Report on the Implementation of the derogation to ... - Trade Websites

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
members, who believe clan leaders are not equitably distributing benefits from spin-off businesses
within the clan.
The eviction by DCI of two squatter settlements established in the Nukuru and Mos Damon areas
within the PMIZ compound has commenced. In June 2010, squatters were compensated by DCI for
the loss of economic crops (K 275,000). However, controversy has surrounded this process, with
claims that payouts received were less than those agreed to. 95 RD workers and their families living
in these settlements are being repatriated to land purchased by RD at Maiwara (about 15 minutes
from the cannery compound), while issues still arise concerning where to relocate families from the
settlements who are not RD workers.
Concerns have been raised that the people of Madang province have not been adequately consulted
concerning the PMIZ development. This has given rise to a group of concerned members of the local
community (Idawad Group, sub-set of Kananam tribe) mounting a legal case against DCI, NFA and
the Justice of the Attorney, for breaching the Free Trade Zone Act and Fisheries Management Act.
The plaintiffs are seeking to be recognised as the true ancestral landowners to ensure that are able
to fully participate in spin-off economic activities. They are also challenging the legality of
establishing a special economic zone (SEZ) in Madang and raising concerns about potential
environmental impacts and the lack of community consultation. While the plaintiffs are calling for
an injunction to stop the development on the site, there are indications that they are seeking to
have the issues raised adequately addressed, rather than actually stopping the development from
proceeding. It should be noted that the views of the Idawad group, do not necessarily reflect those
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of some other Kananam members who publically support the PMIZ development.
Further concerns have been raised that the drive for the project is largely coming from National
Government (DCI and NFA), with Madang Provincial Government being a lesser player.
One of the conditions of the Chinese Exim Loan for the construction of infrastructure under Phase 1
of the PMIZ project is that the contract is awarded to a Chinese company, who will employ 60%
Chinese workers. Fears exist that there will be cultural tensions between Chinese construction
workers and local residents, as has been the case for other resource development projects involving
foreign workers (i.e. Ramu Nickel).
In an attempt to specifically address PMIZ-related issues such as these, a Technical Committee has
been established by NFA and DCI. A geneaology and business-spin off study was commissioned by
DCI to assist in identifying target groups for spin-off businesses. As mentioned, in the first instance,
NFA has contribution K 1 million for distribution to two landholder groups (i.e. Kananam and Rempi)
for the establishment of spin-off businesses. A socio-economic impact study has also been
commissioned by DCI, which is currently in the process of being finalised. Details concerning major
findings of these studies were not made available to the consultants at the time of preparing this
report.
4.5.4 Other concerns
Concerns have been raised regarding the negative impacts associated with large influxes of workers
from other regions to gain employment at canneries. This has the potential to give rise to cultural
clashes between different groups. In addition, the large influx of settlers places additional pressure
on already scarcely available land for establishing housing and gardens. The influx of workers could
95 PACNEWS 2011.
96 Interviews – Bismarck Ramu representatives; Nancy Sullivan; PMIZ Office (DCI) representatives, September
2011.
Linpico s.a.r.l. Page 71