Landowners yet to sign K30m contract

 By BEATRICE BONAKOYA

PNG Power Ltd is yet to establish an agreement with the Wazu landowners of Northern over the K30 million hydro power project to be built in their village. 

The signing of a memorandum of understanding between the two parties did not eventuate yesterday as planned, following requests by landowners for more time for deliberation.

Part of their queries covered issues such as land mobilization funds and other benefits which they wanted to be catered for in the MOU. But PNG Power Ltd general manager (corporate services) Kalip Salo stressed that such issues would have to be included along the way as the project got off the ground.

“It’s too early to decide these things,” Salo said.

It is understood the landowner groups who were flown from their province to Port Moresby for the purpose of the MOU signing agreed collectively on Tuesday for the project to go ahead.  

A draft MOU was given to them yesterday morning. However, the groups declined to sign when the parties met in the afternoon at the Hideaway Hotel in NCD and asked for more time to look at the agreement.

The MOU covers the outright purchase of the land on which the project, funded by the Asian Development Bank, will be built.

PNG Power Ltd has given the landowners until today to agree on the MOU.

“I want you to discuss with your lawyers to cater for your interests in the MOU,” Salo told the seven landowner groups.

Salo also stressed that PNG Power Ltd wanted to fast track the signing, following intentions by the ADB to withdraw funds if the project was delayed.