FIVE PNG LNG impact provinces comprised of Hela, Southern Highlands, Gulf, Central and Western have established a first yet biggest Private Equity Company called ‘Kroton Equity Holdings Limited’ (KEHL) in Papua New Guinea.
To formalise the establishment of the company, Hela Governor Philip Undialu, Western Taboi Awi Yoto, Southern Highlands Governor William Powi, Gulf Governor Chris Haiveta and Central Governor Robert Agarobe signed documents in a low key signing ceremony last Wednesday.
The ceremony was witnessed by the Managing Director of Kumul Petroleum Holdings Ltd, Wapu Sonk.
The KEHL will be the first and biggest Private Equity Company in PNG and will be owned by the five Provincial Governments and landowners of PNGLNG Project, which it will hold 4.27% of the PNGLNG project interest.
The five governors in a joint statement, thanked Prime Minister James Marape for walking the talk in the “Take Back PNG” slogan and fulfilling the promise to empower Provincial Governments and landowners.
“Transfer of the 4.27% Kroton Equity is testament of Prime Minister honouring his commitment,” the governors said.
“The KEHL is expected to generate between K300m to K500m depending on oil prices. There’s no better gift than this that the government can offer to the provinces and landowners impacted by the PNGLNG,” they said.
The governors want to see KEHL grow and be a player in the country and regional in the private equity and financial sector with sound corporate structure and investment policies.
They appealed to the Prime Minister to free up any single attachment with State nominees like KPHL and MRDC and be completely free from political interference.
They want to see competent people or organisations engage to help establish and manage the company.
The governors also thanked former Prime Ministers in late Grand Chief Sir Michael Somare for the decision to allocate equity at the Umbrella Benefit Sharing Agreement (UBSA) and Peter O’Neill for reducing some price.
“It is Prime Minister Marape that is finally freeing up this long waited equity interest and he deserves credit for it,” the governors said.
Meanwhile, Prime Minister James Marape is expected to issue share certificates to respective beneficiary groups during the April parliament session.