October 6, 2010

New marine zone to boost Papua New Guinea's global tuna standing

The move by Papua New Guinea's (PNG) government to turn the country into the tuna centre of the world has progressed robustly after the construction of a US$79 million Pacific Marine Industrial Zone (PMIZ) to be built in Madang by a renowned Chinese company.

Once operational, the PMIZ ought to bring an annual US$2 billion in foreign exchange earnings. Pacific Island countries belonging to the Nauru Agreement (PNA) have been invited to partake in the venture.

Governor-General Sir Paulus Matane and Shenyang Corporation for International Economic and Technical Cooperation President Madam Tang Lezhen were the ones to recently sign the contract, according to local reports.

The PMIZ project is an initiative of the PNG Government via the Ministry of Commerce & Industry and Fisheries.

Phase 1 of the project will cost PGK210 million (US$78.3 million) and the other PGK67 million (US$25 million) in funding will be given by the government. Phase 2 of the project has not yet been established, but is anticipated to cost more than US$100 million.

Commerce and Industry Minister Gabriel Kapris commented that the signing was very noteworthy as it would enable the conclusion of the concessional loan application process with China-EXIM Bank. This would in turn allow for the signing of the loan, the accessing of available loan funds of US$74 million and the commencement of the construction in Madang.

The project's funding was acquired through a bilateral arrangement between China and PNG following the signing of a framework agreement in November of last year, which granted the state admission to a concessional loan from the Export Import (EXIM) Bank of China, Kapris said.

The PMIZ will generate a Regional Tuna Processing Centre that will offer regional member countries and PNG's tuna industry an opportunity to found processing facilities in the area, add value to their tuna landings and export.

PNG's government spent almost PGK20 million (US$7.5 million) in the acquisition of the land, the clear grubbing of the 216 hectares and the construction of the perimeter fencing.

Phase 1 will involve a wharf and pier, water treatment plant, waste treatment plant, roads, administration and other vital infrastructure. Construction is anticipated to begin early next year and be done by the end of 2013.