Quick payments vital for benefit sharing: Chairlady

The National Business

THE most important part of benefit sharing is if payments come quickly, says Gas Resources PNG LNG Plant Ltd chairlady Ulato Avei.
PNG LNG Plant Ltd, which is a subsidiary of Mineral Resources Development Company, was set up to manage royalties of the PNG LNG pipeline impacted villages in Central.
Avei said if payments came quickly, it would ensure they delivered community programmes that would engender development activities.
“We would like to receive the payments quickly so that the movement go faster in the banks,” she said.
“It is hard but we just have to be patient.
“The company aims to minimise certain social issues through community infrastructure trust funds, by building infrastructures in the province and by ensuring that the benefits go to the clans.”
“There are three parts to this benefit, we look at the total of hundred per cent which includes:

  • 30 per cent goes into the future generation trust Fund;
  • 30 per cent goes into our community development trust fund; and,
  • 40 per cent is paid as cash to the landowners.

“We have invested in shares, properties for the future of our generation and we have expended on our community infrastructure trust fund.
“We continuously invest it, and one of the major investments is in the power generation or energy component of the gas, the Dirio Power, which we are proud to be a major shareholder.
“We know the benefits that will come out of the power generation.”
She said first payment of royalties was K16 million distributed among four villages which was done so following a ministerial determination.
“Based on those agreements, the K16 million was distributed to the four villages, so the second payment was closed to this as well,” Avei said.
“The prices were low so the royalty payment was a bit low in the last payment. I think it was K14 to K15 million we distributed.
“There are many stakeholders we have to work with, one of our close partners we have worked with is ExxonMobil.
“We have collaborated in our bimonthly meetings.
“Our relationship with ExxonMobil has been great.”
Avei said they had invested more than K20 million and their biggest investment had been in Dirio Power.