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The project envisages stage-wise development of Cassava crop cultivation, storage and marketing, and ultimately converting to bio-ethanol for international markets by establishing production facility locally.

The project aims to introduce bio-fuel processing as a new type of industry in PNG by commercialising the Cassava crop as the main feedstock for the bio-fuel production,

and to establish a base for manufacturing of raw ethanol for export to South Korea.

The project requires acquisition of land for development of large scale Cassava plantations where Cassava tubers will be harvested, cut into pellets, dried and used as raw materials to produce bio-ethanol or bio-fuel as well as other by products.

The project is fully supported by the government of PNG. A memorandum of agreement (MOA) was signed in 2005 between the State and the developer, Changhae International Cooperation of Korea. The State’s agencies secured their participation and monitoring authority through a Public/Private Partnership arrangement. As custodians, the government agencies ensure adherence to compliance issues.

The PNG government sees this as an important agro-economy project. Bio-fuels can play a stimulating role in modernizing the domestic agricultural production and marketing. Production of bio-fuel from crops such as Cassava helps local farmers to increase farming revenues or expand the productive capacity of existing land.

(i) Development of large-scale cassava estates, encouraging local farmers to form cooperative groups and take part in the company’s out-grower program. The estates will occupy a total land area of between 6,000 to 20,000 hectares (ha) of either State or private lands. Small scale plantations or out-growers development will cover any land below 6,000 hectares. The out-growers scheme will be in three categories – (a) contracted out-growers with a minimum of 5,000 ha land (b) non-contracted out-growers with 1-49 ha land and

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