LNG project No.2 signed

First gas shipment scheduled for 2013

By BOSORINA ROBBY

THE second LNG project in PNG, led by InterOil Ltd, has set a tentative date for its first gas shipment at the end of 2013, one year ahead of the ExxonMobil-led PNG LNG project, The National reports.

Gulf Governor Havila Kavo (left) and InterOil chairman and SPI 208 director Phil Mulacek signing the project funding, construction and shareholders agreement on behalf of the people of Gulf and the three InterOil partners yesterday. At right from Mulacek are Treasurer Peter O’Neill, Prime Minister Sir Michael Somare and Petroleum and Energy Minister William Duma. – Nationalpic by EKAR KEAPU

This was revealed by partner Liquid Niugini Gas Ltd (LNGL) chief executive officer Henry Aldorf yesterday at the signing of the project funding and construction agreement and a shareholders agreement between LNGL, South Pacific InterOil (SPI 208), Energy World Corporation (EWC) and Gulf Governor Havila Kavo.
The signing was witnessed by Prime Minister Sir Michael Somare, Petroleum and Energy Minister William Duma, Finance and Treasury Minister Peter O’Neill and Internal Security Minister Mark Maipakai.
Yesterday’s event essentially marked the launch of construction of the US$4 billion three million tonne per annum (mtpa) land-based LNG plant in Gulf. It would be developed in two phrases – 2mtpa and 1mtpa expansion.
These agreements followed an announcement last September of a partnership between Pacific LNG Operations Ltd and EWC.
Aldorf explained that the LNG plant would be built economically, compared with other new LNG projects and would provide the Asian market with clean energy.
He said this was due to a new financial modular that was developed with other partners to ensure the second LNG would deliver in record time.
He thanked the partners involved in the project and the landowners and provincial and national governments for their assistance in making the project come to reality.
InterOil chairman and SPI 208 director Phil Mulacek explained that the timeline for the project was set to start selling the LNG from the Elk Antelope fields, beginning at a cost of US$450 million per million tonne.
EWC CEO Stewart Elliott said the project could be seen as having two parts – hardware and software.
“The hardware refers to the equipment, pipelines, the plant and the LNG shipment and finding new markets in Asia.
“We are looking to develop a receiving terminal in the Asian market to cater for the 20 million tonnes of gas we produce,” he said.
The software part involved the people of Gulf who had been in close contact with the company from the beginning, because they wanted the project to improve their lives.
Elliott said no one has opposed the project because they see the benefits they will get including business opportunities, education and other infrastructure facilities.
“You have our assurance that we will do our utmost to care for the people,” he said.
The partnership was that SPI 208 would be in charge of the Elk Antelope fields while LNGL would construct the pipelines and would also work with EWC to build the LNG plant off the coast of Gulf.
The plant would process an estimated 2.25 trillion cubic feet (Tcf) of natural gas over 15 years.
In return for its commitment to fully fund the plant, the agreements provided that EWC was entitled to a fee of 14.5% of the proceeds from the sale of LNG, less agreed deductions and subject to adjustments based on timing and execution.
The agreements provided a framework for the possible expansion of the plant’s capacity to 8mtpa of LNG.
In monetary terms, Mulacek explained that since it would cost US$450 million per million tonne, this would be US$450 million multiplied by the 8mtpa the LNG is capable of producing, which should be around US$4,000 million (US$4 billion)

The strength of women farmers in Papua New Guinea

By BARBARA TOMI of NARI
A recently-completed survey conducted under the project ‘Improving Business Acumen for PNG Women Smallholders In Horticulture’ has unearthed some very enterprising women who have quietly been producing and marketing some of the country’s best local fruit, vegetables and niche products.

Marey Yogiyo displays a sample of her Bauka packaged coffee.-Pictures by CATHY MCGOWAN

Many of them have been growing and processing these foods under the radar with little support other than that of their family members in order to meet their immediate needs.
Some of these enterprising women found in the Central province are growing the juiciest water melons in that part of the region; in Morobe they are raising sheep for wool and keeping bees for honey; and in the highlands these women are flooding the markets with temperate cut flowers and growing, training and supplying African yam seeds and packaging home-grown organic coffee for export.

Maria Linibi and Cathy McGowan visits bilum sellers of Goroka town and urge them to join the PNGWiADF network

These women came together from their respective regions to participate in a survey conducted by Cathy McGowan and Val Lang from the Australian Women in Agriculture to map out the membership of women’s peak agriculture body in the country, the Papua New Guinea Women in Agricultural Development Foundation (PNGWiADF), to determine the organisation’s current institutional arrangements and the women’s expectations of the organisation, identify governance issues affecting PNGWiADF and the support they need from the organisation.

Members of registered groups represented in the Eastern Highlands Women in Agriculture with members of the survey team

McGowan and Lang were assisted by project partners, Fresh Produce Development Agency (FPDA) and National Agricultural Research Institute (NARI).
PNGWiADF President Maria Linibi facilitated the survey of various groups.
A report of this activity will be put together by McGowan to present to the project leader, Prof Barbara Chambers from the University of Canberra to submit to the Australian Centre for International Agricultural Research (ACIAR), who funded the project.

Specialist African yam grower Jennifa Kena displays some of the yams she presented as gifts to new members of EHWiA

Over 20 registered groups, 10 individual members and hordes of interested women and men attended and participated in the survey, expressing their personal experiences and recommending ways PNGWiADF can best serve their interest to promote locally-grown foods and vegetables, flowers and tree crops.
Most of the women farmers said good communication systems, training, access to markets and credit facilities were a major hindrance to their success.

Meeting members in the Central province

For instance, Julie Anton travelled from Mt Wilhelm to Goroka to participate, hoping that PNGWiADF would network her to a market for her highlands orchids.
Another woman from Garaina in the south of Morobe province walked for nearly a week to reach members of her group from Bulolo district, then travelled together to Lae to participate in the survey; she was determined to actively participate and express her group’s need to be trained to grow quality vegetables to be able to tap into a ready growing market in their area, the mining townships of Bulolo and Wau.
Budding entrepreneur Marey Yogiyo attended the gathering in Goroka as an interested coffee farmer but with the burning desire to encourage other coffee farmers to drink their own coffee.
Yogiyo and her family grow organic coffee in the Aiyura Valley of Eastern Highlands and process and package it for sale in retail shops.
Since it is a new brand, the Bauka Blue Kofi is up against the established brands such as the Kongo Coffee, Goroka Coffee Roasters and Sigri Coffee.
So far she has secured Bintangor Trading in Goroka to sell her product.
These women are a few finds from the survey and there are more to be discovered.
The survey team was pleased with the information collected so far which will go a long way in identifying strategies to address women’s issues and to make them equal partners in agricultural development.
As part of the report, the survey team will recommend to the project initiators a capacity training that will address an area that has been raised by various groups.
The onus will be on PNGWiADF to use the information to be responsive to the needs of women and continue to raise their issues to the various pillars of government as the national mouthpiece of women food producers.
A full report of the survey will be available in May.

Farmers want simple extension materials

By SOLDIER BURUKA of DAL
Kamba villagers in Madang province say agricultural information and extension materials should be made more simple and easier for farmers to read and understand.

Kamba farmers study samples of extension materials produced by the workshop participants and voice their approval

The villagers, mostly farmers who grow all kinds of food crops, as well as produce coffee, cocoa and others like spices and balsa, told participants of a sub-regional training course on production of extension materials held in Madang recently that appropriate information and extension materials and regular extension visits were important to support the rural farmers and boost the sector.
The workshop participants from Papua New Guinea, Vanuatu and Solomon Islands, under the auspices of CTA and IRETA, spent a few days interviewing farmers and discussing their requirements for extension materials and information.
Based on the interviews and discussions, the participants prepared a number of materials including booklets, pamphlets, brochures, posters and others which they took back and presented to the farmers.
Kamba farmers were impressed with the materials produced by the participants saying that they would like more of the materials to be produced and widely distributed to boost agriculture productivity.
The materials produced covered topics such as control of taro leaf blight and taro beetle, pruning cocoa to increase yield, and formation of farming co-operative associations and came in the form of booklets, brochures, posters and other materials.
They said that they were always busy doing other things and many of them also understood little English.
They preferred extension materials in a form that was simple and understood by everybody.
After the completion of the two-week training, the course facilitators from CTA and IRETA handed over all the extension materials to the farmers and Madang provincial agriculture division to distribute to others as well.

Manus islanders take to farming

By JAMES LARAKI of NARI

Community members clearing land to plant sweet potato and cassava on M’Buke Island

Growing food crops is a difficult task on islands and atolls and the M’Buke Island in the Manus Province is no exception.
Efforts are being made to encourage M’Buke Islanders to grow their own food, thanks to the collaborative efforts of the PNG Sustainable Development Program Ltd (PNGSDP) and the National Agricultural Research Institute (NARI).
Under a two-year food security project, NARI is introducing improved crop and livestock varieties in an effort to encourage the islanders to grow their food.
NARI-released technologies to be transferred under this project include: African yam, NARI taro, drought-tolerant and high-yield cassava varieties, corn, lowland land early maturing sweet potato varieties, Muscovy ducks and other vegetables.
Located on the south east of Manus Province, M’Buke Island has a population of about 700 people and food shortage is a common problem.
The islanders, who depend on marine resources for their livelihood, will now be able to grow their own food with planting materials and training on crop and livestock production, and on simple processing techniques provided by NARI.
This food security project funded by PNGSDP is aimed at alleviating the current food shortages and malnutrition problems by improving crop and livestock production on a sustainable basis.
To kick-start the project on the island, a baseline survey was undertaken last June and planting materials of the improved varieties are being supplied to the island from the NARI Southern regional centre based at Laloki.
The project, which is being implemented in partnership with the Manus Investment Peoples Association and the provincial Department of Agriculture, has created interest among the islanders to grow their own food.
A resource centre would be established from where planting materials and other information would be distributed from.
It is hoped that the outcomes of this project will also benefit other communities on the neighboring islands and mainland Manus as well.
NARI is carrying two other similar projects funded by PNGSDP in the Rabaraba district of Milne Bay and Morehead in Western province.

Jiwaka kaukau show on tomorrow in Minj

By JOSEPHINE YAGI of NARI

Youths watch attentively as Sr Louisa of the Catholic Church conducts food processing training at Don Bosco in Minj last year

Sweet potato (kaukau) accounts for 63% of the dietary energy of the population and is becoming the mainstay of the country's food security.
Current production is more than three million tonnes per annum.
The biggest challenge facing the village communities in Papua New Guinea is knowledge on possible products from sweet potato that can be developed for the retail market.
Traditional technologies are no longer capable of producing products that are better quality for the retail markets.
To address some of these issues, a kaukau fair will be held tomorrow (Thursday) at the Anglimp South Wagi district administration office in Minj, Western Highlands.
The fair is funded under the Australian Centre for Integrated Agricultural Research (ACIAR) post-harvest and marketing project and is the first of its kind that will be facilitated by key stakeholders including Lilly Be’soer group (RWDI), Sr Louisa’s groups, Jiwaka interim administration, National Agriculture Research Institute NARI) and Fresh Produce Development Agency (FPDA).
Participating groups and individuals are expected from in and around the Jiwaka region.
“Kaukau fair is one of the projects of the technical component projects of ACIAR sweet potato post-harvest management and marketing, which is the main initiator of the projects,” said NARI post-harvest project leader Anton Mais.
“The fair focuses on the idea of identifying possible sweet potato products to link with training to be held in March.
“It offers a variety of ideas and information on various sweet potato processing practices and attendees will gain valuable information for their well being.
“The expected output of the project is to identify and develop sweet potato products to exhibit during the fair and conducting evaluation to assess the potential link to the training.”
Activities apart from speeches include food exhibitions by groups and individuals, judging of food entries by judges, taste panel of kaukau products, evaluation of major products and award presentations of the best products.
‘The kaukau fair concept is new in PNG and it plays a central role in the value chain, as it reinforces and develops the fundamental linkage between agriculture and the industry or market access improvement, thus creating a more favorable environment for spin-off business development,” Mais said.
“As such, we would like to utilise the concept of kaukau fair as a helpful event to get the women and vendors thinking about processing sweet potato products."
The kaukau fair starts at 10am tomorrow with an open invitation to everyone and and around Jiwaka to attend.

Bank of Papua New Guinea backs bid to review super funds

THE Bank of Papua New Guinea is supporting the proposal by Nambawan Super Ltd (NSL) to review the Superannuation General Act 2000, the umbrella legislation covering the operations of all super funds in Papua New Guinea , The National reports. 

According to NSL managing director Leon Buskens, a task force was established to review the SGPA legislation introduced by the Mekere government more than 10 years ago.

“Nambawan Super is in the forefront of lobbying to enact key changes to the act to improve operational arrangements aiming to achieve more benefits for members, especially in light of the economic boom expected from the LNG project,” Buskens said in a statement yesterday.

He said the Bank of PNG had indicated its support for the proposal to set up a task force committee to review the act.

 “Nambawan Super’s board and management are in regular contact with the industry regulator (Bank of PNG) as well as the government and other industry participants. 

“Last year, we wrote to the regulator proposing a comprehensive review of the Superannuation Act. 

“We are pleased to report that the bank has been receptive to this and will present the proposal to the minister for finance and treasury,” Buskens said.

Nambawan Super had proposed changes on its services to include contribution rates, life and medical insurance, payments on compassionate ground, family super, housing withdrawals, extending the super net and RSA limited increase.

It had proposed increasing compulsory contribution rates by 2%, which would move the current employee portion of 6% to 8% and the employer portion from 8.4% to 10.4%.

NSL also proposed to fund members’ life insurance premiums from its profits by election by each member and with extra contributions by them and would recommend to consider the position if compulsory contribution rates were increased.

It also advocated amending the legislation to allow the trustee to be able to make payments to a member on compassionate grounds, such as where the member’s immediate family is critically ill and life can be prolonged with medical treatment.

It was also in favour of introducing a new product to allow fund members to have sub-accounts for their family members. These accounts would be set up on voluntary contributions.

“A culture of savings in our society will also be promoted here,” Buskens said.

“For housing withdrawals, NSL considers putting in place a formula that allows the member to use part of his or her employer contributions for this important purpose.

“In extending the super net, NSL has proposed lower contribution rate for companies employing 15 people to contribute to superannuation which provides a scope for the self-employed to contribute to superannuation.

“NSL recommended consideration of K500,000 as the revised maximum that could be held in the RSA product as it believes that as member balances continue to increase, it makes sense for RSA maximum to increase as well,” he said.

It was not clear if the National Superannuation Fund (Nasfund) was aware of the proposal and had come up with similar recommendations to BPNG.

 

Southern Highlands teachers make their stand

By STAFF REPORTERS 

 

TEACHERS in the Southern Highlands yesterday reportedly stormed the education office located inside Agiru centre in Mendi and closed it , The National reports. 

A teacher at the scene told The National that teachers contributed money to buy a new padlock and chain and locked the office and chained it around 11am.

The teachers, who are supposed to return to their respective schools next week to prepare for classes, were angry at failure by provincial and national education authorities to respond to their demands for hardship allowances, a general pay increase and housing allowance.

The teachers gave a 14-day notice to provincial government, Education Department and national government to respond or they would walk off their jobs.

Southern Highlands adviser Joel Raitano, who was in Lae yesterday to assess teacher incentives, refuted earlier report that about 4,000 teachers had threatened to resign en masse over poor working conditions.

He said an inquiry team was investigating teacher incentives and the cause for education standards and systems.

A large number of teachers, however, decided yesterday that they would not fill their resumption of duty forms as directed by acting education secretary Dr Joseph Pagelio until their demands were met.

John Kuimp, one of the teachers on the working committee assisting the PNG Teacher’s Association (PNGTA) branch in the province, told The National from Mendi that the teachers had decided not to take up their posting until all their demands were meet by the provincial and national governments.

Kuimb said the teachers decided to stay out of class until their demands were met, adding that all schools in the province would remain close for indefinite period.

PNGTA national president Tommy Hecko has thrown his support behind the teachers and called on Southern Highlands Governor Anderson Agiru to listen to the teachers’ pleas.

Hecko yesterday said teachers were feeling the effects of the LNG development in the province and that the K300-K400 base salary for teachers  there was insufficient to sustain their daily needs.

 “I appeal to Agiru to sit down and negotiate with the teachers. Do not ignore their calls, at least hear them out,” he said. 

Kuimb said the teachers wanted an additional K400 in mining allowances to be paid by the provincial government on top of their normal salaries.

They have been demanding   a mining allowance since Kutubu oil was first exported some 17 years ago. Successive provincial governments promised to pay them but that has never materialised.

He said with the big multi-billion kina gas project coming on stream, the teachers wanted their long overdue allowances to be paid, adding that their K6 housing allowances was “a joke” and should be increased to K100.

Hecko said primary and elementary schools would be hit the hardest with less than a week of school holidays remaining.

In Lae, Raitano said no specific teacher incentives for the liquefied natural gas project impacted areas were set in place.

The idea of incentives for impacted areas was discussed but is yet to be determined between all the levels of government (council, district, provincial and national government) and teachers.

Raitano did say however, that the incentives would begin this year and that teachers in most disadvantaged schools would benefit.

What these benefits are and when they might be implemented, he would not reveal.