The final negotiations between the State Negotiating Team and RD Group (RD) for a Joint Venture (JV) between the Independent State of Papua New Guinea (PNG) and RD to establish a 300 metric-ton (MT) fish cannery at Vidar in Madang was held this morning 25th February 2024. The Minister for International Trade and Investment, Hon. Richard Maru, in his opening address stated that the Pacific Marine Industrial Zone (PMIZ) was conceived by the Somare Government 15 years ago when the late Grand Chief Sir Michael Somare was still alive. But sadly, nothing was achieved up to today as a government even though PMIZ has been a priority of every successive Government. “The Marape-Rosso Government is extremely keen to see this project kick off next month with the establishment of a new cannery as the anchor project.” “We do not have to delay anymore." "We have been talking for 15 years." "By next month we must start this project.” “I want to see negotiations finalized today with the new Draft JV Agreement agreed to as soon as possible." “Once both Parties are happy, we will get the State Solicitor to clear it before taking it to the Cabinet for approval and then we can proceed to sign the Agreement and hand over funds to the new JV Company in the next two to three weeks." "We have spent enough time in the negotiations.” Minister Maru explained further that the scope of the project has changed from JV for a new fishing company to now a JV to build a new 300MT fish cannery. “I am thankful that RD agreed to partner the State through our investment vehicle, KCH, to establish this JV so we can start with the cannery which will take one-and-a-half year to complete if we can start the work now.” “Government is partnering RD because it has the experience and expertise in running a cannery and it already has a wharf and a cold storage.” “This project will be funded by the State Equity, but we will use KCH as the vehicle because it is the business arm of the Government.” “The State, Madang Provincial Government and the Madang and Sumkar District Development Authorities will hold 50% of the shares while RD will hold another 50%.” “The new cannery project will cost K160 million." "The State’s share of the equity funds is ready and will be released to the new JV Company to be called the ‘Kumul Fishing Limited’ as soon as the Project Agreement is signed,” said Minister Maru. “The people of Madang must also benefit from the vast spin-off business opportunities from the proposed Madang Integrated Special Economic Zone (SEZ) starting with the new cannery." Minister Maru thanked the Minister for Fisheries and Marine Resources and the National Fisheries Authority for the Domestication Policy which will be announced next month. “Under this policy, every fishing company in this country will be required to land between 25% and 40% of their catch in PNG, meaning there will be a lot of fish to process.” “At the moment we process 115,000MT of fish a year out of 550,000MT of fish caught in PNG waters, and this is only 20%.” “We are exporting jobs and losing so much value, so our government is moving towards Domestication, thus the new 300MT cannery is expected to create 10,000 new jobs which means 10,000 more people paying income tax and GST”. Maru highlighted that currently all these jobs are created outside the country, and we have been spectators for a long time as rent collectors and this is going to change with the introduction of the Domestication Policy and with the support of our partner, RD. Minister Maru further added, “We want to have ten fish canneries in Madang one day. We want to have a fully-fledged economic zone as a one-stop-shop with everything to do with fishing including fuel depot, slipway, water, wholesale, retail, staff houses, etc.” “We are looking at working with RD after this JV Agreement to bring in some global experts to do a master plan for the proposed Madang Integrated SEZ.”