Controversial plans for PNG’s first Special Economic Zone, the Pacific Marine Industrial Zone in Madang, have hit a legal hurdle.
Although the government had negotiated a $180 million loan from the Chinese government to fund the building of the industrial park, that loan is in breach of PNG law. This is because under the loan agreement one particular Chinese company will get to build the park and 70% of the loan monies have to be spent on Chinese goods and services. This breaches PNG laws that require open and competitive bidding process that includes at least 3 companies.