Numu Clarifies Agriculture Funds Break-Up Agreement
Funds for the K45 billion (US$13 billion) agriculture and livestock industry project will be paid in trenches and according to project delivery.
This follows the signing of a memorandum of agreement between the Eastern Highlands Provincial Government and McKinley Asia PNG Limited for the multi-billion project.
Eastern Highlands Governor Peter Numu explained when asked to provide details and the processes involved in the MoA.
Mr Numu said the amount was determined by the investor, McKinley Asia PNG Limited, a subsidiary of the United States based McKinley Investment Group, and the money will be coming into the country through the Central Bank in installments.
He said that once the money comes in, the investor will signal the provincial government who will then communicate with the national government to set up a state negotiation team.
The signing of a Memorandum of Agreement (MOA) between the provincial government and McKinley Asia PNG Limited for K45 billion projects will include a feasibility study.
Plus the setup of a downstream Processing Facility for stock feed and a fertilizers factory amongst other key infrastructures such as roads, health care facility, solar power, housing, a local market and training opportunities.
This project is set to provide more than 500,000 jobs for the people and transform and accelerated the lives of more than 400,000 people in the province.
The project will be delivered in two phases- Phase 1: Pilot Project- K6.9 (2Billion USD) and Phase 2- Feasibility and Construction for Various Projects-(K37.95 Billion (11 Billion USD).
The particulars in the MOA signed are divided into two phases by the provincial government.
Phase 1: Pilot Project- K6.9 billion (2 billion USD).
Phase 2: Feasibility and Construction for various projects- K37.9 Billion (11 billion USD).
It is a Build Own Operate and Transfer (BOOT) arrangement direct investment funding through the national government’s platform of Public Private Partnership through arrangements as BOOT and Special Purpose Contract (SPC) Joint Venture.