With the signing of the HR recruitment contract, the $US6 billion (K21 billion) Ihu Special Economic project spearheaded by the Kikori district development authority has moved into its second phase of development.
Minister for Foreign Affairs and Kikori MP, Soroi Eoe said the signing is significant in that it enables the National Executive Council decision No.269/2020 to transform this project from a Kikori DDA funded project to a National Government project from this year onwards.
The National Executive Council has approved the Ihu Special Economic Zone (ISEZ) project with Public Investment Program funding of K100 million for development for the next five years. This program is going to be implemented through GoPNG PIP funding, as approved in the 2021 national budget.
ISEZ project director Peter KenGemar said that the price of such a project is US$6 billion - which is about K21 billion over 15 years. He said that in the first five years, US$2 billion may be used.
“Right now is to get the social licensing done which is to do with land mobilisation with the landowners and the environmental licensing done which are two critical issues that we have to overcome. We are using the current funding to make sure we get those work programs out of the way,” he said. “We have to build the infrastructure first. Once we deliver the infrastructure then the industries should come in, but not to say that other smaller industries already interested can start its SME spaces that is why we are putting a little bit of funding into this space.”
He also noted that they are looking for other ways to fund the project. “The government gave us K2m last year and another K10m will be given this year,” he said.
