The 8,000 hectare Oil Palm plantation in East New Britain Province is employing over 3, 000 locals.
ENB Palm Oil Mill Ltd CEO, Tan Eng Kwee said the project had been developed in the last eight years.
The ENB Governor Ereman Tobaining Jr during an agreement signing said, the signing paved the way for the development of the oil palm industry in the province.
The project agreement was signed on Thursday in Port Moresby, between the State, ENB Provincial Government and ENB Palm Oil Mill Ltd for Kairak Nucleus Oil Palm Development project.
Governor General Bob Dadae executed on behalf of the State giving the developer exemption to pay import duties and excise taxes on items, machineries, equipment and materials imported into the country.
The agreement signing paves the way for the developer to establish oil palm production and processing plants, reforestation and infrastructure development, such as constructing roads and bridges to link Gazelle and Pomio districts to Rabaul and Kokopo.
ENB Oil Ltd had agreed to provide K376.9 million in the next 10 years as part of its obligation towards the development of the project and infrastructures in the Gazelle District.
The contract was signed before the Governor-General, by ENB Palm Oil Mill Ltd CEO, Department of Trade, Commerce and Industry Secretary John Andrias and ENB Governor.