O'Neill also aired his government's support of the PMIZ and said the land where it will be located is state rather than customary land and, was bought from RD Tuna Cannery for K4 million ($A1.9 million).
However, the port township, which would be adjacent to the industrial zone, would be managed by the national and provincial governments, and local communities.
He also said the government was satisfied that environmental considerations have been properly assessed, with the design of waste disposal systems drawn from those used by industrial parks globally.
"The land where the PMIZ project is located was bought from RD Tuna Cannery for K4 million and it state land, not customary land as some have claimed," he said.
"Based on the information the government has received, we are satisfied that the project will not cause pollution to the environment, especially the pristine water ways and islands of Madang."
It is hoped that the construction phase of the PMIZ would give a boost to the local economy by employing workers from Madang and surrounding areas, as well as generating opportunities for small businesses.
The Department of Trade, Commerce and Industry was directed to identify such opportunities back in January, with Minister Richard Maru engaging in talks with independent providers to supply electricity and water to the project in April.
"In total the project will generate K2 billion ($A939 million) every year in economic activity to our nation with most of this being around Madang province and the processing of tuna will be done in PNG instead of being sent overseas," O'Neill said.
"The PMIZ will also generate more than 20,000 jobs for local communities through direct employment and the generation of small business."