Investor clarifies K7.6bil deal
By REBECCA KUKU
THE Eastern Highlands government has signed a memorandum of agreement (MoA) with investor, Mckinley Asia – PNG Ltd, for a US$2.12 billion (K7.6 billion) “smart agriculture and livestock project” plus major road rehabilitation and construction in the province.
Chief executive officer Min-Ho Hwang made this statement to clarify the misreporting after media in the country reported that MoA signed was for US$13 billion (K43.9 billion) in projects and construction.
Hwang said the agreement with Eastern Highlands was only worth K7.6 billion.
“If this pilot project is successful, than we will release the other US$11 billion (K38bil) for other smart agriculture and livestock projects plus major road rehabilitation and construction in other provinces in the country,” he said.
Meanwhile, Eastern Highlands Governor Peter Numu refuted negative comments over the multi-billion kina project MoA.
3 comments
Roll it out and we believe it. We are fad up with lots of ground breaking ceremonies and MoUs already.
Looking forward to it actually happening. More information on the plan should be made available.
The K7.6 billion was given to EHP Government for “smart agriculture and livestock project” plus major road rehabilitation and construction in the province, but i think its too much for a province without any abundant natural resources and only relying on revenues from agricultural products to finance its spending. The amount of money that the Mckinley Asia – PNG Ltd will release to the provincial government of EHP is tripled the nation’s annual budget.
So my Question is:
1. Was that money a loan given to the government of EHP?
2. If yes, How long will it take to repay that loan?
3. Was that loan is in the best interest of the citizens?
4. We have to understand that the main motive behind any business or industry is to make profit. Now how will the company make its profit from investing K38 billion in our province?
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