Govt to earmark K165mil to push PIMZ project

Business, Main Stories


THE National Government will chip in at least K165 million towards the proposed Pacific Marine Industrial Zone (PMIZ) in Madang province, before any offshore funding could be sought.
This funding would be at least 20% (US$60 million) of the total estimated cost of US$300 million (K999 million) for the marine park, according to Anton Kulit of the Department of Commerce and Industry.
 “PNG Government has initially allocated about US$9 million (K27 million) towards the project  … (it) has to allocate up to 20% of the total project cost for us to be able to secure the needed offshore financing of US$240 million (about K661 million).
Mr Kulit made the disclosure when he addressed about 200 participants of the two-day second Pacific tuna forum in Port Moresby, which started yesterday and concludes today.
He also said construction of the facility would be in two phases where the first phase was expected to cost about US$190 million (about K523 million) with the balance covering the second phase.
 “The Pacific Marine Industrial Zone is a special economic zone dedicated to tuna processing,” he said, adding the facility would become like a one-stop-shop for PNG and its fellow Island countries and territories including other stakeholders and partners in the fish industry.
Mr Kulit said finance was being sought from China Exim Bank, World Bank, International Finance Corp, other sources of funding and through public-private partnership (PPP) as the Government continued to work with the private sector.
Mr Kulit also revealed that the department together with World Bank and Asian Development Bank would put in place a special economic zone policy.
Also an act in line with the economic zone would follow suit, he said.
This act would take into account other laws in the country that impacted investment, including laws on labour, immigration and citizenship, investment promotion, customs and tariff, and quarantine, among others.