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NGI Regional MSME Incubation Pilot Project launched

The PNG Board and Management of SME Corporation, amongst other key policy and legislative reforms, initiated the MSME Incubation Project in 2019 to support the Marape Government’s vision and priority on developing and growing the MSME sector.

Four regional MSME incubation pilot projects were designed for implementation at the cost of K10 Million per project. Due to insufficient and inconsistent funding support, the Board and Management only started the New Guinea Islands regional pilot project in Kimbe through partnership with West New Britain Provincial Administration (WNBPA).    

Kimbe was selected for establishment of the NGI regional project because the WNBPA provided land and thirty percent (30%) counter funding for the total project development cost. Availability of state land was the major criteria used for selection of host province for development of the regional MSME incubation centers. The other three regional projects are delayed due to funding constraints and state land availability.

The NGI regional MSME Incubation Centre pilot project in Kimbe was officially launched by the Board and Management of SME Corporation and, WNB Provincial Executive Management on Wednesday 15th December 2021 with the ground breaking and unveiling of the project billboard. 

The Kimbe MSME Incubation center design consists of a two-story building with a capacity to host forty (40) MSME incubation spaces. The building will also contain office spaces for business compliance and regulatory agencies, training rooms, research and development facilities, conference rooms, banking and financing facilities, business management, marketing and, financial advisory facilities. Essentially, the MSME incubation center is designed to provide a one-stop MSME incubation and support center.    

Per the project design, the total cost of the NGI regional MSME pilot project is K4.7 Million. Consistent with the partnership MOA, SME Corporation will meet seventy percent (70%) of the total project cost and WNBPA will meet thirty percent (30%). During the project launching, WNB Provincial Administrator, Mr. Williamson Hosea acknowledged the SME Corporation Board and Management for progressing the partnership project and presented a cheque of K1 Million as part of the Provincial Administration’s thirty percent (30%) component as project mobilization funding for the construction to commence. 

Construction contract of the Kimbe MSME Incubation center pilot project was awarded to Jacom Building Construction, a local SME construction company by the West New Britain Provincial Procurement Committee. In accepting the K1 Million project mobilization funding from Mr. Hosea, the owner of Jacom Building Constructions, Mr. Thomas Gori, assured the project partners (SMEC and WNBPA) and the government that his company is ready to commence the project and will deliver the project according to the project design before or within the thirteen (13) months project development period.      

After delays due to constraints external to the control and management of the project partners, the NGI regional MSME incubation project was finally launched. Construction will take thirteen (13) months with commencement in January 2022 and completion in March 2023.    

Additional to development of the NGI regional MSME Incubation center, the Board and Management of SME Corporation is redeveloping two of its existing MSME development program facilities into specialized incubation centers in National Capital District. First, the property under Small Industries Center, one of the SME Corporation's leather and appropriate technology training center will be redeveloped into Entrepreneurship Incubation Centre for Youths and People living with disabilities. Second, the property under the Garment and Textile Training Centre (GTTC) will be redeveloped into Entrepreneurship Incubation Centre for Women entrepreneurs in Garment and Textile industry. 

Architectural and engineering designs for these specialized incubation centers have been finalized with Small Industries Centre redevelopment project valued at K15 Million and the GTTC redevelopment project valued at K2 Million. 

Funding for the Kimbe and GTTC redevelopment MSME incubation center projects are available to start and complete the projects but, the Small Industry Centre redevelopment has a funding shortfall of 40% to successfully start and complete the project, including additional K10 Million funding each for the other three regional pilot projects.

In future, under the Nationwide MSME Incubation Project roll-out, the Board and Management of SME Corporation is also planning to conduct Provincial and District industry and economic profiling to identify comparative advantages of each Province and District to design and build specialized MSME incubation centers that suits each Province’s and District’s unique economic and industry comparative advantages.  

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