The Malaysian company involved in the controversial Kiunga-Aiambak road project in Papua New Guinea today claimed it was promised the logging concession as 'payment' for building the road by the republic's government.

Hiew Teck Seng @ Yaw Teck Seng, director of Sarawak-based Samling Strategic Corporation companies, said the deal was that the 200km-long road and payment for the project would come in the form of a logging concession.

"A contractual agreement had been properly signed between Concord Pacific Ltd (the company involved in the project) and the government of Papua New Guinea but whatever the old government has promised, a new one can just overturn it," Hiew told malaysiakini when contacted.

He denied that Samling owns the New Guinea-based Concord Pacific, saying his company only has a minority stake in the latter.

An Environmental News Service article last Wednesday said PNG Prime Minister Morautu Mekere issued a statement saying that no further extensions would be given for the project.

"The Kiunga-Aiambak project, involving Concord Pacific and a landowner company, should never have occurred," Morauta was quoted as saying.

Malaysiakini also reported that environmental group Greenpeace declared the project "illegal" in a report titled: 'Partners in crime: Malaysian loggers, timber markets and the politics of self-interest in Papua New Guinea'.

"It is a flagrant example of the ongoing destruction of ancient forests worldwide and the communities who depend on them for their livelihoods," the report read.

Greenpeace claimed that the company has exported RM60 million worth of logs, but there has yet to be any functional road in the area.

Road completed

Hiew however claimed that construction of the untarred road has been completed and is currently being used.

"If it is not finished, how could it be that the logs could be brought out of the area? Of course it cannot be compared to roads in developed countries," he said, adding that the road has also allowed people to travel.

Asked to comment on Greenpeace's allegations that the project came at great environmental costs, he said that any form of logging was always ecologically damaging.

"If you don't want ecological damage then don't log at all but now the road has been completed and it would also allow more land for planting," Hiew said.