Blackouts to 2014

By DENNIS ORERE

PNG Power linesman David Shangi insulating the ABC lines to the transformer connecting the Pacific Star Ltd office along Waigani Drive in NCD. – Nationalpic by EKAR KEAPU

POWER interruptions, the bane of all town and city dwellers, may continue until 2014, The National reports.
That is the somber forecast by the only supplier of electricity in the country, PNG Power.
PNG Power chief executive officer Tony Koiri said at a press conference yesterday that PPL did not have the money to fund urgent work to get reliable electricity supply to all centres.
“We do not want to make any excuses for the recent power outages, he said.
“While there has been a separate initiating incident on each occasion, each of these has led to a more extensive blackout.
“This has exposed weaknesses in the system and PPL is taking steps to replace the faulty electronic equipment that, in most cases, is old.
“We acknowledge that such weak spots should have been identified and maintained proactively,” Koiri said.
Power outages were to continue in the main centres, particularly between 9am and 3pm.
Koiri assured residents in PNG that there were promising prospects for a stable electricity system by 2014, but the biggest concern now was the short-term sustenance of power, especially for the major centres where a lot of business activities occur.
Koiri said PNG Power was looking at other energy sources to supply electricity in the long term. The main aim would be to use natural gas to support the current network and meet the demand for electricity.
PPL and the government had initialed a memorandum of understanding to use gas from the Hides reservoir.
The recent outages had reportedly affected Port Moresby and Lae customers.
In Port Moresby, there was a loss of generating capacity at the Rouna 2 hydropower station and Hanjung’s Kanudi power station.
“This apparently caused tripping at the substations at Boroko and Konedobu.”
There was also a fault at the Waigani sub-station transformers, Koiri said.
After the last festive season, excessive flooding brought down debris that clogged the screens and intake gate at Rouna 2.
Rouna and Kanudi are the main sources of power for Port Moresby.
He said PPL has in place business and development plans for capital investment based on projected operational profit and loan facilities.

Classes threatened over mining allowance

By JAMES APA GUMUNO

 

TEACHERS in Southern Highlands have told the provincial government to pay them their mining allowances “or there will be no classes this year”, The National reports.

There are 4,000 teachers in the province.

More than 100 of them gathered at the provincial headquarters building, Agiru Centre, yesterday in Mendi and demanded that they be paid these long overdue stipends.

The allowance was set at K400 a fortnight.

Their demands were contained in a petition, which came at a time when the provincial executive council was also discussing the provincial budget. Governor Anderson Agiru chaired the meeting.

The teachers also threatened that they would not return to their schools until they were paid their mining allowances.

Their demands for mining allowances had started when the first oil flowed out of Kutubu about 18 years ago. However, their pleas had fallen on deaf ears.

Spokesmen Bogom Inua and John Mono said this time they would not listen to the Teaching Service Commission, acting education secretary Dr Joseph Pagelio or the provincial government.

Inua, who holds a diploma in education and had been teaching in Southern Highlands for 40 years, said a teacher’s base salary of K400 was not enough to cater for a family’s needs in these times of sky-rocketing prices.

He said an expected salary increase, based on a memorandum of agreement signed last year, was not effected yesterday.

Mono expressed similar sentiments.

He warned that schools in the province would not resume classes until their demands were met.

Attempts to get comments from the provincial education adviser were unsuccessful.

 

 

Abal in charge of planning committee

THE National Executive Council yesterday directed Deputy Prime Minister and Works Minister and national planning committee chairman Sam Abal to be the government’s focal point for settling all outstanding issues relating to the PNG LNG project, The National reports.

Prime Minister Sir Michael Somare issued the directive following a briefing yesterday morning by Abal and senior cabinet minsiters and party leaders who are members of the planning committee.

Developer ExxonMobil were also summoned to provide an update regarding the temporary work closure of the Hides 4 conditional plant site early this week.

In assuring the developer ExxonMobil and operator Esso Highlands, Sir Michael reaffirmed that the PNG economy and the future of the people depend on the prject and that the government had got a handle on it.

Both the government and the people, particurlarly the landowners were committed to see its first LNG cargo leave its shores in 2014.

The landowner matters and issues are in-house matters and the government will move to settle it.

Meanwhile, chairman of Hides Gas Development Coporation (HGDC) Libe Parinali was the first to thank Sir Michael in appointing Abal to handle LNG matters.

“We will be working with Sam Abal as it is welcome news and we look forward to progerssing the LNG project.”

“The task now is to streamline the government operations and processes so that our joint venture development partners, financers, customers, people of PNG and most importantly resource owners know the point of contact.

Sir Michael said the key ministerial economic and social sector committees including the ministerial gas project committee were also members of the national planning committee.

In a further directive, the NEC instructed that all outstanding MoA funds relating oil monies owing to landowners companies to be paid as soon as possible.

Other isses pertaining to appropriations such as minsiterial commitments made during the UBSA and LBSA process of negotiations has also been directed for immediate settlement.

 

 

Kasieng's suspension is illegal, says lawyer

By JUNIOR UKAHA

 

Counsel representing suspended West Sepik provincial police commander, Sakawar Kasieng, has notified deputy police commissioner Fred Yakasa that the suspension notice served on his client was illegal, The National reports.

In a four-page letter delivered to Yakasa on Wednesday, counsel Peter Sam told the deputy police commissioner that there were no grounds for the suspension of Kasieng as all the accusations against his client were fallacious.

“I have studied the contents of the purported suspension notice, dated Jan 24, 2011, and wish to advice you that the suspension of Chief Insp Sakawar Kasieng from his position as PPC of West Sepik is null and void and has no effect in law or equity,” Sam said.

He instructed Yakasa to immediately reinstate Kasieng to his former position or risk having a lawsuit filed against him and the state.

“Accordingly, I wish to formally advise you that unless you reinstate Kasieng to his position, he will have no other option but to take immediate appropriate legal action against you without any further notice,” he said.

Sam also said that his client was denied natural justice when the charges were first laid against him as he was not accorded any chance to explain himself to the police hierarchy.   

Kasieng was suspended by Yakasa last week for disciplinary offences which included:

• Releasing statements to the media which were damaging to the constabulary;
• Illegally authorising the closure of the West Sepik police station; and
• Closure of police station tantamount to discrediting the constabulary’s management.

Sam said that Kasieng did not make degrading comments in the media as there were no specific quotes that could support the claim and that he (Kasieng) was only fighting for the rights of his officer who was assaulted by members of operation Sunset Merona.

He added that the accusations that his client had shut West Sepik police station was false because the station remained open during the said date and that there was no discredit to the constabulary as the members of the public were not affected of policing services.

 

 

New system stalls government operations

THE Government’s agenda for the early implementation of this year’s K9.3 billion budget has been stalled for a whole month, Waigani sources have said, The National reports.

That is because of the sudden introduction of a new, but largely untested, whole-of-government planning, budgeting, accounting and financial reporting system, and known as the integrated financial management system (IFMS), to replace the PNG government accounting system (PGAS).

The switch-over has affected opening of government accounts for the new year, and it is not known when the matter will be sorted out.

The government had announced at the end of last year, at the time Sam Abal was acting prime minister, that as this year was “the year of implementation” it wanted to get into action from the first week. He met with departmental heads on Jan 7 and made clear the government’s intentions and for these chief bureaucrats to get into action.

Sources said, however, this had not been possible for the past three weeks because the introduction of IFMS, however credible the package, has delayed the release of warrants by Treasury Department to other government departments and agencies in order for cheque payments for goods and services to be made on time.

They said the issuance of warrants is an activity that is supposed to be done at the beginning of every month according to every department’s and agency’s expenditure estimates and drawn from their annual budgetary allocations.

IFMS is a project administered by the Department of Finance and funded jointly by the government and donor agencies.

The National could not reach either the Department of Finance or IFMS authorities for comment yesterday.

Abal, the man who gave the directives for the early implementation of government programmes earlier this month is no doubt disappointed at the delay.

According to Abal’s press office, a month’s delay puts back work on a lot of well intended activities and programmes and adds unnecessary pressures on the government, ministers, politicians and bureaucrats.

At the same time providers of goods and services also cannot wait around while the government system tries to get itself organised. Time is money for them and that should be understood by government.

 

 

How green is Port Moresby

By MALUM NALU
Port Moresby’s looking so lush, green and verdant after all that rain over Christmas and New Year and is going to be like that for at least the next three months.

Lush, green vegetables

Vegetable gardens are sprouting up all over the city and its perimeters and markets are chock-a-block with green leafy vegetables, complemented by fresh fish and other seafood, wallaby, deer and bandicoot.
Last Saturday, I wandered through the popular Rainbow Market at Gerehu, marveling at the potpourri of vegetables and seafood on offer.

Fresh fish from the seas around Port Moresby to complement the vegetables

Food, glorious food, everywhere!
The next day, my elder son Jr and I took a refreshing early morning walk from Gerehu to Waigani, enjoying the greenery of vegetable gardens along the route, the industriousness of the many green thumbs, and of course the roadside market at Waigani.

A Central Province villager sells pineapples, watermelon, sugar cane, bananas  and coconuts at a roadside market at Waigani

“How green is Port Moresby,” I tell Jr.
“If only it could like this all year-round!”
All forms of gardening are rewarding and satisfying.
But vegetable gardening, largely because the gardener can be in charge of the whole operation from seed collection to consumption, is possibly the most-rewarding.
In addition, well-grown home-produced vegetables cannot be matched for flavour and nutritional value.
And with care, considerable savings – especially in a city like Port Moresby – in the family’s food budget are possible.

Corn, kaukau and other vegetables

Port Moresby, unlike a place like Goroka – where you can grow all types of succulent, mouth watering vegetables – has an arid year round climate.
This is apart from a brief respite during the December to March period, when the rain comes down in buckets and vegetables – especially corn – abounds all over the capital city.
This creates queues at many gardening shops in Port Moresby, such as major agricultural supplier Brian Bell.
As early as 7am, a long line of people gather in front of the Brian Bell Plaza at Boroko and buy their supplies of corn seeds.
I know this only too well, as for the last couple of weeks, I’ve been trying to buy corn seeds at Brian Bell Boroko and Gordon, but alas, stocks were zilch because of the high demand.
During this period, corn gardens can be seen all over the city, including precarious hillsides.
Apart from corn, there are so many other vegetables you can grow including tomatoes, cucumber, beans, silver beet, pak choi (Chinese cabbage), cabbage, chillies, as well as local favorites such as aibika, aupa, peanuts, cassava and bananas.



Woman sorting out her cassava

 Regular watering (well, you don’t really need to, given the frequent rain) and home-made compost and mulch, and after about two months, you start to reap the fruits of your harvest: tubs of corn, tomatoes, cucumber silver beet, pak choi, chillies and other garden-fresh produce.
You can make a killing if you go to market; otherwise, this is strictly for family consumption.
Suffice to say, it can greatly reduce your food budget.
For your children, it can be a great way to teach them about gardening and agriculture, especially in an urban environment like Port Moresby.
For those who spend most of their time in the office, backyard gardening is a great way to relax after work as well as at weekends talking to your vegetables.
Try it: you’ll really reap what you sow!
According to authors Michael Bourke and Bryant in the highly-acclaimed 2010 publication Food and Agriculture in Papua New Guinea, “agriculture is the most-important activity carried out by the vast majority of Papua New Guineans”.
“For most people, agriculture fills their lives, physically, culturally, economically, socially and nutritionally.
“Yet agriculture is the most-undervalued and misunderstood part of PNG life.
“The reasons for this are partly because mineral and oil exports make PNG comparatively wealthy for a developing country; partly because agriculture is practiced in the countryside, away from towns, and is therefore largely ‘invisible’ to urban people and international visitors; and partly because agriculture is viewed as not being ‘modern’.”
Contrary to what many people think, the majority of fresh produce in Port Moresby is supplied by local sources, and does not come from the Highlands
This includes that from the many hillside gardens popping up everywhere, settlements and surrounding areas such as Laloki, Bomana and Sogeri.
The Fresh Produce Development Agency’s 2009 Feeding Port Moresby Study shows that Port Moresby supplies most of its fresh produce.
Other key findings were:
• The volume of fresh produce being supplied from the Highlands into Port Moresby appeared to be decreasing while supplies from Central Province and NCD are increasing;

• Increasing amounts of fresh produce marketed into Port Moresby were handled through middlemen, rather than by grower-vendors themselves and their wantok networks. However, some farmers still preferred to sell their produce themselves at the open market;

• The annual volume of fresh produce imported into Port Moresby in 2007 was estimated to be just under 7, 500 tonnes, comprising 2,500 tonnes from international air and sea arrivals; 3, 500 tonnes from domestic sea arrivals; and 1, 430 tonnes from domestic air arrivals;

• Fresh produce production in the peri-urban areas was approximately 8, 500 tonnes during the dry season from the six surveyed settlement areas, which translated into a total production of 50,000 tonnes per year from all settlements;

• Most fresh produce was sourced from Central province and the NCD and very little was sourced from overseas or the Highlands. The total supply of fresh produce to Port Moresby was estimated at 57, 780 tonnes, with 7, 430 tonnes (15%) coming from overseas and rest of PNG, and 50, 350 tonnes (85%) from peri-urban production;

• Annual demand for fresh produce in Port Moresby was estimated to be around 140, 500 tonnes;

• Shortfalls between estimated demand and supplies were significant in volume and likely to come from Central province and home gardens;

• Facilities in the six open markets in Port Moresby are of poor quality, with common complaints from the vendors being lack of shade; poor water and sanitation facilitation facilities; and the need for benches to better look after their produce during wet days;

• Temperate vegetables continue to be supplied from the Highlands, however, green leafy vegetables and perishable fruit vegetables were supplied from NCD. Hardier crops such as sweet potato, banana, taro and yams come from Central province;

• Buyers and re-sellers stated that graded products (even if only by appearance) sell better;

• Buyers tended to buy on short notice and formal supply arrangements were rare. Buyers prefer carton packaging for leafy vegetables and bags for sweet potato and potato, with some limit on size/weight; and

• Imported produce were only relied upon by retailers but not to wholesalers or hotels and restaurants except in the case of some fruit produce.

“The increase in peri-urban production has vastly improved Port Moresby’s capacity to feed itself,” according to the study.
“There are several reasons for the increase.
“Firstly, there is emigration of more-experienced and innovative farmers, especially from the Highlands, into Port Moresby.
“Secondly, horticultural techniques have vastly improved and the use of fertilisers, herbicides and insecticides has allowed huge increases in productivity.
“Finally, in recent years, weak PNG currency, which increases the price of imports, has also increased the demand for cheaper, locally-grown food and has helped to spur local production.
“Peri-urban producers have several advantages over their Highlands and rural counterparts in supplying the Port Moresby market.
“Firstly, peri-urban producers tend to be better informed and better linked to the market than farmers in the rural and more-remote areas.
“Seeds and other farm inputs are cheaper, fresher, of higher quality and more-accessible.
“Peri-urban producers are better equipped, as the cash flow from off-farm incomes enables purchase of agro-chemicals and better equipment.
“Proximity to the market and the city enables farmers to spot and respond to price signals.
“However, there are concerns over land tenure and food safety associated with the use of contaminated water and soil for food production.”
Happy gardening folks!

Esso: Wealth from gas plan

But economic windfall comes with a host of problems like STD, social conflicts

 

The PNG LNG project will bring a windfall of economic benefits to the economy alongside a host of social problems like sexually transmitted diseases and social conflicts between the locals and outside job seekers, The National reports.

This was gleaned from the latest report covering the first three quarters of last year issued by Esso Highlands Ltd, operator of the project and subsidiary of ExxonMobil Corp.

However, EHL is certain the economic benefits would outweigh the feared social problems that the gas economy would spawn.

In its report, EHL said has repeated an already known fact that the gas project is scheduled to deliver starting 2014.

EHL said during this time, the country’s gross domestic product is forecast to double an average of K18.2 billion as a long-term benefit.

The reports said as the GDP doubles, the opportunity exists for the national and provincial governments to use it to address associated impacts that will most likely result such as a demand for improved health and education systems, infrastructure, and the provision of appropriate judicial and law enforcement systems.

However, the report has warned that although there would be significant economic benefits, there would also be social issues that could arise that would need to be managed.

For instance, it cited problems like sexually transmitted diseases, migrations to work and illegal settlements and the potential social conflict between local populations and employment seekers.

The report said a key component of the project is an effective, ongoing communications programme involving the operator, national and provincial governments, local communities, landowners, NGOs and other interested stakeholders.

The aim is to ensure there is an understanding of the project, its implications and how issues will be addressed.

The report said the economic impacts of an LNG development in PNG would reach well beyond the direct investment in country and the tax and equity returns to the state.

During the project life, tax revenue is expected to total around K67 billion, with royalty payments estimated to total K5.3 billion.

This is split as follows: local landowners - 50%; provincial government-33%; local government -10% and the State - 7%.

EHL said the project’s direct benefits could be derived from:

* Revenue, which from a case study assumption, direct cash to the PNG government and landowners is estimated to be over US$32 billion in the 30-year project life;

* Employment, which once operational, should have approximately 1, 250 full time positions to be filled by nationals; and

* Business opportunities for landowner companies who can supply various support services such as camp maintenance, local personnel transportation, vehicle hire, catering and minor civil works.

The true potential of the project lies in its ability to influence economic performance indirectly such as:

* The spending by project participants, employees, landowners and others;

* The investment in assets for infrastructure, education and health; opportunities for local businesses;

* Indirect macroeconomic impacts on GDP, consumption, employment and doubling of foreign currency exchanges; and

* All of these contributing to the upward pressure on the kina.