PMIZ Watcher

Landowners from the villages of Rempi, Kananam and Karkar Island in Madang have applied to the National court in Madang for an immediate injunction stopping any further construction of the Pacific Marine Industrial Zone.

The government recently announced a $72 million loan from the Chinese ExIm Bank to fund the construction of the PMIZ but landholders oppose the project which they say is a 'con job' and they are asking the court to stop any loan funds being drawn down by the government.

9 June, 2011

Operating under a cloak of secrecy, the International Finance Corporation has been busy developing laws to allow Special Economic Zone laws in Papua New Guinea, while failing to answer questions from civil society about the project.

This secrecy contradicts IFC claims that it is committed to transparency, accountability and sharing information 'to strengthen public trust'.

Reporter Stephanie Elizah says a team of Chinese investors who have been visiting Bouginville are pushing the Autonomous Region's government to allow the establishment of Special Economic Zones.

SEZs are tax free enclaves where businesses are also exempted from normal labour, immigration and environmental laws.

The Chinese government is currently negotiating a loan with the PNG government to build the infrastructure for PNG's first SEZ, the Pacific Marine Industrial Zone, in Madang. 

The International Finance Corporation (IFC), part of the World Bank group, is drafting laws in Papua New Guinea to create Special Economic Zones - tax free enclaves where foreign corporations will receive special incentives to set up factories - but the World Bank's own Independent Evaluation Group (IEG), its internal watchdog, has published an evaluation which finds the IFC is failing in its mission to assist vulnerable communities and alleviate poverty through its projects and investments.