MoU signed for joint venture fishing cannery project

The state, Kumul Consolidated Holdings [KCH], Madang Provincial Government, and RD Corporation today signed two major agreements- Memorandum of Understanding [MoU] and Ceremonial signing of Project Site Development Plan & Plant Design for the proposed Joint Venture Fishing Cannery project in Madang.

Under the agreement, RD Corporation will have a 50% share, and the state is to have 50% [KCH], 40%, the Madang Provincial Government 5%, and 2.5% each to the Madang and Sumkar districts.

The negotiation which took two years before reaching this MoU today will pave the way for all parties to sit together and discus on the shareholder agreement, before presenting it to cabinet for approval.

Minister for International Trade and Investment Richard Maru has urged all shareholders to collaborate in this important process.

"We want to see the shareholders agreement signed straight after this. Agreement reached on the major clauses, so we can hopefully have it signed in the next two weeks We really want to move now." Maru said.

RD Corporation Chairman Roy C. Rivera said operating the cannery in PNG for the past 29 years has been tremendous, and he wants to see this project get off the ground.

While happy with the 50% share of this joint venture, going forward, Rivera said he wants to see the company grow and create more jobs.

"We're creating approximately 5,000 jobs, generating much-needed foreign exchange, substantial tax revenues to the national treasury, and countless business spinoff benefits to local entrepreneurs, enterprises, and lastly, facilitating the transfer of skills, knowledge, and technology," Mr Rivera said.

Madang Governor Ramsey Paiwa while commending the government and RD Corporation for this initiative, said he wants to see a fair distribution of benefit sharing in the project.

"With the state, I think we'll sit down and talk about the JV and equity arrangement.

"I must say that the people of Madang must not miss out on the equity arrangement. We've witnessed the people of this country have been missed out by successive governments for the last 50 years.

"People of Madang must not be spectators, must not miss out. I will make sure we have a good share in equity," the governor said.