By NOBERT KOKE
Benefit sharing from the resource projects in both Southern Highlands and Hela will be shared between the two provinces.
In a Memorandum of Agreement that was reached today by Governor Philip Undialu (Hela) and Governor William Powi (SHP) they resolved that Southern Highlands Provincial Government and Hela Provinical Government including the landowners of both provinces will receive equal benefits from the oil and gas projects in the two provinces.
This means that benefits from the PNG LNG project which kicked off in 2009 when Hela was still part of the greater Southern Highlands will now be split between the two provinces.
The agreement that was reached clearly outlined that benefits from the PNGLNG will now be split between the two provinces with Hela taking 60% of the royalties, development levies, and the Kroton Equity while SHP will get the remaining 40%.
This now dissolves the benefits sharing agreement that is currently being used from the PNGLNG project to the provincial government and landowners that was agreed back in 2009 during the Umbrella Benefit Sharing Agreement (UBSA) when Hela region was still part of the Southern Highlands province.
Likewise for PDL 2 (Kutubu and Moran) SHP will retain 60% of benefits from PDL 2 which includes royalties, SSG funds, and development levies while Hela will get the remaining 40%.
Also the Southern Highland Provincial Government equity in Bank South Pacific and Petroleum Resource Kutubu (PRK) will also split, with 40% going to Hela province.
In a joined statement issued by Governor Powi and Undialu both agreed that the split will ensure equitable distribution of benefits from projects to the two provinces so that vital social development projects that uplift the lives of the people can continue to deliver.
“First and foremost, we want to thank and pay homage to Grand Chief Sir Michael Thomas Somare for delivering the PNGLNG project, the single biggest investment ever undertaken in our nation’s history.
“The project remains a milestone achievement for the nation by the founding father, whose passing we are mourning at this moment
“We also thank and remember late Anderson Agiru, former governor of Southern Highlands and foundation governor of Hela, for his role in delivering the project, and negotiating the benefit for landowners and provincial government.
“At that time, Hela region was part of Southern Highlands province. Work has begun for the establishment of a new province, and it was agreed that the benefits to the Southern Highlands province under the UBSA would be reviewed once Hela province was established.
“MRDC undertook that exercise and worked out a formula for the split of the benefits between the Southern Highlands and Hela province, and we want to thank MRDC for their hard work in putting the documents together that we signed today.
“Essentially, this agreement allows benefits from oil and gas fields in Southern Highlands to be split 60% (Southern Highlands) and 40% (Hela). Likewise benefits for oil and gas fields in Hela province will be split 60% (Hela) and 40% (Southern Highlands).”
“We are proud and honoured to sign this agreement on behalf of our people.”
