The National, Friday 11th November 2011
LABA Holdings Ltd has called on contractors and sub-contracting companies at the PNG LNG project site to hire some of its dump trucks.
Nine of its dump trucks are sitting idle at its office premises.
Chairman and chief executive officer of Laba Holdings Ltd Raho Kevau was concerned that the dump trucks were not generating income.
“We are calling on any contractor, sub-contracting companies at the LNG site or any interested company to hire them,” he said yesterday.
“We should at least be given some preference as a landowner company,” he said.
He said the Laba office was open for negotiation with regards to hire rates.
There was currently a lease-buy agreement for the dump trucks between Esso Highlands Ltd (EHL), developer of the PNG LNG project, and Laba Holdings.
Under the one-year agreement that began on Nov 6 last year, the dump trucks were leased from EHL to Curtain Brothers for use on road works along the Papa-Lealea road.
Curtain Brothers has finished its job and the dump trucks are back at Laba’s office premises where they have been sitting idle for the past three months.
“We would appreciate it if sub-contractors at the LNG site would at least hire two or three dump trucks for the project site … otherwise our other option is for EHL to take the dump trucks back,” Kevau said.
Laba Holdings was also asking stakeholders in the LNG project to take heed of the relevant laws that are in place with respect to the LNG project.
One of them is “the national content plan” for the PNG LNG project that highlights Section 129 of the PNG’s Oil and Gas Act.
This section placed a number of requirements on the project with respect to supplier development.
For example, it required licences; to use and purchase PNG goods and services wherever they are comparable to foreign-sourced supplies; to encourage and assist PNG citizens to establish businesses to supply goods and services to the project; to purchase vehicles, machinery, plant and equipment through PNG-based traders, and to maximise use of PNG contractors and subcontractors where services in PNG are of a comparable standard to those from overseas.
The broad aims of the national content plan are to provide a roadmap for compliance with relevant PNG law and to enhance the benefits to PNG in the areas of employment and training, business opportunities and standard of living.