Finding an overseas donor to fund Aitutaki’s Orongo Development won’t be easy
The $15.4 million proposal to upgrade Aitutaki Port and Marina project, the “Orongo Development” is an example of how a “wish-list” item gained a foothold on the national Budget through political channels but because it does not assimilate well with central government’s and donor agencies’ new priorities, is in danger of losing its footing, falling off and being shelved.
For the duo, Aitutaki businessman and Port Authority Chair Mike Henry and Port Authority CEO Bim Tou, their song “Orongo Sunrise,” could be a one hit wonder because unless central government is able to source funding from somewhere, “Stage 4: Implementation” is unlikely. The duo’s next song could be: “Orongo Sunset (Mission aborted).”
The Aitutaki Council and the Ports Authority have already had discussions with the New Zealand High Commissioner regarding funding. However, they’re dealing with a new breed of High Commissioner, one who holds people accountable.
The New Zealand High Commissioner queried how the project fitted with government’s priorities at the meeting which took place several months ago in the Cabinet room. At that meeting, the High Commissioner was also apparently concerned no written proposal had been submitted for funding.
The consultants, Kahanui Ventures and Burleigh Evatt, did not submit any options regarding funding, where funding might be sourced and other issues such as loan interest rates and repayments. They made it clear that their report, prepared in July 2011, was to support government’s discussions with potential aid donors.
While the consultants submitted details on costs and revenue, they also made it clear that it would not be possible to source funding from the small local vendors or government taxation revenue.
The consultant’s assumption is the development meets government’s economic development objectives and the objective of increasing tourist figures by another 50% over the next 3-5 years. There is also an assumption that the development’s economic focus would interest international aid agencies.
Unfortunately these assumptions appear to have diminished in priority. Government’s focus is now on renewable energy and infrastructure. International aid donors also appear to be switching their focus to priorities related to climate change. The EU for instance is focusing more on water and sanitation.
The development will give rise to other costs. No mention is made yet of the costs of ongoing dredging and maintenance of the channel. No costs are given for land acquisition or compensation.
It is also understood that more recently, discussions have taken place with Chinese interests but the outcome of these talks are not known.
One potential benefit from the dredging of the channel, is that it would enable a fast ferry access to the wharf. A fast ferry able to unload 300-400 day tourists onto Aitutaki port four days a week, will give the island’s economy a much needed shot in the arm.-Charles Pitt

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