Simbu Province came out in full force yesterday to present K1 million to Minister for International Trade and Investment, Hon. Richard Maru to fund the Feasibility Study into the viability of establishing a Special Economic Zone (SEZ) in the Karamui-Nomane District. Simbu Provincial Government presented K1 million to Minister Maru upon his visit to Karamui as he had promised Chuave MP, Hon. James Nomame in the last parliament session. The Department of National Planning and Monitoring also presented K1.3 million to support fund the study. The presentation was made by the Vice Minister for National Planning and Monitoring and Chuave MP, Hon. James Nomane.
“I am very impressed with your commitment; you are the first district and province, from those that we have visited so far, to make such a commitment. You have set the record and you should be extremely proud,” said Minister Maru during his visit with the Japan Development Institute (JDI) Expert team and the local consultants to assess the potential of Karamui-Nomane District for it to be developed as an economic zone.
Simbu Province leaders are united in supporting this initiative because Simbu has only been generating K5 million internal revenue and cannot develop the province with such revenue each year. The province does not have an economy because of the mountainous terrain of the province. The only land that is flat and very fertile and that can be developed into a major agriculture hub to contribute to the revenue and development of the province is in the Karamui-Nomane District. Cocoa and other crops grow very well there.
“Simbu has no gold, no copper, no silver and no gas, but it has the raw potential to be a major agriculture hub in the country. Over the last 47 years, human resource has been Simbu’s greatest contribution to our country,” said Minister Maru.
“Despite its vast potential, the country has not been able to unlock development of Karamui-Nomane District because it has no road access and it will be difficult to bring any of their produce to the market. While the people are ready to work and get behind development, we need to build the infrastructure to attract the investors to go in and develop agriculture in a large-scale commercial scheme of arrangements,” said Minister Maru.
Minister Maru explained that Simbu generates K5 million only in revenue every year, making it one of the lowest income generating province in the country in terms of income generation.
“East Sepik generates K15 million, Madang- K30 million, Morobe almost K200 million, and NCD K250 million. This is why the provincial government cannot carry out any major development because there is no revenue- that is Simbu’s biggest problem; there is no money for service and development. How can Simbu Province be developed and lives of the people improved if the province cannot generate enough internal revenue to develop the province? The National Government pumps in K200 million in budget each year to support Simbu Province. Unless Simbu sorts out its economy- it will not have a prosperous future,” said Minister Maru.
“East Sepik Province once had K5 million internal revenue but it had increased to K15 million and is still climbing. How are we climbing when we have no mine? We are climbing on the back of cocoa and other agriculture produce. Today I fully appreciate that Karamui’s land is very fertile and it has the potential to grow Simbu’s internal economy through agriculture. Simbu must have a clear plan to generate over K20 million in internal revenue each year. Without an SEZ in Karamui (ySimbu’s greatest land asset) this would not be possible,” said Minister Maru.
Minister Maru added that for Karamui to be an economic zone, it needed to have law and order, have a state land, and have road access to a port, and have cheap and reliable electricy.
“With the K1.3 million given by the Department of National Planning and Monitoring, I will get one of the best consulting firms in the world to come in and assess the viability of Karamui and also to tell us all the requirements that we need to meet to turn it into an economic zone. They will recommend to us, from their studies whether the road will go from Karamui to Kundiawa or to Lae where the port is. Karamui cannot be an economic zone without roads to give access to market and it also has to set up a mini hydro to produce cheap and reliable electricity to the proposed Karamui SEZ. There must also be a state land for the offices and factories to be established, which means the landowners must be willing to sell some land to the state. The study will also include a new town plan and will also recommend the crop that Karamui will be specialized in,” said Minister Maru.
Minister Maru encouraged Simbu Provincial Government to sort out law and order issues in Karamui by building a police station and bringing enough police manpower on the ground.
“I also want the Provincial Government and the local MP give me a house and an office in Karamui early next year so an officer from the new Department of International Trade and Investment will come and stay here and facilitate the feasibility study,” said Minister Maru.
Meanwhile, Minister Maru also visited Kundiawa where people crowded the streets of town to receive them and to celebrate the new dawn of the province. Governor Kool described the day as a ‘historic day’ of the province.
