02/06/2026
KARARATA MOU SIGNING MARKS MAJOR MILESTONE FOR JAUMO BALSA PROJECT AND ORO ECONOMIC DEVELOPMENT
The Popondetta District Development Authority (PDDA) has marked a significant milestone in advancing sustainable economic development with the successful signing of a Memorandum of Understanding (MOU) between PDDA, the Jaumo Balsa Project, and the Papua New Guinea Forest Authority (PNGFA).
The MOU signing ceremony took place at Kararata Village and was witnessed by the Minister for Administrative Services and Member for Popondetta Open, Hon. Richard Masere; Oro Province Governor, Hon. Gary Juffa; and the Minister for International Trade and Investment, Hon. Richard Maru. The event was also attended by the people of Kararata Village and the wider Sauga community in Oro Bay East LLG, reflecting strong local support for the initiative.
The agreement formalizes a strategic partnership aimed at promoting downstream processing and value-added production within the forestry sector, in line with national policy directions.
Speaking at the ceremony, Jaumo Balsa Project representative Mr. Stanford Motamota described the initiative as a “lifeline” for the province, noting that it will deliver long-term economic benefits and position Oro Province to achieve its first shipment of processed balsa products.
PNGFA Managing Director Mr. John Mosoro highlighted that the project aligns with the Government’s forestry reform agenda, which prioritizes downstream processing, value addition, landowner participation, and increased local ownership. He emphasized that the shift away from raw log exports towards in-country processing will generate employment opportunities and strengthen economic participation at the community level.
Hon. Richard Masere reaffirmed the district’s commitment to supporting the establishment of a downstream processing facility at Kararata Village. He stated that processing balsa products locally will ensure greater value retention within the district, create employment opportunities, and increase income for customary landowners.
He further announced that the district is looking forward to supporting the development of Kararata as a Special Economic Zone (SEZ), positioning the area as a key industrial and investment hub in Oro Province. The proposed SEZ is expected to attract domestic and international investment, facilitate infrastructure development, promote value-added industries, and enhance economic participation for local communities.
Minister for International Trade and Investment, Hon. Richard Maru, stressed the importance of reliable infrastructure to support the proposed SEZ. He challenged the Oro Provincial Government to ensure that electricity is extended to Oro Bay and that a 24-hour power supply is established prior to the development of the zone.
Hon. Maru also announced his intention to invite a delegation from Oro Province to participate in an Inaugural Business Forum and Trade Expo in China in October. He stated that the forum will provide opportunities to attract foreign investment, promote trade, and showcase the economic potential of Oro Province on the international stage.
Oro Province Governor, Hon. Gary Juffa, emphasized the importance of ensuring that local products are traded at genuine market prices under the SEZ framework. He noted that the establishment of the SEZ will help address issues of undervaluation of local resources and create a more transparent and competitive trading environment.
Governor Juffa also highlighted the need for strict screening and due diligence of investors entering the province, stressing that only credible and responsible investors should be allowed to operate in order to safeguard the interests of landowners and ensure sustainable development.
The signing of the MOU represents a major step forward in the development of the Jaumo Balsa Project and lays the foundation for transforming Kararata into a key hub for forestry processing and industrial growth in Oro Province.
The initiative is expected to generate employment, increase income for landowners, and enable greater participation of local communities in the formal economy, contributing to long-term sustainable development in the district and the province.
In further demonstrating its commitment to the success of the project, the Popondetta District Development Authority delivered a 2-tonne truck to the Jaumo Balsa Project during the ceremony to support the transportation and distribution of balsa seedlings to local farmers across the district, strengthening project implementation at the community level.
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