Maru outlines serious constraints dragging the development of PMIZ in Madang

The Pacific Maritime Industry Zone [PMIZ] in Madang which has been dragged on for 15 years has faced grave limitations, delaying its development.

Minister responsible Richard Maru said vital infrastructure such as wharf, power and water restrictions have delayed the progress of Madang’s cannery project.

“Since Prime Minister delegated the responsibility to me to be responsible for the development of PMIZ, I have looked at how can we get it off the ground as best as we can,” the International Trade and Investment minister said when responding to a series of questions asked by Bogia MP Robert Naguri.

“We have some constraints that this Parliament needs to understand, our people need to understand. Firstly, to develop PMIZ, you need a wharf for the fish catchers to be landed at the PMIZ.

“We don't have a wharf. You need water. We don't have sufficient water supply for 10 canneries. You need power. We don't even have that.”

Naguri said it's been 15 years since PMIZ was established and the people of Madang have been waiting for this project to get off the ground. He said a substantial amount of money was spent on this huge investment without any progress over the years.

The Bogia MP said people of Madang are losing out on jobs, taxes, revenue, and this has been going on for over a decade.

Naguri asked Maru to provide an update on the latest developments surround the project and the proposed joint venture with RD Tuna. He further asked the Yangoru-Sausia MP on when the cannery construction will start, seeking reasons of the delay.

Mr Naguri then concluded his series of questions with an interesting inquiry to know what equity would be offered for Madang provincial government, Sumkar district and Madang district development authorities.

“When I assessed it with my department, the easiest way to develop PMIZ and to bring it online as soon as possible is to do a joint venture with RD Tuna because they already have a wharf next to the state land, NFA land at PMIZ.

Mr Maru said the state is currently negotiating with PMIZ and RD Tuna to venture into a joint agreement to start the prolonged development.

The trade minister said he is awaiting legal clearance from the state solicitor to make a submission to cabinet for the approval of the Memorandum of Agreement between the state, Madang Provincial Government, and RD Tuna.

Mr Maru said the agreement will pave way for state to put 50% of the equity required, which is K80 million.

“We plan to commence or launch the first cannery within the PMIZ area by next month,” Maru said.

“I am confident the Marape government by next month will deliver PMIZ that we have all been waiting for, 15 solid years. I'm happy to report to Parliament, we are on track and I'm just waiting for the state solicitor to give his final clearance”

Maru said the Madang Provincial Government is likely to be given 10% equity, whilst Sumkar and Madang districts will receive 5% each.

But this will be confirmed prior to approval by the cabinet.