By ORCHY REX
THE PAPUA New Guinea Forest Authority (PNGFA) and the Department of International Trade and Investment (DITI) have signed a landmark Memorandum of Understanding (MoU) to accelerate downstream processing and boost access to international markets through Special Economic Zones (SEZs).
The agreement, signed yesterday at PNGFA headquarters in Port Moresby, marks a strategic move to phase out raw log exports and focus on developing high-value wood products for export.
It is also the first formal collaboration between DITI and a sectoral agency under the Marape-Rosso Government’s broader industrialization and SEZ agenda.
Representing Forests Minister Hon. Salio Waipo, PNGFA Managing Director John Mosoro described the partnership as a “very, very important” milestone in reforming PNG’s forestry industry.
“We are reforming forestry by moving away from round log exports and investing in downstream processing,” Mosoro said.
“This agreement allows us to align with the government’s vision for sustainable economic growth through value-added industries.”
Mosoro said PNG Diwai Holdings Limited—PNGFA’s business arm—will work with DITI to roll out pilot downstream processing zones, with two sites earmarked for initial development.
“We are ready to start with two zones. With DITI’s support, we will link these zones to global markets and maximize returns for the country and landowners,” he said, noting that similar reform models are being explored in fisheries and mining.
DITI Secretary Jacinta Warakai-Manua echoed the importance of the MoU, calling it a significant milestone for the country’s industrial and trade strategy.
“This is the first MoU DITI is signing with a sector agency, and it reflects our serious commitment to implementing the SEZ framework and value addition across all sectors,” she said.
Warakai-Manua emphasized that downstream processing is essential for empowering landowners and increasing national revenue.
“One way to ensure landowners fully benefit from their resources is through downstream processing,” she said.
“The forest industry has always contributed to the economy, but it can contribute even more through value-added exports.”
She also urged other resource agencies to follow the forestry sector’s lead, particularly in finalizing policies to domesticate production in fisheries, mining, and extractive industries.
“We want to process fish, minerals, and other resources right here in PNG. This will create jobs, build industries, and drive economic independence,” she said.
The signing of the MOU comes shortly after the launch of PNG’s first-ever SEZ Foundation Policy, which aims to coordinate and guide the development of industrial hubs across the country.
As Board Chairman of one of the newly proposed developed. Land owner Company called BRCL lies along the border zone LLG areas in Vanimo Green District , West Sepik Province, PNG. Yes you will still find thick forest/ jungle in Vanimo Green District, beyond Bewani Wutung Onei ILG,
Therefore on behalf, I am 100% fine and very supportive to decision made and becomes legislation which land owners will be more happy with great benefit out from their down processed timbers and not only that includes other raw materials. Finally, I do strongly give great support to let it happen that way, but not to involve politicians in any benefit agreement policies and amendments from top down development establishment like before, particularly in Vanimo Green Logging industries or operations we have experienced.
Thank you.
The inking of an MoU for the downstream processing of logs is way forward. This is favourable for many forest resource owners in PNG. It should somehow be made possible sooner the better in 2025 as planned than differed.
Now, regarding this milestone achievement is the inclusion of consideration of Sandaun Province as one of the SEZs in this MoU as Sandaun is one of the major contributor to forested logs in PNG since 1969. Sandaun is in the 80% contributor of round logs commercialised besides Western Province, Gulf, East New Britain, West New Britain, to name a few. It is unfair Sandaun is not in the first list of SEZ initiatives as per the inked MoU between PNGFA and other state agencies as IT&I.
Excellent idea. The only assignment now is for NFA to establish networks with the Current logging permit holders to facilitate down stream processing and venture into SEZ. Midowa Limited who is the legitimate permit holder of TP10 – 16 for Walsa FCA is prepared to take a step forward. The NFA can contact me through my number 723630 or email me on bonnyenda54@gmail.com for more information. The Walsa FCA permit exists till 2032
I’m still waiting for my reply which I posted yesterday here.
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