The Office of the Member for Kikori and the Ihu Special Economic Zone (ISEZ) Project Office would like to take this opportunity to;
Firstly, on behalf
of the people of Kikori, I would like to thank the National Executive Council
for two important approvals given to the ISEZ project. First approval was given
on 24th April 2019, Decision No. 95/2019 under O’Neill Government approving the
ISEZ project concept to be developed further. Second approval was given recently
on 25th August 2020. Decision No. 269/2020 under Marape-Steven Government.
Several important considerations were approved including;
(a) establishment
of ISEZ project as an important economic impact project to be developed and the
project development office,
(b) engage with
project development partner in consultation with SEZA,
(c) multi-user
Critical Capital Infrastructure Projects (CCIP) which includes; deep-sea port,
airport, roads, water supply, power supply and industrial township, 
(d) PIP funding of
K20 million annually for a total of K100 million being K5 million for annual
operations budget and K15 million for site preparation, land mobilization (social mapping, landowner identification, ILGs registration, surveying),
Environmental Impact Statement study, project feasibility study, physical
planning and,
(e) release of K2
million as per 2020 Budget under Department of Commerce and Industry and an
additional K3 million from the SEZ Program PIP Allocation.
Secondly, we would
like to establish some historical facts behind the ISEZ project, the journey
began in 2015 with proposal for a Gulf Gas Hub to cater for the “No Pipeline”
Policy Initiative of the former Governor for Gulf Havila Kavo. In 2017, the new
MP for Kikori, Hon. Soroi Eoe and the Kikori DDA board resolved, to take a
different but practical approach to achieve the same same vision, that is to
build an industrial township in Kikori where all downstream processing and
exports will take place based on vast natural resource of the district and
region. This highly technical work was contracted to Direco Services Limited
which was formerly engaged by Gulf Provincial Government to develop the Gulf
Gas Hub proposal.
Direco Services
Limited is a company owned by Peter Kengemar and associates.
We would like to
clarify for the public certain misconceptions and allegations already made via
social media (Facebook) over ISEZ project ownership, development agendas and
land issues. Issues raised includes ownership of companies to be associated
with ISEZ project into the future.
There is much vindictiveness
and anger amongst my people especially city based people of lhu and Kikori
District regarding Ihu Special Economic Zone Project. This was based on
misleading narrative that; only Peter Kengemar (ISEZ Project Director), myself
and my son Henry Eoe own Shares in companies related to Ihu Special Economic
Zone project. This is not true.
The facts are
these; there are 3 different companies currently registered with IPA. Two are
shelf-companies created by ISEZ project office as per Kikori District Development
Authority resolutions in 2019. Those shelf companies are;
1. Kikori Resource
Holdings Company which is 100% owned by Kikori District, there is only 1 share
holder which held in trust by the Chairman of KDDA and MP for Kikori, (Hon.
Soroi Eoe), 1 Director, Peter Kengemar and 1 Secretary, Steven Ilave. This
company will be restructured as per KDDA resolution once the ISEZ project has
been approved by NEC as a state project. In the restructure the shares will be
divided between the 4 LLGs and a separate Board will be elected. This agenda is
now mature and in the next scheduled KDDA Board meeting (24 October 2020)
submissions will be made to restructure the company.
2. Ihu Special
Economic Zone Limited is second shelf-company with 50% share held in trust by
Peter Kengemar for the 4 LLGs of Kikori and 50% shares held in trust for
landowners by the Chairman of KDDA and MP for Kikori, (Hon. Soroi Eoe). The
temporary directors are Steven Ilave and Peter Kengemar. It has been agreed in
recent meeting (5th October) by leaders of Ihu, which included Mr. Harupa Peke,
that this company will be restructured to have only 1 share holder, held in
trust by the Chairman of KDDA and MP for Kikori, (Hon. Soroi Eoe). A second and
final restructure will be completed by the end of 2021, after certain important
work program including social mapping and landowner’s identification is
completed and ISEZ project footprint area landowners are registered and
incorporated with their ILGs. The landowners will be fairly represented by due
processes as established by law and shares in the company will be allocated
appropriately. The company name; ISEZ Limited will be changes to ISEZ
Enterprise to properly reflect the nature of business in the project. This
agenda will be presented at next KDDA Board meeting for approval.
3. Ihu Special
Economic Zone Development Company Limited (ISEZDCL) is the third company
associated with ISEZ project. This company is owned 100% by Direco Services
Limited. This company has developed the concept, prepared all necessary
documents for KDDA and the State, and as per Special Economic Zone Authority
Act 2019 and NEC Decision No. 269/2020 is recognized as the company that will
manage the Project Office to deliver the project. The company has nil shares in
ISEZ project ownership structure as explained in the above two companies. Once
the services of ISEZDCL is no longer required the company will wind down or
restructured to take other services. This agenda will be presented at next KDDA
Board meeting for approval, and a new agreement and TOR will be signed in full
compliance with SEZA Act 2019 and NEC Decision.
In summary, the two
shelf-companies holds 100% Shares in trust on and behalf of the people of
Kikori District and the Chairman of KDDA and MP for Kikori is the Sole
Shareholder according to business practices.
Because of ongoing
misleading and highly defamatory stories l have invited Harupa Peke to meet
with myself, Peter Kengemar and ISEZ Team on Tuesday 5th of October, 2020 to
discuss this matter and dissolve any misunderstanding.
Finally, the ISEZ
project is now a major impact economic project approved and funded by State for
the people of Kikori and Gulf Province. The District Officers and ISEZ Project
office will do a lot of awareness in Kerema and throughout the district and
project footprints areas.
This is now
possible also with the opening of Ihu and Baimuru airstrips later this month.
END
 |
| Above: The Member for Kikori, Hon. Soroi Eoe holds up the Kikori District 5 Year Development Plan 2018-2022 |
 |
| Above: Appointed KDDA Board Member representing Youth and Business, Mr David Liah speaks at the meeting |
