Last year there was controversy over the manner in which residents were evicted from the PMIZ project site. This event occurred about seven months after it was reported that China Shenyang International Economic and Technical Cooperation Company might develop the site.
According to PNGblogs.com, a leaked PNG government document has revealed that China Shenyang International was given tax-free status to develop the project.
The story stated that the agreement would be governed by the "laws of China", which is a break from the typical common law system which underpins PNG government agreements.
The blog claimed that most of the $US79 million borrowed from China Shenyang to develop the PMIZ would go back to the company under an agreement clause that states that goods, technology and services for the project "shall be purchased from China preferentially".
The PMIZ development will cost $95 million according to another scanned paragraph of the purported agreement , indicating that the government might inject about $16 million.
PNG Prime Minister Peter O'Neill made a trip to China last month.