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Date: March 18, 2009    NEWS | BUSINESS | SPORTS | EDITORIAL | LETTERS | COMMENTARY | INFO
Addressing LO issues vital for LNG

LANDOWNER issues surrounding the nation's most lucrative LNG project are deep-rooted and need urgent government intervention before it gets off the ground.

At the time when negotiations were undertaken to bring home the gas deal, certain SHP MPs representing the 300,000 plus Hela people raised their concerns at initial deals to sign the gas agreement.

These MPs (named) have collectively tabled the issue of landowners that started in 1974, a cry of economic and political autonomous of the Hela region.

The Government has undertaken to grant the autonomy by 2012 as a trade-off with the LNG project in which the project would be in its full stage of construction of the pipelines, LNG plant, and other works.

It is feared that if the government fail to meet its commitment, it is most likely a repeat of Boungainville crisis.
This was echoed by one of the Hela MPs in the floor of Parliament; "No Hela province, no gas!" If these words were anything to go by, fear is mounting among international investors in the gas project.

A landowner representative and chairman of Hiwa Tuguba Hides Association, an umbrella association of the Hides gas fields, Tuguyawini Libe Parindali brought another issue into light for the government to consider.

He blamed the Government through the Expenditure Implementation Committee Secretariat (EIC) for failing to properly allocate MOA funds.

The same has been raised earlier by PRL 12 chairman Elijah Koju, saying the LNG project would be disrupted if they were not paid their MOA funds.

"Some politicians and their cohorts are playing with our money by paying people who are not entitled to," Mr Koju said.

But the Minister for Petroleum and Energy William Duma said there were differences between MOA funds and royalty payments for landowners.

MOA funds were tied to specific infrastructure projects like schools, bridges, roads, and hospitals while royalties were paid directly to landowners.

The question now is who is responsible for managing the MOA funds? Clauses specified under the MOA agreements are reviewed to date but still there is no tangible development in place as outlined.

For example, the upgrading of Tari airport is spelled out in the MOA agreement but the question is who is responsible for this project? The National Government, the Provincial Government,
the operator and/or the landowners?

And how the MOA funds are to be assessed for infrastructure projects is another question.


Peter Kinsharp
Kaugere, NCD
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  • Addressing LO issues vital for LNG
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  • We are very sorry
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