4th Quaterly Summary Report

Issued by VANUATU INVESTMENT PROMOTION AUTHORITY

The Vanuatu Investment Promotion Authority is pleased to publish this Fourth Quarterly report for the 4th Quarter of 2006. The Fourth Quarter of 2006 registered 51 approved projects that recorded the highest investment value of over 6 billion vatu when compared to other Quarters in 2006. I wish to thank the VIPA Board, The Government and all Stakeholders for their support during the 4th Quarter of 2006.

Projects

The Fourth (4th) Quarter of 2006 recorded a total of 51 projects of which 39 were new projects and 15 variations. Port Vila remains the main target with the highest percentage number of investment of 62 percent.

Proposed Employment

During the Fourth (4th) Quarter of 2006, VIPA registered a proposal for 360 locals and 20 foreigners.

Proposed Investment

Total proposed value of investment was over 6 Billion Vatu in the Fourth Quarter, 2006. There was an increase of 52.4 percent over the Third (3rd) Quarter 2006 and this increase reflects the size of the projects. Total investment value for quarter ending 2006 exceeds other quarters.

Investment by Country and Sector

During the Fourth Quarter 2006 Australia recorded the highest number of investments while the highest value of investment of over VT 5 billion came from a joint venture between European investors and indigenous businessmen investing mainly in the Hotel and Restaurant Sector.

Quarterly Comparisons

New, Private and Variation Applications

The number of new applications increased slightly by 14 percent over the 3rd Quarter of 2006. The number of variation application approved also dropped by 25 percent over the Third Quarter of 2006. The new applications recorded the highest value of investment of over 6 billion Vatu followed by Variation applications with over 74 million Vatu. There was no private application during this quarter.

Major Activities

• PROFIT in the PACIFIC 2006 PATA International Conference held at Le Lagon. The Pacific Asia Travel Association (PATA), Asia Pacific's premier travel industry association, and CDE/PROINVEST, a program of the EU charged with promoting investment in the South Pacific, have joined forces to bring the Conference to Vanuatu in 2006.


• The VIPA CEO attended a Pacific Region Training Program in Brisbane Australia on Tactics and Strategies for attracting Foreign Investment

Remarks

Despite various challenges faced during this quarter, VIPA continued to receive new applications. The new applications received recorded the highest value of investment as compared to previous quarters of 2006. Port Vila registered the highest investment values of over 6 billion vatu this quarter when compared with other province. This report indicates that investors from Europe are confident in the current investment climate, as shown by their share of over 82 percent of total investment value this quarter. The fourth quarter of 2006 also recorded the number of local employment totaling 360.