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www.otdfpng.orgDelivering with Innovation

2016ANNUAL REPORT

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Tabubil to Kiunga HighwayWest Papua - IndonesiaRiversWestern Province

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CMCA Trust Regions

Dudi-South Bank

Kiwaba

Manawete-North Bank

Middle Fly

Mine Villages

Nupmo

Suki Fly Gogo

Tutuwe

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Prepared by Aaron Uforty

Ok Tedi Development FoundationGeographic Information Systems

Ok Tedi Development Foundation 2017W

Gulf Province

Province

West Sepik

Southern Highlands

NOMAD

Nakaku

Tabubil Agriculture

Centre

Samagos

Tapila

Sturt Island

Aiambak

TABUBIL

KIUNGA

BALIMO

DARU

LAKE MURRAY

WIPIM

KOABU

IND

ON

ESIA

OUR FOOTPRINT

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2016 Annual Report

Contents

ContentsOTDF EVOLUTION AND DEVELOPMENT TARGETS

2016 AT A GLANCE

MESSAGE FROM THE CHAIRMAN

BOARD MEMBERS

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

OTDF ORGANISATION STRUCTURE AND COMMITTEES

MESSAGE FROM THE CHIEF OPERATING OFFICER

DEVELOPMENT SECTORS, INDICATORS AND PARTNERSHIPS

COMMUNICATIONS

OTDF EXPENDITURE AND PROJECT LIFE CYCLE

TRUST ADMINISTRATION

HEALTH SECTOR OVERVIEW

EDUCATION SECTOR OVERVIEW

INFRASTRUCTURE SECTOR OVERVIEW

LOCAL & REGIONAL ECONOMIC DEVELOPMENT SECTOR OVERVIEW

COMMUNITY & SOCIAL DEVELOPMENT SECTOR OVERVIEW

CORPORATE OPERATIONS

2016 AUDITED FINANCIAL STATEMENTS

ABBREVIATIONS, ACRONYMS AND ACKNOWLEDGEMENTS

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Front Cover: Abt Associates Nurse Veronica Kekae (left), preparing to immunise 10-month-old Leona, who is being cradled by her mother, Naomi Simon, from the Middle Fly District

Back Cover: Aerial view of the OTDF Head Office, Kiunga

Picture this Page: Kuni Island children paddling to school at Boboa Station, Lake Murray

Delivering with Innovation

OTDF EVOLUTION AND VISION

Ok Tedi Development Foundation (OTDF) was established under Clause 6 of the Mining [Ok Tedi Mine Continuation (Ninth Supplemental) Agreement] Act 2001 with its tax-free status enshrined in the same legislation.

OTDF’s long term Vision is to ensure the self sustainability of and to improve the quality of life of Western Province communities with consideration for the people of the Telefomin District of the Sandaun Province.

The four key Principles of the OTDF Strategic Direction 2016-2020 underpinning all OTDF’s strategic engagement with stakeholders, and guiding day to day operations are:

Effective and efficient implementation of development programs in priority sectorsStrengthened partnerships Open and transparent communicationsAppropriate and accountable financial and operations support systems

2009 - 2015

2016- 2020

2001 - 2008

OTDF incorporated as required by the 9th Supplemental Mining Agreement as a not for profit Foundation

OTDF sets out new Strategic Direction 2010-2015

New package signed to extend mining operations to 2013

OTDF engages with CMCA communities and establishes a sound platform for project delivery

OTDF engages with communities to support the Livelihood Development Package concept

Promoting a transition to more commercial production through improved market access

Delivery

Acceptance

Establishment

VISION: To improve self-sustainability and quality of life of Western Province communities

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2016 Annual Report

Appropriate & accountable financial and operations

support systems

Open and transparent communication

Strengthened Partnership

2016 - 2020 Targets

Effective and efficient implementation of

development programs2016 - 2020 Targets

2016 - 2020 THEME: Community financial self-reliance through socio-economic initiatives and improved infrastructure

2016 - 2020 Targets 2016 - 2020 Targets

Strategic oversight and alignment of OTDF results and sector headline indicators with Provincial and National policies and plans

Evaluate Village Development Fund projects and incorporate lessons into new designs

Evaluate all TCS and high impact projects with a focus on sustainability and lessons learned, then incorporate those lessons into new designs

Advocate and collaborate with the DNP&M and FRPG for sustainability of Provincial infrastructure including options to prioritise TCS programs, and allocate PNGSDP long term funds for repairs and maintenance of existing and planned assets

Promote developments that position Western Province as an agriculture and forestry focal Province

Promote utilisation of all Fly River jetties as access points to Fly Warrior, Fly Zamby and Fly Hope

Target Trust education sponsorships towards development needs in the health, education and agriculture sectors

Incorporate OTDF internal and external communications channels and key messages, including the role of Radio Fly, into the Communications Policy

Focus Communications Policy key messages on:(a) Advocacy for the 2016 Strategic Plan(b) Engagement with relevant National and Provincial government agencies to support the 5 key sectors of engagement

Use appropriate mobile and internet technologies for Communications Policy implementation, data collection and results reporting

Implement the OTDF Communications Policy, including annual joint communication patrols by Associate Directors and Advisory Committee members, Village Planning Committee and Trust Chairmen, Women's Association Presidents, OTDF and OTML Community Relations

Focus on FRPG Provincial Growth Centres for programs, including infrastructure development and service links

Advocate with FRPG for formal PEC recognition of OTDF as a preferred implementing partner

Support the Provincial Administrator to establish a Provincial Roads Authority

Access funding from other sources including:(a) DFAT Business Partnerships Program;(b) PNG Incentive Fund; and(c) LNG Projects for Province-wide priorities

Explore options for accessing Trust funding for development priorities after the current Mine Life Extension period of 2025, including using accrued interest from Trust investments

Establish appropriate mechanisms for engaging non-CMCA communities

Increase community, private sector, government and non-government participation in program design and M&E

Provide business advisory services to support SMEs, Regional Women's and Youth Associations transition to full operational independence

Work with development partners to actively manage risks associated with program and project implementation

Enhance OTDF staff and stakeholders' skills and knowledge of M & E

Consolidate and fully integrate M&E systems, headline indicators and baselines for reporting results

Consolidate performance-based HR systems and KPI's to align with M&E

Incorporate OTDF staff 'work time' into Attache job costing and expenditure reporting

Utilise Attache to generate timely financial reports

Consolidate and maintain shared filing systems and data repositories using appropriate technologies and controls

Provide access to OTDF policies and procedures in up-to-date manuals, including Finance, HR and M&E

Evaluate and enhance management and staff capacity to manage outsourced project implementation services

Incorporate accountabilities and KPI's into Terms of Reference for all OTDF Committees (Risk, Safety, Disciplinary, Housing, Tender Evaluation and M & E)

Support Trusts' management of investment portfolios and ensure that the Trust Investment Guidelines remain relevant to the operating environment

Maintain audit and statutory compliances for OTDF, and all CMCA Trusts, Trust Investment Syndicates and Companies. Transition to a fully independent

OTDF IT system with related policies and procedures

DEVELOPMENT TARGETS 2016-2020

MISSION: Wise management of funds and programs to realise the development aspirations of community partners by delivering with innovation

Delivering with Innovation

2016 AT A GLANCE

JAN MAYMAR

Aiambak to Lake Murray portion of the Barramundi highway opened

North and Middle Fly Women’s Associations invest in real estate

Fly Rubber Limited established and accepted by Lake Murray farmers

Cassowary Hotel ground breaking ceremony, Kiunga

Acceptance of the new Strategic Direction 2016-2020

Supporting Province wide rice distribution

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2016 Annual Reportg

ggggg

JUL SEP DEC

Jetty opening at Madire village, South Fly

North, Middle & South Fly health programs improve CMCA community health standards

New nurseries constructed to increase eaglewood capacity

Mount Fubilan Agro-industry; Poultry project launched

Youth leaders meet to develop a Youth Action Plan

Socio-economic and livelihood data collection

Delivering with Innovation

2016 was a challenging, yet exciting time for the Ok Tedi Development Foundation and the 157 Community Mine Continuation Agreement (CMCA) village communities with the launch of the 2016–2020 OTDF Strategic Direction.

This next 5 years builds on the significant work done since the inception of OTDF as a stand-alone entity in 2010 providing a solid foundation to deliver real change for the people of the CMCA and the greater Western Province.

The major achievements since 2010 include:

Developing strong governance and management systems that ensure community funds are properly managed and accounted for;

Investing community funds in the Western Province in infrastructure, vessels and aircraft that provide a guaranteed 8% annual return for the benefit of future generations;

Earning the trust and respect of the CMCA communities, the Provincial and National Government, and Donors through our stakeholder engagement programs;

The uncompromising dedication and commitment of the OTDF team led by the Chief Executive Officer (CEO), Ian Middleton.

These achievements would not have been possible without the ongoing support from Ok Tedi Mining Limited (OTML): this despite the many challenges over recent years with depressed metal prices and the suspension of operations due to the 2015/16 dry weather event. OTML has been contributing towards the operating costs of OTDF since 2002. Including 2017, the total funding contribution to OTDF is approximately PGK300 million. This funding is in direct support of the CMCA communities in addition to the compensation package payments; and the recent PGK31.5 million dividend payment by OTML in 2016 for the CMCA and Mine Village communities’ 21% shareholding in OTML. Credit goes to OTML management led by the Managing Director Peter Graham and the entire workforce for the commendable effort to return OTML to a profitable position and making a dividend payment despite the dry weather stand-down.

Musje Werror addresses the South Fly community at the Madiri Jetty opening

MESSAGE FROM THE CHAIRMANThe benefits generated by OTML for the CMCA communities from 1982 to the end of December 2016, total PGK3 billion; while the total benefits to the Province, which includes the Fly River Provincial Government, Tax Credit Scheme (TCS) projects and the Papua New Guinea Sustainable Development Program Limited (PNGSDP) Long Term Funds is approximately PGK10 billion. This figure will only continue to increase and I take this opportunity to thank the people of the CMCA for giving their on-going support to OTML. Particularly the CMCA leaders, Advisory Committee and Associate Directors that have helped guide the development of their people.

The challenge ahead is to turn current and future benefits into tangible development outcomes in the CMCA regions, I am confident this will happen if all the stakeholders including the communities, OTDF, the Provincial and the National Government and external donors work together and embrace the 2016-2020 Strategic Direction.

On behalf of the Board of OTDF, I commend this Annual Report to all.

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Chairman Werror, embodies partnership between the Western Province Governor and the contractor at the Cassowary hotel ground breaking ceremony

Delivering with Innovation

BOARD MEMBERS - DIRECTORS

Shadrach HimataDirector since 2012Mr Himata is the Permanent Secretary for the Department of Mineral Policy and Geohazard Management, formerly the Department of Mining. He holds a Bachelors Degree in Mineral Processing Engineering from the PNG University of Technology and is currently doing his Reader Masters Degree in Mineral Economics at the Curtin University in Perth, Australia.Mr Himata is from the island of Nuguria in the Autonomous Region of Bougainville.

Dr Modowa Gumoi Director since 2014Dr Gumoi is the former Provincial Administrator of the Western Province. He holds a PhD in Agricultural Management from Lincoln University in New Zealand and is an Economist by profession. He also holds a Masters Degree from the University of New England, NSW, Australia and a Bachelor of Economics with Honours from the University of PNG. Dr Gumoi taught Economics for 12 years and was Head of Economic Research at the National Research Institute for over a decade. Whilst at these institutions he consulted widely for, advised and represented the PNG Government and external agencies such as the European Union, World Bank and United Nations.

Musje WerrorChairman since 2015 and Director since 2009Mr Werror is the Deputy CEO and General Manager Employees & External Relations with OTML. Mr Werror was formerly the Executive Manager of OTDF. He holds a Master of Business Administration and a Master of Professional Accounting from the Divine Word University and a Bachelor of Science Degree in Chemistry from the University of Papua New Guinea. He has held various roles with OTML over the last 24 years. Mr Werror is also the Director of Ok Tedi Australia, Director of Ok Tedi Power Limited and Director of the Heduru Trust.

David SodeDirector since 2013Mr Sode is the Chief Executive Officer of the PNG Sustainable Development Program Limited (PNGSDP). He has a Law Degree from the University of Papua New Guinea. From 1989 to 1993 he served as Legal Counsel to the PNG Bureau of Customs and Excise. He was subsequently appointed as Commissioner of PNG Customs in 1994, then in 1998 he was appointed Commissioner of Taxation and a year later promoted to the Commissioner General of the PNG Internal Revenue Commission serving in this post for a period of 7 years.

Kuam SanewaiDirector since 2016Mr Sanewai is currently the Community Relations Manager with OTML; he was formerly attached to OTDF when a Department of OTML from 2005 to 2009, then became Team Leader of Socio-Economic Research with Community Relations in 2012. He was an external Trustee in the Kiwaba Development Trust. He holds a Diploma in Education from the University of Goroka in Papua New Guinea. Mr Sanewai is from Baluan Island, Manus Province.Appointed as a Director on the OTDF Board in 2016

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2016 Annual Report

Richard ZumoiAssociate Director since 2009 (Observer in 2013)Mr Zumoi represents the CMCA people of the Middle Fly Trust region. He is a former primary school teacher and was instrumental in the CMCA negotiations between 1999 and 2001 and then again during the 2006/2007 CMCA review. Mr Zumoi was also involved in the initial creation of the Foundation and throughout the transition period in 2010 which saw OTDF begin operating as an independent entity from OTML. He was further involved in the 2009 to 2012 MLE Community Consultation process and is the CMCA people’s representative regarding consultation and negotiations with the State for a direct share in OTML.He comes from Wangawanga village in the Middle Fly Trust region of the Middle Fly District.

Clara Fred DangkimAssociate Director since 2014An OTDF Associate Director since 2014, Clara Fred Dangkim represents the Women and Children in the 8 CMCA Trust Regions and the 6 Mine Villages. Clara was a woman’s representative at the CMCA Review negotiations in 2006 and 2007, representing the Mine Villages. A Secretary by profession, she holds a Certificate in Secretarial Studies from Goroka Technical College and 3 Certificates in Business Management and Computing from Kumul Trainers. She is currently the Director/Secretary of Bugum Investments Limited. She comes from Kavorabip village, one of the 6 Mine Villages in the North Fly District.

Maino LucasAssociate Director since 2014Mr Lucas represents the CMCA people of the 3 North Fly Trust regions and 6 Mine villages. He holds a Bachelor Degree in Management from the Divine Word University in Madang and is currently employed by OTML as a Superintendent of the Mine Production D Crew. He is an influential young leader determined to drive positive development changes amongst the Mine village people. He is also the Chairman of the Bultem Village Planning Committee and Chairman of the OTML Local Local Program.He comes from Bultem village, one of the 6 Mine villages in the North Fly District.

Aniba SamoAssociate Director since 2014Mr Samo represents the CMCA people of the 4 South Fly Trust regions. He was a CMCA Regional Delegate during the 2001 CMCA negotiations and then again during the 2006/2007 CMCA review. He has been the Village Planning Comittee (VPC) Deputy Chairman for Kenedibi village since 2001. Mr Samo has a secondary school education level and is currently doing a Science course with the Institute of Distance College Education in Daru. He comes from Kenedibi village on the North bank of the Fly River in the Manawete Trust region of the South Fly District.

BOARD MEMBERS - ASSOCIATE DIRECTORS

Delivering with Innovation

MESSAGE FROM THE CHIEF EXECUTIVE OFFICERWelkam Olgeta.

OTDF continues to be a resilient and robust development organisation delivering outputs that contribute to improved outcomes for CMCA communities in five key sectors of health, education, infrastructure, economic, and community development.

This, our sixth Annual Report, marks a watershed in our remarkable journey, highlighted by: widespread community acceptance of OTDF as a preferred development partner; and consensus on a roadmap for development over the next five years, embodied in a new Strategic Direction for 2016-2020. This direction focuses on transitioning our partner communities into financial self-reliance through socio-economic initiatives that are facilitated by improved infrastructure.

The Annual Report format has been changed in 2016 to reflect activities and achievements by sector, highlighting all program and project activities implemented under them. Program results provided in tables and diagrams throughout this Annual Report have been generated from data collected through improved monitoring and evaluation processes. These have been designed to align with the expected objectives for the five sectors. Throughout this Annual Report you will read about the outcomes from strategic planning, advocacy and stakeholder support, the importance of partnerships and the many associated project highlights.

Despite the year beginning with a continuation of the dry weather stand-down of staff, OTDF was able to support the World Food Program, the Provincial Administration and Australian Department of Foreign Affairs & Trade (DFAT) in taking on the challenging responsibility of facilitating the distribution of 1,600 tons of rice generously donated by OTML and the Heduru Trust to over 130,100 beneficiaries. OTDF then welcomed the Management team back to site in February to finalise the new 5 year Strategic Direction, followed by a staged return of staff throughout March. The Strategic Direction was approved by the CMCA Advisory Committee and OTDF Board in March, following which the Foundation conducted a successful Communications Patrol along the CMCA corridor throughout May. The patrol covered 156 of 157 villages, and reached 24,193 people. The CMCA communities gave their overwhelming support

for the new Strategic Direction, paving the way for implementation of the 5 focus sectors.

Health: The single most important program highlight in 2016 was the health results which were released mid-year by the National Department of Health (2015 SPAR Report); showing Western Province’s ranking against other PNG Provinces for standards of health care. From 2013, when the CMCA Middle & South Fly Health Program started, the ranking jumped from being amongst the worst 3 performing Provinces to number 4 in PNG. An outstanding result and a credit to our implementing partner, Abt Associates. Read more about the Health Development Sector on pages 28-33.

Education: In 2016, OTDF continued to canvas scholarship applicants, and focused on expanding the number of Flexible Open Distance Education (FODE) Centres to 8 in strategic locations across the CMCA corridor (the 6 new locations are Tapila, Nakaku, Kaviananga, Aiambak, Bosset and Ningerum) . These will be in place for upcoming OTDF support under the WPPDTF-funded Western Province Education Strategy from 2017 onwards. Read more about these and other activities progressed in the Education Sector on pages 36-38.

Infrastructure: On April 18, OTDF and nearly 1,000 people of the Middle Fly CMCA and Lake Murray celebrated the opening of the Western Province People’s Dividend Trust Fund (WPPDTF) funded PGK61 million Aiambak to Lake Murray portion of the Barramundi Highway. Constructed by Starwest, this is an excellent example of a high quality all-weather gravel road in a remote location.

Other infrastructure projects delivered in 2016 included those funded by the OTML and State Tax Credit Scheme which saw a total of PGK11.7 million spent on the implementation of the Fly River jetties, Kiunga Water Supply, Montfort School classroom and housing repairs & maintenance and Balimo Hospital housing projects. The sole remaining CMCA Trust Investment project under construction is the PGK27 million Cassowary Hotel in Kiunga which progressed to schedule in 2016 with completion and opening expected to be in September-2017.

By year end the Trust Investment Custodian was holding PGK25.6 million worth of returns for the benefit of future generations derived from infrastructure investments in transportation and commercial real estate assets. Read more about the Infrastructure Development Sector on pages 40-47.

Ian Middleton

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Local and Regional Economic Development: The Livelihood Development Package (LDP) program is the cornerstone of OTDF’s development, with an initial focus on engaging our community partners through Small Medium Enterprise (SME) aligned Companies to farm Eaglewood, Rubber and Rice; to support the mine villages to begin a 9,600 per day egg production facility in Tabubil; and to support the delta communities in the South Fly with fisheries opportunities, including solar powered ice making and freezer storage facilities. Read more about these and other activities progressed in this Sector on pages 54-61.

Community and Social Development: During the compilation of the new Strategic Direction it became evident that OTDF needed to do more for the CMCA Youths. The Foundation has built on the successful model of regional Women’s Associations to form 3 Youth Associations representing the North, Middle and South Fly. OTDF has partnered with the National Youth Development Authority (NYDA) to facilitate a series of workshops to guide and develop a 5 year Youth Action Plan to be implemented from 2017. Read more about the Community and Social Development Sector on pages 63-65.

On a personal note, my most memorable experiences have emanated from community engagement. This year included the opportunity to balance community, family and building teacher capacity in partnership with teachers from Trinity Anglican School (TAS) in Cairns and the Saint John Bosco Primary School in Kuem Village. In September the Kuem community

welcomed my wife and children and two TAS teachers into the very heart of their culture, symbolised by the picture below of Boazi warriors ensuring our safety and wellbeing, anytime we ventured into their village. Playing an active part in community life enables invaluable development lessons to be learned and fast tracks the achievement of CMCA community self-sustainability.

I am proud to report that our results have been achieved in the safest possible manner with zero harm to our staff, continuing an exemplary health and safety record in completing a sixth successive year without a Lost Time Injury (LTI).

OTDF’s success has again been contingent on the financial support of OTML, guidance of the Board and the tireless effort of the Management and Staff, thank you all for your loyalty and commitment following a very difficult stand-down period. Your unfailing support for the new Strategic Direction has directly contributed to the fast growing momentum of the Livelihood Development Package program.

There is much to look forward to in 2017: an election that is hoped to bring a more unified political climate across the Province; CMCA communities becoming shareholders in OTML; conclusion to the South Fly court case enabling implementation of the WPPDTF funded Western Province Education Strategy, Livelihood Development Package program and South Fly Village Relocation projects; completion of the Cassowary Hotel; and renewed development support to the South Fly communities.

Boazi warriors giving CEO, Ian Middleton a traditionalwelcome into Kuem village,

yMiddle Fly

Delivering with Innovation

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2016 Annual Report

Committee Year Formed

# Meetings Held in 2016

2016 Terms of Reference

Disciplinary 2014 6 Members: 7Meeting Frequency: As required Purpose: To deliberate on staff disciplinary incidents and make recommendations to the CEO on action(s) to be taken, as well as enabling a staff grievance process

Events 2015 3 Members: 6Meeting Frequency: As requiredPurpose: Plan and coordinate OTDF resources and engagement in special events (eg impact project ground breaking ceremonies)

Housing 2015 2 Members: 5Meeting Frequency: As requiredPurpose: Administer the OTDF Housing Policy to ensure the safety of residents, monitor occupants, the cleanliness of the properties and ongoing repairs & maintenance

Monitoring and Evaluation Reference Group

2014 10 Members: 6Meeting Frequency: As requiredPurpose: Support the prioritisation, design, implementation, monitoring and evaluation of projects worth over K100,000, across all 5 OTDF sectors, and acts as a reference group for the Monitoring and Evaluation Coordinator to review and endorse recommended changes on policies and procedures for approval by the EMT and subsequent inclusion in an updated M & E Handbook.

Risk Management 2015 4 Members: 8Meeting Frequency: At least bi-annuallyPurpose: Review OTDF Risk Management framework and report changes to the OTDF Board

Safety 2015 5 Members: 8Meeting Frequency: Monthly Purpose: Identify health and safety problems and develop procedures for safe systems of work

Tender Evaluation 2014 6 Members: 7Meeting Frequency: Every second month or as required Purpose: Ensure compliance with OTDF Tender Guidelines, and provide a framework for the effective, consistent and efficient management of tendering practices to achieve ‘value for money’

OTDF COMMITTEES

Delivering with Innovation

OTDF Operations, for which the Chief Operating Officer is responsible, comprises six departments: 1) Program Services - Sustainable; 2) Program Services - Operations; 3) Infrastructure Development;4) Trust Administration; 5) Finance Administration; and6) Human Resources. OTDFhas re-aligned its operationalstructure, systems, policies and work processes with the new

Strategic Direction 2016-2020: ensuring a focus on the five key sectors. Health, Education, Local and Regional Economic Development, and Community and Social Development Sectors (are the responsibility of Program Services – Sustainable Development); while the Infrastructure Development Department takes carriage of the Infrastructure sector. Major programs in these sectors are outlined on page 18 and a diagram of program expenditure by sector is provided on page 24.

Annual 2016 workplans were framed around results which contribute to OTDF’s high level sector indicators (page 19), and follow the Strategic Direction principles of engagement, and related strategies (page 5). In 2016, the workplan targets reflected the late start to operations after the dry weather stand-down. OTDF support for the five sectors contributes to the Foundation’s long term Vision to improve self-sustainability and quality of life of Western Province communities. They are also consistent with the National Government’s 2050Vision sectoral development priorities; Medium Term Development Strategy #2 (MTDS#2); Western Province Development Plan 2013-2017; and incorporate lessons learnt by OTDF from the past 6 years of operations.

OTDF has a continuous improvement approach to transparent and accountable policies and systems supporting identification, implementation, monitoring and evaluation of programs and projects. These are summarised in the Project Life Cycle Diagram (page 25), and embodied in the organisation-wide approach to Results Based Monitoring and Evaluation.

The high level indicators of the results achieved from each of the six operating Departments are highlighted in this report. Following are some of the key highlights of 2016:

MESSAGE FROM THE CHIEF OPERATING OFFICER

Lalatute Avosa

Key Result Areas focused on the new Strategic Direction: effectively and efficiently implementing development programs in the 5 priority sectors; including: mobilising funds for transport and education infrastructure projects; increasing operational support, and strengthening partnerships with community, government and businesses, essential to implementing priority Rubber, Eaglewood, Rice and Egg Production LDP programs. The reduction in CMCA Trust Development projects is directly related to the increase in the cash component paid to individuals, and also project delays in the South Fly due to the ongoing court case. OTDF consolidated its commitment to open and transparent communications through a permanent presence of Field Base Coordinators at Tapila, Nakaku and Aiambak, together with a successful Communications Patrol resulting in increased numbers of stakeholders consulted in 2016 on a range of issues.

The Foundation continued to work on establishing and consolidating appropriate and accountable financial and operations support systems, to demonstrate to potential donors that OTDF has the capacity to operate as a credible development partner. Completion of the Human Resources Manual in 2016 was another milestone in the process of standardising and documenting OTDF policies and procedures, to support results based management of personnel. This follows the completion of the Monitoring and Evaluation (M & E) Handbook in 2015, and commencement of the roll-out of M & E systems in 2016, which cut across all OTDF operations.

Exciting new developments in 2017 include planning a blueprint for OTDF to play an expanded development role across Western Province. I am privileged to take the lead with this planning as the OTDF Transition Plan Consultant. Given OTDF’s proven capacity and results delivered over the past 6 years operating as a reputable development organisation working in partnership with the Fly River Provincial Government, other development partners and stakeholders, the Foundation is well placed to explore a wider development mandate beyond the CMCA footprint.

KEY OPERATING STATISTICSKey Result Areas 2016 2015 Stakeholder consultation 38,030 30,931Infrastructure projects 20 22Trust Development projects 34 62Rubber - hectares planted 99 22Eaglewood - seedlings grown 92,000 0

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2016 Annual Report

Local communities in the Middle Fly District assist with the distribution of rice suppliedduring the dry weather event

Delivering with Innovation

OTDF SECTORS AND RELATED PROGRAMS

INFRASTRUCTURE

Commercial Real Estate

Power & Communications

Community Water Supply & Sanitation

Community Housing

Transportation WaterRoadAir

LOCAL & REGIONAL ECONOMIC DEVELOPMENT

Forestry

Animal Production

Agriculture

Small & Medium Enterprises

EaglewoodRubber

RiceRoot CropsHorticulture

PoultryLivestockAquaculture

Youth Development Programs

Women & Children’s Programs

COMMUNITY & SOCIAL DEVELOPMENT

Community InfrastructureCommunity Capacity BuildingCommunity Institutional Support

CMCA Middle & South Fly Health Services Development Program

North Fly Health Services Development Program

HEALTH

Community Based Health Initiatives Health Facility InfrastructureHealth Institutional Development

EDUCATION

Education Facility InfrastructureEducation SponsorshipEducation Institutions Development

Community Education Service ProgramsFODE

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2016 Annual Report

RESULTS INDICATORSLOCAL AND REGIONAL ECONOMIC DEVELOPMENT SECTORIncreased income earning and employment opportunities, and reliable subsistence consumption for CMCA communities

Percentage increase in non-OTML cash income perhouseholdPercentage of CMCA population in paid employment Number of SMEs owned and operated by CMCA communities

EDUCATION SECTORCMCA access, quality of curriculum, quality of teacher education & training, and management improved in line with the Western Province and National Education Plans

Net enrolment ratio (%) in primary education (grade 1-8)Percentage increase in FODE students completing Year 10& Year 12Number of girls per 100 boys in primary educationPupil-teacher ratioNumber of elementary schoolsNumber of primary schoolsProportion (%) of elementary and primary schools with access to safe water Proportion (%) of elementary and primary schools with hand washing facilities

HEALTH SECTORCMCA primary health care service delivery strengthened in line with the Western Province and National Health Plans

Proportion (%) of one year old children immunized against measlesProportion (%) of births attended by trained health personnelProportion (%) of pregnant women who had at least one antenatal care visitNumber of outreach clinics conducted per 1000 children under 5 yearsNumber of aid posts open Proportion (%) of health facilities with access to waterProportion (%) of health facilities with hand washing facilities

INFRASTRUCTURE SECTORIncreased access to markets, basic services and village facilities that contribute to improved local and regional economic development opportunities, education & health status, and social development of CMCA communities

Estimated length of provincial and district roads Number of jetties upgraded for domestic vessel trafficIncreased number of scheduled shipping routesIncreased number of scheduled air routes Proportion (%) of rural population using an improved drinking water sourceProportion (%) of rural population using improved sanitation facilitiesHousehold electrification rate (% of households)Proportion (%) of population covered by at least a 3G network (proxy internet coverage)Number of affordable houses constructed

COMMUNITY AND SOCIAL DEVELOPMENT SECTOR Increased participation by CMCA community members (including women and youth) in planning, decision-making and implementation of community development priorities

Number of Regional Women’s and Youth Associations complying with corporate governance obligationsNumber of Women’s and Youth group members trained to implement the LDP programNumber of CMCA co-funded partnerships with government and non-government agencies

OTDF RESULTS FRAMEWORK HEADLINE INDICATORS

Delivering with Innovation

OTDF PARTNERSHIPSAs a community based development organisation, OTDF values partnerships as an integral part of achieving its vision for fulfilling the development aspirations of the CMCA communities. OTDF’s partnership with these communities and their formal structures, including Village Planning Committees, CMCA Trust Boards, Women’s Associations, CMCA

Advisory Committee, and Board Associate Directors are focused on efficient and effective implementation of high quality sustainable projects. Complementing the CMCA partnerships are the technical, managerial and funding partnerships to support project implementation and augment funding.

Partner Sector 2016 ActivitiesAbt Associates Health Contracted to implement CMCA North, Middle

& South Fly Health Services, including Kiunga Hospital and Tabubil Urban Clinic

University of Technology Education Affiliation with the Department of Distance Learning for FODE programs in the North, Middle & South Fly

Business for Development, OLAM, Trukai & LBL

Local & Regional Economic Development: Rubber & Rice

Provide an inclusive market alternative for Rubber farmers and support commercial Rice trials

Pacific Forest Alliance Local & Regional Economic Development: Eaglewood

Develop the Eaglewood industry and promote Forest Conservation programs

PNG Rubber Board Local & Regional Economic Development: Rubber

Support the Fly Rubber Ltd model to buy, process and export cup lump and creped rubber sheets

National Development Bank

Community & Social Development

Loan facilities for women & youth

National Youth Development Authority

Community & Social Development

Facilitating the CMCA & Mine Village youths to develop a 5 year Youth Action Plan

OTML Infrastructure OTDF operations funding supportShipping and aviation lease agreementsTax Credit Scheme funding and impact project approval

Fly River Provincial Government

Infrastructure TCS project approval and Provincial growth centre program support

National Department of Planning & Monitoring

Key role in assessing and approving TCS funded projects in line with the MTDS#2

Kramer Ausenco Technical project engineering services

Steamships Trading Company Group

Infrastructure: Commercial Real Estate

A Trust Investment & Women’s Association joint venture with Coral Sea Hotels and Pacific Palms Properties for the Cassowary Hotel in Kiunga

Starwest Constructions Limited

Infrastructure Road and bridge constructionKiunga water supply & sewerage upgrade

Tawap Kamen Investments Infrastructure School and housing constructionNawae Construction Ltd Infrastructure Fly River jetties construction and upgrade

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2016 Annual Report

Open and transparent communication is a key principle of strategic engagement in the Ok Tedi Development Foundation Strategic Direction 2016-2020. Key strategies utilised in 2016 to support OTDF’s communications include:-

Communications Patrol: In 2016, OTDF led a successful Communications Patrol that covered 156 of the 157 villages within the Community Mine Continuation Agreement corridor in May and June. The patrol was an opportunity for OTDF officers to spend more time with village communities in communicating to them OTDF’s development aspirations and key messages, and to seek feedback through question and answer sessions. On this patrol, OTDF officers were joined by development partners Abt Associates, Pacific Forest Alliance, Police, and the PNG Defence Force. All 156 villages visited were particularly supportive of OTDF’s Livelihood Development Package program plans. A team of five OTDF officers attempted to reach the remote South Fly village of Serki by dinghy, but turned back because of thick river vegetation blocking the waterways (only village not visited).

Communications Policy: A key strategy for guiding effective internal and external communication is OTDF’s Communications Policy, currently in its development phase. The Policy will focus on how OTDF manages the flow of information to key stakeholders such as the CMCA communities, OTML, and the Fly River Provincial Government. It will also establish protocols to follow when dealing with mainstream and social media comments. A first draft should be complete by mid-2017.

Radio Fly: The single most effective means for OTDF communication with the 157 CMCA villages has been OTDF Toksave programs and interviews with OTDF officers on Radio Fly, broadcasting from Tabubil. The radio service, previously run by OTML’s Communications & Public Relations Department was discontinued in August 2015 due to problems with the receiver tower at Mount Robinson. All Radio Fly staff were subsequently made redundant during the dry weather temporary suspension of the Ok Tedi Mine.

The plan for OTDF to re-activate Radio Fly in 2016 and broadcast from Kiunga using up-to-date technologies is pending the allocation of funding. Costs are estimated to be around PGK 1.5 million to cover re-location of existing studio equipment and purchase of new equipment. Meanwhile, OTML and OTDF are in consultation with communications specialists, TE (PNG), to investigate upgrading the current receiver tower at Samagos in Kiunga. A tower in Kiunga would enable communities from the Middle to South Fly to receive a clearer radio signal when the station is up and running. Previously the radio frequency only reached communities in the North Fly.

Mainstream and Social Media: OTDF continued to communicate its main project developments through the mainstream media, and social media (Facebook), which had 2,300 followers in 2016.

COMMUNICATIONS

OTDF Officer, Veao Nami addressing the community during the 2016 Communications Patrol in Samari village, South Fly

The Fly River Forum on Facebook is the principal site for the general public to air their views on Western Province issues

Delivering with Innovation

OTDF is grateful to all mainstream media houses – Post Courier, The National, Wantok Niuspepa, Sunday Chronicle, Loop PNG, National Broadcasting Corporation (NBC), FM100, PNGFM, TV WAN, and EMTV – for their continued support in publishing and broadcasting OTDF’s development stories.

A highlight for 2016 was EMTV’s detailed coverage of OTDF’s infrastructure projects and its Livelihood Development Package program, aired on Episode 39 of EMTV’s Olsem Wanem program on October 24.

FLY BREEZE: In 2016, OTDF continued to publish its electronic newsletter, Fly Breeze. Publication of the newsletter changed from a quarterly 4-to-8-pager to a 2-page monthly beginning in June. The principal reason for the change being that a monthly publication would better highlight key events within the month they occur. A smaller size publication also allowed for easier electronic distribution to recipients that have limits on their mailbox.

WEBSITE: Work on refreshing the OTDF website began in August 2016. Australian web developer, Whitetower was contracted to improve (in consultation with OTDF’s CEO, IS Team Leader, and Media and Communications Officers) user interfaces; create a new site map and framework for uploading new content on OTDF projects and programs; and key corporate documents such as Annual Reports and the Strategic Direction 2016-2020.

The site will be ready for launching in April 2017 with a fresh new look and will be more user-friendly.TV Wan and EMTV media personnel filming the

OTDF CEO in the Nakaku Eaglewood nursery

This is a monthly publication of the Ok Tedi Development Foundation and its community partners of Western Province Issue 09 - June 2016

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Financial self-reliance the way forward

Inside this issue:

Villager inspecting rice crops at Kautru, South Fly.

Richard Zumoi has been an Associate Director with the OTDF Board since 2009 to present. He represents

the CMCA people of the Middle Fly Trust region.He is a former primary school teacher and was instrumental in the CMCA negotiations between 1999 and 2001 and then again during the 2006/2007 CMCA review. Mr Zumoi was also involved in the initial creation of the Foundation and throughout the transition

period in 2010 which saw OTDF begin operating as an independent entity from OTML. He was further involved in the 2009 to 2012 MLE Community Consultation process and is now the CMCA people’s representative regarding consultation and negotiations with the State for a direct share in OTML.He comes from Wangawanga Village in the Middle Fly Trust region of the Middle Fly District.

PROFILE

Home

OK Tedi outlines new focusSource:The National, Friday Apri l 15th, 2016

COMMUNITY financial self -rel iance is the new focus of the Ok Tedi Development Foundation as it rol ls out its2016 to 2020 strategic direction.The f ive -year strategic direction was endorsed by the Community Mine Continuation Agreements advisorycommittee and OTDF board during their meetings last month.The programmes and projects would focus on the theme “Community f inancial self -rel iance through socio -economic init iat ives and improved infrastructure”.The foundation said it would engage with stakeholders in its priority development sectors of health, education,infrastructure, economic development, and social development.Chairman Musje Werror said the year’s strategic direction reflected the company’s transit ion to becoming lessdependent on funding from Ok Tedi Mining Limited and assumed greater responsibi l i ty as the developmentvehicle for Western.“In part due to the dry weather in the latter half of 2015, the Foundation staff numbers were reduced and theorganisation re-structured consistent with the lessons learned from the previous six years of operations. andthe anticipated development needs of the province over the next f ive years,” Werror said.

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15th Apri

HOME NATION SPORTS BUSINESS EDITORIAL EDUCATION LETTERS

ew focus of the Ok Tedi Development Foundation as it rol ls out its

ed by the Community Mine Continuation Agreements advisoryetings last month.n the theme “Community f inancial self -rel iance through sociugh socio -oture”.akeholders in its priority developmenment sect sectorstors of hof healthof health,, educatioeducation,

social development.tegic direction reflectedflected ththe come company’company’s transittransit ion to becoming lessLimited ad and asnd assumedssumed greategreater rr responsesponsibi l i ty as the development

r haalff of 2of 2015,2015, thethe Foundation staff numbers were reduced and thehe leesssonsons learned from the previous six years of operations. androvvinncece over the no ext f ive years,” Werror said.

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2016 Annual Report

Trukai Industries rice extension officers demonstrate rice seed sowing at their Erap Research Station in Lae to selected CMCA farmers from Birimkamba & Rudmesuk (North Fly), Kaviananga (Middle Fly) and Lewada (South Fly)

Delivering with Innovation

Local & Regional Economic Development

Infrastructure

Health

Education

Community & Social Develpement12%

56%

19%

10%3%

PROGRAM EXPENDITURE BY SECTOR PGK 24,816,016

General Administration

Consultants & Professional fees

Program Support

Travel

Fuel

Salaries /Wages & Employees related cost

4%

18%

34%

3%

31%

10%

OPERATING EXPENDITURE BY CATEGORY PGK 29,506,127

Mine Villages (6x)

4x South Fly Trusts*

Middle Fly Trust

Waitri Trust

Tutuwe Trust

Nupmo Trust5%

39%

15%

27%

13%2%

*South Fly funding frozen by the court

TRUST FUNDS EXPENDED PGK 10,671,015Mine village contribution - PGK 4, 472,232CMCA contribution - PGK 6,198,783

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2016 Annual Report

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Delivering with Innovation

TRUST ADMINISTRATIONThe primary responsibility of the OTDF Trust Administration Team is to manage the Development and Investment funds for the 8 CMCA Trusts and their subsidiary companies as stipulated under the 2001 Community Mine Continuation Agreements. In 2016, the 4 South Fly Trusts were unable to plan and fund development activities due to the ongoing South Fly court case.

The 2015-2025 CMCA Mine Life Extension benefit splits have resulted in less funding for development activities and Trust administration. To adjust for this reduced funding which has resulted in fewer development activities for Trusts to review and approve, changes were made in 2016 to contain costs, including: limiting the number of trust meetings to 3 per year; and reviewing guidelines to limit the scope of: (a) assistance to Trustees; (b) medical evacuations; and (c) education assistance. The term of office for Trustees was also extended from 3 to 5 years, which will further reduce the administrative costs associated with conducting elections and subsequent inductions.

With a strong focus on financial and managerial self-sustainability, the Trust Administration Team together with the Economic Development and Program Services Operations Teams also supported other Trust business entities in the North and Middle Fly as owners and operators of various income-earning assets, and as investors.

In 2016 the 4 active CMCA Trusts assessed and approved 34 Village Development Project submissions during the Trust meetings at the value of PGK7,431,973 covering all five OTDF sectors.

Trust expenditure directly on projects totalled PGK6,198,783, in 2016. An additional PGK822,620 was expended on overheads including accounting, management, audit and legal fees, and costs associated with Trust meetings. This represented 12% of total CMCA Trust expenditure. To reduce overheads incurred on Trust accounting functions, a Trust Accountant was recruited in late 2016 to manage the transition from external accounting services and provide an in-house capability.

Trust investments are an integral part of the CMCA benefits package, through which the respective Trusts have dedicated approximately 10% of their funds (see pages 40-43). In 2016 the Trust Investment portfolio strategy emphasised the building of long term cash flow by investment of returns from income-generating assets in high yielding, high coupon inscribed stock to maximise the benefits of interest on accumulated funds. Current investments will realise a coupon income of PGK15.7 million over their life: to date the investment portfolio has returned PGK25.6 million. The flow diagram below shows the progression of funds through the respective CMCA syndicates through to the cleared funds held by the Custodian.

FUNDS TO SINTON SPENCE CHARTED ACCOUNTANTS

(Accounting & Administration)

TRUST INVESTMENT COMPANIES(Shipping/ Aviation/Properties)

CMCA SYNDICATES(Pooling of Trust Investment funds)

TRUST INVESTMENT FLOW DIAGRAM

FUNDS TO CUSTOS (Inscribed stocks return 8-10%)

OTML / OTDF / STEAMSHIPSLEASE AGREEMENTS

(8% Return On Investment)

2016 CMCA Trust Project Expenditure by Sector: PGK 6,198,783

Local & Regional Economic Development

Infrastructure

Health

Education

Community & Social Develpement

6%

38%

27%

21%

8%

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2016 Annual Report

PAD sponsored Maritime Cadets Tady Roy - Engineer Cadet (far left) and Paul Samgure - Deck Cadet (far right) ready to board the MV FLY RESILIENCE to begin their practical maritime training

Delivering with Innovation

The North Fly Health Services Development Program (NFHSDP) and the Community Mine Continuation Agreement Middle and South Fly Health Program (CMSFHP) continue to support health services in Western Province. NFHSDP is an initiative of and funded by OTML and managed through OTDF. NFHSDP commenced in 2009 for an initial five years and was extended for a further five years; the total value of the 10 year program is PGK58 million. CMSFHP is funded by the CMCA portion of the WPPDTF and managed by OTDF. CMSFHP is a PGK43 million program that commenced in 2013.

In 2016, NFHSDP and CMSFHP were integrated into one Program with the aim to create greater efficiency by maximising service delivery whilst minimising overhead costs. Both Programs are implemented by Abt Associates in partnership with existing

government and church health service providers and are due to end in 2018. NFHSDP and CMSFHP are aligned with the PNG National Health Plan 2011-2020 and the goal is to strengthen primary health care for all and improve service delivery.

NFHSDP and CMSFHP results for 2016 are presented on pages 29 and 31 and Western Province health outcomes from the National Health Information System (NHIS) are provided on page 33. Profiles for NFHSDP and CMSFHP are included on pages 30 and 32. Whilst Program activities were constrained by the dry weather event in the first half of 2016, improvements to health services were made in the respective Program catchment areas through a range of activities under three Program components (refer to the table below).

1. Support to Provincial and District health services and partnerships

2. Strengthening fundamental enablers of health care

3. Support tailored to community needs

Activities Facilitate collaborative review, planning and coordination of quality health services in Western Province in partnership with Evangelical Church of PNG, Catholic Health Services, and District and Provincial Government

Ensure fundamental building blocks for health care are available to all health facilities supported by the Program through strengthening health infrastructure, logistics and medical supplies; and formal and-on the-job training

Clinical service delivery through outreach and health facility attachments. Implement community based initiatives including health awareness sessions, Village Health Volunteer (VHV) Program and Healthy Village Concept

2016 Key Updates

Patrols conducted with partners to communicate key health messages, review status and capacity of health facilities, and provide targeted clinical services

8 staff houses under construction; installed vaccine fridges and freezers and examination couches; and maintained functionality of health facility radios

Targeted health information sessions to increase awareness around maternal and child health (MCH), family planning and other health topics

In-line Nursing Officer position supported at Aiambak Aid Post

Responded to a suspected dengue outbreak at Aiambak Aid Post, Middle Fly

42 x 2-4 week attachments and 226 outpatient clinics conducted on outreach in the Program regions

Midline evaluation findings finalised and distributed through posters, radio announcements and news supplements

Training in family planning, contraceptive implants, leprosy diagnosis and control, and follow up provided

Targeted clinical services in Daru settlements; and a health patrol conducted in the Murray Valley communities

Convened monthly Health Management Committee Meetings; Women’s Health Meeting and TB and MCH, Education, HIV and Leprosy Program Activity Group Meetings

Increased clinical supervision in the workplace; new clinical attachment facility reports modelled on the NDoH Integrated Supervision Checklist

VHVs improved competency in cleaning up community environment; encouraging good water and sanitation practices; building village toilets and rubbish pits; and giving health promotion sessions

HEALTH SECTOR OVERVIEW

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ANTENATAL CARE VISITS CONDUCTED

NFHSDPPROGRAMRESULTS2009-16

110,800+ATTENDANCES AT COMMUNITY AWARENESS SESSIONS ON VARIOUS HEALTH TOPICS

95,918LONG LASTING INSECTICIDE TREATED BEDNETS DISTRIBUTED IN PARTNERSHIP WITH ROTARIANS AGAINST MALARIA

191,300+CONDOMS DISTRIBUTED

HEALTH RADIOS INSTALLED

42,000+VACCINATIONS ADMINISTERED TO CHILDREN UNDER 5 YEARS OLD

89,000+OUTPATIENT ATTENDANCES AT TABUBIL URBAN CLINIC SINCE OPENING IN 2011

9 FACILITIES AUDITED TO IMPROVE TB CASE MANAGEMENT PATHWAYS IN 2016

22

17 VACCINE FRIDGES INSTALLED

10STAFF HOUSES BUILT

96SCHOLARSHIPS AWARDED FOR 18 DIFFERENT COURSES

57+FORMAL TRAININGS CONDUCTED FOR HEALTH WORKERS

1,725ON THE JOB TRAINING SESSIONS CONDUCTED WITH HEALTH WORKERS

26COMMUNITY MEMBERS TRAINED AS VILLAGE HEALTH VOLUNTEERS

5REMOTE VILLAGES VISITED ON PATROL WITH THE NUPMO WOMEN’S TRUST ASSOCIATION IN OCTOBER, 2016

4,500+

1,470+CONTRACEPTIVE IMPLANTS ADMINISTERED IN NORTH FLY DISTRICT SINCE INTRODUCED BY THE PROGRAM IN 2015

19HEALTH WORKERS TRAINED IN LONG-LASTING CONTRACEPTIVES

7 VACCINE ICE-PACK FREEZERS INSTALLED

MEETINGS HELD AMONG THE 5 PROGRAM ACTIVITY GROUPS SINCE ESTABLISHED IN 2009

108

AREA WIDE SERVICES TEAM CONTINUE TO WORK ACROSS MATERNAL AND CHILD HEALTH, HIV AND TB, MALARIA, AND ENVIRONMENTAL HEALTH

COLD-CHAIN AND HEALTH RADIO FUNCTIONALITY CONTINUOUSLY MONITORED

Delivering with Innovation

PROFILE

Kiunga Hospital: The NFHSDP supports Kiunga Hospital through management and administrative inputs so that continuous medical care can be provided to the community. Kiunga Hospital is a Level 4 facility, providing services for communities across North Fly District and increasingly from other districts and provinces.

Kiunga Hospital - key 2016 updates:Donations were gratefully received from the Kiunga Chinese Community, Rotary Club of Castlemaine, Medshop Australia, Kiunga Guest House, Horizon Oil, WP Hardware, and OTDF which enabled purchase of essential medical equipment, food rations and infrastructure amongst other necessary improvements. Operating theatre re-opened in February following delivery of essential anaesthetic medical suppliesSix Australian volunteers from the Rotary Club of Castlemaine (Victoria) conducted building works on the Outpatient department, Tuberculosis (TB) clinic and TB wardFive groups of Griffith University 4th-year medical students undertook their 6-week placements at the Hospital throughout the yearA Health Extension Officer joined the Hospital In-house training for all staff on TB was conducted by TB Physician, Dr Stenard Hiashiri

The volunteer Infection Control Nurse from Japan International Cooperation Agency completed his two year contractCommunity Clean-Up Days involved cleaning up the Hospital grounds Walk for Life sessions held on Sundays in the community were initiated by Hospital staff to promote healthy lifestyles The Kiunga Hospital Annual Report was compiled and distributed to key stakeholders

Tabubil Urban Clinic: The NFHSDP has supported the development of and operations at Tabubil Urban Clinic, since it was built in 2011 to provide primary health care services and reduce the demand on tertiary health care services provided by Tabubil Hospital.

Tabubil Urban Clinic - key 2016 updates:Regular health patrols conducted at Ningerum Health Centre and outreach clinics in highway village Matkomnai 25 mobile clinics conducted between April – December with a delayed start due to the dry weather eventRegular community awareness sessions provided, including TB, malaria, sexual health, and personal hygiene.Conducted health radio consultations with health facilities to discuss and follow up medical cases

North Fly Health Services Development Program: Kiunga Hospital and Tabubil Urban Clinic

“The exchange of knowledge and techniques between local staff members and our group was a humbling experience. It was extremely rewarding to see the benefits of this co-operation in the healthcare provided to the local community. I would like to express thanks to all members of Kiunga Hospital staff for their patience and willingness to engage with me.” Marcus Urmoneit, Griffith University Medical Student.

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2016 Annual Report

ON THE JOB TRAINING SESSIONS CONDUCTED WITH HEALTH WORKERS

COMMUNITY MEMBERS TRAINED AS VILLAGE HEALTH VOLUNTEERS

CMSFHPPROGRAMRESULTS2013-16

15HEALTH WORKERS TRAINED IN LONG-LASTING CONTRACEPTIVES

516

96

HEALTH RADIOS INSTALLED

22

14

VACCINE FRIDGES INSTALLED

VACCINE ICE PACK FREEZERS INSTALLED

500+IMMUNISATIONS ADMINISTERED IN MANAWETE REGION AS PART OF THE SIREP PLUS PROGRAM IN MAY, 2016

NEW STAFF HOUSES NEARING COMPLETION, BRINGING THE TOTAL BUILT BY THE PROGRAM TO 12.

7

33,000+VACCINATIONS ADMINISTERED TO CHILDREN UNDER 5 YEARS OLD

598OUTREACH CLINICS CONDUCTED IN REMOTE VILLAGES IN THE 5 CMCA REGIONS

ATTENDANCES AT COMMUNITY AWARENESS SESSIONS ON IMPORTANT HEALTH TOPICS

SCHOOLS IMPLEMENTING THE HEALTH PROMOTING SCHOOL CONCEPT

582-4 WEEK CLINICAL ATTACHMENTS CONDUCTED SINCE INTRODUCED IN 2015

50WATER FILTRATION BUCKETS DISTRIBUTED TO FACILITIES AND COMMUNITIES DURING THE DRY WEATHER EVENT AND DIARRHOEAL OUTBREAKS IN 2015-16

10

15EXAMINATION COUCHES DISTRIBUTED TO AID POSTS

SAMARI, MAIPANI AND AIAMBAK HEALTH FACILITIES COMPLETELY RENOVATED AND RE-OPENED

26OCCASIONS OF SUPPORTIVE CLINICAL SUPERVISION FOLLOWING EOC AND FAMILY PLANNING TRAINING IN 2015

131,350+CONTRACEPTIVE IMPLANTS ADMINISTERED IN MIDDLE AND SOUTH FLY DISTRICTS SINCE INTRODUCED BY THE PROGRAM IN 2015

43,800+OUTPATIENT PRESENTATIONS DURING OUTREACH CLINICS AND CLINICAL ATTACHMENTS

20,800+CHILDREN UNDER 5 YEARS OLD ASSESSED FOR NUTRITIONAL STATUS

8,950+ATTENDANCES AT HEALTH PROMOTION SESSIONS ON

PROPER SANITATION AND SAFE DRINKING WATER DURING THE DRY WEATHER EVENT IN 2015-16

165,000+

Delivering with Innovation

PROFILEIn 2016, the Program Team worked with partners to establish a Health Transition Plan. The Plan outlined the direction of the Program for the remaining two years of intervention (2017 and 2018). It will be a key focus to transition from direct clinical inputs towards working with the partners to identify impediments in achieving sustainable health services and developing mitigation measures, whilst maintaining improvements made.

The Program will seek collaborative funding to support Province wide health services from 2019.

Key Transition Plan Activities for 2017-2018:

1. Support to Provincial and District health services and partnerships

2. Strengthening fundamental enablers of health care

3. Support tailored to community needs

Activities Facilitate collaborative review, planning and coordination of quality health services in Western Province in partnership with Evangelical Church of PNG, Catholic Health Services, and District and Provincial Government

Ensure fundamental building blocks for health care are available to all health facilities supported by the Program through strengthening health infrastructure, logistics and medical supplies; and formal and-on the-job training

Clinical service delivery through outreach and health facility attachments. Implement community based initiatives including health awareness sessions, Village Health Volunteer Program and Healthy Village Concept

2017-2018 Key Activities

Continue to strengthen partnerships through convening meetings for regular review, planning and coordination of quality health services in Western Province

Focus on conducting supervisory visits at health facilities to assess institutional capacity and improve skills in essential obstetric care, family planning and MCH

Continue to provide clinical services as required by partners, including immunisations, antenatal care and other outpatient services. Direct clinical care will reduce as partner capacity increases

Facilitate leadership and governance through strengthening the use of health data for decision making

Work with partners to support and maintain infrastructure improvements

Continue to work with communities that demonstrate a commitment to implementing the Healthy Village Concept including health promoting schools and the VHV Program. The Program will make every effort to identify a partner organisation(s) to provide ongoing support to communities in 2018 and beyond

Contribute to a strengthened National Health Information System in Western Province, through NHIS training, facilitating more communication and feedback between all levels of health information management

Support partners to improve human resource development through funding in-line positions, providing scholarships for health workers and school leavers, and supporting transition of training activities to the Western Province Annual in-service Training Plan

Health Program Transition Plan

Village Health Volunteer training in Gusiore village

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2016 Annual Report

WESTERN PROVINCE HEALTH SECTOR PERFORMANCE 2015

Improvements in the individual indicators suggest the Program has contributed to the positive outcomes for health service delivery in Western Province. These improvements are displayed below from prior to baseline year of each program to 2015.

ANTENATAL 1ST VISIT COVERAGE

OUTPATIENT VISITS PER PERSON PER YEAR

COUPLE YEARS PROTECTION FOR CONTRACEPTION

OUTREACH CLINICS PER 1000 CHILDREN

Delivering with Innovation

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2016 Annual Report

Sr Rita Kengem, the Family Planning Coordinator with Abt Associates conducting Family Planning awareness at Briompenai Village, North Fly

Delivering with Innovation

EDUCATION SECTOR OVERVIEW

The OTDF strategic 5-year goal for the Education Sector is CMCA access, quality of curriculum, quality of teacher education and training, and management improved in line with the Western Province and National Education Plans. OTDF headline indicators of success in this sector are drawn from national plans to support access through increased numbers of primary and elementary schools, including facilities for clean water and sanitation. In primary education specifically, OTDF has also adopted national access indicators for pupil-teacher ratios, net enrolment ratios and number of girls per 100 boys in primary education. These targets are designed to ensure that in the future all 6-year-old girls and boys will have the opportunity to commence elementary school; progress through the education system to complete secondary, technical and vocational certificates; and continue on to employment or post-secondary education.

OTDF has also acknowledged the importance of giving out-of-school youth and adults the opportunity to re-enter the education system to improve or complete their Grade 10 and 12 qualifications through expansion of the Flexible and Open Distance Education (FODE) system in Western Province (see more on page 37).

CMCA Trusts, Preferred Area Development (PAD), and the OTML Tax Credit Scheme have recognised the importance of supporting education access at all levels, through a focus on education infrastructure, and providing incentives for motivated young people to continue studies, including:

secondary and targeted post-secondary scholarships (including teaching) administered by OTDF (see Community Education Support page 38);supporting community responsibility for elementary and secondary education by allocating CMCA Village Development Funds to elementary classroom construction and Aiambak High School curriculum materials (see Trust Project Expenditure by Sector on page 26); andconstruction and renovation of classrooms and teacher housing (see OTML TCS page 44).

Implementation of the much-anticipated Western Province Education Support Program (WPESP) will

commence when funding from the WPPDTF becomes available. WPESP will consolidate and complement existing OTDF, National Department of Education and Provincial education activities and programs. The Program will broaden the current OTDF focus to contribute to sector objectives for curriculum, teacher training, and management.

DIVINE WORD UNIVERSITYPROFILE

Divine Word University (DWU) is a nationally accredited Catholic University, located in Madang Province. Established in 1996, DWU is one of the newest tertiary institutions in the country, offering Arts, Business, Education, Health Sciences and Theology courses.

OTDF Community Education Services (CES) facilitated the selection, sponsorship fees, book allowances, enrolment and travel for 17 students to attend DWU in 2016.Addressing sponsored students, Mr. Ted Alau, DWU Vice President – Student Affairs said:

“DWU is pleased to see a lot of students are sponsored by OTDF to study in various programs offered by the University. We would like to see more students to come and study at DWU. Western Province will need the educated elites that come out of the University to go back and help change the Province by contributing in your area of speciality for the good of the people of Western Province. Commit to your studies and you will be successful .”

CMCA Trust and PAD sponsored students with University staff and visiting Trustees at Divine Word University, Madang

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2016 Annual Report

FLEXIBLE AND OPEN DISTANCE EDUCATION PROGRAMNew FODE Satellite Study Centres: OTDF’s support for FODE focuses on improving access to secondary study for out of school youth and adults in Western Province. As planned for 2016, OTDF Community Education Services (CES) established six new FODE satellite study centres at existing Government schools in the North, Middle and South Fly at Ningerum, Bosset, Aiambak, Obo/Kaviananga, Nakaku, and Tapila. Added to the existing centres at Tabubil and the FODE Head Office in Kiunga (located at Samagos), this brings the total number of FODE centres managed by OTDF to 8, the largest number in any PNG Province. A building at the OTDF Samagos field base was refurbished in 2016 to create a 30-student classroom.

The OTDF CES Team negotiated with the 6 school Principals and signed MoU’s to use their facilities for tutorials and their teachers as part-time tutors. Three Regional Coordinators were appointed to manage the centres in North, Middle and South Fly. In preparation for the new school year, in-service training on FODE program administration will be conducted in February and March 2017.

CES promoted FODE 2017 school year enrolments at the 6 new study centres by visiting communities during the Communications Patrol and during enrolment visits, resulting in a total of 383 enrolments of which 25% were females.

Note: North Fly enrolments were yet to be finalised when the Annual report went to print.

To support the FODE satellite centre expansion in the Middle Fly Region, women leaders have allocated PGK200,000 to sponsor one subject for every student in the Region enrolled in 2017 in either FODE or adult matriculation.

The CES Team developed FODE Policies and Guidelines for the 2017 roll-out to ensure expanded operations provide effective coordination, and transparent and accountable service delivery. These are based on maximising the benefit to the

ENROLMENTS IN 6 NEW FODE STUDY CENTRESGrade South Fly Middle Fly

Male Female Total Male Female Total 8 33 16 49 103 23 126 9 2 0 2 4 2 6 10 31 26 57 90 26 116 12 7 3 10 16 1 17Total 73 45 118 213 52 265

communities, focusing on quality, community support and improved academic results.

FODE and Adult Matriculation Enrolments and Results: Enrolments in 2016 were lower than usual, as regular awareness and enrolment sessions could not be conducted in late 2015 due to the dry weather stand-down. In accordance with the National Department of Education policy on free education, no new Grade 7 and 8 students were enrolled. All Grade 9 students were those who dropped out of Grade 8 in 2015.

All Grade 10 and 12 students receiving transcripts had previously completed those grades and wanted to up-grade their marks. Of the 115 students enrolled in Grade 12, 105 (91%) completed their studies, of which 23 (20%) received Adult Matriculation Grade 12 certificates/transcripts. All 173 Grade 11 students were eligible to continue to Grade 12 in 2017.

The CMCA Trusts and OTML-funded PAD villages remain supportive of the FODE program and allocated a total of PGK87,150 in funds in 2016 to assist enrolled students from their Regions with one subject per year for FODE (Grades 9 & 10) and one subject per semester for Adult Matriculation.

2016 FODE AND ADULT MATRICULATION ENROLMENTS AND RESULTS

Enrolments Transcript Certificate

FODE (Gr. 9 – 10)

204 113 0

Adult Matriculation

288 92 23

Total 592 205 23

Adult Matriculation officer Samson Kuman registering a student at the new Obo-Kaviananga FODE satellite study centre, Middle Fly

Delivering with Innovation

COMMUNITY EDUCATION SUPPORTCommunities have recognised the importance that education plays in improving economic and social conditions in the Western Province. The Scholarships Program, funded by CMCA Trust, Mine Villages and OTML PAD aims to improve access to secondary and post-secondary education opportunities for children and youth from those communities. The OTDF Strategic Direction 2016-2020 has committed to targeting new post-secondary scholarships to support priority human resource development needs in the Western Province for teachers, health workers, and skilled agriculture workers.

Due to the dry weather stand-down, none of the planned 283 new post-secondary scholarships were processed in 2016. Accordingly, in addition to expanding community access to FODE centres the OTDF Community Education Services team focused their efforts in 2016 on supporting and monitoring the 311 continuing scholarship students, and promoting the opportunities for the scholarships to commence in the 2017 academic year. Promotional activities included conducting awareness sessions at 5 Western Province Secondary Schools before the National Examinations, during end of year graduation ceremonies, on the Communications Patrol and on the OTDF Facebook page.

PGK3.46 million was committed to ongoing scholarships in 2016 for the 311 full-time students studying from secondary to tertiary level, both in PNG and overseas, representing young people from the CMCA, mine village and PAD, including Telefomin in Sandaun Province.

Mine Villages

PAD MaritimePAD

CMCA Trust

68%3%

4%

25%

Funding Sources for all Secondary and Post-Secondary Scholarships 2016: PGK3.46 million

Kiri Minaei from Gii Village in the North Fly Region completed Grade 12 in 2008 at Kiunga Secondary School. He up-graded his Grade 12 marks under the FODE program and was accepted to study at Pacific Adventist University for 4 years, sponsored by Tutuwe Trust.

Kiri graduated in 2016 with a Bachelor of Science majoring in Chemistry and Environmental Science. He is currently working with OTDF Program Services Operations as a casual field extension officer. Kiri is very grateful for his scholarship, saying “ I would like to seek permanent employment with OTDF and serve the community as a show of appreciation”.

KIRI WAIKIRI MINAEIPROFILE

Kokopo Business College students from Western Province currently under the scholarship program

In 2016, 106 post-secondary scholarship students graduated, of whom 44 (42%) were qualified in the OTDF priority sectors of health, education and agriculture.

45 Diplomas in Technical Trade13 Diplomas and Bachelor in Agriculture22 Diplomas and Bachelor in Teaching9 Diplomas in Nursing17 various other Bachelor Degrees

203 students were scheduled to continue their studies in 2017, and a further 287 new scholarships are on offer, bringing the total scholarship ceiling to 490.

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2016 Annual Report

Trinity Anglican School, Cairns, Australia teachers Claire Milligan & Kim Greaves building teacher and s