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HomeNewsPowi-Gobe LOs faceoff over LNG IDG payment

Powi-Gobe LOs faceoff over LNG IDG payment

By CHRISTOPHER YANDAWAI

THE Southern Highlands Provincial Government (SHPG) and Gobe LNG Landowners are into heated argument over the administration of Gobe LNG project LOs’ Infrastructure Development Grants (IDG).

In a media conference on Friday August 16, landowner represnttatives of Gobe LNG and Oil projects have issued a 14-day ultimatum to SHPG and the National Government to pay their outstanding IDG payments dating back from 2010 to 2020, as per 2009 Kokopo Umbrella Benefits Sharing Agreement (UBSA).

PDL 4 Executive Chairman of Gobe PNGLNG regime, Mr Jeffery Kairi, said if they receive no response from SHPG in 14 days, they have no other options but to shut down the two main pipes that direct to Kumul Terminal to Papa Lealea.  

He said the IDG payments for Gobe LOs which was supposed to be paid annually, like for other PNGLNG project LOs, were never been paid for 10 years.

The Chairman said as per 2009 Kokopo UBSA, Gobe LOs were supposed to be paid K8.2 million IDG payment per year, by the Department of Petroleum and Energy as a regulatory authority.

He said in the Kokopo UBSA, the National Alliance Government led by late Grand Chief Sir Michael Somare committed K1.2 billion to be paid throughout the PNGLNG project footprints, over the period of 10 years (2010-2020).

“However, we were not paid since 2010 except one payment in 2014 through Department of Petroleum and Energy,” Mr Kairi said.

He added that for whatever reasons, the National Executive Council (NEC) made a decision to transfer the IDG payments to LNG participating provinces and Southern Highlands Province is one of them.

Kairi said since then, their 9 years of IDG (K73 million) were not paid as per the Kokopo UBSA.

“We are appealing to Governor Powi as the provincial political head to immediately release what is due for us in the context of IDG,” he said.

When reach out for a comment, Governor Powi told Sunday Bulletin that the SHPG does not control or administer the annual IDGs for Kutubu, Moran or Gobe landowners (LOs) for that matter.

He clarified that the IDG funds are administered by the Department of National Planning under the National Government Budget Appropriations annually.  

Governor Powi said the SHPG only get its components from National Planning whilst others are paid to respective beneficiaries.

“To attack SHPG under my watch is inappropriate, misleading and tantamount to misconceptions,” said Powi.

Governor Powi said the SHPG is also beneficiary of the IDG and for Gobe and Kutubu LOs to raise alarming misconceptions is not only misinformation but an attack on wrong entity.

He reminded the LOs to express their grievances or complaints to the National Government who manage and administer the IDG funds.

Governor Powi also stated that the IDG payments, are by law, meant for infrastructure development for project proponent areas, and they are not free entitlements for the LOs.

The Governor challenged the landowner groups to prove to the SHPG and the national government how they manage the previous IDG payments.

“Gobe or Kutubu LOs must prove to the SHPG and the national government what you have done with previous IDG payments, and I will provide which groups got how much so people can see what these so-called landowners have done with previous payments,” Powi said.

As the infighting between the parties continues, this paper understands that the Gobe LOs are looking at seeking court’s redress should the aggrieved parties not come to a compromise to resolve the IDG issue.

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