PNG PM Marape to formally launch Ihu Special Economy Zone in Kikori

THE National Executive Council has approved the Ihu Special Economic Zone (ISEZ) project with Public Investment Program funding of K100 million for development for the next 5 years, says Foreign Affairs and International Trade Minister and local member for Kikori, Honorable Soroi Marepo Eoe.

Currently, discussions are on-going between ISEZ project development office and several government departments/agencies and State-Owned Enterprises for project development partnership. 

“Kumul Petroleum Holdings Ltd, PNG Ports Corporation, Water PNG, National Airports Corporation, PNG Power, National Housing Corporation are a long list of SOEs that are being pursued to collaborate and develop the project,” Other PNG based companies and super funds are also being pursued for possible partnerships as well. 

“Standard project partnership MOU’s shall be signed to enable these institutions and companies to provide technical, commercial and management assistance as well as project financing and construction to develop the project”, says Peter Kengemar from the project development office.

Project site is located at Ihu, Orokolo Bay of Kikori. 

Project site is selected based on access to natural resources including oil, gas, timber, fish, water, agriculture land; access to land, sea and air transport; access to other economic regions including highlands, Western province, Central province and Port Moresby; access to international trading (logistic) routes including Australia, New Zealand, Indonesia and rest of Asia based on current routes and future expanded trade routes and need for strategic infrastructure to open up interior of PNG via southern port.

“The site selected geographically starts in the east from Bluff Point to mouth of Purari in the west along the sea front. From Bluff point goes inland towards headwaters of Vailala and across to Purari/Wabo area and joints at Orokolo Bay,

“The geographically delimited area also includes sea surface and underwater.”

The ISEZ is a 45-minute flight to Port Moresby, Lae and other major towns in Papua New Guinea. Ihu Airport is less than an hour away from Madang, Mt Hagen and Tari.

• Expected Revenue:  

The ISEZ will directly generate an estimated K10 to K12 billion annually for the Government after completion of Stage 1, that is for the first 15 years of ISEZ being fully operational and much more thereafter from 15 to 25 years.

• Business

Apart from the major downstream processing-based business activities that will require Foreign Direct Investments, ISEZ shall in the process create and generate SMEs with cottage service industries to support the major industries. This is expected to create long term value added sustainable businesses for local and national business houses.

• Employment and Technology Transfer:

It is expected to create up to 250,000 jobs directly and another 250,000 jobs indirectly after completion of Stage 1. SEZ global models shows rapid transfer of jobs skills and technology transfer to local population. This will generate long term generational skills and jobs transfer to Papua New Guineans.

• Natural Resources Base:

The ISEZ project is supported with vast natural resources. Kikori District is the country’s economic frontier for the future, with its abundant natural resources including petroleum, fisheries, agriculture, forestry, iron sands, coal and many others. “About 17.8 Trillion Cubic Feet (TCF) of discovered proven economical gas reserves are in Kikori, which represent 80 per cent of the country’s total gas reserves of over 19 TCF. 

“My district currently hosts Kutubu Oil export pipeline and terminal, PNG LNG Project pipeline, and will soon host the country’s second LNG project in Papua LNG Project, and Pasca Gas Condensate Project”, says Honorable Soroi Eoe, MP.

These massive projects will no doubt make significant contribution to the country’s economic growth into the future, increase country’s GDP, creating employment, boosting growth in the SME sector, meet local and national content obligations, and improve livelihood through infrastructure development. 

“ISEZ project is now a fully funded National Government project. The project has now moved from Phase 1; which was concept development to Phase 2; Project Planning and Implementation. This was possible after NEC decision No.269/2020 which approved the project concept and funded it for development” say Project Director, Mr. Kengemar.

Phase 2 includes; 

(i) Land Mobilization programs which includes social mapping, land investigation studies, landowners NID registration, ILG registration, 

(ii) Environment Impact Studies and Environment Permit,

(iii) Full Feasibility Studies, 

(iv) Site improvement programs, which will be improvements made to Ihu and Baimuru airstrips, jetties, infield roads, power, water, field operations camps, telecommunications services, and 

(v) SME incubation for project impact area. 

Phase 2 program will kick-off with a major project awareness to cover project impacted and affected areas from across Ihu LLG to Baimuru LLG and East and West Kikori. The awareness program is finalized and will kick off in January 2021.

Prime Minister to Visit Kikori District:

“Prime Minister, Honorable James Marape has accepted our invitation to visit the project site to formally launch the project program, and will also officially open other projects completed by Kikori DDA”, say Hon. Eoe.

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