But people fight, worry about how they’ll benefit

Patrick Matbob


Work is expected to start soon on the US$300 million (K990m) Pacific Marine Industrial Zone at Vidar in Madang province of PNG.
The national government is expected to release the contract for site clearing and fencing of the 216 hectares of port area soon.
This is despite some important surveys and studies for this project remaining outstanding which include the environmental and socio-economic impact studies.
Also yet to be concluded is the study of the laws and regulations that will govern the special economic zone.
People living around the impact area are also split with some supporting the project, while others are firmly against it.
The national government has allocated K29 million to fund the project and this will be increased to K151 million which would give it 20% equity in the project.
Offshore finance of K810 million will be sourced as a loan through China’s Exim Bank, World Bank/IFC and the Japanese government. Other funds will come from grants and through public and private partnerships.
A special meeting of all stakeholders in the project was organised by the Madang Provincial Government last month which was attended by two senior government ministers.
The meeting was initiated by Madang Governor, Sir Arnold Amet, hoping to establish some dialogue following controversy over the project.
Commerce and Industry Minister Gabriel Kapris and Fisheries Minister Ben Semri addressed representatives of the people and listened to their concerns about the issues stemming from the project.

Local concerns
Local people living around the project area have been concerned about the environment, pollution and land issues.
The people were told that the environment impact study was still in progress while the socio-economic impact study was to start soon.
People still know very little about this major impact project mainly because the government has failed to carry out adequate awareness and consultation.
Even during the meeting, the level of information being disseminated lacked details and was beyond the understanding of the average villager.
 Development via a special economic zone is a new concept in PNG and comprehensive awareness is needed to help the people understand its impact.
Madang Governor Sir Arnold Amet was applauded when he assured the people that he would help them to reclaim the title to the rest of the 860 hectares of alienated land. Part of land area (216 hectares) would be where the PMIZ would be established. This piece of land was owned by the Catholic Church since 1905 and was sold to the provincial government 10 years ago.

Landowners upset
The government in turn sold the land to the Filipino fishery and canning operator RD Tuna. RD Tuna has now sold this land back to the national government.
This has happened without the people’s knowledge and had upset them.
The people had been fighting to reclaim this piece of land since the colonial era because of increasing population and shortage of land.
The biggest concern of the people and the provincial government is how they will benefit from the project.
They are seeking equity and a guarantee of spin-offs and employment opportunities in PMIZ.
According to the national government, PNG stands to benefit a lot from the project.
It says the project would maximise the value of tuna through downstream processing, create economies of scale opportunities, secure collective bargaining power over markets and tuna resources and create opportunities for small Pacific Islands nations.
Ministers Semri and Kapris have promised that apart from the national government and Pacific Islands investors, local and provincial governments would be given equity in the project.
The ministers have also promised spin-off and employment benefits as well as development of infrastructures as part of its community service obligations which would include schools and hospitals.
However, the details of the equity share, spin-offs and employment have not been revealed.
Pacific Islands countries and partners to the Nauru Agreement (PNA) have also been promised equity in the PMIZ.
They will also have the opportunity to establish processing facilities and benefit from employment and joint venture opportunities, favourable foreign exchange regulations, government assistances and favourable tax concessions.
PNA members are Palau, Federated States of Micronesia, Marshall Island, Nauru, Kiribati, Tuvalu, Solomon Islands and PNG.
The project has been set up to exploit PNG’s fisheries zone totalling 3.12 million square kilometres, the largest in the South Pacific, and produces 30 percent of the regional and 10 percent of world tuna catches.
The PNG government wants to benefit from its fishery sector whose total market value is estimated at US$350 million-US$400 million on average.
Last year, canned tuna exportds accounted for US$48 million, fresh chilled tuna US$6 million and frozen tuna US$72 million.
The European Union market is the major target for PNG after it signed the Economic Partnership Agreement (EPA) in July this year allowing duty free status for all tuna processed in PNG regardless of where the fish are caught.
However, there are some concerns now over plans by Ramu Nickel Mine to dump its waste into the sea outside of Madang.
Fisheries Minister Ben Semri has voiced his opposition to the plan saying it may jeopardise the country’s agreement to export into the lucrative European Union markets.
The issue may need to be resolved soon as Ramu Nickel is planning to begin production next year.