PNGBLOGS

OP/ED Are conflicting interests at play here? That is the question we ask as we watch the Government move to deal with the problems at one LNG site in Hela. The problems at Hides 4 blew up on the previous Friday. The landowners moved in and stopped all work on the gas conditioning plant and other works. They demanded that a government team visit them and address them. Last week, we were told that the Prime Minister Sir Michael Somare appointed Foreign Affairs Minister, Don Pomb Polye, as the trouble shooter, to lead a delegation to Hides to talk to the landowners. Polye announced last Monday that he was taking a team in. He invited Petroleum and Energy Minister William Duma, Finance and Treasury Minister Peter O’Niell, other senior government ministers and all MPs from the Southern Highlands to go with him for the meeting. The objective of that mission was to negotiate for the immediate resumption of work at the project site and to find ways to address the landowner concerns. The Poly

OP/ED Are conflicting interests at play here? That is the question we ask as we watch the Government move to deal with the problems at one LNG site in Hela. The problems at Hides 4 blew up on the previous Friday. The landowners moved in and stopped all work on the gas conditioning plant and other works. They demanded that a government team visit them and address them. Last week, we were told that the Prime Minister Sir Michael Somare appointed Foreign Affairs Minister, Don Pomb Polye, as the trouble shooter, to lead a delegation to Hides to talk to the landowners. Polye announced last Monday that he was taking a team in. He invited Petroleum and Energy Minister William Duma, Finance and Treasury Minister Peter O’Niell, other senior government ministers and all MPs from the Southern Highlands to go with him for the meeting. The objective of that mission was to negotiate for the immediate resumption of work at the project site and to find ways to address the landowner concerns. The P

Papua New Guinea's Prime Minister has ordered an investigation into the attack on builders working on the country's multi-billion dollar Liquefied Natural Gas (LNG) project. Sir Michael Somare has instructed Foreign Minister Don Polye to lead a government team to Hides in the PNG Highlands, where workmen for a gas conditioning plant site were attacked. Four employees of Clough Curtain Joint Venture, a contractor to the PNG LNG gas project, were injured last Friday. The attack was sparked by the death of a 4 year child who allegedly consumed powder like substances used at the construction site. The developer, ExxonMobil says it has shut down construction work on the gas conditioning plant site at Hides until the safety of its employees is guaranteed. The government has deployed additional security forces to prevent further trouble.

Papua New Guinea's Prime Minister has ordered an investigation into the attack on builders working on the country's multi-billion dollar Liquefied Natural Gas (LNG) project. Sir Michael Somare has instructed Foreign Minister Don Polye to lead a government team to Hides in the PNG Highlands, where workmen for a gas conditioning plant site were attacked. Four employees of Clough Curtain Joint Venture, a contractor to the PNG LNG gas project, were injured last Friday. The attack was sparked by the death of a 4 year child who allegedly consumed powder like substances used at the construction site. The developer, ExxonMobil says it has shut down construction work on the gas conditioning plant site at Hides until the safety of its employees is guaranteed. The government has deployed additional security forces to prevent further trouble.

RON MAY Jakarta's reaction to military abuses in West Papua speaks volumes. IN HIS Independence Day address to the Indonesian Parliament in 2005, President Susilo Bambang Yudhoyono said he wished to resolve the Papua question in a just, peaceful and dignified manner. If anyone took that wish seriously, the announcement that the three soldiers shown on video torturing two West Papuan captives had been sentenced by a military court to prison terms of eight to 10 months for ''disobeying orders'', and that none would be discharged, reveals the reality of Indonesian attitudes and policy in West Papua. When pictures of the West Papuans being tortured were publicised internationally, President Yudhoyono initially assured the US Secretary of State that the matter was being dealt with. Whether by oversight or deliberate misinformation, this was untrue: what was being dealt with was an earlier case of military abuse of West Papuan citizens. Yudhoyono subsequently resisted int

RON MAY Jakarta's reaction to military abuses in West Papua speaks volumes. IN HIS Independence Day address to the Indonesian Parliament in 2005, President Susilo Bambang Yudhoyono said he wished to resolve the Papua question in a just, peaceful and dignified manner. If anyone took that wish seriously, the announcement that the three soldiers shown on video torturing two West Papuan captives had been sentenced by a military court to prison terms of eight to 10 months for ''disobeying orders'', and that none would be discharged, reveals the reality of Indonesian attitudes and policy in West Papua. When pictures of the West Papuans being tortured were publicised internationally, President Yudhoyono initially assured the US Secretary of State that the matter was being dealt with. Whether by oversight or deliberate misinformation, this was untrue: what was being dealt with was an earlier case of military abuse of West Papuan citizens. Yudhoyono subsequently resiste

OSEAH PHILEMON On December 13, 2010 the Prime Minister of Papua New Guinea and elder statesman of the Pacific Grand Chief Sir Michael Somare stepped aside as Prime Minister to allow a leadership tribunal to hear charges of misconduct in office against him. Sir Michael’s decision and action came just as the acting Public Prosecutor Jimmy Wala Tamate officially requested Chief Justice Sir Salamo Injia to set up a leadership tribunal to hear charges against the prime minister—the first in the history of Papua New Guinea since independence in September 1975. It was a dramatic decision that was not entirely unexpected except the timing of it which shocked many in PNG. Sir Michael is the longest serving politician in PNG, the Pacific and the Commonwealth. He entered national politics in 1968 and served continuously up until now—as a Member of Parliament, Prime Minister, Opposition Leader and even minister. Prior to making the announcement to step aside, Sir Michael appointed his newly appoin

OSEAH PHILEMON On December 13, 2010 the Prime Minister of Papua New Guinea and elder statesman of the Pacific Grand Chief Sir Michael Somare stepped aside as Prime Minister to allow a leadership tribunal to hear charges of misconduct in office against him. Sir Michael’s decision and action came just as the acting Public Prosecutor Jimmy Wala Tamate officially requested Chief Justice Sir Salamo Injia to set up a leadership tribunal to hear charges against the prime minister—the first in the history of Papua New Guinea since independence in September 1975. It was a dramatic decision that was not entirely unexpected except the timing of it which shocked many in PNG. Sir Michael is the longest serving politician in PNG, the Pacific and the Commonwealth. He entered national politics in 1968 and served continuously up until now—as a Member of Parliament, Prime Minister, Opposition Leader and even minister. Prior to making the announcement to step aside, Sir Michael appointed his newly ap

DOMINIC MELLOR The $3.5 billion national budget for 2011 is the largest ever for PNG, with record levels of development funding allocated to education, health and infrastructure. The government expects to generate sufficient revenues to ensure a balanced budget. If well implemented, a robust budget that prioritizes social development is positive for PNG. There are, however risks in the economic assumptions underlying the budget framework. In particular, large discrepancies in revenue forecasts contained in the Medium-Term Development Plan (MTDP) 2011-2015 and the national budget may create funding expectations that will test fiscal discipline.Also, the government’s historic tendency to vastly under-forecast mineral revenues is potentially diverting resources away from under-funded social sector recurrent expenditure towards discretionary capital spending in supplementary budgets. Medium term settings The construction phase of the PNG liquefied natural gas (LNG)

DOMINIC MELLOR The $3.5 billion national budget for 2011 is the largest ever for PNG, with record levels of development funding allocated to education, health and infrastructure. The government expects to generate sufficient revenues to ensure a balanced budget. If well implemented, a robust budget that prioritizes social development is positive for PNG. There are, however risks in the economic assumptions underlying the budget framework. In particular, large discrepancies in revenue forecasts contained in the Medium-Term Development Plan (MTDP) 2011-2015 and the national budget may create funding expectations that will test fiscal discipline.Also, the government’s historic tendency to vastly under-forecast mineral revenues is potentially diverting resources away from under-funded social sector recurrent expenditure towards discretionary capital spending in supplementary budgets. Medium term settings The construction phase of the PNG liquefied natural

AARON BATTEN Optimism continues to run high about PNG’s development prospects. The last eight years have seen sustained growth across the PNG economy – the first time since independence. It is also the first time that real per capita incomes have begun to increase after a 30 year period of stagnation. Formal sector employment across all industries is now at record levels. Much of this success is attributed to high international commodity prices which have fuelled rapid output and revenue growth. But the growth also reflects increasing output from a variety of sectors and has taken place across a number of regions. Success has not been siloed. Sustained growth has also continued throughout the global financial crisis and despite natural declines in output from maturing mining activities. The biggest cause of optimism in the PNG economy is the upcoming LNG gas project which comes online in 2014. At its peak, the project is expected to increase real GDP by 25 per cent. In 2010 revenues a

AARON BATTEN Optimism continues to run high about PNG’s development prospects. The last eight years have seen sustained growth across the PNG economy – the first time since independence. It is also the first time that real per capita incomes have begun to increase after a 30 year period of stagnation. Formal sector employment across all industries is now at record levels. Much of this success is attributed to high international commodity prices which have fuelled rapid output and revenue growth. But the growth also reflects increasing output from a variety of sectors and has taken place across a number of regions. Success has not been siloed. Sustained growth has also continued throughout the global financial crisis and despite natural declines in output from maturing mining activities. The biggest cause of optimism in the PNG economy is the upcoming LNG gas project which comes online in 2014. At its peak, the project is expected to increase real GDP by 25 per cent. In 2010 revenu