Blog

ADB contradicts govt claims over PMIZ

ACT NOW! says the Asian Development Bank has denied it is involved in supporting the government's controversial Pacific Marine Industrial Zone (PMIZ) in Madang.

ADB Country Director, Charles Andrews has told ACT NOW! "the ADB has no involvement in this project what-so-ever".

This denial contradicts government documents that claim the ADB and has been actively supporting the development of the PMIZ by providing technical advice and expertise and is a potential funder.

The government has made similar claims about support from the Japanese International Cooperation Agency, but JICA has not confirmed or denied its involvement.

The PMIZ concept, which will see up to 10 tuna processing factories being built on disputed land north of Madang, has been heavily criticized for its deeply negative social and environmental impacts.

Local MP, Ken Fairweather, has declared his opposition to the project and has commenced legal proceedings over the environmental impacts and land alienation.

The World Bank has recently tried to distance itself from the PMIZ project, but was heavily involved in its development and is still supporting legislation that will allow the PMIZ to be declared a tax-free Special Economic Zone. The World Bank legislation will also allow further tax-free zones to be created across PNG.

In contrast to the World Bank position, the ADB has told ACT NOW! it does not generally support SEZs as they "can be market distorting".