Source: PNG Post-Courier
The Papua New Guinea government’s move to make PNG the tuna hub of the world moved one big step closer with the signing of a USD 79 million (PGK210 million) [contract for the] construction of the Pacific Marine Industrial Zone (PMIZ) to be built in Madang by a world acclaimed Chinese company.
With USD 2 billion [PGK5 billion] in foreign exchange earnings expected annually when the PMIZ is operational, Pacific Island countries who are parties to the Nauru Agreement (PNA) have also been invited to participate in the project.
Governor-General Sir Paulus Matane and Shenyang Corporation for International Economic and Technical Corporation (SCIETC) president Madam Tang Lezhen signed the contract yesterday at government house.
PMIZ project is an initiative of the Government through the Ministry of Commerce & Industry and Fisheries. Phase 1 of the project will cost of K210 million while the balance of PGK67 million will be provided by the Government as Counterpart funding. Phase 2 of the project is yet to be established but is expected to cost over USD 100 million. Commerce and Industry Minister Gabriel Kapris said the signing was very significant because it would allow for the completion of the concessional loan application process with China-EXIM Bank, enabling loan signing, draw down of USD 74 million and commencement of the construction at Vidar, Madang. He said the funding was secured through bilateral arrangement between China and PNG after a framework Agreement was signed in November 2009 which allowed for the State to access concessional loan from Export Import (EXIM) Bank of China. The condition of the loan was for the main contractor to be a Chinese company who is prescribed by the Bank through their own selection process.
The PMIZ will create a Regional Tuna Processing Centre which will provide an opportunity for regional member countries and PNG’s tuna industry to set up processing plants within the zone, add value to their tuna catches and supply export markets.
The government spent close to K20 million in acquiring the land, clear grubbing of the 216 hectares and constructing the perimeter fencing. Phase 1 will include a Wharf and Pier, Water Treatment Plant, Waste treatment plant, roads, Administration and other key infrastructure. Construction is expected to commence early 2011 and completed by the end of 2013. “Foreign and Domestic Tuna Players have already shown great interest in investing in the zone because of its Strategic location and proposed investment incentives. The Special Incentives under the proposed Special Economic Zone Legislation will be very attractive and comparable with similar global set ups,†Mr. Kapris said.