Holiday Inn to undergo a multi-million Kina make-over

Members of the largest superannuation fund in the country, Nambawan Super will benefit from a K200 million investment to expand the Holiday Inn in Port Moresby (artist's impression above).

Nambawan Super is the major shareholder with 54% of the Kumul Hotel group which owns Holiday Inn and Crowne Plaza.

Last week (Mar 29) Kumul Hotel group signed a contract with Canam Construction Company of New Zealand to begin work this year.

The hotel expansion comes at a time when the LNG projects are set to begin with the demand for accommodation in the nation’s capital expected to rise.

Chairman of Nambawan Super, Sir Nagora Bogan said the Holiday Inn had been an important institution in Port for over many years as an accommodation provider.

It is now time, he said, for the shareholders to capitalize on the full potential of the site to benefit the thousands of members of Nambawan Super, as well as the members of the Melanesian Trustee

Fund which is a minor shareholder.

When signing the contract with Canam Construction, Chairman of the Kumul Hotel group and Nambawan Super Board member, Mr Greg Taylor said the demand for short and long-term accommodation, and resort-style facilities had increased and it was expected to continue as the flow-on effects of the LNG projects percolate through the economy.

The expansion work will include a new hotel and all-suite apartment block at the current Holiday Inn site.

The new hotel to be called HOLIDAY INN EXPRESS will add 200 rooms to the group’s

existing 312 whilst the separate block of apartments will add another 86 apartment suites to the hotel chain.

The hotel will have 11 levels with the 200 rooms being located on eight (8) floors. The other three floors will be reserved for car parking. In total, there will be 158 queen-size rooms and 40 twin-size rooms.

On the other hand, there will be 86 all-suite apartments, 58 of them will be one-bedroom while 28 will have two bedrooms.

The first phase of the project involving extension of the hotel facilities which is the all-suite apartments will commence immediately for completion this year whilst work on the hotel section will begin in May and is expected to be complete in late 2011.

Representative of the Intercontinental Hotel Group (IHG) which operates Crowne Plaza and Holiday Inn, Mr Bruce McKenzie, said the new development would establish a competitive edge for accommodation in the nation’s capital.

“Considering the high demand for accommodation products in Port Moresby, both the all-suite apartments and the Holiday Inn Express service model will enhance the appeal for our existing accommodation,” he said.

“The new facilities will provide a distinct competitive advantage, especially in relation to larger companies seeking service and product standards that can be provided by an international operator with long-term commitment to the destination.

The Holiday Inn Express model is the first for the South Pacific region.

Mr McKenzie added, “We are particularly excited to be introducing Holiday Inn Express to the South Pacific region. The express will complement our current Holiday Inn and Crowne Plaza hotels by offering a fresh, uncomplicated hotel with competitive rates to a range of government and mid-scale business travelers.”

At the signing last week was the Chairman of the Kumul Hotel Group Mr Greg Taylor with fellow Board member Mr Wayne Smith.

21 escape from Lae police cells

Top cop warns public of ‘inevitable’ mob attacks

 

POLICE in Lae, Morobe province, have gone on full alert following the mass escape of 21 detainees who broke out of the Lae police cells early yesterday morning, The National reports.

The mass break-out occurred at the Top Town police cells between 3am and 5am.

Police yesterday warned that crime, particular break and enter and stealing, would inevitably increase.

Metropolitan commander Supt Nema Mondiai told reporters yesterday that the escapees dismantled brick walls near the toilet block and then jumped over the two-tier barbed wire fence at the back towards the State House and dashed for freedom.

None of the escapees have been recaptured.

Supt Mondiai has ordered an investigation.

He said police had yet to verify the status of each of the escapees, but he urged the public to take precautions.

He added that the improvement of the floor and roofs of each cell blocks had deterred detainees from escaping, however, the brick walls needed to be replaced with metal sheets or iron rods built into the bricks.

The escape raises further worries for the Lae public with more than 70 escapees from last year’s break out at Bomana still at large.

These escapees could further strengthen the mob already on the streets into doing more public harm.

Supt Mondiai said it was an increasing trend in Lae for criminals to attack in groups.

Whether it was while a person was walking on the streets in broad daylight or in the safety of his home on a rainy night, “mobs will attack”, he said.

Supt Mondiai added that break and enter cases had reached a two-year high.

An increase had also been noted in car-jacking.

He also reported that three men, armed with pistols, held up a woman and stole K10, 400 from her at Casuaraina Avenue at Eriku.

One has been arrested while the other was hospitalised after being manhandled.

The third escaped.

At the Papindo department store at Eriku, a man managed to hide inside the shop when it closed for the day and then made off with an undisclosed number of cell phones and DVDs worth thousands of kina yesterday morning.

 

Ex-serviceman dies waiting for entitlements

AN EX-PNG Defence Force paratrooper passed away yesterday morning, allegedly succumbing to a stroke, The National reports.

Late Chris Maraga, from Rigo, Central province, passed away while waiting to be paid his entitlements for services to the State.

He was reportedly one of the four remaining survivors of a PNGDF Caribou crash in Wau, Morobe province, in 1972.

The aircraft was on its way back to Port Moresby after troop training at Igam.

Since then, his health had deteriorated due to a leg injury sustained in the crash.

Mr Maraga was a PNGDF major when he was retrenched in 2002 and had been waiting for his hardship and accommodation allowance to be paid ever since.

A family friend said he was rushed to the Port Moresby General Hospital (POMGH) at around 5am yesterday.

However, he could not be attended to at POMGH, so the St John Ambulance vehicle, that transported him from his Hohola 5 home to the hospital, took him to a private clinic.

He was pronounced dead on arrival.

Around 7,000 ex-servicemen throughout the country have been waiting for the State to settle their outstanding retrenchment and retirement benefits dating back to 1982.

Just a few weeks ago, Justice Minister Dr Allan Marat announced that the Justice Department had finalised these outstanding entitlements.

After this announcement, there has been no further word from the State as to when payments would be made.

Attempts to get comments from the Justice and Attorney-General’s Department were unsuccessful.

 

 

 

Former defence chief exonerated of claims of 'stealing'

Papua New Guinea Defence Force chief-of-staff Captain Tom Ur says former PNGDF commander Peter Ilau has been hard done by both the administration of the PNGDF as well as malicious comments made against him in the media.

Capt Ur said this when commenting on today’s articles in The National about Comdr Ilau and his family being dumped by the government and organisation which he had served loyally for 34 years.

He agreed that the PNGDF, particularly secretary Fred Punangi, had failed in its obligation to pay for Cmdr Ilau’s three-month transition as normal for outgoing PNGDF commanders, which allowed them to prepare for a life after the military.

Capt Ur was also disappointed that another former PNGDF commander, Maj Gen Jerry Singirok, had accused Cmdr Ilau of removing household items from Flagstaff House as well as illegally holding on to an expensive Hummer vehicle.

“I don’t want to comment on the contracts of former commanders, however, it’s a normal process that we look after our commanders for three months,” he said.

“The secretary (Mr Punangi), in his wisdom, cancelled the cheque that was supposed to have been paid to Cmdr Ilau.”

Commenting on allegations that Cmdr Ilau had removed household items from Flagstaff House, Capt Ur said these were not true, as Cmdr Ilau had cleared out in a rightful manner and most of the said items were being stored in a shed.

Moreover, he added, most of the household items were very old – having been passed from one commander to another – and were “not worth stealing”.

“I believe that he (Cmdr Ilau) went through the normal process (of clearing out),” he said.

“I talked to the Cmdr and he’s very upset about the allegations.

“I feel sorry for the (Ilau) family.

“The media painted the picture that they ransacked the whole place.”

Cmdr Ilau said today that he was told over the weekend that Flagstaff House had been broken into since he left and that certain people had regular access to the building.

He said PNGDF staff had also advised new commander Brig-Gen Francis Agwi not to move in to Flagstaff House until it had been renovated, and not because household items had been “stolen”.

“I think they were not advised of the break and enter,” Cmdr Ilau said.

“They should have checked the house after we left and left some soldiers to guard the place.”

Ilau denies claims he 'stole' State assets

Captions: 1. Where are the ‘stolen’ goods?...Commodore Peter Ilau points out some of his family baggage. 2. Commodore Peter Ilau with the controversial Hummer vehicle.

 

Former PNG Defence Force commander Commodore Peter Ilau has broken his silence over “highly-defamatory” allegations in The National that he was responsible for emptying Flagstaff House – official residence of the PNGDF Commander – of all its contents.

He also explained why he is holding on his contract vehicle, a Hummer bought from Boroko Motors, following scathing accusations leveled at him by another former PNGDF commander Major-General (rtd) Jerry Singirok and unnamed sources.

New PNGDF commander Brig-Gen Francis Agwi is reportedly unable to move in to Flagstaff House because it is empty and the PNGDF has no funds to replenish.

A visibly-distraught Commodore Ilau said at the weekend to the three-bedroom unit at Gordons which he is renting to check out if he had indeed “stolen” the contents of Flagstaff House including furniture, white goods, curtains, cooking utensils, cutlery, chinaware, lounge chairs and other goods.

He was flanked by his daughters, who said their and their mother’s safety was now jeopardised, because of accusations about something they had never done.

He said he and his family vacated Flagstaff House – which they had occupied since Nov 2001 - on Jan 29 this year straight after the formal handover and takeover parade for the PNGDF commander.

“Keys were handed back to staff the same day,” Commodore Ilau said.

“The exit from the house followed normal procedures.

“A final inspection and checks were carried out by appropriate staff including the military assistant to the commander PNGDF, who was also present at the time prior to actual departure.

“Five PNGDF personnel were present to witness me and my family’s departure.

“The house was intact with its normal inventory items upon departure, witnessed by appropriate staff.”

Commodore Ilau and family resided in Flagstaff House for eight years.

“Upon moving in in October 2001, all items in Flagstaff House were completely rundown,” he recalled.

“The house itself was also rundown and medically unfit.

“Flagstaff House is on the same national status of national heritage importance as Government House (Governor General’s residence) and Mirigini House (Prime Minister’s residence).

“Whilst those residences were accorded some form of renovation or upgrade. Flagstaff House did not enjoy any of that.

“It was only attended to on essential need basis by its tenants.

“This was basically to avoid the misperception of denying troop’s conditions of improvement.”

As far as Commodore Ilau’s contract vehicle, he says: “Firstly, it is not a support vehicle.

“It is a vehicle entitlement as per my category B State contract.

“This also includes my housing allowance.

“As is the past and current practice, it is normal for a commander, commissioner or departmental head, particularly Contitutional office holders, to have the choice of retaining their contract vehicle.

“In this case, my staff wrote to Transport and Works departments in Dec 2009 to commence the process of transfer of ownership.

“The Transport Department has advised on the depreciation rate of the vehicle on a monthly basis.

“I, being still a serving officer, continue to use the vehicle while awaiting proper invoice, and also my own retirement entitlements to sort out the appropriate payments to complete the transfer process.

“The vehicle selling price from Boroko Motors was K230, 000 and not K350, 000 as reported and claimed by Gen Singirok.

“The actual price was K170, 000.

“Hence, the depreciated value will be calculated from the purchase price plus the number of months of previous usage.”

Commodore Ilau and his family are currently residing in a three-bedroom flat at Gordons, paid for out of his own pocket, at a cost of K2, 500 per week.

He said the PNGDF had failed in its obligation to pay for his three-month transition as normal for outgoing PNGDF commanders, which allowed them to prepare for their final settlement of choice.

He has so far paid three months of accommodation which will expire at the end of April 2010 while PNGDF has yet to respond as obligated, and continues to wait patiently despite Defence Council assurance through the Minister for Defence

In the first five days of departing Flagstaff House, Commodore Ilau and his family were on the streets; however, with the intervention of “some good Papua New Guineans”, he managed to move into a flat on the sixth day.

“All real estate agents approached refused to accept government cheques,” he said.

“More dramatic was the fact that the original cheque issued for my transition rentals was cancelled and put to a stop by Defence Secretary Fred Punangi immediately the next day.

“To this day no reason has been given for the continuing delay.

“My packing container box remains at Murray Barracks due to unpaid repatriation cost entitlements.

“The National Government has yet to decide on my future deployment.

“Appropriate letters to the Secretary for Personnel Management, Chief Secretary and Treasurer have not been answered.”

Ok Tedi mining workers on strike

Workers at the giant Ok Tedi mine in the Western province of Papua New Guinea have been on strike since last Friday for better working conditions.

The management, however, is refusing to negotiate with workers through their union representatives until all workers return to work, according to a reliable source at the mine.

This has aggravated the situation with workers warning that they would not return to work until they got a positive response or course of action from management regarding various issues, the Shares in Success Scheme (SISS) payment amongst them.

The workforce instigated this strike  ahead of the Allied Workers Union, whose representatives were in Port Moresby to register the strike action.

OTML management says: "Clause 4 (c) of the Industrial Agreement states:4 (c) The union commits to utilize the legislated and agreed procedures in place for the resolution of all concerns and disputes and commits to no illegal industrial action or disruption for the duration of the agreement.

 "As no grievance disputes procedures have been initiated, clearly these employees are in breach of the Industrial Agreement and therefore their industrial action is therefore illegal.

"This has been confirmed to OTML by the Industrial Registrar."

Prime Minister witnesses signing of preliminary commitment to for condensate stripping plant joint venture between InterOil and Mitsui

Prime Minister Sir Michael Somare has congratulated InterOil and Mitsui Corporation for entering into a Preliminary Commitment Agreement to develop phase one of the Elk/Antelope LNG project.

Sir Michael said: “With these partnerships that we as a country are establishing with Japan, I will be happy to eventually leave politics with the knowledge that this government has enabled PNG to take positive steps towards a secure and prosperous future.”

Sir Michael made these remarks after a fruitful working visit to Tokyo, Japan, where he also held bilateral talks with his counterpart Prime Minister Yukio Hatoyama, further aligning the economic interests of both countries.

Their discussions included details of international co-operation specifically relating to investment in PNG, the key 50%+ LNG off take from the first PNG LNG project, trading partners, environment and climate change, as well as the benefits of a secure environmentally-friendly LNG supply from the second InterOil LNG project.

Sir Michael witnessed the signing ceremony in Tokyo of the Commitment Agreements between InterOil and Mitsui on Tuesday, March 30, 2010.

InterOil is the upstream operator for the Elk/Antelope LNG project and Mitsui Corporation is one of the leading Japanese investment and trading companies.

This follows the HOA (Heads of Agreement) that was signed in Papua New Guinea, on December 23, 2009, between InterOil and Mitsui, where the PNG Government ensured support to Mitsui.

The Preliminary Commitment Agreements allow Mitsui to fund 100% cost of the Condensate Stripping Facilities (CSF) which includes a liquid separation plant and pipeline in the project area, and as a Joint Venture Partner earn tolling fees and various other benefits, with a target completion date of first condensate production in 2012.

Sir Michael said: “Under the arrangements, project financing to be provided by Mitsui will also fund the State’s share of the condensate extraction costs.”

This means that Petromin and the State will not have to seek separate financing arrangements to fund their share of the equity.

Under the arrangements Mitsui will co-build the extraction facilities and will receive toll fee as a Joint Venture partner as well as financing cost from condensate revenue at first production of condensate.

The condensate will be sold on a net back basis to the InterOil refinery in Port Moresby at international market and local PNG market prices.

“The condensate stripping project agreement is the first step in bringing additional revenue and benefits to the people of Papua New Guinea from the InterOil-led Liquid Niugini Gas LNG project.

“We look forward to extending our relationship with the Japanese people and Mitsui Corporation,” Sir Michael said.