IN a move aimed at bolstering Papua New Guinea’s (PNG) economy and fostering
international investment, the Minister for International Trade and Investment,
Hon. Richard Maru, has unveiled plans to designate Cocoland Sugar Development
Limited in Abau, Central Province, as a Special Economic Zone (SEZ).
The announcement came during a pivotal meeting where Minister Maru engaged with
the management team from Yaosoeng Sugar and Cane Consultant Company Limited, a
Thai company, alongside the Abau MP, Hon.Sir Puka Temu.
The ambitious proposal outlines the establishment of a sprawling 40,000-hectare sugar
farm, complemented by a cutting-edge processing mill and a power plant. This initiative
follows a highly successful trial conducted in Abau on the designated land for
the proposed sugar farm.
Once operational, the plantation is slated to churn out a staggering 3 million tonnes
of sugar annually, with PNG and neighboring countries, notably Indonesia, identified
as key markets. Moreover, the project is anticipated to generate upwards of 20,000
employment opportunities for Papua New Guineans, offering a significant boost to the
local economy.
“Despite the presence of Ramu Sugar in PNG, the nation continues to rely on sugar
imports from Thailand. Thus, the introduction of another large-scale sugar project will
not only enhance domestic production but also foster healthy price competition,” emphasized Minister Maru.
Highlighting the strategic importance of the project, Minister Maru underscored the government’s unwavering commitment, designating it as a top priority. Furthermore, he
articulated the broader diplomatic implications, stating, “We want to open a Diplomatic
Mission in Thailand, and having this project here in PNG gives us one reason why
we should be in Thailand.” To advance the initiative, Minister Maru announced plans for an on-site inspection in Abau before presenting a submission to the Cabinet for approval. This critical step would pave the way for negotiations and the signing of a State Agreement between the government and the developer. Notably, the developer has expressed eagerness to commence construction promptly, with the envisaged sugar mill and power plant expected to require over two years for completion.
The financial outlay for the project is substantial, with the sugarcane farm estimated
to cost USD126.01 million, while the sugar mill and power plant are projected to demand
USD295.01 million, culminating in a total investment of USD421.03 million. The investor has signaled readiness to finance the venture independently or explore partnership
opportunities with the government and other stakeholders.
As PNG charts a course towards economic revitalization, the proposed transformation
of Cocoland Sugar Development Limited into a Special Economic Zone stands as a
testament to the nation’s commitment to fostering innovation, sustainable development,
and international cooperation in key sectors.
Minister Maru concluded, “This project is pivotal; it serves as an anchor investment
reaffirming the wisdom of our government’s decision to deepen ties with Thailand. It
sets the stage for increased collaboration, knowledge exchange, and investment opportunities between our nations.” The envisioned SEZ holds the promise of unlocking new avenues for growth, heralding a transformative chapter in PNG’s economic landscape.
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