Entry of NZ firm puts ESP project on hold

Business

THE integrated agriculture project in East Sepik is on hold as the new investor is negotiating with the original investor to reach a commercial arrangement.
Minister for Commerce and Industry Wera Mori said that the Government has invited the New Zealand firm Eldoncorp Holdings Ltd to invest in the project.
“We have given them the invitation to come,” he said.
“The original sponsors of the project has the options as to whom they would want to invite, and that includes Eldoncorp Holdings Ltd. The former sponsor have pulled out of the project due to reasons only known to itself.
“Eldoncorp Holdings Ltd knows who the former sponsors are and it is best for them to deal with that.”
Mori said that when there was a commercial arrangement in place, Cabinet
would then approve the investors.
He said that although the Nungwaia-Bongos integrated agriculture project was on hold, some hundreds of
hectares of oil palm had already been planted and maturing.
The project covers parts of Wosera-Gawi and Ambunti-Dreikikir in East Sepik and parts of Aitape-Lumi in West Sepik.
“The initiator of the project are negotiating with one or two investors to come into the project,” Mori said.
“It is an impact project and we want to have it driven.”
Mori said when the Nungwawai-Bongos project was approved and implemented in 2009, the processes involved in landowner acquisition and dialogue with landowners were already established.
“The process was ongoing until the time when it came to a standstill and got suspended,” he said.
“The forum is still open and ongoing.
“When the project comes back on stream, all outstanding issues will be addressed.
“Landowner issues can be addressed as the project progresses.
“As the State, we want to see the project get off the ground because of the multiple benefits that will be driven.”