The National Government is discussing with the Exim Bank of China to draw down a new loan to develop the Pacific Marine Industrial Zone (PMIZ) at Vidar, Madang Province.
Minister for Trade, Commerce and industry Richard Maru confirmed that building of infrastructures to house 10 tuna processing plants to process tuna caught in PNG waters had been delayed because the timeframe for the drawdown of the loans secured in 2011 lapsed.
“Loan had expired and also the cost had increased because of the delay, officials have been working with Exim Bank to provide us with a new loan to draw down and commence the construction.
“The real cause of the delay was the NGO who brought us to the Courts, basically in three years you have to draw down and build the infrastructure if you do not build it the loan lapses, that is what had happened.
“It is our (the government) highest priority but we have to follow the process by the bank,” Maru said.
This project will be developed on 215 hectares of land.
It is understood, 100 hectares will host canneries and 115 hectares for residential and commercial purposes.
The project was delayed for five years because of Court proceedings instigated by customary landowners because of environmental concerns.
Caption: File picture of the ground breaking of the construction commencement last year.