East New Britain Province is set to develop two new potential Special Economic Zones (SEZs)- Rabaul Free Port and Tokua Aiport City, says the Minister for International Trade and Investment, Hon. Richard Maru. Minister Maru made this announcement following the groundbreaking ceremony of the Tokua-Kokopo 17km 4-lane road construction and the recent decision by the National Executive Council (NEC) to lift the moratorium in Rabaul and redevelop the town to its former glory.
“The proposed Rabaul Free Port will be anchored on the current wharf and the new wharf development for tourist cruise liners in Rabaul, and the K230 million Tokua-Kokopo 4-lane road and the Tokua Airport Redevelopment will complement the proposed Tokua Airport City development,” said Minister Maru.
Minister Maru stated: “It is a historic decision made by the Marape-Rosso Government to redevelop Rabaul town and to encourage investments in Rabaul, however, most investors will fear the risk of the volcano that may erupt again so we have to find a way to encourage them to come. As the Minister responsible for SEZs, my view is to establish Rabaul as a Free Port so we can offer the investors an incentive package like tax holiday and duty-free market access if they decide to invest in Rabaul. This is to attract investors so they can recover their initial investments quickly without worrying about paying taxes. This incentive is for a very specific area within Rabaul that is prone to ashfall and will suffer in the event of a future major volcanic eruption and a defined area where investors cannot insure their businesses on the damage done due to volcanic eruptions.”
Minister Maru also met with the Governor of East New Britain Province, Hon. Michael Marum and the Provincial Administration in Kokopo yesterday and agreed to look at a second SEZ in East New Britain Province around Tokua.
“At Tokua we plan to develop an Airport City where we will build the hotels, the golf course, the shopping malls, and other tourism products around the airport to attract tourists. The concept will be similar to Denarau in Nadi, Fiji. This will also involve the extension of the airport and the development of the airport from a domestic airport to an international airport so we can get direct flights from countries like Japan. We plan to offer a special package for investors to invest around Tokua- this is what we are discussing with the leaders of East New Britain and the Provincial Administration. The Tokua Airport City will not be possible without all the land being acquired and reserved for that purpose, so we must not allow anybody to buy land around Tokua. The State has to seriously start acquiring this land so it can be reserved for the purpose of airport city development,” said Minister Maru.
Minister Maru further stated: “East New Britain Province has a lot of potential especially in tourism given they have a volcano, friendly people, their culture, the war relics, and less crime rates. All we have to do is come up with a development plan and offer the fiscal incentives through the SEZ package that our Government can offer. These two proposed SEZs will create 20,000 to 50, 000 new jobs in the manufacturing, downstream processing, and in the tourism sector. The National Government is very keen to work with the East New Britain Provincial Government and its administration to unleash the potential that we see in this province because when we develop the potential of this province, we are also building our country. The National Government and the Provincial Government must invest in putting the enablers like water, power, roads, sewerage, and allow the private sector to come in and invest.”
“My Ministry will work with the Tourism Promotion Authority and the Special Economic Zone Authority to develop these two potential SEZs,” Minister Maru added.
Minister Maru clarified that any area outside Rabaul and the proposed Tokua Airport City will have to apply for an SEZ license if it is to be developed as SEZs.
“Our Government’s priority will be Rabaul Free Port and Tokua Airport City but there are also other potential sites in East New Britain Province that can be developed as SEZs, including the Lassul Bay, Kerevat, and Open Bay. Each of these areas will be considered on their own merit on a case-by-case basis,” said Minister Maru.
Minister Maru further clarified that all SEZs around the country will be established under one national legislation- the SEZ Act 2019 (amended).
