Prime Minister James Marape has defended the government’s restructuring of the 4.27 percent PNG LNG landowner equity benefit following concerns raised in Parliament over representation and management of the fund.
PM Marape in a statement said the proposed structure would include plant site landowners, pipeline communities, upstream landowners, and the five affected provincial governments.
He also said the government would release details of revenues and benefits received through Kumul Petroleum Holdings Limited from the PNG LNG project since production began in 2014.
The Prime Minister made the remarks in response to questions from Hiri-Koiari MP Keith Iduhu and former prime minister Peter O’Neill in Parliament.
Responding to questions in Parliament, PM Marape said the government’s intention was not to exclude or divide any landowner group but to maintain long-term benefits generated from the PNG LNG project.
Prime Minister Marape said the restructuring process was being carried out under the framework of the 2009 Kokopo Umbrella Benefit Sharing Agreement signed during the National Alliance government under late Grand Chief Michael Somare.
“I want to first indicate to this House that the decision taken is not divisive to the country or to the PNG LNG landowners and provincial governments who are important stakeholders in the PNG LNG project,” PM Marape told Parliament.
“It is not offensive to them also. It is in direct fulfilment of a kind gesture by the National Alliance Government Policy in 2008-2009 when the Kokopo UBSA was signed.”
The Prime Minister acknowledged concerns raised by local MP Keith Iduhu regarding representation for plant site landowners and Central Province in the proposed Kroton Equity Option Special Purpose Vehicle.
“Plant Site Landowners are important. They are my people as much as they are the Member for Hiri-Koiari’s people,” PM Marape said.
“They are included in this restructuring that is taking place. The five provincial governments all in all are included in this structure.”
PM Marape explained that the 4.27 percent equity arrangement was originally established as a policy benefit for approximately 60,000 project landowners across the PNG LNG project footprint, including upstream Petroleum Development License areas, pipeline communities, and plant site landowners in Central Province.
“This 4.27 percent is not entitlement of law, but a government policy — a National Alliance Government policy — gifted to the five provinces and 60,000 landowners for their support to PNG LNG,” he said.
The Prime Minister said the structure was intended to preserve the equity as a long-term investment fund rather than allow short-term cash distribution.
“It should have an element of Sovereign Wealth Fund attached to it. Majority of this fund should be set for perpetual regeneration for these five provinces and the 60,000 landowners, including people at the plant site,” he said.
PM Marape also responded to concerns raised by former Prime Minister Peter O’Neill regarding management of the fund and accountability of revenues earned through Kumul Petroleum Holdings Limited.
“I’m happy he has asked for a full report on the K12 billion that has been passed on to Kumul Petroleum Holdings Ltd, and it will be my absolute honour and privilege to table to this House, since 2014, what has happened to this wealth belonging to our country,” PM Marape stated.
He said the government would continue consulting landowners, governors, and local leaders on possible improvements to the arrangement.
“If there are ways to improve this, I’m very certain we’ll consider recommendations from the Members of Parliament concerned,” he said.
“The only thing we don’t change is the Ten Commandments. Cabinet decisions can be changed. So long as something is good for our people, we will make sure we adapt.”
PM Marape said the government wanted a structure that would continue generating benefits for future generations connected to the PNG LNG project.
“We want a structure that will perpetually harvest wealth and sustain wealth and generate wealth — not just for today’s generation but for the next generation that is coming,” he said.
Related news: https://www.thepngsun.com/pm-marape-affirms-strong-national-interest-in-wafi-golpu-and-papua-lng-projects/
The Prime Minister also thanked landowners and affected communities for their patience during the process.
“I thank them for their patience. It’s been a long time coming. But it’s better late than never,” PM Marape said.