K40mil fishing project in limbo

THE K40 million Kabakaul fishing project, in East New Britain province, is in limbo.
Said to be a major boost to the country’s economy along with a fishing project in East Sepik province, a project agreement for the construction of the fishing and fish processing plant was signed on Oct 21, 2004, between the National Fisheries Authority, New Britain Resource Development Ltd (investor) and the provincial government and witnessed by former governor-general, Sir Paulias Matane in Port Moresby.
The project was initiated and submitted to the National Executive Council and the fisheries authority board in 2003 by the project investor.
The project involved purse seine operations, tuna long line fishing, ice-making, chilled and cold storage facility, a cannery and wharf facilities.
Governor Leo Dion said in a statement the provincial government’s equity in the project was K5 million.
He said one of the principal conditions of the project agreement was that once the developer had completed 75% of the project agreement, including construction of the cold storage facilities, 20 fishing licences would be issued to the developer.
“Seventy-five percent of the project was completed in July 2006. It was independently witnessed and certified by the Department of Trade and Industry.
“But the state and NFA went back on their agreement and did not issue the 20 licences to the developer as they had promised to do.”
Dion said the provincial government took action immediately to protect its rights under the project agreement and in October 2008, a judgement was obtained against the state in the National Court.
“The state is liable for damages to the developer and the provincial government.”
Dion said the parties to the claim were now in the process of having a judge of the National Court determine the amount of damages that will be paid for breach of contract.
The direct benefits of the project to the country’s economy include creation of jobs, generation of opportunities for local fishing developments, generation of foreign exchange and spin-off business for fishing supplies, repair services, air freight, surface freight, financial services and retail outlets.
The project site is at Ulaveo, Kokopo.
It was chosen as the suitable location due to it being central to productive fishing grounds of Manus, New Ireland and Bougainville, existing wharf is within a protected bay in the allocated land, adequate local and residential labour supply, availability of ocean and air freight services and existing essential infrastructure.
While waiting for the issuance of the licences, New Britain Resource Development Ltd has been engaged by the provincial government under the district service programme in other projects in the province which include water drilling.
The National’s attempts to get information regarding the status of the 20 licences from NFA were unsuccessful.