generate a 6 to 7 percent growth. i am sure that following the consolidation, and the stability period, we are moving into a fast growth phase in the years head. the initiatives of pngsdp of investing its substantial resources in removing some of the impediments to investment by improving the efficiency and reducing the very high cost structure of public utilities and basic infrastructure services, will enhance private sector investment and economic growth. the use of the very substantial resources to partner with private sector investors, investing in economic activities in all areas but specifically in agriculture, will go a long way to generate sustainable income in the western province and the rest of papua new guinea. thank you for inviting me to open this fifth annual report meeting. i wish you all the best. your success in implementing the projects presented in your 2006 annual report to stakeholders, will take this country and people a big step forward and make up for the lost decade and the low growth in recent year. thank you.

a new stage of developing a liquefied natural gas project as well as a gas condensate project. the outcome is high demand for gas exploration licenses and many new companies have commenced exploration work. the investment incentive and tax regimes are considered very competitive and favourable. the areas with great potential are in tourism specifically eco - tourism, agriculture, and small to medium sized manufacturing. these are the least developed sectors and the ones that badly need entrepreneurial initiatives and skills. these are the industries that in the long run will provide the back bone of economic growth and income generating opportunities and employment for the great majority of the population. in our thirty one years of independence we have had, fourteen years of stable low growth up to 1989, ten years of very difficult times up to 1999, following the bougainville crisis. this lost decade was characterized by gross mismanagement of the economy that resulted in an almost default on our foreign currency liabilities in 1994, which forced us to float the kina our national currency, the sandline affair in 1997 of hiring mercenaries to fight on bougainville, an almost second default in 1998 to 1999, the combined effect of a very severe drought, the asian financial crisis and the world economic slowdown exacerbated by continued gross mismanagement of the economy. we were very fortunate that in mid 1999, a new government was formed, that undertook some major reforms. it took four years to stabilize the economy, re - establish the confidence of the public, and realising that the constitutional changes introduced to the political system through the integrity of political parties act, will result in political stability. we are experiencing for the first time a government which lasted a full term of five years. these developments assisted by very high commodity prices of oil, copper and some of the agricultural exports like rubber, resulted in a very stable macroeconomic environment, of fiscal surpluses, low inflation, low interest rates, an appreciating exchange rate and fast accumulation of foreign exchange reserve. i am not going to bore you with numbers, but just as an indication, our foreign currency reserves increased from around us $ 300 million to us $ 1. 5 billion in three years, and the increase is continuing. inflation and interest rates are lower than in australia. economic activity as measured by gdp growth is around 4 percent in recent years. for a low income developing country it is very low. to ensure that the great majority of the population is benefiting from the mineral boom we have to