EHP signs K43bil deal for projects

The National Business

By DALE LUMA
THE Eastern Highlands government has signed a memorandum of agreement (MoA) with investor, Mckinley Asia – PNG Ltd, for a US$13 billion (K43.9 billion) “smart agriculture and livestock project” plus major road rehabilitation and construction in the province.
Governor Peter Numu said the agreement consisted of two phases which include a US$2 billion (K6.75bil) pilot project to set up a poultry downstream processing facility and a stock feed factory and US$11 billion (K37.14bil) for feasibility studies and construction of road projects.
“The PEC (provincial executive council) endorsed the Eastern Highlands government to liaise with the investor,” he said.
“We also set up a committee comprising of important Government departments and stakeholders considering all the policy matters and all the compliance parts of it to ensure that this project meets the requirement and we have it implemented.
“This is a big opportunity not only for Eastern Highlands but for the country.
“It’s an agreement between the Eastern Highlands government and the investor.
“It has two phases, firstly for the US$2 billion which is for the pilot project to set up the facility for the downstream processing of poultry from the hatchery to the production of all chicken products in the province and also another factory in Kainantu to set up a stock feed factory.
“The other phase is for the US$11 billion and that’s for feasibility studies and some other projects.
“These two parts form the agreement and it’s under the platform of public-private partnership in which will undergo the boot (build own operate transfer) arrangement.”
Numu said the project would greatly benefit the province by allowing them to participate in income generating activities in agriculture and livestock initiatives set up by the investor.
“The Eastern Highlands government has a policy platform and priority areas to grow the local economy,” he said.
“Eastern Highlands is a big province with eight districts, complicated landscapes, a population of 700,000 people but we have good land, good for agriculture, and a strong hard working population with respect for other.”

4 comments

  • How will village people participate and benefit. This is not clearly explained in the article.

  • Paper con project will be many. Beneficiaries like rural mother’s, girls will be big time losers. There should be a frame work put in place so that our marginalised rural women and girls can benefit.

  • Congratulations Governor because non of the previous governors have had this initiative to create partnership outside to bring in such investors to develop the province. May be they did but have not shown successful outcomes because they didn’t consider the beneficiaries expectations or either considered the scope of the beneficiaries . Therefore this should be planned well with the right approach to take. Do it right and do the right thing.

  • This is a watershed project for agriculture in the country.
    An investment of this magnitude in the highlands of PNG speaks of confidence in the government, the people and the environment.
    I would assume relevant due diligence has been done by the investor and the province to facilitate this project. I also assume that document review has been done by relevant state departments and agencies to ratify the MOA signing – especially since the PM is a witness.
    Finally, it would help cultivate support if non-confidential documentation or information on this milestone project can be circulated for public awareness.
    A good initiative but you will require everyone to get behind it to make it a reality.

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