The Independent State of Papua New Guinea (PNG), RD Tuna Canners Limited, and RD Corporation have reached agreement on the terms of the Project Development Agreement (PDA) for the cannery project within the new Madang Integrated Special Economic Zone (SEZ). The Letter of Agreement was signed on 9 December and witnessed by the Minister for International Trade and Investment Richard Maru at PNG Investment Week in Sydney, Australia.
“The investment is subject to final NEC and RD Board approval. This new cannery will be developed under a joint venture company, 50% owned by the State and 50% by RD, with initial expertise provided by RD to help PNG transition from being a rent collector to being an owner—initially of a cannery and later a full-scale fishing company," Maru said.
Maru said that each party will contribute K80 million to the joint venture, and RD will hold a 10-year management contract. The project is expected to create well over 5,000 direct and indirect jobs in Madang Province.
The Minister thanked all parties for their commitment, patience, and contributions toward finalising the PDA.
“I personally take this opportunity to thank the Marape-Rosso Government for providing the State funding of K80 million for this strategic investment," he said.
The Prime Minister will launch the new joint venture fish canning company early next year, and construction of the cannery will commence immediately after the launch.
"This is a critical project under our PNG Reset economic independence agenda as we move into the next 50 years, during which we can no longer export raw materials, including our fish,” he added.
He added: “This marks the beginning of a deliberate effort by our Government to invest in downstream processing so that we can replace all canned fish imports from other countries. This 300-metric-tonne cannery will serve as the anchor investment for the proposed Madang Integrated Special Economic Zone, with another eight canneries expected to follow. This is a very exciting development, and we look forward to the launch and construction of the cannery in January next year.”
Minister Maru said the Government’s long-term plan is to list Kumul Fisheries Limited on the National Stock Exchange as a public company once it proves profitable.
“The initial shareholders will be the State, through KCH, the Madang Provincial Government, and RD. Our focus is to get the company operational and profitable before opening it to public investment. We want this to become a fully fledged PNG fishing company. If we can own a mine, we can own a fish canning company. We cannot remain rent collectors all our lives,” he said.
