Cash flow constraints affecting PNG Power

Posted on The National

MAJOR cash flow constraints facing the State is affecting PNG Power Ltd’s operations, Minister for Communications and Energy Rainbo Paita says.
He told Parliament yesterday in response to a question from Gazelle MP Jelta Wong that Treasury had made payments to a fuel supplier but the cheque was dishonoured.
Wong queried why there was continuous load shedding and power outages in East New Britain.
He said load shedding was affecting businesses and work in the province.
PNG Power began load shedding and disconnection exercises due to outstanding payments from customers including the Government.
Paita said he and State Enterprises Minister Sasindran Muthuvel in consultation with Treasury were working to ensure that some payments were made to PNG Power soon.
“It’s interesting to note that we have issues and at the same time the state also owes substantial amount of money to the company.
“Given the cash flow constraints that we are having now, we have been working with Treasury to ensure that we get some payments across to PNG Power.
“Treasury released the payment but as we have been experiencing with cash flow constraints, the cheque bounced.
“So we are dealing with that issue.”

Go to this link for more: https://www.thenational.com.pg/cash-flow-constraints-affecting-png-power/

Budget ‘finalised’, says Abel

By HELEN TARAWA - The National

THE 2019 Supplementary Budget will be tabled in Parliament today after it undergoes final adjustments, according to the Government.
It was supposed to be tabled yesterday but postponed to today because it was being finalised, according to Finance and Rural Development Minister Charles Abel, pictured.
Parliament was full yesterday in anticipation for the tabling of the supplementary budget by Treasurer Ian Ling-Stuckey.
He could not be reached for a comment after Deputy Prime Minister Davis Steven abruptly moved that the sitting be adjourned to this morning.
A Parliament spokesperson said the budget tabling had to be delayed because they had to make some adjustments to the figures.
Former prime minister and Ialibu-Pangia MP Peter O’Neill who attended Parliament yesterday in anticipation of the supplementary budget debate said the government was “disorganised and a bit lost”.
“There is no government parliamentary business or legislation programme so Parliament is just a question time event,” O’Neill said.
Prime Minister James Marape said the supplementary budget would be about correcting “some of the fallacies and deficiencies of the previous government and to ensure (we) get the fundamental macro-economic numbers corrected”. Marape said the Government was taking a prudent and responsible approach to correct “what is possibly an under performance in the economy” this year.
He said they planned to anchor the budget preparations with more concrete numbers in 2020.
Parliament is expected to rise after the supplementary budget is passed today.
It will return next month for the 2020 budget session.

Go to this link for more: https://www.thenational.com.pg/budget-finalised-says-abel/

Corruption Bill to be presented

Posted on The National

THE much-awaited Independent Commission Against Corruption (ICAC) Bill has been given the green light by Cabinet to be tabled in Parliament, according to Justice Minister and Attorney-General Davis Steven.
Deputy Prime Minister Steven, pictured, said the Organic Law on ICAC was an important legislation.
“I am pleased that this important legislation can now go to Parliament for deliberation by the nation’s law makers, hopefully, in the next seating of Parliament,” he said.
Steven said the legal team in the Department of Justice and Attorney-General had started working on the regulations required to operationalise ICAC.
He said Constitutional amendments to establish ICAC were passed in 2015. But there was little time to pass the Organic Law in the last term of Parliament.
“The passage of the Organic Law on ICAC has been delayed for many reasons including bureaucratic rigmarole,” he said.
“We have the opportunity to pass the legislation in the remaining months of this term of Parliament.
“Our Government is determined to have the ICAC established by 2022 as part of our strategy to combat corruption in the country.
“Citizens and interested groups can access the full text of the ICAC bill when it is published in the National Gazette for a period of one month as required by law.”
The ICAC bill will also be published in the department’s website.
All members of Parliament will be provided a copy of the bill at least one month before it is tabled.
“I have directed my department to follow these procedures strictly,” he said.
“Our people must participate meaningfully in the process of passing important laws that affect their lives.
“Laws must be made following consensus and not imposed upon the people.”

Go to this link for more: https://www.thenational.com.pg/corruption-bill-to-be-presented/

PM plans to shift development to rural areas

By JEFFERY ELAPA - The National

PRIME Minister James Marape plans to shift development away from Port Moresby into the rural areas where the majority of the people live.
“We appreciate we have stadium in Port Moresby and we have a road from swamp to swamp at 9-Mile,” he said.
“But the government under Pangu will shift investment into rural areas where the masses are. We will use the borrowings if necessary to open up highway and infrastructure in the Sepik plains, Markham and Ramu plains, highlands highways, and all the highways and get the message to our people to go into agriculture.”
He said as a member of the Peter O’Neill-led government as Finance Minister, he had to accept some blame for the economic downturn facing the nation.
“We accept some responsibility as part of the former government but we played different roles,” he said. “I was expenditure minister when I was in finance ministry. Policies were controlled by the PM or Treasury. If I was PM like Peter O’Neill seven years ago, I would have done the same thing he did – that our revenue basis is too small and our expenditure is so big.”
But he said they differed in areas we invested in.
“I choose to invest in economic infrastructure while he chose to invest in social infrastructure only based in Port Moresby. That is why some of us differed.”
He said he wanted investment which would yield and not in areas which would not grow.
Marape also plans to free the nation from debts.
“These group of leaders standing with me dream of a time when we don’t borrow money anymore.
“There must be life in our nation’s history where we mustn’t borrow money,” he said. “We are not beggars for aids and grants but become lenders ourselves. We become givers to ourselves, to our Pacific brothers. And this is the big picture that is driving us.”


Go to this link for more: https://www.thenational.com.pg/pm-plans-to-shift-development-to-rural-areas/

P’nyang separate LNG: PM

By GYNNIE KERO - The National


PRIME Minister James Marape, pictured, says the P’nyang gas field in Western will not be a part of the US$13 billion (K43 billion) Papua LNG project in Gulf.
He was responding to a question by North Fly MP James Donald in Parliament yesterday on whether the gas field in Western would be part of the Papua LNG.
Marape said the Papua LNG encompassed petroleum retention license (PRL) 15 only.
The P’nyang field is located within PRL3 which covers 105,000 acres (425 square kilometres).
He said if joint venture partners of the country’s second LNG project wanted to bring on board P’nyang, there would be new discussions.
He said the Government would not make any more concessions.
“Partners (Papua LNG project) are embarking on the two trains they proposed to develop on PRL 15.
“P’nyang is totally outside of Papua (LNG) project,” he said.
Marape added that the P’nyang reserves were up for discussions with industry players who were already in the country.
“Our Government is discussing with those who are already in the country, in the industry.
“If they want to discuss P’nyang or stranded fields outside of what is PNG LNG agreement or Papua LNG agreement, then it’s a business discussion that will take place.
“I’ve informed the industry players especially the three major players (ExxonMobil, Total and Oil Search) that Government will no longer give concessions for P’nyang or any more projects going into the future.
“PNG is no longer a Greenfield investment destination.
“P’nyang is not part of Papua LNG.
“We (Government) are committed to Papua LNG,” Marape said.

Go to this link for more: https://www.thenational.com.pg/pnyang-separate-lng-pm/

Government will support private institutions, minister says

Posted on The National

THE Government will support private institutions in the education system as long as they meet national standards requirements, says Higher Education, Research, Science and Technology Minister Nick Kuman.
Kuman told Parliament yesterday that private universities and colleges would be accredited if they satisfied all the requirements.
He was responding to a suggestion by Yangoru-Saussia MP Richard Maru that the Boram Nursing School established by the Boram Hospital management be closed.
Kuman said the school would not be closed but required to meet the standard requirements.
“We will ensure that those who comply with the laws will be allowed to be built and run, and that includes the Boram Nursing College,” he said.
“I will be meeting with the Health Department to find a solution to this problem which is an ongoing one.”
Kuman said the school was established by the hospital without informing his ministry.
“The protocols and standards were not met so the Higher Education Department wrote to the provincial government,” he said.
“I am also aware that the PNG Nursing Council which looks at the standards and regulations of nursing schools have visited the schools three times and that the nursing school failed to meet the minimum standards. But this Government is open to and will encourage private institutions that will provide more spaces in the higher education. The school will remain but they must now meet the standards.”

Go to this link for more: https://www.thenational.com.pg/government-will-support-private-institutions-minister-says/

Marape leads Pangu

By JEFFREY ELAPA - The National

PRIME Minister James Marape, elected Pangu Party leader by its parliamentary caucus yesterday, promises to continue making “hard calls and hard decisions” to move the nation forward.
He took over from Morobe Governor Ginson Saonu who had been acting as interim party leader since the political upheaval early this year.
The party has 25 members, including Southern Highland Governor William Powi and Imbonggu MP Pila Niningi, who remain listed as “undecided” by the Registrar of Political Parties and Candidates, although they had submitted their “forms”.
The change in party leadership was announced at the Prime Minister’s office in Parliament.
Marape will lead the party into the 2022 national election. He thanked the party members for electing him party leader and thanked Saonu for holding the reins through the period of political upheaval.
He acknowledged former party leaders such as Sir Michael Somare and Sir Rabbie Namaliu, both of whom became prime ministers, Sam Basil and Saonu.
“We intend to present the country in a better shape than what we’ve inherited in 2019 – better shape in economy, better shape in social service indicators and to create a solid path going into the future,” he said.
“We are prepared to make hard calls and hard decisions.
“And you will see Pangu party’s signature on how we deal with the Wafi Golpu project, oil and gas reforms in the P’ynang project, few mining in Porgera, in the forestry and fisheries sector.
“We’ll find the right balance without harming our investors so our country gain prosperity and sail on a path to economic independence.”
Marape said the party had been rebranded and hoped to rejuvenate party support around the country.
He said Pangu “is rich” with 52 years of political history in which it gave political independence to the country through Sir Michael in 1975.
Pangu will also give economic independence to the country under its leadership.
He reiterated the aim “to take back PNG and making it a rich black nation, leaving no child behind in education, health or business”.
Marape said it was part of Pangu’s leadership rebranding to give security and achieve results.
The party is expected to hold its national convention in December to endorse its policies.
He has already announced some policies such as the tertiary student’s loan scheme and the assistance to PNG businesses.


Go to this link for more: https://www.thenational.com.pg/marape-leads-pangu/

Shares from Kumul Petroleum going towards budget: Marape

Posted by The National

FIFTY per cent of the dividends received from Kumul Petroleum Holdings Ltd (KPHL) will go towards supporting the country’s budget, says Prime Minister James Marape.
He said this in Port Moresby on Wednesday during the State-owned entity’s annual general meeting.
Marape said it followed a Cabinet decision on the breakup and distribution of dividends from the revenue collected by KPHL.
“There was a recent Cabinet decision we took and I would like the board to embrace that decision because that is where we intend to take Kumul Petroleum when we shape a sister company, Kumul Mining,” he said.
He said in the Cabinet decision, a breakup and of the distribution of dividends from the revenue collected by Kumul Petroleum was outlined.
Marape said the distributions were specifically addressed in the Cabinet paper and again urged the board to embrace that decision.
The breakup is as follows:

• 50 per cent to Budget support;
• 20 per cent to administrative cost (up by 5 per cent from current 15 per cent);
• 13 per cent saved for call on cash when investment decisions are being made;
• 7 per cent into the Sovereign Wealth Fund for the country; and,
• 10 per cent towards assisting church-run education and health services throughout the country.

Marape was also presented a dividend of K100 million by the KPHL chairman Andrew Baing.
Marape thanked KPHL’s board, management and staff for working hard to bring the company to what it was today.
“So far so good, you have come in a short space in time, benefiting from the five years of consistent production of the two trains of gas,” he said.
“A revenue envelope of about K5 billion that equates to an average a K1 billion every year.”
He said that was the country’s benefits from the 16.77 per cent participation stake in the present two trains of LNG project and he appreciated the fact that KPHL as a beneficiary in the PNG LNG Project was contributing to the economy.
He also wanted Kumul Petroleum to detach from investments that could be done by landowner companies such as drilling and become an equity player in the oil and Gas industry.

Go to this link for more: https://www.thenational.com.pg/shares-from-kumul-petroleum-going-towards-budget-marape/