PNGBLOGS

MEDIA RELEASE The chairman of PNG Sustainable Development Program Ltd, Sir Mekere Morauta, said today the company is willing to help provide debt finance to enable wellhead and facilities landowners buy equity in the PNG LNG Project. He said PNGSDP is happy to participate as the PNG-based member of a consortium of overseas financiers to provide a facility totaling K725 million (US$230 million) to allow the landowners to pay the State for their 4.27 per cent interest that was agreed under the Umbrella Benefit Sharing Agreement (UBSA) reached in 2009 between the Somare Government and the landowners. The wellhead and facilities landowners included in the equity holding cover groups within the PNG LNG project footprint from Western, Hela, Southern Highlands, Gulf and Central Provinces. PNGSDP was set up to hold shares in Ok Tedi Mining Ltd for the benefit of the people of Western Province and Papua New Guinea. Since the expropriation of its shares by the Government, it does not receive

by MICHAEL J PASSINGAN Prime Minister Peter O’Neill reckless, corrupt and unnecessary borrowing is hurting families and crippling the nation with debt that future generations must pay. In 2015 actual Government debt reached K18,571.40 per household under O’Neill. That number will increase with new borrowings proposed by the Prime Minister, including the $1 billion sovereign bond issue. Families must repay O’Neill’s debt whether they like it or not. Repayment will require new domestic revenue-raising and cost-savings: Higher personal and corporate taxes as well as a 50% increase in the GST Increases in SOE fees and charges such as O’Neill’s secret rises for all MVIL services including registration and insurance A further decline in government services and outsourcing of service provision to the Prime Minister’s colleagues and cronies A fire sale of government assets and equity including SOEs such as PNG Power and Air Niugini to the Prime Minister’s col