By GEORGINA MICHAEL
THE PNG Oil Palm Industry Corporation (OPIC) and Albright Limited (AL) have signed a Memorandum of Understanding (MoU) aimed at expanding oil palm development and supporting smallholders in Central Province.
The signing was witnessed by senior government and industry leaders including Minister for Oil Palm Hon. Francis Galia Maneke, the Secretary for Oil Palm Mr. Kepson Pupita, Albright Limited Director Mr. Salvador Camins III marking a major private sector partnership for the sector in years.
The purpose of the MoU is to establish a cooperative framework between OPIC and AL to facilitate oil palm development in Central Province in a mutually supportive manner.
Key areas of collaboration include: customary land mobilization, identification and registration; partnership with
the Central Provincial Government and Kairuku District Development Authority; development of a smallholder nursery; new development based on the existing Nucleus Estate System; expansion of company plantation through state lease; and new development through lease-leaseback arrangements.
Albright Limited Director Mr. Salvador Camins III said the company is developing 10,800 hectares under a Special Agriculture Business Lease (SABL) arrangement in Central Province, with a 30-tonne mill expected to be operational by the third quarter of next year.
“We are targeting to only develop 4,000 hectares and our mill has a 30-tonne capacity and is able to cater for 6,000 hectares, so there is another 2,000 hectares that we are talking about which is open to the smallholders. That is one of the reasons we approached OPIC,” he said.
He added that coordination with government was important. “We are also approaching OPIC because we believe we have to coordinate with the appropriate government agency to be able to progress officially in Central Province and the country.”
Minister for Oil Palm Hon. Francis Galia Maneke commended Albright Limited for its investment. He said government wants to take oil palm into remote areas beyond the five existing nucleus projects that have operated for the last 50 years.
“This will be a model program and I commend your people for the interest and the investment that you have done. It’s only fair that we as a government under the intervention program support and sign an arrangement with you so that you can advance your investment interest in Central Province and PNG,” he said.
The Minister also called on landowners to understand and support the company’s interest despite SABL no longer being issued in PNG.
OPIC Secretary Mr. Kepson Pupita said the signing comes as the Marape-Rosso government moves to revamp an industry that has seen little expansion since the 1960s.
“The MoU signed requires constant collaboration with the Department of Lands and Physical Planning, CEPA and other relevant stakeholders for transparency, compliance and environmental considerations,” Pupita said.
The oil palm industry has been dead and.was in hibernation for a long time until the current OPIC CEO, Mr. Lesson Pupita was elevated to the secretary General position. With gis vision and knowledge, oil palm industry, especially the small holders have been recognised and so much have been out into it, thus the input it is having in the lives of the families enhancing their standard of living with school fees and medical fees able to be met. I hope it cam expand to all provinces and districts where oil palm can be grown. Private partnership is the way to go.