Agiru warns govt
SOUTHERN Highlands Governor Anderson Agiru, a strong supporter of the PNG liquefied natural gas (LNG) project, has warned that he will withdraw this support if the government does not deliver cash and projects it has committed to landowners and the provincial government.
Since the project sanction and financiers announced the go-ahead of this massive project, progress has been hampered by disputes among landowner factions, and resentment over a perception that locals were missing out on major contracts.
Agirus withdrawal of support would represent a massive setback for the project, and might trigger landowner protests in Hides and Tari where landowner leaders have been demanding the release of their seed capital and outstanding memorandum of agreement (MoA) funds.
Agiru yesterday said since the signing of the umbrella and licenced-based benefits sharing agreements, the government had yet to deliver the following:
*K120 million in seed capital;
*K120 million in infrastructure grants;
*K90 million for the first phase of the Tari Airport redevelopment;
*K300 million in outstanding MoA funds;
*K660 million in high impact projects;
*K60 million for rural electrification; and
*Start work on the Gulf-Southern Highlands highway.
The K660 million is a one-off funding for impact projects to be raised through the issue of treasury bills. The Treasury Department is responsible for this.
Treasury was able to raise K125 million for infrastructure projects in Kokopo, East New Britain, but had not advance the Southern Highlands commitment, angering Agiru.
The national government must understand that the gas is still under my feet; it has not left the ground.
The government must come to Tari, Hides and Kutubu; it must come to the people and deliver these commitments. It must not hide in boardrooms with a few representatives and make decisions, Agiru said.
He said landowners commitments, promised by the state during the umbrella benefits sharing agreement (UBSA) in Kokopo and the licence-based benefits sharing agreement (LBBSA) in respective project areas, must be honoured.
I delivered the licence on Dec 8 last year. What they asked me to deliver; I have delivered. Now they have to deliver.
He accused the national departments of being very confused and passing the buck, and failing to deliver.
Agiru said although the memorandum of agreement (MoA) was not funded in this years budget, the government must find money to meet the commitments.
Agiru is also concerned that landowner companies will miss out altogether on contracts with the early works underway, and has urged the government to release the business development grants, or seed capital, for them to mobilise.
He said the engineering, procurement and construction (EPC) phase was going full steam awarding contracts to large companies.
Small landowner companies might miss out and become mere bystanders.
A senior Finance Department official spoken to last night said there was simply no money to meet all these commitments.
Most of these are not budgeted items, so we have to find the money elsewhere.
Funding will have to be spread over time, and cannot be one-off, the official said, asking not to be named.
Agiru we all Hela know the psycho you're playning here.
Where were you after all this time and now like crying over a spilled milk?
You and 3 other Hela MPs were there during the LSBA signing telling all the Lo's to sign and promising us with all the good things that will come with our seed capital for local LO companies to start up and take part in the project.
Too many foreign companies are getting contract on this project with the kind of services that we can provide and you let that happen, you were not there for us and we are still waiting for our money as promised...Agiru you better come out and tell us in person stop preaching this nonsense on the paper this is like you're just trying to cover your own ass. We know the psycho you play so stop talking and go back to sleep and let the sepiks phuck ur azz. We can't be spectators anymore.....yumi go bek na lukim lo field.
SHP landowners urge MPs to push for MoA funds
LANDOWNERS have called on Southern Highlands Governor Anderson Agiru and other SHP Members of Parliament to support their calls for the government to release their promised funds.
Landowner representative Hengebe Haluya said Agiru and backbenchers who pushed landowners to sign agreements for the liquefied natural gas (LNG) project were now hiding.
We supported the government and they should return the support to landowners, Haluya said in response to The Nationals front page report last Friday
The business development grants or seed capital handled by the department of commerce and industry should be paid immediately because landowner companies had secured bank loans for business start ups.
We are now being run down by banks for repayments, he said.
Haluya also called on Agiru to come out clearly on the relocation of landowners living along the LNG footprint.
At the umbrella benefits sharing agreement (UBSA) signing, the governor said plans were in place to build houses, early work has started but no houses have been built.
Whatever, the government must honour the Kokopo UBSA commitment and release the K220 million that was parked with the Treasury Department.
That money is for the Kokopo UBSA and we call for the immediate release of that money, he said.
Haluya said the money was with Treasury following a submission by Petroleum and Energy Minister William Duma last July 2.
Kujele Honaka Parima Well Head PDL 7 chairman Alousis Pangali has backed Agirus call for the immediate release of all memorandum of agreement funds and business development grants.
I want to know where are the 10% agreed content project plan?
That K4 million from the K40 million must automatically come from ExxonMobil, he said.
Agiru, a strong supporter of the LNG, last Thursday warned that he would withdraw his support if the government failed to deliver cash and projects it had committed to landowners and the provincial government.
Exxon Mobil is paying hardly anything for the gas compared to the profits they will make how else do you think they can economically pressurize and ship the gas overseas and still sell it at competitive price.
PNG is getting peanuts for its resources and especially true for LNG so whats there to share and how do you make money out of nothing? Agiru will never get his money becuase there isn't any.
LNG revenue worries - already being spent by politicians
May 26 2010, 2:59 PM
LNG revenue worries
By ERIC TAPAKAU
THERE are fears that revenue being earned from the construction phase of the PNG LNG Project may be subjected to abuse if proper fund management mechanisms are not established.
This is from Deputy Governor of the Bank of Papua New Guinea, Benny Popoitai, who is also concerned about the high level of liquidity (K700 billion) in the banking system.
He said this was a serious situation that we have to give a serious thought to and there was currently a need to diffuse the high level of liquidity.
Mr Popoitai said with the PNG LNG project in its construction phase, this level of liquidity would rise further.
He said this is already evident with increases seen in liquidity levels with the construction phase going on.
With the National Elections coming up in 2012, he said politicians loved spending and these funds might be subjected to misuse.
With these risks, the need for the establishment of a sovereign wealth fund becomes paramount, Mr Popoitai said.
There is a need for LNG funds to flow into the sovereign wealth fund and into the PNG economy. He urged all stakeholders including the development partners to help explain the importance of the sovereign wealth fund to the politicians to support the establishment of a SWF for Papua New Guinea.
He highlighted how BPNG outsourced foreign reserves when they were at their highest of $US2.1 billion between 2006 and 2007 due to strong exports and government taxes from the mineral and petroleum sectors.
There was a need to build the level of foreign exchange reserves as part of its macroeconomic and price stability objectives and the BPNG board decided in December 2007 to outsource part of the foreign exchange reserves to be manned by external fund managers.
Following the tendering process, four fund managers and a custodian were selected and the outsourcing began with $US200 million each handed to Schroders and Clariden Leu Asset Management. A further $US400 million was transferred to the other two fund managers, Sinopla and Deutsche Bank in June 2008.
Mr Popoitai said the investment mandate for the external fund managers was similar to the in-house mandate and the fund managers had the added flexibility of investing up to 10 per cent of their portfolios in triple A rated corporate bonds and having a higher modified duration of five years compared with 2.5 years for the in-house managed funds. He said a review was done in December last year and all fund managers contemplated BPNGs Investment Management Agreement risk management framework in withstanding the effect of the global financial crisis.
Since inception, the outsourced funds have steadily increased from $US800 million to $US853.3 million as at December 2009, Mr Popoitai said.
This represents a 9.7 per cent rate of return and compared with 6.3 per cent for the Citigroups World Government Bond Index 1-3 year US dollar Hedged Benchmark.
Re: LNG revenue worries - already being spent by politicians
May 26 2010, 3:52 PM
Agiru knowingly signed all these BSA/LBSA agreements totally infavor of ExxonMobil and government coffers. Where was his knucklehead rigth from the start? Has he forgotten that he was digging he own political graveyard to cry fowl late?
His day are numbered, he has fallen out of glory and NA is grooming James Marabe to be the next Hela Governor to continue the Gas Project. Agiru better shutup or will he continue to be a media predator?
TO GIVE YOU A CLEARLY UNDERSTANDING DID YOU SAW WHAT ACCUATALLY HAPPENED DURING THE ELECTION PERIOD IF ARE ONE OF THE HELA ELITES THEN YOU SHOULD BE ASHAMED OF YOURSHELF TO MAKE THIS KIND OF COMMENTS. AGIRU PAWA DONT PLAY PHYSCO BUT HE IS WITH THE NATURE .WITH THAT WAIT FOR 2017 . THANK YOU
Many good workers including plantation labourers from Southern Highlands were in Bougainville when the troubles erupted there.
These simple people knew very well of the outdated Bougainville copper agreements, the repeated cries of local people over pollution issues, the small royalty of K2 for every K100 the BCL was enjoying, how the Rorovana were forced at gun point by the PNG Riot Squad and forced out of their traditional land at the order of Somare to make way for the BCL wharf facilities and fund PNG's economic growth at Independence.
The leaders of Southern Highlands & politicians of PNG must not forget the lessons from Bougainville. Tigim na working ol samting gut. Sapos Souths i pairap em bai winnim Bougainville moa moa yet.
Both Marabe and Agiru are incapable of running Hela. The people have suffered enough because of them and people have already lost thier hope and trust in them. They're good at carrying brief case for Aurther & Soamre and become thier boy.
In response to your comment... to tell you the truth if your so called James Marape went through the polls the right way in 2007 you would say he won but through cheating and manupulating he system you cannot say you are a leader... as for George Tagobe, people like you should be ashamed of even commenting because you're just not close to him nor is Marape.. GMT is miles ahead so if you think being the next MP of Tari Pori will make him a millionaire than youre wrong he already has millions, em sore lo kain man osem yu na laik sanap.. now 2012 election too marape is trying to play his dirty game...that shows how power hungry james is and how anxious he is waiting to manage the millions for tari pori for his own use..what a shame talk like an elite person you're talking like someone from the bushes of Manyama...lol..
Usually those who have millions already are never satisfied - they want millions more.
The second issue is how did he come to make millions so quickly in such a small economy as PNG? Almost all our self made millionaires acehived their status through trickery or either ripping off the consumers or ripping off the government. That's not a good record for 'honesty' is it?
wi kita lo wanem u kam skinim blo GMT.. u na marape bai kam kiss lo *** blo em taim em kisim memba. u no match so lus tingting bloody bush kanaka - go GMT for 2012 u m ori ya o.. shut the jealous arses and win the bloody seat..