PNGDHL to free carry equity for Cloudy Bay resource owners

(Front L-R): International Adviser to MD Raj Shahi, PNGDHL Chief Operating Officer Ms. Verolyn Daugil, Amau Ganai Riwari Landowner Company Chairman Miller Bonou, PNGFA Managing Director John Mosoro, Riwari Landowners Chairman Paul Aika Chairman and Acting Central Provincial Administrator Mr. Augustine Yabina. (Image: Supplied)

For the first time since the Papua New Guinea Forest Authority [PNGFA] was established 33 years ago, the forestry sector is preparing to issue a timber permit under a Forest Management Agreement [FMA] to a state-owned company, PNG Diwai Holdings Limited [PNGDHL].

PNGDHL, the business arm of PNGFA, will become the developer of the Amau Ganai Riwari FMA Project in the Cloudy Bay area of Central Province. The company will free carry equity for resource owners, making this another first in the forestry sector. PNGFA plans to replicate this pilot project in other areas if it proves successful.

PNGFA Managing Director and PNGDHL Interim Executive Chairman John Mosoro officially opened negotiations between PNGFA, PNGDHL, and the resource owners on Friday, 15th August 2025.

“As PNGFA Managing Director, I am pleased to officially open negotiations for the Amau Ganai Riwari FMA, the first project funded by the government through PNGDHL,” Mosoro said.

He explained that the idea for the government to manage its own projects began when he served as Director for Policy in the Prime Minister’s Department before moving it under PNGFA.

“Prime Minister James Marape, who is reforming oil, gas, and mining, also pushed for reforms in forestry to ensure resource owners benefit. He created PNGDHL as a fully-fledged company under our business laws to look after resource owners,” Mosoro said.

He added: “PNGFA regulates the forestry sector, but since PNGDHL is still in its early stages, I serve as its Interim Executive Chairman. PNGDHL will drive PNGFA’s business. In the past, landowners received only royalties and levies, which were not enough. Now, for the first time in any forestry project, you resource owners will sign directly with the State. In the past, the State signed with developers while landowners watched from the sidelines. This time, the State signs with you.”

PNGDHL Chief Operating Officer Verolyn Daugil emphasized that this project marks history in the forestry sector. “For the first time, a state-owned forestry company will free carry resource owners’ equity. The majority of benefits will go directly to the landowners,” she said.

Amau Ganai Chairman and landowner representative Miller Bonou welcomed the project. “Life in our area is very difficult. We still live like our forefathers. I have discussed this project with PNGFA for the last five years, and I am happy negotiations have started. We need basic services,” Bonou said.