Treasury Minister, Patrick Pruaitch, yesterday signed a memorandum of understanding for the establishment of the China-PNG Comprehensive Industrial Park in Vanimo, West Sepik Province.
Under the MoU, investors from China plan to build a series of processing and manufacturing plants.
The agreement covers projects including large scale processing of timber products, fisheries, cassava and starch products and tropical spices at the Green River Industrial Park.
Treasurer Pruaitch and Sandaun Governor, Amkat Mai signed the MoU together with representatives from the two major investment groups namely, Shenzhen Vivafounders, and the Metallurgical Corporation of China.
Chairman of Shenzhen Vivafounders Investment, Li Mu, said the Vanimo Industrial Park will be developed in phases at an eventual cost of US$3.8 billion. It is expected to have an annual output of US$3.1 billion.
Zhang Mengxing, President of the Metallurgical Corporation of China, MCC, another key partner in the framework agreement, said MCC had been closely involved in the transformation of Shenzhen from a fishing village into China’s third largest city of 20 million people.
MCC, which operates PNG’s USD$2 billion Ramu Nickel mine, is expected to be the main contractor for the Vanimo Industrial Park.
The industrial park is expected to bring benefits like improved transport links, power supply and creation of thousands of sustainable jobs for locals.
Governor Mai told the signing ceremony that PNG and China would be able to “leverage each other’s resources and capacity to make this vision a reality”.
Earlier Shenzhen’s Vice Mayor, Mr. Ai Xuefeng, said he was very pleased at the rapid progress made since his visit in July to Port Moresby. The visit was because there is enormous potential for PNG to develop; and many areas of potential cooperation between the Shenzhen Municipal Government and PNG.