K3mil deal to revitalise trade

THE Government has signed a K3million agreement to provide relief and revitalise the fresh produce and vegetable trade in the Highlands, Madang and Morobe.
National Planning and Monitoring Minister Sam Basil announced the deal yesterday following the signing of a service level agreement by department secretary Koney Samuel and Lae-based shipping service provider Bismark Maritime Ltd chief operating officer Jamie Sharp.
“This is a state of emergency (SOE) intervention as part of the Marape-Steven Government’s economic stimulus package to ensure cash income generation at the village producers level, among buying and transport agents, and to supply fresh produce and vegetables from the easily accessible Lae port from the Highlands, Madang and Morobe, initially to the National Capital District and then later to other main ports depending on demand,” Basil said.
“Because of the restrictions and fears, sale of fresh produce both from their village of origin, buying and land transportation have dropped.
“This had been compounded by the high cost of sea freight worsened by the drop in volume of cargo to ensure businesses can meet the cost of shipping services and escalating high prices with less fresh produce and vegetables especially in NCD.
“I am advised that at peak, up to 50, 20-foot containers of fresh produce and vegetables were shipped from the Lae port to Port Moresby.
“This has hit rock bottom due to the Covid-19 SOE restrictions and lockdown with multiple compounding impacts on the villagers who grow and sell local fresh produce and vegetables, the buying and transporting agents, shipping service providers through to the supermarkets and re-sellers in Port Moresby.”
Samuel said the department had sought the advice of the SOE Controller and Office of the State Solicitor as part of the clearing process for the shipping intervention arrangement. “As State of Emergency Controller, David Manning issued the directive, we also needed legal advice and clearance to bypass usual public tender procedures required by the Public (Finance) Management Act 2015 and the National Procurement Act 2018 on the negotiated draft service level agreement,” Samuel said.
Sharp was pleased with the Government and gave assurance that as an experienced shipping service operator, they would use all their expertise to help restore and increase the volume of trade in fresh produce.