The Marape-Steven Government has signed a K3 million agreement that is likely to provide relief and revitalize fresh produce and vegetable trade in the Highlands, Madang and Morobe provinces resulting in sufficient and affordable food in Port Moresby.
Minister for National Planning and Monitoring Hon Samuel H Basil MP announced the deal today (Monday, 27th April) following the signing of a Service Level Agreement by the Secretary Koney Samuel on behalf of the Department of National Planning and Monitoring as implementing agency, and Lae-based shipping service provider Bismark Maritime Limited Chief Operating Officer, Mr Jamie Sharp.
“This is a State of Emergency intervention, as part of the Marape-Steven Government economic stimulus package, to ensure cash income generation at the village producers level, among buying and transport agents, and to supply fresh produce and vegetables from the easily accessible Lae Port from the highlands, Madang and Morobe provinces initially to the National Capital District and then later to other main ports depending on demand,” said Minister Basil.
“When I assumed this ministry last year, I pushed for some funds to be set aside aimed at opening up access, subsidizing freight of goods and services to remote, rural areas with limited sea and air transport, and opening up return freight opportunity for fresh produce including cash crops,” he said.
“My department was working on documentation including a number of pilot project proposals for this Transport Freight Subsidy scheme for existing service providers when COVID-19 arrived uninvited.
“Since then, because of the restrictions and fears, sale of fresh produce both from their village of origins, buying and land transportation have dropped. This have been compounded by the high cost of sea freight worsened by drop in volume of cargo to ensure businesses can meet cost of shipping services and escalating high prices with less fresh produce and vegetables especially in NCD.
“I am advised that at peak, up to fifty (50) 20-foot containers of fresh produce and vegetables were shipped from the Lae Port to Port Moresby.
“This has hit rock-bottom due to the COVID-19 State of Emergency restrictions and lock-down with multiple, compounding impacts on the villagers who grow and sell the local fresh produce and vegetables, the buying and transporting agents, shipping service providers through to the supermarkets and re-sellers in Port Moresby.
“When I was made aware of this, I directed Secretary Samuel and the DNPM team to examine options to intervene including consultation with the State of Emergency Controller on using the 2020 Development Budget appropriation for transport freight subsidy scheme for existing service providers,” he addd.
Mr Basil added: “The engagement of Bismark Maritime Limited is an emergency arrangement as directed by the State of Emergency Controller but it is also the trailing out of the DNPM transport freight subsidy scheme for existing, experienced and establish service providers with a view to roll-out this assistance to other ports through other shipping companies.”
Secretary Samuel said that the DNPM had sought the advice of the SoE controller and the Office of the State Solicitor as part of the clearing process for this shipping intervention arrangement. “As State of Emergency Controller, Mr Manning issued the directive. But we also needed legal advice and clearance to bypass usual public tender procedures required by the Public (Finance) Management Act 2015 and the National Procurement Act 2018 on the negotiated draft service level agreement,” said Mr Samuel.
He added that the Office of State Solicitor through the State Solicitor Mr Daniel Rolpagarea advised that Section 8 of The Emergency (General Provision) (COVID-19) Act 2020 (the Act) governs national emergency including procurement and in effect waivers the National Procurement Act 2018 and the Public (Finance) Management Act 2015 in its entirety. Mr Samuel, said that to effect emergency provision, Mr Manning, as State of Emergency Controller, was the State’s authorizing signatory to the agreement. DNPM would fund and monitor as implementing agency for the State while Bismark Maritime Ltd would provide the shipping service. He also reiterated that DNPM was working, beyond this COVID-19 SoE intervention, to expand this transport freight subsidy assistance.
Bismark Maritime Limited Chief Operating Officer Mr Jamie Sharp was pleased with the Marape-Steven Government and gave the assurance that as experienced shipping service operators, they would use all their expertise to help restore and increase the volume of trade in fresh produce and vegetables.
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