InterOil's Papua New Guinea LNG plan becomes political football

From PLATTS

 

InterOil Corporation's proposed Gulf LNG project appears to have become something of a political football in Papua New Guinea, with Prime Minister Peter O'Neill calling for his energy minister William Duma to "desist from confusing the investment community" about the status of the proposal.

Duma, PNG's minister for petroleum and energy, told Platts Friday that he wanted to "remind" InterOil of his comments of last September, when he said the company's planned Gulf LNG development did not meet its December 2009 project agreement with the government and had been rejected by the National Executive Council, or cabinet.

The project agreement calls for InterOil to deliver a 7.6 million-10.6 million mt/year LNG project based on its Elk and Antelope gas reserves, using internationally recognized technology and operators. Instead, the company was proposing a three-phase development and did not have an internationally reputable partner on board, Duma said.

In a statement issued by the prime minister's media unit late Friday, O'Neill said InterOil's LNG project in PNG's Gulf province would go ahead "when all preconditions set by government and the 2009 project agreement are fully satisfied."

"There is no National Executive Council decision rejecting the Gulf LNG project," O'Neill said. He also reiterated his statement of August 2011 that the government under his watch would "assist InterOil to secure a strategic operating partner, rescope the project agreement to enable phased LNG development, and to locate the project in Gulf province."

O'Neill has also "directed the ministry and Department of Petroleum and Energy to cooperate with InterOil and desist from confusing the investment community and Gulf province government and landowners with media statements about rejection of the project," according to the statement.

Duma earlier told Platts that he had urged US-listed InterOil to talk to Shell about its plans for the LNG project, rather than pursue its proposed phased development with Australia-based minnow Energy World Corporation.

In February 2011, InterOil signed an agreement with EWC for a modular LNG plant to be developed in two phases -- first 2 million mt/year, with a later expansion of 1 million mt/year. The agreement, which was originally conditional on a final investment decision on the project being taken by December 31, 2011, provided for a possible expansion up to 8 million mt/year.

 "I've been encouraging InterOil to talk to Shell, but they are not in negotiations with them," Duma said. "Shell has told [InterOil] that they want to talk [about the Gulf LNG project], so why haven't they been talking to Shell and other [majors]?" he queried.

Shell would be one logical partner for InterOil, as it already has a strategic alliance with PNG's state-owned Petromin, which it signed last August, and is actively pursuing LNG opportunities in PNG. Petromin was formed to hold PNG's assets and maximize indigenous ownership and revenue from the mineral and petroleum sectors.

With production of 18.8 million mt of LNG in 2011, Shell would also fit the government's requirement that InterOil's LNG project be operated by an internationally reputable player.

ExxonMobil is also active in the emerging PNG LNG sector. The US oil and gas giant is currently constructing a $15.7 billion, 6.6 million mt/year LNG plant near Port Moresby, scheduled for startup in 2014.

Duma said InterOil had held preliminary discussions with Korea Gas Corporation about possible participation in the Gulf LNG project, alongside Japan's Mitsui and Japan Petroleum Exploration Company. "But Kogas is not an LNG plant operator, it is an importer of LNG," he added.

Japex signed a cooperation agreement with Petromin in 2010, the same year that Mitsui inked an agreement to develop a $550 million liquids stripping plant with InterOil at the Elk and Antelope fields.

Kogas officials were not immediately available for comment. Mitsui had not responded to Platts inquiries at press time, and Japex declined to comment.

A source familiar with the matter told Platts Friday that Japex and Mitsui had jointly held talks about possibly joining InterOil's project, but it was not immediately clear whether the discussions were still under way.

InterOil at the end of March again extended its deadlines for final investment decisions on the liquids stripping project with Mitsui and the LNG plant with EWC. The projects had at that time been scheduled for FID by March 31, 2012.

Now, the liquids project is due to go to an FID by June 30, 2012, with provision for a possible further extension to December 31, 2012. The decision on the LNG project has also been pushed back to the end of this year.

At the time, the company said it had continued to progress the development of its LNG project by completing front-end engineering and design work for the proposed field gathering system, the liquids stripping project and pipeline to the proposed LNG plant site on the coast. Bids for the liquids stripping project "have been received, evaluated and are in the process of being finalized," the company said.

Under its project agreement, InterOil has until June 2013 to take a final investment decision on the LNG project.

InterOil CEO Phil Mulacek said Friday that the bid process for the LNG project was advancing, with international investment banks Morgan Stanley, Macquarie Capital and UBS pursuing partners.

"The purpose is to secure an LNG partner to accelerate the LNG capacity to 8 million mt/year, with them as lead operator," Mulacek told Platts. "This may involve the new LNG partner buying part of the Elk/Antelope gas assets. This was outlined to the PNG government and was accepted," he added.

"In regards to Shell or other LNG partners, they are all under confidentiality agreements and we cannot talk about the discussions," Mulacek said.

Cooperative societies in need of funding

By MALUM NALU

Cooperative societies are in urgent need of government funding, according to Registrar of Cooperative Societies of PNG Joseph Ingipa.

This is unlike the past when cooperative societies were very effective in Papua New Guinea.

Ingipa said for this year, the government had allocated K3 million, of which K400, 000 had been set aside as seed capital.

Registrar of Cooperative Societies of PNG Joseph Ingipa

This K400, 000 had been split up with K100, 000 going to each of the four regions.

Ingipa said this on Wednesday as Commerce and Industry Minister, Charles Abel, gave K50, 000 to Ungai-Bena MP Benny Allan for the Eastern Highlands Coffee Cooperative Society.

Both Abel and Allan acknowledged that cooperative societies needed more assistance from the government.

“This K3 million is not enough,” Allan said when receiving the K50, 000 from Abel.

“We should put more money into cooperatives.

“We already have an Eastern Highlands Coffee Growers’ Cooperative to get our coffee growers together.

“This money will be used to assist coffee growers of Eastern Highlands.”

The co-operative societies movement was introduced to PNG in 1947, and had worked successfully from the 1950s to the early 1970s, bringing goods and services closer to the rural areas, mobilising people and enabling them to undertake socio-economic activities, thus generating income to sustain their livelihood.

Co-operative societies then were developed under the four-tier level structure, namely the primary, district (association), regional (union), and national (federation) that affiliated to the international body.

There were four types of co-operative societies developed then and operated in the country, which were: consumer co-operative, marketing co-operative, producers co-operative and credit co-operative.

The formation of these societies then were centered on developing a trade network for distribution of import goods, collection of raw materials for export and mobilising of funds for new socio-economic activities.

The movement became dysfunctional after the Co-operative Societies Ordinance (1965) was repealed by the then House of Assembly in 1974.

Prime Minister: InterOil Gulf LNG project to go ahead

Prime Minister Peter O'Neill says Interoil Corporation's LNG project development in PNG's Gulf province will go ahead when all pre-conditons set by government and the 2009 Project Agreement are fully satisfied. Mr O'Neill said today there was no National Executive Council decision rejecting the Gulf LNG project. The Prime Minister reiterated his earlier statement in August last year that the government under his watch would assist InterOil to secure a strategic operating partner, rescope the project agreement to enable phased LNG development, and to locate the project in Gulf province.

Prime Minister O'Neill has directed the Ministry and Department of Petroleum and Energy to cooperate with InterOil and desist from confusing the investment community and Gulf Province government and landowners with media statements about rejection of the project.

Kokoda trekking industry grows 70 years on

By MALUM NALU
The Kokoda trekking industry has become a major money-spinner over the last 10 years and is something the country can be proud of, according to leading national tour operator Narai Billy.
He said this as the world-famous Kokoda Track becomes a mecca for international trekkers, mainly Australians, this year with the 70th anniversary of the Kokoda Campaign of World War 11.

Kokoda tour operator Narai Billy

Billy said since the 60th anniversary of Kokoda in 2002, when then Australian prime minister John Howard visited, the Kokoda trekking industry had grown like never before.
“The Kokoda trekking industry is growing and growing all the time,” he said.
“It has become a famous international trekking icon.
“As the 70th anniversary of the Kokoda Campaign is commemorated, the Kokoda Track itself should also be celebrated in a big way.
“People are willing to come and do the challenge of the Kokoda Track.
“They feel that it’s part of WW11 history, and enjoy the flora and fauna, as well as the sheer adventure of the track.
“Villages along the track are benefitting from regular income, better health, education and communication services that they have not had access to before.”
Billy, one of the first local tour operators along the Kokoda Track, said there would be major commemorations when the 70th anniversary of the Kokoda Campaign falls later this year.
A local from Depol village in Sogeri, where the Kokoda Track begins, he has been involved in the trekking industry for the last 20 years.
Billy’s company, Kokoda Icon, is an established trekking company that brings trekkers for the Kokoda Track.
It started as Koiari Tracks and Tours until the name change.
Kokoda Icon caters for long or short Kokoda treks, as well as sightseeing in the local Sogeri area.
Many of its clients come from Australia, especially Brisbane and Melbourne where it has agents.

PMIZ to be high impact project

By MALUM NALU
The Pacific Marine Industrial Zone (PMIZ) in Vidar, Madang province, will be one of the biggest impact projects the country has ever seen, says Commerce and Industry Secretary Stephen Mera.

Commerce and Industry Secretary Stephen Mera

He told The National after launch of the engineering concept design for the US$95 million (K216 million) PMIZ on Wednesday that the project would be of massive proportions.
The PMIZ is located at Vidar Plantation, along the North Coast Road outside Madang town, and comprises a total of 215ha.
“The first phase alone will cost about K400 million,” Mera said.
“This is a regional project.
“By the time we complete the project, we would have spent up more than K1 billion.
“When the investors come in, you’re looking at more and more money coming in.”
Mera said the project would start immediately with the launch of the engineering concept design on Wednesday, and payment of K10 million PNG government counterpart funding by Commerce and Industry Minister Charles Abel to China Shenyang International Economics & Technical Cooperation Corporation (CSYIC).
“The design will take about six months,” he said.
“We are at the detailed design stage now
“We expect construction to begin by the end of this year.”
Mera said of the US$95 million, the PNG government would contribute US$21 million while US$74 million would come from the Exim Bank of China.
The project is the biggest soft loan project from the Chinese government to Papua New Guinea.
Funding for the project was secured through bilateral arrangement between China and PNG.
A framework arrangement was signed in November 2009 which allowed for PNG to access the concessional loan from Exim Bank of China.
The condition of the concessional loan was for the main contractor to be a Chinese company selected by the bank through its own selection process.
The aim of PMIZ is to create a regional tuna processing centre which will provide an opportunity for regional member countries and PNG tuna industry to set up processing plants within the zone, add value to their tuna catches and supply export markets.

Abel: PMIZ landowners must be respected

By MALUM NALU
Commerce and Industry Minister Charles Abel has told stakeholders in no uncertain terms that landowners of theUS$95 million (K216 million) Pacific Marine Industrial Zone project in Vidar, Madang, must be respected.

Commerce and Industry Minister Charles Abel…landowners must be respected

Abel’s strong message came during presentation of PMIZ’s engineering concept design by Korean engineering consultants Deco to the PNG government, and the payment of K10 million PNG government counterpart funding to project consultants China Shenyang International Economics & Technical Cooperation Corporation (CSYIC), on Wednesday.
The PMIZ project has been the subject much controversy since it was first mooted, with landowner issues high on the agenda.
“The issue is for landowners to be engaged meaningfully in the project,” he said.
“We must try to engage them as much as we can.
“There must be a socio-economic package for local landowners.
“We must address their concerns.”
Abel said the government gave K1 million to project landowners last October to prepare them to participate in the development and construction phase of the PMIZ.
Even former Environment Minister Benny Allan, who was present on Wednesday, admitted that he had a very hard time with PMIZ landowners.
“We went through ‘rough seas’ when confronted by landowners,” he said.
Last May, landowner issues came to a head when government ministers were branded "conmen and thieves" at a public rally organised by then Justice Minister and Madang Regional MP Sir Arnold Amet.
The rally, at Alexishafen, saw angry landowners and villagers expressing their frustration over outstanding land issues and refusing to let the PMIZ project go ahead until all issues were resolved.
All and then Commerce and Industry Minister, Gabriel Kapris, were present while then Fisheries Minister Ben Semri was absent.
Issues highlighted then included organising of incorporated land groups and infighting among executives and clan members of the two umbrella companies, Kananam Investment Ltd and Rehammb Holdings; absence of a working memorandum of understanding and agreement; exclusion of any legislation protecting people's interest regarding long-term effects to their environment, health or land; government's failure to conduct awareness exercises in discussing boundary issues concerning underwater leases already marked and taken over by the project; and equity for the people and provincial government.
Francis Gem, an NGO representative and landowner, incited a scuffle on stage and started the name-calling.
He pointed at the ministers' faces, and said: "Yupela olgeta konman (you are all conmen)".
This was after Gem asked the crowd if they wanted the PMIZ project to continue and the crowd shouted "nogat (no)".
His outburst did not settle down well with Allan, who stood up to confront Gem, which brought police on stage to calm things down.

Security warning for PNG poll

Sydney Morning Herald

THE federal government has been urged to arrange a regional security force, backed by a US Navy helicopter carrier, to secure the peace during Papua New Guinea's coming elections.

"We should expect the elections to be violent" ... a man demands suffrage as thousands of Papua New Guineans protest against the government's plan to delay national elections during a rally in Port Moresby on April 10, 2012. Photo: AFP

The elections, due on June 23 at the end of the Parliament's five-year term, are seen as a critical moment, with the politicians of the 1975 independence era retiring and a $15 billion liquefied natural gas project coming on stream in 2015, delivering huge revenue flows to the government.
''PNG faces generation change at the same time as the biggest resources boom in its history,'' the Gillard government's parliamentary secretary for Pacific Island Affairs, Richard Marles, told a conference at Deakin University, in Geelong. ''This is why the next elections are so important and why it is so important that they happen on time.''
Scott Flower of Melbourne University has seen campaigning already under way in the violent highlands provinces in January, with money and home-made shotguns flourishing openly.
With the police diverted by states of emergency declared in two provinces last week, and the defence force down to 2000 soldiers, he doubted security resources available inside PNG were up to preventing violence, intimidation and ballot hijacking.
''I really think they will be overwhelmed,'' he said.
Dr Flower suggested Australia urgently consider organising a regional security force, possibly with helicopter support from a US Navy carrier, for the duration of the elections.
Because of local sensitivities about Australia, particularly after the earlier warning by the Foreign Affairs Minister, Bob Carr, of sanctions if elections were not held, Dr Flower suggested a broad regional composition, a time limit to prevent it being seen as a Solomon Islands-type of long-term intervention, and personnel coming under a joint panel of PNG and Commonwealth judges in case of any legal problems.
Nicole Haley, a specialist on Melanesia at the Australian National University, said the impending election was shaping up as worse than the malpractice-ridden 2007 elections.
''There is every indication that the level of malpractice will increase in 2012, not least because the stakes are higher due to the LNG project,'' she said.
With just over two months left before the vote, it would not be possible to remedy the flaws.
''In the weeks and months remaining it will not be possible to produce brand new rolls, nor to undo the messages deriving from the 2007 experience, nor to depoliticise the military,'' Dr Haley said.
''Based on the current situation, we should expect the elections to be violent, we should expect them to be marred by fraud and malpractice on a scale never before seen and we should expect the security personnel to be both partisan and politicised.''

PMIZ project set to roll in Madang

By MALUM NALU
The engineering concept design for the US$95 million (K216 million) Pacific Marine Industrial Zone (PMIZ) in Vidar, Madang province, was yesterday (Wednesday) handed over to the national government by Korean engineering consultants, Deco, The National reports.

An artist’s impression of the PMIZ project

Minister for Commerce and Industry Charles Abel took delivery of the design and also paid K10 million to project consultants, China Shenyang International Economics & Technical Cooperation Corporation (CSYIC), as the first tranche of the PNG government’s counterpart funding.

Abel (right) receives the engineering concept design for the PMIZ project from KPT Group of Companies managing director Jason Lee, who is associated with Korean engineering consultants Deco.-Picture by MALUM NALU

Abel said since taking office last year, the government recognised the economic importance of the project as a strategic economic corridor infrastructure project” that would stimulate increased economic growth”, particularly in the northern region.
“When the O’Neill-Namah government took office, we quickly realised the strategic, economic and national interest that a project of this magnitude and scale would bring for PNG,” he said.
“As minister responsible for the project, I ensured I was not going to let this important opportunity for international business slip by without giving it the full support it deserved, bearing in mind the net gains the PMIZ would reap for PNG and her people.
“I made sure it got off the ground quickly, as an enabling infrastructure necessary for the government to realise the much talked about economic corridor concept.”
Abel, when giving K10 million to CSYIC deputy general manager Terry Wang, said it was the first tranche of the PNG government’s counterpart funding.
This is on top of the K1 million government gave to project landowners last October to prepare them for participating in the development and construction phase of the PMIZ.
“This is a demonstration of the firm commitment by government to ensure the PMIZ project gets off the ground quickly,” Abel said.
“This US$95 million PMIZ project is indeed a major resource impact project.
“The PNG National Fisheries Authority and my department have fully appraised the project.
“Both direct and indirect economic returns are enormous in the long run.
“The PMIZ project will have a massive pull-in effect of foreign fisheries industry participants that settle on our shores to do business in this strategic resource sector.
“It will no doubt become a catalyst for change for many of our coastal fishing provinces.”
Abel said the winning concept design was chosen following three submissions by engineering consultants, Deco, which had on March 13 this year presented to the government three concept designs for final selection.
Yesterday’s unveiling of the engineering concept design of the MPIZ project puts in motion the construction phase of the project.
Abel thanked all key stakeholders of the PMIZ project for bringing into reality a pilot concept design “that looks set to graduate PNG’s fisheries industry infrastructure to world-class attention and standards as PNG strives to be on par with the best industry participants in the world”.

A bird's eye view from 4-Mile Overhead Bridge

A bird's eye view from 4-Mile Overhead Bridge.
Things look so good from up here, however, it's so filthy on the ground with buai pekpek (betelnut shit) and other litter.

Pictures of the new Lands Department headquarters

Pictures of the new Lands Department headquarters along Waigani Drive, Port Moresby.
There have been many accusations levelled at the department as being one of the "most-corrupt" and we hope that this new building will give you a new lease on life.

To Daru with love

My four babies Moasing, Keith, Gedi and Jr with their uncle Samio before he flew off to Daru today.

They all took a day off from school to see their uncle off, with flowers and candles for their mum's grave...

Danaya faces fraud charges

By ANGELINE KARIUS
WESTERN Governor Dr Bob Danaya faces four fraud-related charges in relation to a provincial executive council decision to sack administrator William Goina, The National reports.
Danaya was arrested by the police fraud squad in the National Capital District.
He was released on a K4,000 bail yesterday afternoon.
Director of the police fraud squad unit Timothy Gitua said Danaya was questioned, charged and detained at the Boroko police station before being bailed.
He said Danaya was charged with forgery, uttering a false document, false pretence and conspiracy to defraud the state.
The charges related to a Western provincial execu­ive council decision made to the national executive council to terminate the appointment of Goina as provincial administrator.
Gitua said the charges did not relate to money.
“Based on the recommendation by the provincial assembly, the NEC made the decision to effect Goina’s termination,” he said.
NCD metropolitan commander Supt Peter Guinness confirmed Danaya’s arrest

Three-week delay for PNG electoral writs

By AAP
Papua New Guinea's prime minister and electoral commissioner say the nation's election will take place as scheduled, following a massive protest in the nation's capital, Port Moresby.
Thousands of protesters marched on Sir John Guise Stadium in the heart of the city's government district today, demanding the government stop interfering in the electoral process and that it roll back laws giving parliament the power to suspend judges.
PNG's politicians last week voted 63 to 11 to delay the June 23 poll by six months after it was revealed the rolls for 41 electorates in the resources-rich highland region were incomplete.
"(Cabinet), the parliament, does not have the power to direct the electoral commissioner," Prime Minister Peter O'Neill told the crowd.
"Parliament will not interfere with the electoral commissioner."
With 51 per cent of that nation's eligible voters in the highlands, issuing the writs when the rolls aren't ready would be unfair, Mr O'Neill said.
"How do you expect them to vote, what about their rights," he said.
Electoral commissioner Andrew Trawen, addressing the crowd mostly in pidgin, said the election will go ahead as scheduled in late June, but writs will be issued three weeks late to allow for greater public scrutiny of the rolls.
"The three weeks' delay will give the voters from the Highlands equal or same opportunity like that given to voters in the Southern, Momase and New Guinea Islands regions to view and object to the preliminary rolls so that a credible roll is produced for the Highlands," he said in a statement on Tuesday morning.
Mr O'Neill also made a conditional promise to repeal the controversial Judicial Conduct Act, a law the government passed, then used to suspend the nation's chief justice, Sir Salamo Injia, and Justice Nicholas Kirriwom.
He said parliament would repeal the law provided Sir Salamo and Justice Kirriwom stepped down voluntarily.
"If they do the right thing, I will do the right thing," he said.
Both judges are currently overseeing a hearing into the government's legitimacy, and police have previously arrested Sir Salamo on charges of perverting the course of their investigation into his handling of court finances.
Petitions against a delay were handed to Mr O'Neill, Mr Trawen and Attorney-General Dr Allan Marat on behalf of Governor-General Sir Michael Ogio.
Student representative president Emmanuel Issacs told the crowd they would wait to see what parliament did next before deciding on further civil action.
The peaceful, but at times rowdy, protest was made up of a highly sceptical crowd.
While Mr O'Neill spoke, one frustrated protester could be heard shouting "It is bullshit, he is lying" over the crowd's chant of "rausim, rausim" - pidgin for "chase him out" or "get rid (of him)".
The public statements from Mr O'Neill and Mr Trawen are significant.
Mr Trawen has long been against delaying the poll, arguing the constitution spells out a strict five-year term for PNG's parliamentarians.
He threw down the gauntlet on Monday afternoon, saying he would go the governor-general on April 27 for the issue of writs despite parliament's vote.
Mr O'Neill offered the compromise delay of a month for the writs late on Monday night.
Port Moresby and social media have been rife with rumour since Mr O'Neill indicated on Saturday morning he had backed away from the vote.
The government has denied rumours of a split within its ranks and that Deputy Prime Minister Belden Namah, seen by many as the architect of the vote to delay the election, had been sacked by Mr O'Neill.
A poker-faced Mr Namah sat next to a smiling Mr O'Neill at the stadium.
Meanwhile, a scheduled parliamentary sitting was cancelled when an insufficient number of MPs turned up today.
Parliament is expected to resume tomorrow at 10am (AEST).

Today's buai pekpek (betelnut shit) in Port Moresby

I had someone attacking me on my blog today, asking whether I was promoting the country or destroying it, with the "disgusting" images I was posting.
Is the truth - the buai - hard to swallow, mate?
If you swallow the truth, Port Moresby and Papua New Guinea will become a hell of a lot cleaner.

This and pictures below are taken at the bemobile bus stop along Waigani Drive today.

Western province Governor Bob Danaya arrested

Western province Governor Bob Danaya was arrested this morning by the fraud squad and is at Boroko police station now.
Details to come.

All's well that ends well!

By MALUM NALU

All's well that ends well!
I just walked to Vision City to buy flowers and candles to send to Daru for my wife's grave, and everyone was dispersing peacefully from Sir John Guise Stadium.

Vision City mega mall remained open today while most other shops - big and small - were closed for the day.Many of the people who congregated at Sir John Guise Stadium flocked to Vision City after it was all over.

 I was hoping to catch some action at the stadium, however, it had all ended.
I hope that it was no all much ado about nothing, and that our politicians listen to our cries, and that something good comes out of this.

Hungry like the wolf!

With most of the shops closed today, many of the people at work were looking for a bite to eat, and one of the few fast food shops that was open was the one at Mobil Service Station, Waigani.

There was a long queue of people lining up for lunch, as this picture shows, and this shop certainly had a roaring trade today.

World's largest privately-owned yacht visits Madang

The mv Octopus owned by billionaire Paul Allen, co-founder of Microsoft sailed into Madang over Easter.

mv Octopus is 126m, almost 3, 000 tonnes, costs US$200 million and travels around the world for the owner and his friends.
Paul Allen, reported to be the third-wealthiest man in the USA and 12th in the world called into Madang for diving with Skita Libido from the Madang Resort. 
The picture shows the garage housing a submarine, catamaran, numerous tenders and jet skis.
 It also carried two helicopters which have their own hangar and the ship is staffed by 60 including two US ex Seals.
 The Kalibobo Spirit and Madang Resort can be seen in the background.-Picture by SIBONA MANI

PNG elections to go ahead: commissioner

By Eoin Blackwell, 

AAP Papua New Guinea Correspondent

Papua New Guinea's electoral commissioner says the 2012 poll will go ahead as scheduled, despite last week's controversial vote by parliament to defer it for six months.
Andrew Trawen says he is currently seeking legal advice on the constitutionality of the decision made by parliament on April 5 to defer the elections until October.
"I will proceed to advise the Governor General Sir Michael Ogio to issue writs for the 2012 elections as scheduled on 27th April, 2012," he said in a statement today.
"And I want the people of PNG to know that I have always maintained that the commission is prepared and the 2012 elections will go ahead as planned."
Parliament voted 63 to 11 on Thursday to defer the poll after government MP Waka Goi told the chamber a report from Mr Trawen recommended delaying the poll because of security concerns and an incomplete electoral roll.
Two days after voting for the suspension, Prime Minister Peter O'Neill released a statement saying the report did not recommend delaying the election and he still wanted an early poll.
He also said, however, that some MPs, particularly from the highlands, have expressed deep concerns about the rolls not being ready.
In the statement, Mr O'Neill said a special cabinet meeting would be held on Monday with Mr Trawen in attendance.
The government is expected to report the results of the meeting to parliament on Tuesday.
Mr Trawen said election preparations were on track and the commission was doing its best to prepare and deliver credible electoral rolls for a June 23 poll.
"I must assure voters nationwide that names of as many eligible citizens as possible will be shown on the final rolls that will be used for polling," he said.
He also addressed an election funding shortfall of 60 million kina ($AUD 27.7 million) cited by the government.
"The 180 million kina ($AUD 86.2 million) appropriated by parliament is not sufficient to adequately and properly conduct the 2012 elections ... regarded as the most crucial elections in the history of PNG," he said.
"I have directed my Finance Director to resubmit the shortfall bid of K60 million to the Department of Treasury for consideration in the monthly budgetary reviews."
Mr Trawen has consistently rejected comments from deputy PM Belden Namah and Speaker Jeffery Nape that parliament has the power to defer elections.
Critics of the move say PNG's 36-year-old constitution spells out strict five-year parliamentary terms and gives MPs the power to call early elections, but not defer them.
The police and military have also said they were ready for the elections, Mr Trawen said.
The move to delay the elections has prompted an outcry in PNG.
Former prime minister Sir Michael Somare and former attorney general Sir Arnold Amet say the move is blatantly unconstitutional.
"No parliament since independence has used its numbers to buy more time in office than these desperate 63 members of parliament who voted for the deferral of the elections," Sir Michael said.
"The elections must go ahead as scheduled in accordance with our noble constitution.
"The electoral commission always sets the date for the writs to be issued."
Students, former soldiers and trade unionists are planning a protest against the deferral in Port Moresby tomorrow.

Welcome to Papua New Guinea!

This is the lawn at Jackson International Airport on Saturday, strewn with plastic bags and other rubbish. This is the first sight for international visitors. Welcome to Papua New Guinea!

Buai pekpek (betelnut shit) in Port Moresby

This was the scene at the bottom of the Overhead Bridge in 4-Mile yesterday! Port Moresby is in a state of emergency regarding buai spitting and general littering.

Open letter to the Prime Minister on betelnut spitting and littering in Port Moresby and PNG

Dear Prime Minister,

While all the politics is going on, you and your fellow blind MPs do not see a very serious problem in Port Moresby and Papua New Guinea, the filth caused by buai (betel nut) and littering.

People spit buai and litter as they see fit with no respect whatsoever for rules and laws.

Filthy bus stop at 4-Mile yesterday.-Pictures@MALUM NALU

I see buai spitting and littering on the same scale as corruption in politics and bureaucracy, something that is completely out of control, and I call on you to declare a state-of-emergency against these ills which threaten to destroy us.

People now seem to take buai pekpek and other litter for granted, as this picture at 4-Mile bus stop shows

I urge you and your fellow politicians to get out of your ivory towers and see the kind of buai pekpek (betelnut shit) and litter that we wallow through every day.

A filthy Asian shop front at 4-Mile yesterday

Visit Gordon Market, one of the filthiest and most-dangerous markets in the country, right within the heart of the city.

Gordon Market yesterday...one of the filthiest and most-dangerous in PNG

Port Moresby is without doubt one of the filthiest capital cities in the world, likewise, Papua New Guinea is one of the filthiest countries in the world because of buai pekpek and littering.

You see this everywhere!

I urge you and your National Executive Council to consider this in your meeting tomorrow, as the National Capital District Commission has lost the plot for Port Moresby, likewise, other urban councils for the rest of the country

I write this for a cleaner and healthier Papua New Guinea, which I consider to be more important than the dirty politics going on right now.

Drum full of buai pekpek and litter along Waigani Drive yesterday.

Happy Easter.