The Special Economic Zones Authority (SEZA) says the four licensed Special Economic Zones (SEZs) in the country represent about K15 billion in private investment, with private investors meeting the cost of developing and operating the zones.
SEZA Chief Executive Officer Kikila Yavase said the K15 billion investment was for the construction and completion of the privately owned SEZs and would not be a direct cost to the government.
Mr. Yavase said about 6,000 jobs were projected across the licensed SEZs once the developments were fully completed and operating.
Mr. Yavase made the remarks in response to questions from PNG SUN after the signing of a Memorandum of Understanding (MOU) between SEZA and the PNG Tourism Promotion Authority (PNGTPA) in Port Moresby last week.
He said SEZA currently had four licensed SEZ sites, with several developments already progressing.
These include a cement factory that is about 60 to 70 per cent complete and is expected to begin producing locally made cement next year.
Other developments include steel fabrication, mixed-use projects and industrial developments at different stages of construction, with some sites between about 30 and 60 per cent complete.
Mr. Yavase said the developments were being financed by private investors who had applied for SEZ licenses.
Under the Special Economic Zone Act, investors are required to meet specific criteria before SEZA can issue a license.
“Those are private investors. We issue licenses to private investors who have money to put down,” he said.
He said private investors were responsible for financing the construction, completing the developments and operating businesses within the zones.
CEO Yavase said Papua New Guinea had significant tourism potential but faced challenges including infrastructure, land access and investor confidence.
He said SEZA could not address these challenges alone because different government agencies had responsibilities covering areas such as land, infrastructure and investment.
Following the signing of the MOU with PNGTPA, SEZA and its partner agencies are expected to work together to identify and address some of the barriers affecting investment.
Mr. Yavase said investors would only commit their money when there was a clear business case and the necessary infrastructure and services were available.
He said investors would need confidence that SEZ sites had proper connectivity, power, internet access and other services required to operate businesses.
The four SEZ developments are also expected to create thousands of employment opportunities as construction progresses and businesses become operational.
He said employment would be created progressively based on the needs of businesses during construction and operations.