The Special Economic Zone Authority (SEZA) has expressed alarm by efforts to establish different special economic zones (SEZs) through different stand-alone acts of Parliament.
SEZA says these efforts are being done without compliance with the SEZA Act of 2019, and without the express authorization of the board.
In the board’s official statement, they stated, “Attempts in this regard have been through the private members bill process. This is contrary to the SEZA Act 2019, which provides for a united national process (or a single window) for creating and recognizing SEZs throughout the country.”
The board expressed that the consequences of creating SEZs using different enabling acts of parliament will undermine the current efforts already underway by the National Government to develop SEZs in the country.
“Legislations to develop the SEZA Act 2019 will kill the SEZ concept even before it takes traction and full development in the country.”
The board is particularly concerned that an SEZ created by individual, stand-alone acts of parliament contrary to the SEZA Act 2019, will create multiple and conflicting rules, providing contrary frameworks for SEZ development. In addition, making it virtually impossible to enforce different rules by the regulatory entity, in this case, the SEZA. Such actions may also allow the inclusion of SEZ enclaves that are not economically competent to be SEZS.
The board emphasized that this will destroy investor confidence on investing in PNG given different regulatory frameworks, and will make it impossible for the board to ensure compliance on the developers and operators to SEZs using different and multiple regulations stemming from different legislations.
“In pursuing the government’s policy on SEZ development, there must be only one regulator of SEZs.”
Meantime, the SEZA Act 2019 can be utilized to create free trade zones, industrial parks, technology parks, single factory zones. The board says that they invite all potential developers to explore these options.