The Weekend Post

China‘s stake in city vision near to Cape

- CHRIS CALCINO

PAPUA New Guinea’s vision to build a futuristic city less than 500km from the tip of Cape York with military bases, heavy industry and an internatio­nal airport has been revealed – and it is already attracting Chinese investment.

The town of Ihu in the Kikori district is largely jungle with a small number of homes dotting the western banks of the Vailala River.

There is no industry, limited agricultur­e and a population of about 18,000 people.

However, its position in relation to both Australia and major untapped gas deposits makes it a strategica­lly crucial element in PNG’s future expansion – one that has clearly not been overlooked.

China has just bought into the Kikori Special Economic Zone plan with a modest $30m grant, although it is unknown what strings are attached. However, $30m is a drop in the ocean compared to what has been envisioned for Ihu.

A 13-minute 3D video with English and Chinese subtitles was first published in 2019 outlining a 50-year plan to build an entire city from scratch. The scope of the project is staggering.

It is questionab­le whether it will attract the vast investment required but there are serious implicatio­ns for Far North Queensland and Australia at large if it goes even a fraction of the way.

Political strategist and former adviser to several PNG prime ministers, Jeff Wall, said Australia had likely missed its chance to get some skin in the game.

He said Canberra’s rumoured plan to “lend” PNG another $300m-plus would not achieve the desired effect – enhancing Australia’s relationsh­ip with its closest neighbour while diminishin­g that of China.

“The immediate question is – what would ($30m) deliver for China in return?” Mr Wall said. “To me the answer is quite simple.

“It gives China an effective veto when it comes to foreign investors interested in the project.

“It is clear that Australia’s relations with China have deteriorat­ed.

“China has shifted its focus to the Papuan provinces closest to Australia – Western Province (Daru) and now the Gulf Province.”

The plan etches out a masterplan­ned city divided into separate zones including a naval base, army base, jetty port and deepwater port, and an internatio­nal airport.

A free-trade zone sits alongside a massive petroleum park where gas resources would be processed for export via the port, and schools, recreation­al centre, sporting stadiums, hospital and a technology park have all been laid out.

The significan­ce to Australia is especially clear when considered alongside a $200m Chinese-funded “fisheries facility” proposed for Daru, even closer to Queensland territory.

“This project, far-fetched though it may seem, is most definitely not dead,” Mr Wall warned.

“Discussion­s continue, and no doubt the first priority will be the constructi­on of a wharf of Daru capable of berthing Chinese naval vessels.”

 ?? ?? Images for the proposed Kikori Special Economic Zone in Papua New Guinea, on a site 500km from Cape York. Pictures: Supplied
Images for the proposed Kikori Special Economic Zone in Papua New Guinea, on a site 500km from Cape York. Pictures: Supplied

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