Malaysia oil palm company to help with Sepik project

Business, Normal

The National, Monday July 13th, 2015

 MALAYSIA’s oil palm company Kuala Lumpur Kepong (KLK) will partner with the National Government as an equity partner to develop a large scale oil palm project in Sepik plain’s special agriculture economic zone (SEZ), an official says.

Trade, Commerce and Industry Minister Richard Maru said KLK was listed on the Malaysia stock exchange.

He said the National Executive Council (NEC) took the decision after the State could not agree to terms with Wilmar International to develop the project.

Maru said NEC had approved a heads of agreement that would be signed by PNG’s Head of State on behalf of the country and KLK in coming weeks. 

“The agreement is expected to be signed by our Government and KLK after the Governor-General returns from Tonga from the inauguration celebrations of their new King” he said.

Maru added that signing of the agreement would see work start for the oil palm project which was one of many agriculture projects planned for the Sepik agriculture special economic zone. 

“Other investors are already in the SEZ to request space and complete feasibility studies for major large scale agriculture projects including rice, cattle, chicken, and animal feed among others,” he said. 

“More investors have expressed interest in the developing large scale agriculture projects in the SEZ. 

“They have visited the zone to see the land and the pre-requisite infrastructure put in place by the National Government like roads, bridges, power lines, land mobilisation work which includes surveying and to see our efforts to improve the law and order situation in the areas in the zone and as we work to make the area more conducive for investors.

“All investors will partner our landowners as equity partners in a number of projects in the Sepik plain’s special agriculture economic zone.”