Leaders worry about LNG fundings

Landowner from Southern Highlands are concerned over a report that a senior government minister was carrying around K50 million to lure MPs into voting him as prime minister.
They said what they had feared would happen to their already-approved LNG funds may have started, especially with the general election only months away.
Komo local level government president Tho­mas Potape said the minister concerned should be reprimanded and asked to explain publicly where that K50 million came from.
“Juha, Hides and Angore landowners are still waiting for their promised MoA, seed capital and other funds.
“We have no doubt that the multi-billion-kina liquefied natural gas (LNG) project will raise long-term growth and improve the lives of our people,” Potape said.
“However, to ensure the LNG opportunity is not wasted, sound policy frameworks and their implementation was es­sential, and this must be complemented with land­owners being adequately compensated.”
He said this would not be possible if outstanding LNG landowner issues were not resolved.
He urged Acting Prime Minister Sam Abal to, once again, explain the role of the national planning committee against that of the expenditure implementation committee and MRDC to ensure all LNG-related issues were handled properly and settled.
In a prime ministerial directive early this year, Abal had instructed the National Planning and Treasury departments to refrain from paying any outstanding claims by landowner groups.
He said all payments would be screened by EIC, the peak bureaucratic-level committee sanctioning all proposals for funding against the various benefit streams for oil and gas, particularly the LNG business grants, MoAs and ministerial commitments.
“After EIC, an ap­proved list of proposals will be submitted to NPC for final vetting,” he said.
Of immediate concern were the MoA commitments which would be followed by what was promised the landowners by certain government ministers at the Kokopo umbrella benefits signing agreement and the li­censed-based benefits sha­ring agreement fo­rums.
Abal also pointed out that all business development grants had been paid and, “as far as the government is concerned, the BDG case is closed”.
Meanwhile, Potape said the current arrangement involving the EIC and NPC must be maintained so that downside risks including possible disruptions and further delays in the LNG project involving land­owners were avoided in future.
“There is no doubt that PNG LNG and other resource projects will provide an opportunity for increased economic growth and improved living standards.
“However, considerations must also be given to future expectations over project income and how it is managed, given the inherent uncertainties and landow­ner risks that have been experienced from the day the project agreements were signed in East New Britain,” Potape said.