Papua New Guinea Prime Minister James Marape announced the launch of a “transformative” $1.2 billion (4.8 billion kina) agro-forestry project aimed at boosting the economy and infrastructure of the remote midlands of Western Province.
During a press conference, PM Marape outlined key features of the project, which promises to enhance connectivity and generate substantial employment opportunities in the region and the country.
The conference followed the signing of the GRE Drimgas Project in Western Province at the Government House on October 29th in Port Moresby.
The project will facilitate the construction of over 300 kilometers of sealed roads and an additional 300 kilometers of all-weather roads connecting Kiunga to Nomad, extending towards the borders of Gulf Province. Plans include further expansion of this highway to Kikori in the future, the Prime Minister said.
"This initiative is not just about road construction; it’s about processing and sustainable development," Marape stated.
"Logs harvested from this corridor will be processed within Papua New Guinea by 2028 at a facility located in the deep-water area of Strickland River."
The project, being developed by Italian investors, is set to process timber for export to European markets. Landowners will receive 10% equity in the venture, along with log levies and royalties, benefiting directly from the project’s success.
Additionally, the provincial government of Western Province and the national government will each hold 5% equity stakes. After 25 years, the equity share for PNG beneficiaries will increase to 51%, ensuring greater local ownership and control.
The initiative is projected to create over 3,000 direct jobs, along with numerous indirect employment opportunities through various spinoffs. It emphasizes environmental compliance, adhering to national standards, and includes a five-year project review clause to monitor compliance.
"The state will not invest money but will provide necessary regulatory support, allowing the investors to take the lead in developing the project," Marape explained.
In addition to the agro-forestry initiative, the Prime Minister highlighted the government's plans to diversify agricultural production across the country. This includes the development of oil palm, rice, cattle, and coffee industries, as well as the expansion of cocoa and copra production.
Marape also called on provincial governors from peaceful regions to seek out investors, assuring them of government facilitation.
"This is just the beginning. Our government is committed to unlocking the potential of our natural resources while ensuring sustainable practices," Marape added.
