LNG Project Deal

It is good that the deal is done and sealed. Millions, if not billions of kina involved. Congratulations to leaders like Mr. Agiru who have negotiated hard. However, apart from those mentioned, are there going to be any fundings for schools, hospitals, existing roads, technical colleges and so on? What about agriculture, why not not a huge timber plantation along those roads. Why not huge oil palm platations? Why not use some of the bear grass land for animal grazing. Over 200 000 jobs could be created from and surrounding this project alone. Here is the rest of the news as reported by the national.

FIVE weeks of intense negotiations between the State and gas resource landowners and their provincial governments ended on Saturday with the signing of an umbrella benefits sharing agreement for the PNG liquefied natural gas (LNG) project.
The agreement will land K20 billion in the hands of provincial governments and landowners over the 30-year life of the project and commits the State to certain important infrastructure and socio-economic developments in the provinces and specific licence areas.
Despite strong opposition from certain landowners, the State negotiating team was able to get everyone to sign the BSA in a marathon signing session which ran till midnight on Saturday and then continued yesterday at 1pm.
Head of the Southern Highlands negotiating team and the biggest party at the talks, Governor Anderson Agiru, said yesterday: “We have cut a good deal. This deal now sets new parameters and new benchmarks in State/landowner relations.”
Mr Agiru’s “good deal” includes:
* An additional 5% of State’s equity in the project, bringing provincial government/landowner equity in the PNG LNG project to 7%;
* Construction and sealing of a massive highway linking the Gulf of Papua
to the north coast of mainland PNG from Kikori, through Kutubu, Moran to Tari and Lake Kopiago and terminating in the Sepik;
* Sealing of the Kikori to Ialibu (Gulf-Southern Highlands) highway;
* A K100 million commitment to build the first phase of a Hela City Development at Tari and an undertaking to declare the future city as a free trade zone;
* Development by the Independent Public Business Corporation (IPBC) of an international wharf at Kikori under public private partnership;
* Commitment of K90 million for the first phase of the Tari International Airport;
* A further commitment of K90 million for a super highway between Tari and Komo;
* Relocation of the Mendi Airport;
* Building of a township at Kikori;
* Expansion of the Mendi and Ialibu townships; and
* Development of townships in Kutubu, Komo, Magarima, Koroba, Kagua, Nipa and growth centres at Angore and Nogoli (Hides).
The extra 5% equity and the 2% carried interest translates to over K20 billion over the life of the project, Mr Agiru said.
This will be shared by all affected provincial governments and landowners from Juha to Portion 152.
The State has also committed K1.2 billion over the next 10 years for infrastructure development in each project area.