Payout formula needed

 By GYNNIE KERO

LANDOWNERS’ share of revenue from the PNG LNG project will only be distributed once the Mineral Resources Development Company (MRDC) has a formula for pay out, managing director Augustine Mano (pictured) says.

He said the formula was the clan vetting process which was yet to be completed by the Government.

“Landowners in the PNG LNG project cannot benefit from the inflows of revenue until they can be identified,” Mano said.

“The role of DPE to make sure that clan vetting/landowner identification is done earlier, our (MRDC’s) role as only comes in after construction of project.

“MRDC is just like a paymaster, we need to have a formula which we can use to pay landowners. Right now we don’t have a formula so all that money will be in a trust until they give us a formula, which is clan vetting,” Mano said.

“At the moment, everything will be in trust until, clan vetting is completed.

“Not even a toea has been paid to the landowners.

“After clan vetting then there will be a ministerial determination to say which group receives what and then based on the determination MRDC will pay all PDLs in the PNG LNG project, the pipeline and the plant site that includes provincial governments, LLGs.

“MRDC holds 2.7 per cent plus the Kroton’s (now National Petroleum Company PNG) 25 per cent equity.”

To ensure that landowners actively participate in major projects in future, Mano suggested that social mapping and landowner identification need to be conducted before construction a project. 

“For me, the thing about the Elk/Antelope LNG project is that I don’t want the same mistakes (delay in clan vetting) as the PNG LNG project repeated.

“For Gulf, we better do it (identify landowners) now before the construction (LNG) so that we know who are the landowners, who are the key players and start engaging them so they are more organised and they participate in a big way.

“It’s important, so that the landowners can mobilise themselves so when National Government gives them business development grant (BDG) it go towards building capacity to participation in the construction,” he said.