Reports received from 2017 NGE candidates across the country is that they are running out of money for their campaign. It seems most are wishing and hoping that June 24th arrived so ends the campaigning.
We still have 5 weeks to go and most Political Parties and Candidates have run dry.
Kerengu Kua stated to ABC that this has several implications for PNG democracy.
However, the alternative viewpoints also is that, this will see a test of candidates who heavy rely on “Vote Buying” to change their strategy and start using “development policies” to win votes.
Most candidates dont have a practical Political Platform and the lack of money in spending will put “Spot lights” on alternatives which they can offer rather than “vote buying” and big ceremonies.
Strong Political Platforms will be the Big Winner this election..
Papua New Guinea’s cash crunch saps colour from election campaigns
Tough economic times are affecting Papua New Guinea’s normally colourful election campaign.
Candidates and parties are crying poor, and that has meant the normally feverish campaign is more subdued than expected.
The leader of the PNG National Party, Kerenga Kua, said that has implications for PNG’s democracy.
It’s election season in Papua New Guinea, which means it’s time for colourful campaigns, rallies and outlandish promises by candidates.
“There is less colour, less movement, and that’s not good, because you need to have some level of activity for educational purposes,” he said.
“The messages from candidates need to go out for the people. To do that, they need money and they don’t have money.”
Voters usually expect campaigns to be a period of uncharacteristic generosity from their incumbent politicians and intending candidates.
In the past, many have received inducements to support particular candidates, such as money, food or alcohol.
“They think the candidates will give them money, they will take the money as something they always wanted and they use the money and they cast their votes,” she said.
“They’re not thinking about the future of how they will enjoy the benefits of the government doing some good things for them, because they need money now.
Mr O’Neill said when his government came into office in 2012, one of his first meetings was with Governor Powes Parkop who put forward many of NCD’s expansion plans that were never implemented by the previous government.
Mr O’Neill said the previous government had so many expansion plans for city roads including basic services for its city residents, which never eventuated into tangible results.
However, everything changed due to the hosting of the SP Games in 2015, which became a game changer.
Mr O’Neill PM described the project at the time to be three years behind schedule that had ailing infrastructure and could not even host an international event in the country. He said his government took a bold step and made a decision that was against all advice in cancelling the event.
He said it was an opportunity for the national government to deliver the infrastructure for a growing city like Port Moresby, which needed world-class facilities which overtime became a reality.
“Today you have stadiums you can be proud of that is comparable to stadiums anywhere in the world. You simply forget when you go and watch a rugby league match at PRL and forget where we came from. And you take it for granted that these some of the infrastructure weren’t even there a few years back. You forgot the hard decisions and hard ships we had to take in order for everyone to enjoy the facilities. Even our roads now are built to world class standards,” he said.
Mr O’Neill said people were complaining about the government spending too much money in Port Moresby and reminded everyone it was the government’s prerogative to plan and spend money that will bring much needed services to people, which was based on the size of the population in any given location.
“There is no other formula when you have a population like one million people living in Port Moresby city, offcourse you need to upgrade its infrastructure. I want to build a four – lane road in Pangia District but we only have 120,000 population there, so it does not make economic sense to build a four-lane highway there,” he said.
The Prime Minister said developments throughout the country concentrated on areas with the largest populations such as Lae, Mt Hagen and Kokopo.
“We fixed Lae city from a pot hole city to a cement city. We built a four-lane highway from Lae City to Nadzab. We are also building a four-lane highway from Kagamuga to Mt Hagen and onto Koltiga. We are also upgrading all the roads in Kokopo, its because of large portion of Papua New Guineans go and get services there.” he said.
Demand for housing in Papua New Guinea is strong but there is a shortage of supply, according to the latest survey by Hausples, a Port Moresby-based real estate company.
The Hausples.com.pg 2017 survey shows that working class Papua New Guineans are beginning to understand the value that home ownership brings to their families and they are increasingly investing in their own properties, according to CEO and founder, Mat Care.
‘Despite Port Moresby’s high prices, most people (62 per cent) feel that now is an opportune time to purchase a property,’ he tells Business Advantage PNG.
According to a report by the ratings agency S&P Global, Banking Industry Country Risk Assessment: Papua New Guinea, average growth in PNG property prices, adjusted for inflation, has been about 8–11 per cent over the past four years.
‘New constructions in PNG’s housing market are largely funded through direct foreign investment or superannuation funds, with little leverage and little direct participation from the banking sector,’ the report says.
‘We estimate around 15 per cent of the banking system’s lending exposures are to property and related services, remaining unchanged in recent years.’
Mat Care ‘firmly believes’ that more effort should be made to increase supply, which he says will bring house prices down and increase access and affordability.
‘Housing is a critical factor in the continued development of PNG,’ says Care.
‘The country’s urbanisation rate of 12 per cent is incredibly low by global standards. Southeast Asia’s least urbanised country is Cambodia at 24 per cent.’
‘It is critical for landowners and the government to seek novel and fair ways to release more land.’
Care says that, despite the low urbanisation, the survey confirms the ‘very substantial housing shortage’ throughout the country.
‘Property development on customary land with long-term, 99-year leases, is becoming more common within the NCD [National Capital District] and Central Province,’ he says, citing Edai Town as a successful example.
‘Whether customary land should be converted to freehold land is a policy issue for the government and the existing customary land holders,’ he says. ‘Potentially, a voluntary system of conversion, subject to appropriate compensation, could be considered.
‘Regardless, it is critical for landowners and the government to seek novel and fair ways to release more land for much-needed housing.’
BSP inquiries increase
Kanawi Chapiu, Bank South Pacific’s (BSP) Home Loan Coordinator, says home loan inquiries have risen. Potential customers show interest when they see others successfully buying their own house.
Since its inception in 2014, BSP has approved 534 home loans valued at K270 million under the BSP First Home Ownership Scheme (FHOS).
The average purchase price in the market is under K500, 000, Chapiu tells Business Advantage PNG. The Hausples survey backs that up, revealing that 70 per cent of people intend to spend less than K500,000 on a property. Thirty per cent are intending to spend K1 million or more.
Care says just over half (56 per cent) of respondents are seeking to buy a property in the next 12 months, while over 26 per cent said they would consider buying property in the next 18 months.
Port Moresby remains the preferred place to own a home, with more than 80 per cent of survey respondents indicating they would like to buy in the capital.
Chapiu says there are no restrictions to lending outside of Port Moresby. ‘In fact, BSP has seen an increase in home loan inquiries from other major centres in PNG such as Lae, Kokopo, Alotau and Madang’.
‘All intending home owners who apply for a home loan are subject to meeting credit risk requirements.’
The bank uses a mortgage over the house as its collateral. A mortgagee cannot spend more than 40 per cent of their income on the mortgage.
Chapiu says all intending home owners who apply for a home loan are subject to meeting credit risk requirements. ‘They must ensure that the property or land they plan to purchase must be on state lease land with the title issued.’
The Institute of National Affairs has written many research papers and run workshops on the issue of what its Director, Paul Barker, calls ‘the absence of formal management of the urbanisation process’.
This failure, he points out, has seen prospective settlers, customary landowners, businesses and opportunists ‘do their own thing, often outside the formal legal process, and following the principle that possession is nine-tenths of the law’.
Barker wants a major effort to upgrade and generate safe towns and cities, with affordable housing, amenities, utilities, public transport and recreational are
Hausples CEO Mat Care estimates that 5000 to 6000 new affordable and middle-income houses will be built in Port Moresby over the next 18 months, with up to 50,000 additional homes slated to be built by 2020.
‘These comprise government initiatives such as the National Housing Commission’s mega-development at Duran Farm which will comprise 44,000 dwellings (standalone 2-3 bedroom houses),’ he says. Other smaller private developments include:
– Mediterranean Apartments (48 units comprising bedsit and 2 and 3 bedroom homes);
– Community Housing Limited’s proposed development at 9 Mile (160 stand-alone 3 bedroom houses);
– Edai Town, 300 homes (2 and 3 bedroom homes).
The high-end domestic and expatriate housing market is predominantly apartment-focused in central Port Moresby.
– Airway’s new 3-bedroom development specifically for the LNG Project;
– Credit Corporation’s Era Motana development (2 and 3 bedrooms)
– Ela Vista’s Gardenia Apartments (2 and 3 bedrooms);
– Nambawan Super’s Pinnacle Apartments (2 and 3 bedrooms).
The past couple of days, we’ve seen politicians and commentators rushing to the public to remind us that they made these predictions years ago the economy was tanking. They read the signs, saw the writing on the wall and as prophets of old, we did not respond. All true. But the people of Papua New Guinea don’t want reminders, they want solutions and this is the disappointment for the past couple of days.
The only agreed consensus is kick out the current government and all will be well. Lets entertain the notion, but then what? How do you improve the economy? How do you turn the tide around?
I’m of the view that any new leadership will be constraint by 2 factors to make meaningful change in the state of the economy in which all governments of PNG suffered. These are the inability for political institutions to reform the age-old patrimonial system and the lack of diversity in political ideology.
PATRIMONIAL SYSTEM REFORM
Respected thought leader in political science, Francis Fukuyama, makes the observation that patrimonial systems or in our case, wantok system, continues to undermine the ability for political institutions to grow into efficient organizations. Whereby meritocracy permits the best and brightest to formulate and execute public policy to the best of their abilities.
The fiscal strategy of the current government has been underpin by the need to finance the patrimony. Over 12 billion kina has been given to sub national governments with limited capacity to absorb its use. While Waigani correctly claims its systems are able to deliver and execute projects of significance, no other government tier has the skills and resources. Therefore, this resource has largely fed the patrimony in an assortment of various schemes that have little impact to the constituency.
There is also the bulging public service that is unsustainable and at most times, unproductive. It has cost the country 10 billion kina in this session of parliament. Public institutions have become villagers where CEOs have become chiefs and officers from there liking have become nobles and enemies have become commoners. So the nobles and the chief thrive on this healthy state bill to build there kingdoms and along the way, execute meaningful public policy.
This Prime Minister and those before him have publically spoke of the rot that they have inherited in the public service. They have used various systems to mitigate patrimony and while some have been successful, many have not and its persistency undermines the fact that we need a different strategy.
The key position is for the new leadership to work towards transitioning the current patrimonial political system to a robust merit based system not in the public service, but in the political system. Its ok to use wantoks, but use wantoks that know their stuff. Instill benchmarks to push productivity and inculcate a climate of vigorous science in building policy. This in turn can assist the public institutions to deliver the desired vision.
THE NEED FOR DIVERSITY IN POLITICAL IDEOLOGY
Every Prime Minister and current MPs as well as most political parties have subscribed for a strong socialist left leaning political platform. Big governments to bring social programmes to the masses, big governments to drive commerce, big governments to protect the community and big governments to bring jobs.
While there is justification in this messianic approach due to market failures that undermine investment beyond Waigani and provincial capitals, it undermines other important players to participate in development. The efficiencies of the private sector and the enthusiasm of the civil society need to coexist and where possible, thrive.
The new leadership needs to facilitate rather then participate and monopolize development. There are something’s that the public service and political systems isn’t built for and that limitation needs to be recognized.
We need political systems to be less emotional and more juiced up on the smarts. We need political systems to be more facilitative and less monopolistic.
I have been watching with interest the developments happening at Ela Beach.
It saddens me that most of the trees will be cut for this development but I am reminded that in order for something/someone to be remold they had to be broken into many many pieces.
Papua New Guinea is growing and with growth comes development. Development of infrastructure, development of its tourism industry and development of its landscapes.
We continually compare ourselves to the Arab Nations but we must understand that, they reached that stage by starting off where we are right now. It was not an overnight miracle, it was a progressive development that changed their nation.
The Ela Beach Redevelopment it seems has 3 Contractors working on it.
1. Apec Haus and the Marina by OSL
2. Ela Beach Waterfront by CHEC
3. ????? – this would be another company which will develop the area towards Koki
It is not only the Beachfront that is getting developed, the properties opposite the road would also see development. Currently, there is a plan to redevelop the IEA School, Ela beach hotel and properties inline with the whole development of Ela Beach.
This development of Ela Beach will join the Paga Hill Development and make it one of the biggest Development in the Pacific Region compared to other Pacific Island Nations.
Papua New Guinea is moving forward, it is time we also move our mindset and look forward to greater participation in our own land.
Port Moresby’s iconic beach to be modernized at a cost of K55 million. New developments to include APEC and a 4-lane highway
THE Hiri Moale Festival will be allocated space in the current redevelopment of the iconic Ela Beach in Port Moresby.
This was made known by Member for Moresby South Justin Tkatchenko when he responded to questions on the redevelopment of the beach.
He added that the Motu-Koita Assembly, the voice piece of the Motu-Koitabu landowners of traditional Port Moresby, was in agreement of the redevelopment of the beach front which would bring in new jobs.
The annual three-day event, which culminates in the crowning of Miss Hiri Hanenamo, promotes the culture of the Motu coastal villagers
Mr Tkatchenko was also asked on the controversial issue of the land title which he fought to have extinguished after it was awarded to Awak Holdings Limited two years ago.
“I did not agree with the way the title was handed to Awak Holdings via the Lands Department.” Awaks development plan had also entailed reclamation of the shorefront about 50 metres but it met with opposition from Mr Tkatchenko and traditional landowners.
“The beach front comes under National Capital District Commission and it is State land, open space and recreational.”
He added that after the extinguishing of the land title, the title was publicly tendered by NCDC and awarded to Cardno and China Harbour Engineering Company for the roadworks.
The Ela Beach Foreshore Development Plan was unveiled in September last year.
In that plan the beach front will undergo two stages of development with stage one will see completion of APEC Haus to be constructed on NCDC’s sea park land. APEC Haus will be the venue for the Asia-Pacific Economic Co-operation Leaders’ Summit next year.
The second major development would be the construction of Ela Beach Road as a four-lane road to align with Healy Parade and Paga Point Ring Road; construction of about 300 car parks; and redevelopment of Ela Beach as per the unveiled master plan.
NCDC had dedicated its land being the former sea park jetty for the construction of APEC Haus. Post Courier /ONE P
$17 million road improvement, beach extension project in Port Moresby
By Benorah Hesehing
PORT MORESBY, Papua New Guinea (The National, Feb. 10, 2017)
Work will begin today to give Port Moresby’s iconic Ela Beach a K55 million [US$17 million] facelift.
NCD Governor Powes Parkop said the redevelopment project involved the construction of a two-lane road and an extension of the beach by another 100 metres.
“The work will begin tomorrow (today) and I am calling on the public for their understanding and cooperation,” Parkop told a media conference yesterday.
“There will be some disruptions for the earth work but we intend to keep the existing roads operational while the new lanes are being constructed.
“Some of the trees, shrubs and palms which provide shade would be removed to create way for construction.”
He added that the National Capital District Commission was doing all it could to retain the old trees. “We understood that the older trees were part of the Ela beach heritage and are working hard to save those, which can be saved,” Parkop said.
He said the people should not think about what they would lose, but what they would gain from the redevelopment project.
Moresby South MP and Minister for Sports and National Events Justin Tkatchenko said the project was a “fantastic achievement for NCDC”.
“We can plant advanced trees within the landscaping for Ela Beach to ensure what is replaced is suitable or even better,” he said
Parliamentary training for woman candidates interested in contesting the PNG NGE 2017 is a great idea and gives an insight for our woman. This is a concept that would ease the elected woman into her seat in Parliament.
But one thing that should be continuously taught throughout the Parliament is ‘Financial Management, Ethics and Responsibility’
What we have seen time and time is mismanagement of finance and the lack of leadership responsibilities in our elected leaders.
Good leaders are easily lead astray when given power and when put under pressure from their colleagues. This makes their job of governing their electorate much much difficult.
Our mama dated leaders need constant and effective training to help them in their electorates and also help them with their responsibilities.
Getting financial training and management training should be the TOP priority for intending candidates and not just for our woman ..
By: Post Courier
FIFTY women candidates who intend to run for the 2017 National Election have been selected to participate in a week of training on parliamentary processes.
In a highly competitive process, participants from 22 provinces were selected from more than 200 applicants and will be trained on critical national policy issues, parliamentary processes and campaign strategies from March 6-13 this year in Port Moresby.
The United Nations Development Program (UNDP) PNG acting resident representative, Ms Tracy Vienings said UNDP was proud to be supporting the Practice Parliament for the second time in Papua New Guinea.
“We believe it is important to ensure that PNG women have the opportunity and ability to actively participate in politics.
“With only three women MPs out of 111 in Papua New Guinea’s current parliament, women continue to be under-represented as political leaders and elected officials,” she said.
Highly qualified candidates from doctors to village women and women from other sectors of the community applied for PNG Practice Parliament for Women training, highlighting just how many women are keen to represent PNG and be active in political life.
The program aims to empower intending candidates to prepare themselves in the lead up to upcoming national elections in April 2017.
The program, organised by the UNDP in coordination with the Office of Integrity of Political Parties, National Parliament and Department of Community Development and religion, will culminate with a practice session in the Parliament chamber on March 13.
According to Ms Vienings, this training will develop women candidate’s skills not only in campaigning for elections, but also in engaging with policy issues that are critical to PNG’s future.
“That is the role of an MP, and we want to help women prepare to become elected representatives,” she said.
The 50 participants were selected by a screening committee, and were also cross-checked with the Electoral Commission to ensure each participant filled in a Form 29 to contest the 2017 elections.
The final list of participants is available below and on the Facebook page: “PNG Practice Parliament for Women 2017 <https://www.facebook.com/PNGPracticeParl2017/> . http://www.postcourier.com.pg/Stories/women-candidates-take-parlt-training/#.WLcwQ8vXef1
Competition is by far the greatest phenomenon that has happened to mankind!
Decades and decades of Rice Monopoly is about to go up in smoke when the Government puts in-place plans for Naima to grow rice in Papua New Guinea. What does Trukai do in this instance? Do they fight the Government? Do they cry wolf? They do what is the most logical thing to do and what the Government hoped they do.
Trukai now has expand their plans! They go into a 500-hectare rice plantation and want to invest more locally!
This the beauty of competition…..at the end of the day, you see investment coming into Agriculture sector and into Papua New Guinea. We need more local invest, more local employment and more of food security.
Well done Trukai!
BY: Loop Business —14:07, February 22, 2017
This week Trukai Industries Limited is purchasing agricultural equipment for the establishment of the largest rice crop in PNG’s recent history.
With the cooperation of the Chingwam Rice Growers Cooperative, Trukai will be establishing a 500-hectare rice plantation near Rangiampum initially for a rain fed crop to be established in 2017.
This is in addition to the existing 80-hectare site already producing rice for the cooperative, under the management of Trukai’s rice development team.
This site will be progressively expanded possibly up to 1,500-2,000 hectares over a number of seasons, although this will be subject to relevant agreements and climatic and soil evaluations.
This exciting step forward in domestic rice production comes ahead of further developments Trukai management are hoping to discuss with government, following submissions for large scale irrigated rice growing in a number of areas across PNG.
Proposals have been submitted to the Departments of Agriculture and Livestock, and the Department of Trade, Commerce and Investment, although responses from government have yet to be forthcoming.
Trukai Industries Limited’s CEO, Greg Worthington-Eyre said in a statement, “Trukai stands ready to assist the government of PNG in its domestic rice development, and this project with the Chingwam Cooperative is a major step forward in laying the groundwork for other projects.
Whilst we wait for the government to respond to our proposals, we are simply getting on with it, and are very excited about building a strong local rice industry.”
Worthington-Eyre went on to add, “The establishment of the large scale site at Rangiampum will be supplemented with a further 100-hectare site closer to our Erap facility, where our rice seed generation plantation is being redeveloped.”
In April and May this year, Trukai will be installing a hulling mill in Lae to facilitate the processing of locally grown rice, and this represents a significant investment and commitment for Trukai.
The first rice to be processed at this mill will be the rice from the Chingwam Cooperative.
Worthington-Eyre concluded, “The rice growing at Rangiampum is expected to be harvested in April this year, and will be transported to Lae for milling and blending.
“Our rice, PNG’s favourite brand since 1970 (before federation) will contain rice grown in PNG.
“This is great news as not only will we be including locally grown rice in our products, food security gets a major boost as well and, more importantly, this puts money into the rural sector for use of land that would normally remain idle.”
The Agriculture Sector is about to get a Major Shakeup!
As the campaigning of forming the next Government heats up. Each Political party would want to be seen as the Government for the people and wants to connect to the people. Major policy pushed would be a returned to the Agriculture Sector …
First to fire their Policy is Pangu Party with a funding of K2billion promised for Agriculture! K1 billion to be spent on Coffee and Cocoa as they believe would earn more. The other K1 billion is to be spread across other agriculture sectors.
The reality is…according to FAO, coffee is listed number 22 of the most important and high earning crop and cocoa is not listed in the top 52 at all!
Pangu would be guilty of making the same mistake they did in the early 1980’s………..
What this country needs is to invest into the right product…..look at the list attached, pick the Top 30 and invest into that according to priority.
Food Security is what is Needed the Most! Invest into Food Security as oppose to investing into Coffee and Cocoa!
This is where the people in Papua New Guinea want us to invest in….this is what put food on the table
Invest in Food Security!
Pangu Pati will invest into AGRICULTURE when in Government.
Today PNG’s Economy depends on 80% Non-renewal resources & 20% Agriculture export earnings, it was the other way around when we took independence in 1975.
Pangu Pati plans to invest at least K2b into agriculture with a billion directory into Coffee & Cocoa expansion and extension programs.
Coffee to become MINISTRY of COFFEE while cocoa to be the same as both are currently earning K500m into our economy from export earnings.
The investment into the two leading cash crops will see a 15 to 20 years timeline to increase production to earn over K2b plus into our economy.
Expansion and extension programs will see an annual investment K200m each into coffee and cocoa programs.
Agricuiture Ministry will be the leading ministry once again under Pangu Pati with coffee and cocoa to independently branch out into ministries of their own.
The rural population and business groups will participate more into agricuiture to feed PNG the world.
Agricuiture is sustainable and safe investment that PNG must quickly invest into to reduce our reliance on non-renewals.
The National Pg 7 07/02/17
This year’s business forecasts in PNG are looking more modest than previous years, but there’s no doubting better things are on the horizon for Port Moresby in 2017. The city’s skyline is set to change over the next eighteen months with the addition of new commercial, residential, hotel and retail buildings planned across the region.
With a range of projects in various stages of development, it’s a race against time to complete them before the APEC 2018 Summit. Even with project management, design and investment expertise from around the globe, the clock is ticking on the completion of Port Moresby’s newest buildings. Here’s Peopleconnexion Recruitment’s visual guide to the city’s latest projects.
It seems fitting to start with talking about Star Mountain Plaza. Set to provide hotel, office and residential spaces ahead of the APEC 2018 Summit, Star Mountain Plaza is PNG’s first integrated commercial development. The K1.5b project is due for completion in August next year, under the project management of Stratum. Check out the first 30 seconds of this video to get a sense of just how huge this project is.
Stage Two of the redevelopment of Old Parliament House in the city’s centre is officially underway. This stage will feature twin residential towers and penthouse apartments leased to corporate clients, paired with retail space. Official construction works began early last year and are set to be completed in late 2018.
The commercial and residential estates in to be located in Waigiani’s City Centre are currently being developed by Lamana under their subsidiary Rangeview Heights Limited, of which Managing Director Sir Kostas Constantinou holds a directorship. The development includes residential townhouses, an attached shopping mall within the community, secure parking, a park and green areas for residents’ use.
Paga Hill is set to be the city’s first multi-use development including luxury hotels, over 800 residential apartments, commercial and retail spaces, a marina and cultural centre. The project has been in proposal, planning and design development stages for years, but is finally ready to begin enter its investment and implementation stages after receiving the green light from the Government earlier this year. Estimates currently put the construction of attached Paga Hill City at around K3 billion.
The next iconic PNG landmark is expected to start construction early this year. To complete this K120 million project, Ela Beach will be extended out by 100 metres to support the structure, which will be built over the water. From the air, the building’s shape will resemble a traditional Moutan lakatoi sail.
“When you see it from the air, or when you see it from the land or when you see it from a post card or on TV, or on the internet or Facebook, you will symbolise and recognise it as Port Moresby, Papua New Guinea,” – Justin Tkatchenko, Minister for Sports and APEC
The construction of the building will be part of a larger Ela Beach redevelopment project involving a four lane highway to join the Paga Ring Road.
Loloata Island Resort is still very much a work in progress. After being sold late last year, the former dive resort is set to be redeveloped into a luxury hotel with suites and private villas. Though technically not located in Port Moresby, this project’s massive undertaking makes it a development worth mentioning.
The Managing Director of Kumul Petroleum Holdings Limited (KPHL), Mr Wapu Sonk today announced that the Company has been working with beneficiary groups that have expressed their interest to exercise the Kroton Option Equity.
These groups will be called in over the coming weeks to sign up on the share transfer documents as well as the vendor note being offered by KPHL.
The following beneficiary groups have come forward;
(1) PNG LNG Plantsite
(2) PNG LNG Pipeline
(3) PDL 9 – Juha
(4) PDL 4 – Gobe and,
(5) Fly River Provincial Government.
The option to acquire shares in Kumul Petroleum (Kroton No 2) Holdings Limited is one of the benefits agreed to by the PNG Government and set out in the Umbrella Benefits Sharing Agreement (UBSA) in 2009 for landowners and Provincial Governments along the footprint of the PNGLNG Project.
Under the UBSA the PNG Government granted the landowners and Provincial Governments a commercial option to buy 25.75% of the shares in Kroton No 2 Limited, the special purpose company that holds the State’s 16.57% interest in the PNG LNG Project.
In addition to the beneficiary groups who have registered interest to sign up in the coming weeks, one landowner beneficiary group and four provincial governments have already taken up their Options. They are PDL 5 (Moran); and Southern Highlands, Hela, Gulf and Central provincial governments.
Mr Sonk said; “The Beneficiary Groups who have expressed their intention before the 31st of December 2016 to exercise the Kroton Option using KPHL’s Vendor Finance Facility are hereby advised that signing of the share transfer documents and the Vendor Finance Facility is scheduled in the coming weeks until the 31st of January 2017.”
He pointed out that KPHL’s role was to implement the agreement that was reached in the UBSA and, provide additional benefits for the Landowners and relevant Provincial Governments if they elect to invest in Kroton.
KPHL will work with those beneficiary groups that have signed up to complete the transaction and arrange necessary governance aspects of the interest holdings in Kumul Petroleum (Kroton No 2) Holdings Limited.