More provinces show interest in Economic Zone concept

By MATTHEW VARI

Sunday, February 1, 2015 (Sunday Chronicle, PNG)

SEVERAL provinces in the country have shown keen interest in the setting up of economic zones in large arable land areas to create opportunities and boost economic growth.

The interest in the concept were revealed by the Minister for Trade, Commerce, and Industry Richard Maru in a conference last week.

This follows the advanced progress stage reached by the country’s first such economic zone in the Sepik plains that is to be realized soon with feasibility studies to be completed.

Minister Maru also announced the endorsement and interest of Madang province for the setting up of the Ramu Valley Economic Zone in the Usino Bundi District in Madang Province.

“This is the second economic zone that our National government wants to establish, provincial government has confirmed that they want to put up an initial seed funding of K3 million for Survey Land Mobilization,” Mr Maru said.

“Once that is done I will take a submission to cabinet to approve the Ramu Valley Economic Zone to be the second after the Sepik plains.”

He also said that the Gulf provincial government was in talks with the department to venture into a similar arrangement in the district of Kikori, along with the Western province looking to join also.

“We are now in advanced discussions with the Gulf provincial government to set up a similar economic zone in the gulf province around the Kikori area,” the minister said.

“We are also having discussions with the provincial government of Western province, in the Fly River area to establishment another economic zone in that province.”

Maru explained that the Special Economic Zone initiative aims to develop vast land available that could be used for major agriculture or marine or other industry development.

“With the economic zone you build the roads, you build the wharf, you build the power, then you encourage the police, and the investors to come in to partner the provincial government and the people to invest in that land,” he explained.

“If we do not unlock this land and we leave it like that nothing will happen.”

“We have identifies large tracks of land in the Gulf and Western province, and the Ramu Valley in Madang that we want to develop for large scale agriculture and other industries.”

He said that the concept was living proof in fast developing countries in the Asian region, and would be a effective way for provinces to generate more revenues through part ownership between them, the State, and the investors, along with spin-offs for local landowners.

“This is what we want to do with the rest of the country in provinces that have not seen much economic development- our ministry is keen to assist them develop economic zones,” he added.

“When you go to countries like Malaysia and China they have Special Economic Zones everywhere- 80% of what they produce comes from their economic zones.”

“It is not a new concept, and in the zones we give the investors incentives, tax holidays, we put the roads, the power, and we make it attractive for them to come.”