Locals want SEZ permit revoked

Business

THE Morobe government and the Labu Incorporated Landowner Group (1204) want the Labu special economic zone (SEZ) licence, granted to Ag Energy Ltd and Kumul Petroleum Holdings Ltd (KPHL), revoked.
The Labu ILG covers 40,000 hectors of land, including the three villages of Labu-Butu, Labu-Tale and Labu-Miti, in Huon-Gulf.
A total of 5,000 hectare from this portion has been granted as an SEZ.
ILG chairman Danny Wartu said the landowners or the provincial government should have been consulted about the SEZ before the licence was approved.
“We never gave our consent to a special economic zone,” he said.
“In our meeting with Ag Energy Ltd in June 9, 2022, we only approved a wharf, power-hydro and road project,” he said.
“It is policy that an ILG must be consulted thoroughly by the developers intending to establish SEZ licences before they approach the (SEZ) board with its application.”
Provincial administration special duties project officer Moses Wanga said there were issues with the three villages that had to be sorted out to allow for smooth development.
“There are three deaths between these communities that are pending compensation, and there are issues of land boundary between villages, customary land boundaries and the external land boundaries,” he said.
“These are serious issues clearly outlined in the SEZ Act that must be addressed before landowners are forced into signing any instrument.”
Provincial project officer James Songo said a lawyer had been engaged to work on a new documentation.
“I met with ILG landowner chiefs from the three villages and we’ve agreed to draft our terms of reference in a memorandum of understanding format, get PEC’s approval then submit to KPHL,” he said.