BRI-linked K2 billion agri-park game changer for PNG
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| People walk past the 'Belt and Road' ecological wall in Beijing during the Belt and Road Forum for International Cooperation in May. Photo: Getty Images. For image text, go to https://www.chathamhouse.org/research/topics/china-belt-and-road-initiative-bri?gclid=Cj0KCQjw9pDpBRCkARIsAOzRziur84tLXsbeTS-JLMx7MLbLHoRowQnDsOhar0RlMsXbad1LT6-8fyIaAlrlEALw_wcB (China's Belt and Road Initiative (BRI) |
BRI-linked K2 billion agri-park game changer for PNG
PORT MORESBY: Agriculture and Livestock Minister John Simon has met with China Railway International (CRI) and Chinese Embassy officials on the ambitious US$600 million (K2.03 billion) Papua New Guinea (PNG)-China Integrated Agriculture Industrial Park Project (PNG-CIAIPP).
Simon is trying to fast track the proposed China Belt Road Initiative (BRI)-linked project to be launched in October after securing the approval of Prime Minister James Marape and the National Executive Council (NEC).
The PNG-CIAIPP is set to lay the groundwork and foundation to secure a trading link with China’s BRI which has to date inked deals with 65 countries to develop the multi-trillion-dollar BRI.
Simon says the PNG-CIAIPP would not cost the Government a single kina as the project is fully funded by CRI as a private venture to help transform PNG’s agriculture sector and industry into a major revenue earner for Papua New Guineans and their country.
PNG Cyber Monitor reproduces below details of the progress of the PNG-CIAIPP as published by The National:
Oct launch for K2 bil agri-industrial park
Agriculture and Livestock Minister John Simon met with China Railway International (CRI) and Chinese Embassy officials on the ambitious US$600 million (K2.03 billion) Papua New Guinea-China Integrated Agriculture Industrial Park Project (PNG-CIAIPP) last Thursday. The National’s senior writer MALUM NALU was there to get the updates.
JOHN Simon says development work on the US$600 million (K2.03 billion) PNG-CIAIPP in Eastern Highlands’ Korofeigu and Western Highlands’ Highlands Agriculture Training Institute (HATI) is likely to be launched in October.
He told The National that the proposed project paper would be submitted in September for Prime Minister James Marape’s approval in October. Simon said this after a meeting with China Railway International (CRI) officials, the PNG-CIAIPP investors, in Port Moresby on Thursday.
“It is a private investment project that will benefit Papua New Guineans and the country. It is not a loan, it is not going to cost the PNG Government anything.
“It is a mega investment that the company will commit in PNG. All they want from us is to provide them with land and they can export our agriculture produce.
“We have no problem with that because it will mean reliable and sustainable income for both farmers and PNG,” he added.
Simon said there was huge demand in China for organic agriculture produce which PNG-CIAIPP would process and pack for exports.
“We have engaged National Agriculture Sector Plan 2019-2028 team leader, Valentine Kambori, a former Director-General of National Agriculture Research Institute and Secretary for National Planning and Monitoring, to fast track the project proposal and paper.
“Then I will take to the Cabinet by August or September, so that the agreement can be approved and signed by Marape in October to kick off PNG-CIAIPP,” Simon said.
“We are working according to schedule, and the investors have been told that the project would be limited to State land.
“We will give them State land to set up their offices and godowns for shipping agriculture produce and products to China. My advice to them is to go into a partnership with the local people to help develop Small-Medium Enterprises (SMEs) and micro SMEs.
“They (CRI) have also been told that only 3% of the land in PNG is owned by the State. So, they should go into partnership with local landowners for future operation expansion plans,” he added.
On reviving PNG’s livestock industry, Simon said the first heads of cattle would be brought in from Cairns, Australia, by September.
“We are looking at bringing in more than 20,000 cattle, 5,000 every month. We are also planning to import 10,000 goats and 10,000 sheep as well.
“This is our bid to revive the Agriculture and Livestock Industry, which is now cynically dubbed by critics as ‘Agriculture and Deadstock’.
“After September, we should have enough livestock to distribute to budding entrepreneurs to get the livestock industry kicking and rise to our past heydays.
“Farmers can then start breeding in ranches and in their residential surroundings for meat consumption and sale,” he added.Waii … we are here to create wealth for the people of PNG
PNG-CIAIPP team leader Brian “Mushroom” Waii says the Government, through Simon, wants the project to begin as soon as possible.
“A directive, in no uncertain terms (from Simon), was that this project must be expedited,” Waii said.
“This includes getting the National Executive Council (NEC) approval, then we will progress immediately to the next stage, that is mobilising development operations.
“It is also heartening to note that Simon, and the Department of Agriculture and Livestock (DAL) acting secretary Daniel Kombuk, are fast-tracking the proposed project.
“It gives us much confidence that a veteran of agriculture, and a former secretary for National Planning Valentine Kambori and Director-General of National Agriculture Research Institute, Valentine Kambori, are working closely with the minister on the official approval of the project.
“The important thing, moving forward, is to start rolling out the project strategy and implementation in the provinces. There’ll be slight changes from the initial plan, but all in all, the focus of development is still the same,” he said.
“We are here to create wealth for the people of PNG,” he added.
Waii said the delay since November 2017, when the project was initially signed in Port Moresby, did not deter the investor, CRI.
“That shows CRI is genuine in wanting the PNG-CIAIPP to succeed for the benefit of all. CRI is a genuine and determined investor.
“In most cases, when an investor is here to spend its own money to develop an important sector like agriculture, delays would dissuade them.
“They then to pull out and go elsewhere. In this case, CRI has demonstrated its genuineness by remaining committed to the project potential,” he added.
He told The National that the proposed project paper would be submitted in September for Prime Minister James Marape’s approval in October. Simon said this after a meeting with China Railway International (CRI) officials, the PNG-CIAIPP investors, in Port Moresby on Thursday.
“It is a private investment project that will benefit Papua New Guineans and the country. It is not a loan, it is not going to cost the PNG Government anything.
“It is a mega investment that the company will commit in PNG. All they want from us is to provide them with land and they can export our agriculture produce.
“We have no problem with that because it will mean reliable and sustainable income for both farmers and PNG,” he added.
Simon said there was huge demand in China for organic agriculture produce which PNG-CIAIPP would process and pack for exports.
“We have engaged National Agriculture Sector Plan 2019-2028 team leader, Valentine Kambori, a former Director-General of National Agriculture Research Institute and Secretary for National Planning and Monitoring, to fast track the project proposal and paper.
“Then I will take to the Cabinet by August or September, so that the agreement can be approved and signed by Marape in October to kick off PNG-CIAIPP,” Simon said.
“We are working according to schedule, and the investors have been told that the project would be limited to State land.
“We will give them State land to set up their offices and godowns for shipping agriculture produce and products to China. My advice to them is to go into a partnership with the local people to help develop Small-Medium Enterprises (SMEs) and micro SMEs.
“They (CRI) have also been told that only 3% of the land in PNG is owned by the State. So, they should go into partnership with local landowners for future operation expansion plans,” he added.
On reviving PNG’s livestock industry, Simon said the first heads of cattle would be brought in from Cairns, Australia, by September.
“We are looking at bringing in more than 20,000 cattle, 5,000 every month. We are also planning to import 10,000 goats and 10,000 sheep as well.
“This is our bid to revive the Agriculture and Livestock Industry, which is now cynically dubbed by critics as ‘Agriculture and Deadstock’.
“After September, we should have enough livestock to distribute to budding entrepreneurs to get the livestock industry kicking and rise to our past heydays.
“Farmers can then start breeding in ranches and in their residential surroundings for meat consumption and sale,” he added.Waii … we are here to create wealth for the people of PNG
PNG-CIAIPP team leader Brian “Mushroom” Waii says the Government, through Simon, wants the project to begin as soon as possible.
“A directive, in no uncertain terms (from Simon), was that this project must be expedited,” Waii said.
“This includes getting the National Executive Council (NEC) approval, then we will progress immediately to the next stage, that is mobilising development operations.
“It is also heartening to note that Simon, and the Department of Agriculture and Livestock (DAL) acting secretary Daniel Kombuk, are fast-tracking the proposed project.
“It gives us much confidence that a veteran of agriculture, and a former secretary for National Planning Valentine Kambori and Director-General of National Agriculture Research Institute, Valentine Kambori, are working closely with the minister on the official approval of the project.
“The important thing, moving forward, is to start rolling out the project strategy and implementation in the provinces. There’ll be slight changes from the initial plan, but all in all, the focus of development is still the same,” he said.
“We are here to create wealth for the people of PNG,” he added.
Waii said the delay since November 2017, when the project was initially signed in Port Moresby, did not deter the investor, CRI.
“That shows CRI is genuine in wanting the PNG-CIAIPP to succeed for the benefit of all. CRI is a genuine and determined investor.
“In most cases, when an investor is here to spend its own money to develop an important sector like agriculture, delays would dissuade them.
“They then to pull out and go elsewhere. In this case, CRI has demonstrated its genuineness by remaining committed to the project potential,” he added.
Left: Brian “Mushroom” Waii
Waii said the project could not come at a better time, especially with the formation of a new Government, and the focus of Marape on agriculture to drive the economy.
“The way forward is that as soon as NEC gives the approval, we can start construction work on the parks, and also subsidiary parks nationwide.
“The subsidiary parks will be located in areas with high value crops. CRI is prepared to stay here for the long haul, whether it be for 99 years or 1,000 years.
“This is not like any civil construction work, where the contractor leaves after completion of the project. This is a long-term agriculture project.
“We will now work closely with the DAL and technical adviser Kambori to expedite the project, and complete the NEC submission and required protocol.
“We hope that the government will provide suitable land and policy environment for us. We will provide all the technical expertise, all the planning and design, and most importantly, the financing,” he added.
“The way forward is that as soon as NEC gives the approval, we can start construction work on the parks, and also subsidiary parks nationwide.
“The subsidiary parks will be located in areas with high value crops. CRI is prepared to stay here for the long haul, whether it be for 99 years or 1,000 years.
“This is not like any civil construction work, where the contractor leaves after completion of the project. This is a long-term agriculture project.
“We will now work closely with the DAL and technical adviser Kambori to expedite the project, and complete the NEC submission and required protocol.
“We hope that the government will provide suitable land and policy environment for us. We will provide all the technical expertise, all the planning and design, and most importantly, the financing,” he added.
PNG’s link to 65 countries, 29 per cent of global GDP
THE construction of the PNG-CIAIPP was signed in November 2017 between PNG’s authorities and CRI under China’s multi-trillion-dollar Belt Road Initiative (BRI).
The signing was to facilitate the transfer of State land-use rights for the construction of agricultural industrial parks that feature godown facilities for the shipping of fresh green produce exports to China.
Under the agreement, the Chinese company will own the right to use land in the Eastern and Western Highlands for 99 years for BRI-linked agriculture industrial parks.
PNG’s active participation in the construction of the BRI-linked infrastructure will greatly enhance PNG’s socio-economic growth by generating enormous opportunities for international and regional cooperation, Chinese Ambassador to PNG Xue Bing told Xinhua last year.
In 2014, China and PNG established a strategic partnership featuring mutual respect and common development, which has charted the course of the development of bilateral relations.
Two years later, the two countries signed several cooperation documents, including a framework agreement on development cooperation on production capacity to bring their cooperation into the BRI “express lane”.
In May 2018, the Asian Infrastructure Investment Bank approved PNG’s application to join the bank, which has accelerated the pace of PNG to participate in the BRI construction.
PNG is rich in natural resources, including mineral reserves, forests, agricultural and fishery resources, with the fishery sea zone covering an area of 2.4 million sq/km.
“All of these are priority areas for the two countries to enhance industry cooperation under the BRI,” Xue said.
PNG is set to benefit from greater international trade opportunities due to BRI’s global trade network that aims to trigger cross-border business activities.
BRI was unveiled and implemented by China in September and Octorber 2013 to revive a new silk route to open doors to vast opportunities in trade, business and investment.
It ventures into trans-border bilateral and joint-cooperation in various fields and sectors – education, medical research, tourism and cultural promotion, technology and industries, digital economy, just to name a few – for mutual benefits.
BRI was mooted by China’s paramount leader Xi Jinping to leverage on each other’s strengths for the greater benefit of Asean’s 650 million populace.
Initially launched as China’s One Belt, One Road (OBOR) Initiative, it was renamed BRI and today the infrastructure links, by road, railway, sea and air stretch from China to the Middle-East, Africa, Europe, Russia and the Scandinavian and Nordic countries and Asia and Southeast Asia.
HSBC Holdings Plc group executive Stuart Gulliver had described BRI as reshaping the future world economy by:
The signing was to facilitate the transfer of State land-use rights for the construction of agricultural industrial parks that feature godown facilities for the shipping of fresh green produce exports to China.
Under the agreement, the Chinese company will own the right to use land in the Eastern and Western Highlands for 99 years for BRI-linked agriculture industrial parks.
PNG’s active participation in the construction of the BRI-linked infrastructure will greatly enhance PNG’s socio-economic growth by generating enormous opportunities for international and regional cooperation, Chinese Ambassador to PNG Xue Bing told Xinhua last year.
In 2014, China and PNG established a strategic partnership featuring mutual respect and common development, which has charted the course of the development of bilateral relations.
Two years later, the two countries signed several cooperation documents, including a framework agreement on development cooperation on production capacity to bring their cooperation into the BRI “express lane”.
In May 2018, the Asian Infrastructure Investment Bank approved PNG’s application to join the bank, which has accelerated the pace of PNG to participate in the BRI construction.
PNG is rich in natural resources, including mineral reserves, forests, agricultural and fishery resources, with the fishery sea zone covering an area of 2.4 million sq/km.
“All of these are priority areas for the two countries to enhance industry cooperation under the BRI,” Xue said.
PNG is set to benefit from greater international trade opportunities due to BRI’s global trade network that aims to trigger cross-border business activities.
BRI was unveiled and implemented by China in September and Octorber 2013 to revive a new silk route to open doors to vast opportunities in trade, business and investment.
It ventures into trans-border bilateral and joint-cooperation in various fields and sectors – education, medical research, tourism and cultural promotion, technology and industries, digital economy, just to name a few – for mutual benefits.
BRI was mooted by China’s paramount leader Xi Jinping to leverage on each other’s strengths for the greater benefit of Asean’s 650 million populace.
Initially launched as China’s One Belt, One Road (OBOR) Initiative, it was renamed BRI and today the infrastructure links, by road, railway, sea and air stretch from China to the Middle-East, Africa, Europe, Russia and the Scandinavian and Nordic countries and Asia and Southeast Asia.
HSBC Holdings Plc group executive Stuart Gulliver had described BRI as reshaping the future world economy by:
- IMPROVING the infrastructure of overland and maritime routes to drive trade and capital flows between the east and the west;
- CONNECTING more than 65 countries across Europe, Asia and Africa covering 63% of the world’s population and 29% of global Gross Domestic Product, and ultimately making it easier for goods and services to reach the growing middle classes as their disposable income increases; and
- ENGAGING with companies of all types and sizes both inside and out of China in the infrastructure, telecommunications, trade, sustainability and financing sectors covering manufacturers, raw goods suppliers and logistics providers as well as financial and professional services firms, and more.
BRI’s infrastructure funding in Asia alone is expected to cost at least US$1.7 trillion (K6.6 trillion).
HSBC chief executive for Greater China said: “We see this as a big opportunity for a lot of people, not just for China, but for the destination countries and for any companies who work on such projects. It will certainly stimulate economic development along BRI.”
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