAR EXPANSION PROGRAM ALL FACILITY GROSS INCOME OVERVIEW NOTES: * Global Industry Annual Totals based on UNEP/WCMC 2002 Report on the state of the industry in which it valued at between 220 and 300

million US dollars annually. In an industry rife with underreporting and non reporting, the UNEP/WCMC report is the most accurate global

market report on the marine aquarium industry available. We have used a lower end world market average baseline figure of US$210 million

(K600 million depending on exchange rate) for our calculations.

* Export from POM Central facility and direct from Provincial facilities set at an average markup of 3 times fisher pricing. For product coming

from Provincial facilities in a "feeder" capacity to POM Central as a direct purchase, export markup is about 1.5 times Provincial facility price at

export. For transhipments from Provincial facilities, product export markup placed at 20%. These are general pricing rules that reflect an

average. They are also based on widely varying worldwide industry operational averages and should be viewed as such. Individual high value

species or specimens can command a higher markup and some lower market demand species will have a slightly lower mark up but for the

purposes of this overview, we have used averages.

* Local sales, e.g. those within a Province or direct within PNG are not included in any of the overview's calculations but since the calculations

are based on Fisher income, this issue is mostly incorporated into the pricing formulas utlised by this overview.

* POM Central Facility exports include direct from Central/NCD, Provincial feeder facility purchases, and Provincial facility tranship to export.

* Provincial Facility Direct Export @ 25% of volume

* Provincial Facility Tranship Export via POM Central Facility @ 25% of volume

* Provincial Facility Direct Sales to POM Central Facility @ 50% of volume

* Provincial & POM Central Facility(s) break even at K1.3 million per year (125 boxes/wk @ 52 wks * K200/box - Box Value is a traditional

industry base value unit used for projecting profitability points). POM Central to reach profitability in 1st year. Provincial break even comes at

the end of 2 years. Yr 3 on, is profitable & investment or lease friendly. Facility construction/size unchanged since first construction. Year three

may require further expansion.

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POM Central & Provincial Facility(s) Owners Net Kina Income Potential Overview


Prov 1 Facility Equity/Investor Shareholder Net Income

Fisher FMA Trust (25%) 0 0 24,161 64,701 121,622 194,922 227,682 260,442 293,202 325,962 1,512,693

Prov Trust: Industry Support (20%) 0 0 19,328 51,761 97,297 155,938 182,146 208,354 234,562 260,770 1,210,154

NFA Trust: Industrty Support (6%) 0 0 5,799 15,528 29,189 46,781 54,644 62,506 70,368 78,231 363,046

National and International Investors (49%) 0 0 47,355 126,814 238,378 382,047 446,257 510,466 574,676 638,886 2,964,878

Prov 1 Facility Net Income Tot 0 0 96,642 258,804 486,486 779,688 910,728 1,041,768 1,172,808 1,303,848 6,050,772


Fisher FMA Trust (25%) 0 0 24,161 64,701 121,622 194,922 227,682 260,442 293,202 325,962 1,512,693






Fisher FMA Trust (25%) 0 0 24,161 64,701 121,622 194,922 227,682 260,442 293,202 325,962 1,512,693






Fisher FMA Trust (25%) 0 0 24,161 64,701 121,622 194,922 227,682 260,442 293,202 1,186,731

Prov Trust: Industry Support (20%) 0 0 19,328 51,761 97,297 155,938 182,146 208,354 234,562 949,385

NFA Trust: Industrty Support (6%) 0 0 5,799 15,528 29,189 46,781 54,644 62,506 70,368 284,815

National and International Investors (49%) 0 0 47,355 126,814 238,378 382,047 446,257 510,466 574,676 2,325,993

Prov 4 Facility Net Income Tot 0 0 96,642 258,804 486,486 779,688 910,728 1,041,768 1,172,808 4,746,924

| 29



Fisher FMA Trust (25%) 0 0 24,161 64,701 121,622 194,922 227,682 260,442 293,202 1,186,731






Fisher FMA Trust (25%) 0 0 24,161 41,594 121,622 194,922 227,682 260,442 293,202 1,163,624






Fisher FMA Trust (25%) 0 0 24,161 64,701 121,622 194,922 227,682 260,442 893,529

Prov Trust: Industry Support (20%) 0 0 19,328 51,761 97,297 155,938 182,146 208,354 714,823

NFA Trust: Industrty Support (6%) 0 0 5,799 15,528 29,189 46,781 54,644 62,506 214,447

National and International Investors (49%) 0 0 47,355 126,814 238,378 382,047 446,257 510,466 1,751,317

Prov 7 Facility Net Income Tot 0 0 96,642 258,804 486,486 779,688 910,728 1,041,768 3,574,116


Fisher FMA Trust (25%) 0 0 24,161 64,701 121,622 194,922 227,682 260,442 893,529





| 30



Fisher FMA Trust (25%) 0 0 24,161 64,701 121,622 194,922 227,682 260,442 893,529






Fisher FMA Trust (25%) 0 0 24,161 64,701 121,622 194,922 227,682 633,087

Prov Trust: Industry Support (20%) 0 0 19,328 51,761 97,297 155,938 182,146 506,470

NFA Trust: Industrty Support (6%) 0 0 5,799 15,528 29,189 46,781 54,644 151,941

National and International Investors (49%) 0 0 47,355 126,814 238,378 382,047 446,257 1,240,851

Prov 10 Facility Net Income Tot 0 0 96,642 258,804 486,486 779,688 910,728 2,532,348


Fisher FMA Trust (25%) 0 0 24,161 64,701 121,622 194,922 227,682 633,087


NFA Trust: Industry Support (6%) 0 0 5,799 15,528 29,189 46,781 54,644 151,941




Fisher FMA Trust (25%) 0 0 24,161 64,701 121,622 194,922 227,682 633,087


NFA Trust: Industry Support (6%) 0 0 5,799 15,528 29,189 46,781 54,644 151,941



Equity/Investor SH Net Inc Totals 0 0 289,926 1,066,338 2,433,366 4,864,860 7,307,118 9,656,010 11,714,976 13,287,456 50,620,050

| 31


POM Central Facility Export

Central/NCD Prov/Prov Fisher FMA Trust (15%) 20,826 97,742 271,814 588,323 828,968 1,050,800 1,272,632 1,494,464 1,716,296 1,938,128 9,279,995

Industry Skills Education Trust (16%) 22,214 104,258 289,935 627,544 884,233 1,120,854 1,357,475 1,594,095 1,830,716 2,067,337 9,898,662

NFA Trust: Industry Support (20%) 27,768 130,322 362,419 784,430 1,105,291 1,401,067 1,696,843 1,992,619 2,288,395 2,584,171 12,373,327

Other Investors (49%) 68,032 319,290 887,927 1,921,854 2,707,963 3,432,615 4,157,266 4,881,917 5,606,568 6,331,219 30,314,652

POM Central Facility(s) Totals 138,840 651,612 1,812,096 3,922,152 5,526,456 7,005,336 8,484,216 9,963,096 11,441,976 12,920,856 61,866,636

PNG Equity/Investor SH Total Income 138,840 651,612 2,102,022 4,988,490 7,959,822 11,870,196 15,791,334 19,619,106 23,156,952 26,208,312 112,486,686

Provincial Facility(s) E/I SH Yrly Inc Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Total

Fisher FMA Trust (25%) 0 0 72,482 266,585 608,342 1,216,215 1,826,780 2,414,003 2,928,744 3,321,864 12,655,013

Prov Trust: Industry Support (20%) 0 0 57,985 213,268 486,673 972,972 1,461,424 1,931,202 2,342,995 2,657,491 10,124,010

NFA Trust: Industry Support (6%) 0 0 17,396 63,980 146,002 291,892 438,427 579,361 702,899 797,247 3,037,203

Other Investors (49%) 0 0 142,064 522,506 1,192,349 2,383,781 3,580,488 4,731,445 5,740,338 6,510,853 24,803,825

PNG Industry E/I SH Total Net Income Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Total

Fisher FMA Trust 0 0 72,482 266,585 608,342 1,216,215 1,826,780 2,414,003 2,928,744 3,321,864 12,655,013

Provincial Trust: Industry Support 22,214 104,258 347,921 840,812 1,370,906 2,093,826 2,818,898 3,525,297 4,173,711 4,724,828 20,022,672

NFA Trust: Industry Support 27,768 130,322 379,815 848,411 1,251,293 1,692,959 2,135,270 2,571,980 2,991,294 3,381,419 15,410,530

Other Investors 68,032 319,290 1,029,991 2,444,360 3,900,313 5,816,396 7,737,754 9,613,362 11,346,906 12,842,073 55,118,476

Central/NCD Prov/Prov Fisher FMA Trust 20,826 97,742 271,814 588,323 828,968 1,050,800 1,272,632 1,494,464 1,716,296 1,938,128 9,279,995

Industry Skills Education & Research Trust 22,214 104,258 289,935 627,544 884,233 1,120,854 1,357,475 1,594,095 1,830,716 2,067,337 9,898,662

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Attachment Five

POM Central & Provincial Facility(s) Owners Net Kina Income Potential

Overview Notes:

* This chart attempts to calculate one possible scenario for predicting future income for all facility

investors (Private Sector, Fisher and Gov't Trusts, Non Profits, etc.). Calculations and

projections of this kind need to be taken as one scenario template capable of being adapted as

new information comes in. A precautionary approach taken to the setting of profit margins with

standardised incremental growth pattern used. These will vary from operation to operation and

from year to year but for forward planning purposes, precautionary and achievable net profit

margins are used.

* Provincial Facility(s) net profit margin assumptions as follows: 1. No profit for first two years of

facility operation. 2. 3rd yr net profit @ 0.05%; 4th yr net profit @ 0.10%; 5th yr net profit @

0.15%; 6th yr net profit and thru rest of charted years @ 0.20%.

* Provincial Facility(s) Ownership Equity assumptions as follows: 1. Fisher FMA Trust @ 0.25%.

2. Provincial Industry Support Trust @ 0.20%; 3. NFA Industry Support Trust (6%) 4. Other

investor (National and Foreign) @ 0.49%;

* POM Central Facility(s) net profit margin assumptions as follows: 1. 1st yr net profit @ 0.05%;

2nd yr net profit @ 0.10%; 3rd yr net profit @ 0.15%; 4th yr net profit and thru rest of charted

years @ 0.20%. POM Central has a head start on the Provincial facilities and is projected to

reach profitability status in 2011, two years earlier than the first Provincial facilities.

* Provincial Facility(s) Ownership Equity assumptions as follows: 1. Fisher FMA Trust @ 25%; 2.

Provincial Industry Support Trust @ 20%; 3. NFA Industry Support Trust (06%); 4. Other

Investor (National and Foreign) @ 49%.

| 33

Provincial Company Trust Board Composition Chart

| 34

Draft POM Central Company Board and Facility Core Staff Organization Chart

| 35

Facility Export Profitability Volume Requirements at Different Export Box Values

Boxes / Week

Boxes / Year

US$ / Box

Total US$ Value

Total Kina Value (3:1)

US$ / Box

Total US$ Value


US$ / Box

Total US$ Value


50 2,300 60 138,000 414,000 80 184,000 552,000 100 230,000 690,000

75 3,450 60 207,000 621,000 80 276,000 828,000 100 345,000 1,035,000

100 4,600 60 276,000 828,000 80 368,000 1,104,000 100 460,000 1,380,000

150 6,900 60 414,000 1,242,000 80 552,000 1,656,000 100 690,000 2,070,000

200 9,200 60 552,000 1,656,000 80 736,000 2,208,000 100 920,000 2,760,000

250 11,500 60 690,000 2,070,000 80 920,000 2,760,000 100 1,150,000 3,450,000

300 13,800 60 828,000 2,484,000 80 1,104,000 3,312,000 100 1,380,000 4,140,000

350 16,100 60 966,000 2,898,000 80 1,288,000 3,864,000 100 1,610,000 4,830,000

400 18,400 60 1,104,000 3,312,000 80 1,472,000 4,416,000 100 1,840,000 5,520,000

450 20,700 60 1,242,000 3,726,000 80 1,656,000 4,968,000 100 2,070,000 6,210,000

500 23,000 60 1,380,000 4,140,000 80 1,840,000 5,520,000 100 2,300,000 6,900,000

Notes:

K200/Box is the baseline average value we use for calculating possible profitability points

(K200*52wks/yr*125 Boxes/wk =K1.3 Million or a breakeven point average.

Value of each export box dependent on the species of marine aquarium life being shipped - value from K180-K300/export box.

Unprofitable Profitable

| 36

SEASMART FMA Development Team & FMA Extension Personnel Requirements * Individual FMA Development Team Composition: 3 RAM scientists, 3 FFD trainers, 1 MAP

developer, 3 MAR trainers, 1 SBD trainer

* 4th, 5th, & 6th FMA Development Teams would need to be trained by Year two (2) and 7th, 8th &

9th FMA Development Teams to maintain expansion efforts.

Support extension staff trained & responsible for follow up capacity building of fishers and FMAs.

Each extension agent capable of working with two ( 2) FMAs at one time for first 4.5 mos after FMA

training; this would evolve to supporting four (4) newer FMAs for the next 6 mos; from year two (2)

on, one (1) agent would be responsible for supporting eight (8) old FMAs. These suggested

timeframes are influenced in real life by the ability of the individual extension agent(s), the size FMA,

# of fishers in an FMA, distance from market center, adequate transport, technical and financial

support for Program and or Industry and or Gov't, and a host of other issues.

* Training and follow up extension services are critically important to the success and integrity of

industry and brand development in PNG. In depth training/educational/degree programs, in

collaboration with UPNG, UNITECH, and Fisheries College need to be developed and supported for

PNG to produce the types of skills sets needed by Papua New Guineans to develop and manage

this trade.

SEASMART FMA Development Team & FMA Extension Personnel

Requirements

* 4th, 5th, & 6th FMA Development Teams would need to be trained by Year two (2) and 7th, 8th &

9th FMA Development Teams to maintain expansion efforts. Support extension staff trained &

responsible for follow up capacity building of fishers and FMAs. Each extension agent capable of

working with two ( 2) FMAs at one time for first 4.5 mos after FMA training; this would evolve to

supporting four (4) newer FMAs for the next 6 mos; from year two (2) on, one (1) agent would be

responsible for supporting eight (8) old FMAs.

* Training and followup extension services critically important to the success and integrity of industry

and brand development in PNG. Indepth training/educational/degree programs, in collaboration with

UPNG, UNITECH, and Fisheries College need to be developed and supported for PNG to produce

the types of skills sets needed by Papua New Guineans to develop and manage this trade.

| 37

Fisher Income Notes

Yr 1 based on K75/wk * 26 weeks * 20 fishers/FMA * No. of FMA's. Central/NCD based on



Yr 2+ based on K95/wk * 26 wks * 20 fishers/FMA * No. of FMA's. Central/NCD based on



Improvement in fishing skills leading to a higher income is not included in calculations except

between year 1 & 2 where the increase is a modest K20/week. Individual fisher skill

improvement is not taken into account from year 2 on so the income/wk value placed on a

fishers effort does not change from yr 2 onwards.

PNG SEASMART Program Provincial Expansion, Privatisation and

Equity Trusts Income Flow Overview

Notes:

Ist two (2) years in each Province, SEASMART Program responsible for training /

development / oversight of exporter / facility / market and FMA development. Other options

could include private sector investor involvement from an earlier stage of a facility’s

development but with profitability not showing until year 3, we will use a precautionary worst

case scenario of no exceptional early investors in the first 2 years of a Province’s

development.

Province Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10

Province 1

Province 2

Province 3

Province 4

Province 5

Province 6

Province 7

Province 8

Province 9

Province 10

Province 11

Province 12

POM Central Facility(s)

| 38

Years three (3) onward in each Province, Primary provincial facility (& the Provincial trade) is

privatized involving national and international interests as per the National Marine Aquarium

Management Plan guidance and requirements. SEASMART Program responsible for

continued FMA development, PNG Brand promotion, exporter support, and new product /

service development. Other local and international partners to be incorporated into

development program. Year one of privatisation, profit realised by Trust Equity and direct

investment stakeholders.

| 39

SEASMART Fishery Management Area (FMA) Development Team,

SEASMART FMA Extension Service, & Facility Staff Requirements

Province Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Yr 6

Yr 7

Yr 8

Yr 9

Yr 10

2020 Total

Province 1

FMA Development Team 11 11 11 11 11 11 11 11 11 11 11

FMA Extension Officers 3 4 5 5 5 6 6 6 7 7 7

Facility Staff 8 10 10 12 12 14 14 14 15 15 15

Prov 1 Totals 22 25 26 28 28 31 31 31 33 33 33

Province 2



Facility Staff 8 10 10 12 12 14 14 14 15 15 15

Prov 2 Totals 14 15 16 16 16 17 17 17 18 18 33

Province 3



Facility Staff 8 10 10 12 12 14 14 14 15 15 15

Prov 3 Totals 14 15 16 16 16 17 17 17 18 18 33

Province 4



Facility Staff 8 10 10 12 12 14 14 14 15 15

Prov 4 Totals 0 14 15 16 16 16 17 17 17 18 33

Province 5



Facility Staff 0 8 10 10 12 12 14 14 14 15 15

Prov 5 Totals 0 14 15 16 16 16 17 17 17 18 33

Province 6



Facility Staff 0 8 10 10 12 12 14 14 14 15 15

Prov 6 Totals 0 14 15 16 16 16 17 17 17 18 33

Province 7



Facility Staff 0 0 8 10 10 12 12 14 14 14 15

Prov 7 Totals 0 0 14 15 16 16 16 17 17 17 32

| 40

Province Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Yr 6

Yr 7

Yr 8

Yr 9

Yr 10

2020 Total

Province 8



Facility Staff 0 0 8 10 10 12 12 14 14 14 15

Prov 8 Totals 0 0 14 15 16 16 16 17 17 17 32

Province 9



Facility Staff 0 0 8 10 10 12 12 14 14 14 15

Prov 9 Totals 0 0 14 15 16 16 16 17 17 17 32

Province 10



Facility Staff 0 0 0 8 10 10 12 12 14 14 15

Prov 10 Totals 0 0 14 15 16 16 16 17 17 32

Province 11



Facility Staff 0 0 0 8 10 10 12 12 14 14 15

Prov 11 Totals 0 0 14 15 16 16 16 17 17 32

Province 12



Facility Staff 0 0 0 8 10 10 12 12 14 14 15

Prov 12 Totals 0 0 14 15 16 16 16 17 17 32

Central Province/NCD



Facility Staff 8 12 15 18 21 24 27 30 33 36 36

Central Prov Totals 2 13 3 14 4 15 4 4 4 4 51

Total Trade Staff Req's 52 110 148 209 205 224 216 219 226 229 441

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