The Minister for Trade, Commerce and Industry Richard Maru revealed yesterday during the presentation of the “full commencement order” to the contractor, China Shenyang International Corporation (PNG) Limited to commence work on the project.
“National Executive Council on Monday approved transfer of PMIZ to Kumul Consolidated Holdings (KCH).”
The project was formally spearheaded by the Department of Trade, Commerce and Industry.
Maru said it was the right move as KHC has the expertise and resources to bring in more capital and develop the project.
The PMIZ project is funded by the National Government through a concessional loan of $ US 95 million (K300.5 million) from the Exim Bank of China.
The State holds 22 percent and financier 78 percent of shares per the 2011 agreement.
KCH general manager investments Lutz Heim said it’s hard to give an estimate of the total cost of the project.
“We have not yet priced the cost of the township and other infrastructure will be known (the total cost of the project) in the years to come.
Meanwhile, The Secretary for Trade, Commerce and Industry John Andrias said he expects the cost of the project to increase because of the delay in the project getting off the ground.
The delay was because of Court proceedings instigated by NGO’s supporting disgruntled landowners in Vidar where the project will be built.
The National Government plans to build 10 fish processing plants.