Grandeous plans for the Pacific Marine Industrial Zone in Madang, which is meant to house 10 new tuna processing factories, are fatally flawed as the designs do not include a power plant or water supplies. 

This means that although the government is saying the project can now go ahead (see story below) in order to appease the Chinese, the PMIZ is in fact dead in the water.

The US$95 million loan provided by the Chinese is just a fraction of the estimated cost of providing the needed electricity generation, water supply and wharfing facilities. The government estimates the total cost will be around $1 billion - money it simply does not have.

PMIZ project gets go signal

From: The National

STAKEHOLDERS of the Pacific Marine Industrial Park in Madang received a nod from Trade Commerce and Industry Minister Richard Maru to go ahead with the project.

Maru said: “It is now all systems go for the project after the withdrawal of the court case, which has been a major development obstacle in the last three years.”

He said this after he met with people from the project impacted communities to acknowledge and thank the complainants for discontinuing the court case against the State in Madang on Sunday.

Maru has now directed his ministry to sort out outstanding issues with minor contractors of the project and directed the State-owned entities and the major contractor, China Shenyang International Corp, to complete the studies and complete the concept design in light of the re-scope. 

“The construction cost for the PMIZ project has increased from US$95 million (K264 million) to K1 billion as a result of the project re-scope to expand the wharf facility.

“The cost of connecting utilities such as electricity, water, telecommunication, road network and relocation of the waste treatment plant was not initially considered and not part of the US$95 million funding facility,” Maru said.

He said the National Executive Council (NEC) would seek a cabinet approval of the re-scope and sourcing of additional funding through a PPP financing model.  

Maru also announced the creation of a PMIZ project office in Madang and the appointment of Palty Bahudeas as the Madang PMIZ centre manager.

He said the new PMIZ office will be located in the new National Development Bank office in Madang.

Maru directed that all issues concerning the PMIZ project be dealt with through this office.

He further reassured the impacted communities of the massive spin-off business opportunities that will be available to them and urged them to explore joint venture opportunities and funding from banks such as the National Development Bank. 

However, he stated that there will not be any more mobilisation funds from the National Government based on the experience that such grants have not been properly utilised.