The National Executive Council has endorsed PNG Biomass and Water PNG to finance and provide electricity and water related services to clients within the PMIZ; however, Maru could also consider other bidders should an agreement not be reached by either supplier.
"Cabinet has directed the Department of Trade, Commerce and Industry to enter into negotiations and sign the Heads of Agreements with PNG Biomass and Water PNG within the next 21 days for cabinet approval to commence full feasibility study," PNG Prime Minister Peter O'Neill said.
"Council has noted that once accepted, a detailed project agreement will be negotiated with the state team and taken to cabinet after the state solicitor clears the draft agreement for cabinet's approval."
The project aims to take advantage of the country's rich tuna fisheries, but will also generate income for local communities from spin-off activities related to the industrial zone.
"PNG accounts for 18% of the global tuna supply of which 75, 000 tonnes are caught annually. This brings about $A1.9 billion in annual raw value," O'Neill said.
The government is also considering not issuing fishing licences to international fishing fleets unless they have processing plants in the country, as current catches are not processed locally which is detrimental to the country's fisheries industry.
With an estimated $A981 million lost to overseas processing factories, Maru hopes that the PMIZ development will help stem the loss.
"I will be pushing through the National Executive Council that no fishing licence will be given to companies that do not have processing plants in PNG," he said earlier this year.