Gov’t looking at money generating options: Eoe

Business

THE Government is looking at other options to generate money and limit borrowing with options such as Special Economic Zone (SEZ) projects, says Public Service Minister and Kikori MP Soroi Eoe.
Eoe said one of this was the Ihu Special Economic Zone (ISEZ) project in his district which was now in its implementation stage following National Executive Council (NEC) approval.
He claimed that Government had an accumulative liability (loan) of up to K38 billion and said SEZ projects such as ISEZ would limit borrowing by bringing in foreign direct investments.
“Borrowing for this country is limited and Government is now looking for options to grow the economy now complicated by the Covid-19.
“The option that Government has now, is looking into the special economic zone option,” he said.
“In 2019, Government passed the legislation, the Special Economic Zone Act of 2019.
“We are the first project (ISEZ) under that legislation to take form and it’s more like we are the experimental concept.
“The difference between a special economic zone and borrowing is that any project that borrows money has to pay back.
“Special economic zones are slightly different.
“What it does is that you prepare a space and put all the infrastructure in and then you invite the investors to come so investors take their money into that space.”
Eoi said the ISEZ project in Ihu was funded by US investors with US$2 billion (K7b) and guaranteed by South Koreans and the district would benefit from it after a five to 10-year period.
He said the project had all the potential to work and awareness and impact studies would soon be conducted in order to get an environmental permit and social licence to move to the next stage.
The project would see different concepts such as a township, hydro power and a petroleum park.