The Kumul Petroleum Holdings Limited (KPHL) has been given the thumbs up to go ahead with the construction of the Central Province Industrial Park (CCIP) at Caution Bay after receiving a Provisional Development License from the Special Economic Zone Authority (SEZA) Board. The Provisional Developer License that was presented to Kumul Petroleum on Monday 4^th August in Port Moresby city, is just for twelve (12) months (1 Year). The CPIP project is a cornerstone of the government’s economic diversification agenda and is expected to stimulate job creation, industrial processing, and regional development in Central Province. However, the Board, in the interest of financial prudence and legal compliance, resolved that the tax or non-tax incentives under the SEZ incentive framework are deferred pending the provision and assessment of the following by the SEZA Board. They are,

• Audited financial accounts for the past three years (2021–2023),
• A certified management account for 2024,
• Present a detailed, KPHL board-approved funding plan specific to Stage 1 of CPIP,
• The issuance of a letter of financial commitment confirming readiness to finance project implementation, and
• Clarify the role and any agreements with Caution Bay Development Limited (CBDL).

The Board emphasized that incentives will not apply retrospectively. Only costs and activities undertaken after full compliance will be eligible for exemption or relief. At the same time, the Board acknowledges the undertaking of the KPHL through its Managing Director, Mr. Wapu Sonk, of the completed audited financial statements that are to be tabled with the trustee shareholder, the Prime Minister, James Marape, on the 3rd quarter of 2025, before they are forwarded to SEZA. The SEZA Board looks forward to receiving these in order to fast-tract the approval of the incentives and reliefs. Meanwhile, Dr. Lawrence Sause, Chairman of SEZA, stated: “We welcome this milestone for the Central Province Industrial Park and commend KPHL for taking the lead. At the same time, the Board has a legal duty to ensure transparency and fiscal discipline. We will only grant incentives when minimum financial disclosures and compliance standards are satisfied. This is how we build investor confidence and public trust.” For the next steps to be taken, KPHL will be formally notified of the license terms and has a 12-month window to comply. The Licensing Committee will reassess the application once all conditions are met, which may lead to:

• Conversion to a Full Developer License, or
• Activation of incentives under the current Provisional License.

This approach supports investor engagement while maintaining the integrity of the SEZ program.