2/2/07 (The National)  -  THE Merameng Palm Oil Group will build a K20 million plant to process palm oil in West New Britain.
The new plant, which is planned to process up to 40mt of palm oil kernels, will ensure growers a ready market for their harvests
To kick-start the project, the National Planning and Monitoring Department had chipped in K200,000 to the provincial government.
The money will be used to prepare the project feasibility study, among many others related activities.
“Palm oil is an important industry and Papua New Guineans should rise above the ‘buai’ trade,” Governor Clement Nakmai said, adding people should now be thinking of developing their land for cocoa and coffee projects.
The Merameng group has already planted 4,000ha of oil palm trees and more will follow soon.
Meanwhile, the group and the provincial government will try raise K4 million to K5 million to initially fund the construction of the plant.
“Once we have raise the K4 million to K5 million, we will start raising the balance through equity ownership or seek funding from financial institutions,” Mr Nakmai said.
Stanis Bai, who represented the group, thanked those present during the handover of the cheque to the provincial government, including deputy secretary (policy) for the department Mathias Lasia.
Mr Bai said: “This is a special occasion so far as the growers are concerned … we are not trying to challenge the large companies but to encourage our growers go forward.”
Mr Lasia said the mill project was in line with the Government’s medium term development strategy (MTDS), which aims to expand the economy by about 5% at the end of the decade.