The PNG Government, Tuna Canners Limited and RD Corporation today announced that they have finally agreed to the terms of the Project Development Agreement (PDA) for the cannery project within the new Madang Integrated Special Economic Zone (SEZ).
The letter of Agreement was signed today and witnessed by the Minister for International Trade and Investment, Richard Maru at the PNG Investment week in Sydney, Australia.
“The investment is subject to final NEC and RD Board Approval. This new cannery will be developed under a new joint venture company which will be 50% owned by the State and 50% by RD, with initial expertise to be provided by RD to help PNG transition from being a rent collector to being an owner of initially a cannery and later a fishing company. Each of the Parties will contribute K80 million each towards this joint venture and RD will have a 10-year Management Contract. The project will create well over 5,000 direct and indirect jobs for the Madang Province,” Minister Maru said.
He thanked all parties for their commitment, patience and contribution towards finalizing the PDA.
“I personally take this opportunity to thank the Marape-Rosso Government for providing the State funding of K80 million for this strategic investment. The Prime Minister will launch the new joint venture fish canning company early in the new year and the construction of the cannery will commence immediately after the launch. This is a critical project under our PNG Reset economic independence agenda as we go into the next 50 years where we cannot export raw materials anymore, including our fish,” Mr Maru said.
“This is the start of a deliberate attempt by our Government to invest in downstream processing so we can replace all canned fish imports from other countries. This 300 metric tonne cannery is the anchor investment needed for the proposed Madang Integrated Special Economic Zone. Another eight more canneries are expected at the zone. This is a very exciting development and we all look forward to the launch and construction of the cannery in January next year,” he said.
Minister Maru said the Government’s long-term plan was to list Kumul Fisheries Limited on the National Stock Exchange as a public company once it proved to be profitable.
“The initial shareholders are the State through KCH, Madang Provincial Government, and RD. We want to get it off the ground and make it operational and profitable before the public can buy shares. We want this to be a fully-fledged PNG fishing company. If we can own a mine, we can own a fish canning company. We cannot be rent collectors all our lives,” he said.