By MALUM NALU
Secretary for Lands and Physical Planning Pepi Kimas may have told lies about his department’s involvement in giving away land to foreign businesses under special purpose business agriculture leases (SPABLs).
Kimas claims his department has not been selling land to foreigners, instead shifting the blame to landowner companies, however, government gazettal notices provided to media yesterday (Tuesday) show that he has been granting SPABLs amounting to 5.2 million hectares since March 2003.
National Land Development Advisory Group (NLDAG) chairman Thomas Webster, also director of the National Research Institute (NRI), made the revelation yesterday as affected landowners gathered at the Holiday Inn in Port Moresby last night to talked about “structural theft” of their land at a meeting organised by the Centre for Environmental Law and Community Rights (CELCOR).
A detailed listing of gazettal notices including dates, gazette number, grantee’s name, term of lease, land area, land portion, milinch, fourmil, and provinces was also provided by Webster.
“According to records available from government gazettal notices, the granting of SPABLs, culminating in the current total of 5.2 million ha, has been executed by the secretary for lands and physical planningas a delegate of the minister for land and physical Planning since March 2003,” he said.
“The concerns raised by non-government organisations and academics have been ongoing, and because there has never been any response by the government despite this being brought to the attention of the National Land Development Programme Management Committee, the NGOs had taken the matter up with the United Nations, claiming that the process is flawed.
“NGOs alleged that the ultimate result is disempowerment rather than empowering customary landowners.
“Granting 99-year SPABL leases effectively removes all customary land user rights over the land for three generations whereas the normal lease-lease-back (LLB) arrangements are usually 25 to 40 years.
“NGOs are therefore calling for the immediate suspension of the granting of SPABL.”
Webster said the NRI had also been concerned that some SPABLs were being issued to individuals and business entities when the National Land Development Programme (NLDP) had advocated for customary Land to be registered into incorporated land groups (ILGs), recognising communal land ownership and user right systems, practised by PNG societies.
The ILGs can then lease the land to a developer.
“Two new laws, the Land Registration (Customary) (Amendment) Act and the Land
Group Incorporation (Amendment) Act was passed by Parliament in 2009, but the latter is yet to be gazetted and come into operation,” Webster said.
“The amended Land Group Incorporation Act is better, bringing more accountability to the management of the ILG and the revenues generated from land leases.
“It also prevents the sale of land registered to an ILG – only the land lease can be sold or traded for a specified period of time.
“The continuous granting of SPABL is regrettable in that it contradicts the goals and objectives of the NLDP.
“In other words the government is sending out mixed signals; whereas NLDP places considerable emphasis on developing and empowering customary landowners, the continuous granting of SPABL by DLPP on the other hand is facilitating for their disempowerment.
“Understandably to the common villagers, this is very confusing indeed.
“The Department of Lands and Physical Planning argues that it is freeing up land for development; it maintains that it is the leaders of customary landowning groups themselves who are directly deceiving their own clansmen by signing off their user rights through SPABL.
“This line of argument needs to be placed in the perspective of growing dissent.”
Webster said in June 2009, the court upheld an appeal by Musa Valley Management Company Ltd and revoked Kimas’ decision to issue LLB title to Musida Holdings Limited for a large area of land in Northern province.
“Furthermore, unless the secretary for DLPP can prove in no uncertain terms that more than 95% of SPBAL granted to date are genuine and/or there are no existing dissent/flaws among parties/landowners, it would make more sense to revoke all land leases issued so far, consistent and similar to that done for Musa Valley Management Company Ltd in Northern province.
“It has come to our notice that due process has not been followed and the Lands Department had not insisted as required before issuance of most of the SABLs now being questioned.
“These processes allow and require consultations among all landowners as well as consent by all of them before their land is registered to one person, persons or entity.
“Since these leases are being granted by delegated authority, it would be in order for the Minister to withdraw leases issued by delegation until such time as when the new laws approved by Parliament come into effect.”
Tuesday, April 05, 2011
Landowners decry ‘theft’ of customary land
By MALUM NALU
Emotional landowners tonight described the controversial special purpose agriculture and business leases (SPABL) as “structural theft of our land”.
The landowners gathered at the Holiday Inn at a special gathering organised by the Centre for Environmental Law and Community Rights (CELCOR) to spell out their grievances.
“We fear that our children are being dished out the same fate as those in Rwanda, Somalia, Sudan, Congo Delta and many other countries in Africa, whose governments have induced poverty rather than protect its people against foreign interventions who came into those countries just to rip the riches and leave,” they said.
“This is a war declared on us by foreigners with the full support of our politicians, bureaucrats and local front men, and while we fight to protect our women and children, Papua New Guineans bestowed with power to look after us have abandoned us to count the gains for themselves brought on by these interventions.”
They demanded:
• That relevant government ministers cause the immediate cancellation of the titles to all customary land that was recently converted into SABLs and all permits and approvals revoked;
• That the agriculture minister direct the national agriculture council to review its approach towards the implementation of the National Agriculture Development Plan (NADP) and focus on ways in which landowners the,selves can be involved in scales within their own capacity without jeopardising their future;
• Those officers responsible for the conversion of customary land into state leases at the department of lands and physical planning are dealt with accordingly; and
• Police commissioner withdraws all police uniforms from security personnel who use police uniforms at logging camps to intimidate and abuse the rights of legitimate landowners
“We object in the strongest possible terms this act by the government, and regardless of our financial capability, we will fight it till these titles are cancelled as we believe that our land has been acquired by the government through fraudulent means,” they said.
“It is becoming a serious concern that the government, through its agencies, is granting licenses and leases without properly consulting us before converting titles to our customary land into state leases.
“To date, the government has gazetted more than 5.7 million hectares of our customary land that was converted into state leases over 99 years.
“Our message is simple: we want trespassers out of our land with immediate effect!”
Emotional landowners tonight described the controversial special purpose agriculture and business leases (SPABL) as “structural theft of our land”.
The landowners gathered at the Holiday Inn at a special gathering organised by the Centre for Environmental Law and Community Rights (CELCOR) to spell out their grievances.
“We fear that our children are being dished out the same fate as those in Rwanda, Somalia, Sudan, Congo Delta and many other countries in Africa, whose governments have induced poverty rather than protect its people against foreign interventions who came into those countries just to rip the riches and leave,” they said.
“This is a war declared on us by foreigners with the full support of our politicians, bureaucrats and local front men, and while we fight to protect our women and children, Papua New Guineans bestowed with power to look after us have abandoned us to count the gains for themselves brought on by these interventions.”
They demanded:
• That relevant government ministers cause the immediate cancellation of the titles to all customary land that was recently converted into SABLs and all permits and approvals revoked;
• That the agriculture minister direct the national agriculture council to review its approach towards the implementation of the National Agriculture Development Plan (NADP) and focus on ways in which landowners the,selves can be involved in scales within their own capacity without jeopardising their future;
• Those officers responsible for the conversion of customary land into state leases at the department of lands and physical planning are dealt with accordingly; and
• Police commissioner withdraws all police uniforms from security personnel who use police uniforms at logging camps to intimidate and abuse the rights of legitimate landowners
“We object in the strongest possible terms this act by the government, and regardless of our financial capability, we will fight it till these titles are cancelled as we believe that our land has been acquired by the government through fraudulent means,” they said.
“It is becoming a serious concern that the government, through its agencies, is granting licenses and leases without properly consulting us before converting titles to our customary land into state leases.
“To date, the government has gazetted more than 5.7 million hectares of our customary land that was converted into state leases over 99 years.
“Our message is simple: we want trespassers out of our land with immediate effect!”
Security issues bug Japan gas investors
By PATRICK TALU
SECURITY concerns in Papua New Guinea are undermining potential Japanese investment in liquefied natural gas, The National reports.
This was revealed by an investor who is in the country to get an update on his company’s investment here and to gather more information on the ongoing LNG project.
Requesting not to be named, the investor said Japan had an immediate need for liquefied natural gas (LNG) and PNG was being considered a major supplier of clean energy.
He said his country would have enough supply of LNG in light of the two huge multi-billion clean energy projects to be operated by ExxonMObil and InterOil Corp.
The source said Japan imported clean energy from the Middle East and African countries but due to current crisis in those countries, PNG appears to be a potential supplier that could play a dominant role in the energy market.
He said PNG had “world class LNG projects” underway which could compete with those in Australia.
However, he said: “PNG’s potential as supplier has been undermined by the ongoing security issues and non-conducive climate for investment.
“Japanese investors want to invest in the energy sector but the country’s security issues made us hesitant to do so.
“We have already existing investments in various sectors here as well as in the current PNG LNG project through joint venture partnerships and other direct investments.
“We would like to invest more in other sectors like mining but we would very much need security guarantee for our money,” he said.
He also pointed out that PNG is rich in natural resources but managing and distributing the wealth to Papua New Guineans was another thing.
The Japanese investor stressed that the current activities pertaining to Hides 4 PDL7 LNG plant site, the Juni Technical Collage, Kombolu Camp dispute, Kaiam incident and unending landowners’ demands for fulfillment of government commitments to landowners were being closely watched by international investors.
He said it was of paramount importance that necessary measures were taken seriously to safeguard major projects that would help transform PNG into a robust economy.
SECURITY concerns in Papua New Guinea are undermining potential Japanese investment in liquefied natural gas, The National reports.
This was revealed by an investor who is in the country to get an update on his company’s investment here and to gather more information on the ongoing LNG project.
Requesting not to be named, the investor said Japan had an immediate need for liquefied natural gas (LNG) and PNG was being considered a major supplier of clean energy.
He said his country would have enough supply of LNG in light of the two huge multi-billion clean energy projects to be operated by ExxonMObil and InterOil Corp.
The source said Japan imported clean energy from the Middle East and African countries but due to current crisis in those countries, PNG appears to be a potential supplier that could play a dominant role in the energy market.
He said PNG had “world class LNG projects” underway which could compete with those in Australia.
However, he said: “PNG’s potential as supplier has been undermined by the ongoing security issues and non-conducive climate for investment.
“Japanese investors want to invest in the energy sector but the country’s security issues made us hesitant to do so.
“We have already existing investments in various sectors here as well as in the current PNG LNG project through joint venture partnerships and other direct investments.
“We would like to invest more in other sectors like mining but we would very much need security guarantee for our money,” he said.
He also pointed out that PNG is rich in natural resources but managing and distributing the wealth to Papua New Guineans was another thing.
The Japanese investor stressed that the current activities pertaining to Hides 4 PDL7 LNG plant site, the Juni Technical Collage, Kombolu Camp dispute, Kaiam incident and unending landowners’ demands for fulfillment of government commitments to landowners were being closely watched by international investors.
He said it was of paramount importance that necessary measures were taken seriously to safeguard major projects that would help transform PNG into a robust economy.
Ulli Beier, great Papua New Guinea art mentor dies
By MALUM NALU
The great Papua New Guinea art mentor, Ulli Beier, died in Sydney on Sunday aged 88.
He will be remembered fondly by many PNG artists, writers, scholars and students.
The arts complex at the main campus of the University of PNG is named in his honour.
Many great Papua New Guineans came under his tutelage including Leo Hannett, Meg Taylor, Kathy Abel, Ekeroma Age, Leontine Ovia, Jerry Tamate, Rabbie Namaliu, Kumulau Tawali, Kakah Kais, Pia Leitao, Russell Soaba, John Waiko, Tony Siaguru, John Saunana, Peter Malala, John Kadiba, Elijah Titus, Janet Regione, Apisai Enos and Arthur Jawodimbari.
The 1960s and 1970s are remembered as a creative epoch in PNG’s history when some of the country’s best-ever poetry, prose, performances and publications were produced.
In 1967, Vincent Eri, then a student, brought Beier a story about Moveave in the Papua Gulf, and was encouraged to expand the story into a novel.
Thus Vincent Eri became the author of the first Papua novel The Crocodile.
Another literary achievement during those crucial years was the autobiography Kiki: Ten Thousand Years in a Lifetime by Albert Maori Kiki.
The first PNG literary magazine was launched in this period.
Elegantly produced and designed by Georgina Beier, Kovave was published 1969-1971.
The influence of the inimitable Beier and his equally-unflappable wife Georgina on the development of PNG literature during that era is still remembered by many people.
Beier produced 25 volumes of poetry, and the series was continued (after his return to Nigeria) by Prithvindra Chakravarthi, with a further 11 volumes, making 36 in all, and have become collectors’ items worthy of republication.
On the Beier’s return in 1974, Ulli became director of the institute of PNG Studies, and a new journal was established called Gigibori (1974-1978) with an emphasis on PNG culture.
The institute published 72 general publications on folklore, architecture, art, religion and music; 36 discussion papers on topical cultural, social and political issues; Wanpis, a novel by Russel Soaba; many works by John Kolia and the journal Gigibori.
The areas of theatre, radio production and performance promotion also developed under Beier.
He was to have travelled to PNG last August to make a presentation at a book conference at UPNG, however, was not strong enough to travel at age 88, and asked his good friend Peter Trist to travel to PNG from Australia and make the presentation on their behalf.
The great Papua New Guinea art mentor, Ulli Beier, died in Sydney on Sunday aged 88.
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The great Ulli Beier
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The arts complex at the main campus of the University of PNG is named in his honour.
Many great Papua New Guineans came under his tutelage including Leo Hannett, Meg Taylor, Kathy Abel, Ekeroma Age, Leontine Ovia, Jerry Tamate, Rabbie Namaliu, Kumulau Tawali, Kakah Kais, Pia Leitao, Russell Soaba, John Waiko, Tony Siaguru, John Saunana, Peter Malala, John Kadiba, Elijah Titus, Janet Regione, Apisai Enos and Arthur Jawodimbari.
The 1960s and 1970s are remembered as a creative epoch in PNG’s history when some of the country’s best-ever poetry, prose, performances and publications were produced.
In 1967, Vincent Eri, then a student, brought Beier a story about Moveave in the Papua Gulf, and was encouraged to expand the story into a novel.
Thus Vincent Eri became the author of the first Papua novel The Crocodile.
Another literary achievement during those crucial years was the autobiography Kiki: Ten Thousand Years in a Lifetime by Albert Maori Kiki.
The first PNG literary magazine was launched in this period.
Elegantly produced and designed by Georgina Beier, Kovave was published 1969-1971.
The influence of the inimitable Beier and his equally-unflappable wife Georgina on the development of PNG literature during that era is still remembered by many people.
Beier produced 25 volumes of poetry, and the series was continued (after his return to Nigeria) by Prithvindra Chakravarthi, with a further 11 volumes, making 36 in all, and have become collectors’ items worthy of republication.
On the Beier’s return in 1974, Ulli became director of the institute of PNG Studies, and a new journal was established called Gigibori (1974-1978) with an emphasis on PNG culture.
The institute published 72 general publications on folklore, architecture, art, religion and music; 36 discussion papers on topical cultural, social and political issues; Wanpis, a novel by Russel Soaba; many works by John Kolia and the journal Gigibori.
The areas of theatre, radio production and performance promotion also developed under Beier.
He was to have travelled to PNG last August to make a presentation at a book conference at UPNG, however, was not strong enough to travel at age 88, and asked his good friend Peter Trist to travel to PNG from Australia and make the presentation on their behalf.
Agriculture plan slammed
By MALUM NALU
THE controversial National Agriculture Development Plan (NADP), which caused a scandal two years ago when millions of kina, earmarked for farmers, was allegedly stolen by “paper farmers” in Waigani, has backfired again on the Department of Agriculture and Livestock, The National reports.
In 2009, an allocation of K100 million was used up in a matter of months, with no proper accountability amid claims that much of it had gone into financing dubious projects and individuals.
This time, major agricultural commodities had rubbished unrealistic projections contained in the “realigned” NADP, which were contained in the Department of National Planning and Monitoring national development strategic plan 2030 (DSP 2030).
The development plan expected agricultural commodities to achieve the projections by 2030.
It expected cocoa to reach 310,000 metric tonnes by 2030 from 28,433 this year; copra 440,000mt from 36,383mt; palm oil 1,600,000mt from 491,715mt; and coffee 500,000mt from 73,868mt.
At least three commodities – cocoa, copra and palm oil – have scoffed these end-of-the-rainbow projections.
They said they were not consulted by DAL or DNPM before making these projections, which would also be part of the much-vaunted Vision 2050.
PNGCCI chief executive officer Dr Eric Omuru described the projections – 554% for cocoa and 400% for copra – as a joke.
Palm oil representative Ian Orrell said, maybe, that was why so much land had been given away as special agriculture and business lease (SABL) for “con” palm oil projects.
These criticisms against National Planning and DAL were made at a workshop last Friday, focusing on the liquefied natural gas project and its effect on the agriculture sector.
“The projections for various agricultural commodities, contained in DSP 2030, have been adopted as key result areas for the realigned NADP,” Omuru said.
“When I first saw these projections, I thought they were a joke!
“For the cocoa and coconut industries , which I represent in my current job, increase in cocoa production by 554% from the current average of 50,000mt to 310,00mt and for copra, an increase of 400% from the current average of 100,000mt to 440,000mt by 2030, are hard to imagine,” he said.
“Without consultation, it is hard to imagine where National Planning got the background intelligence to set these targets.”
Orrell said there had been no government support for the “real” palm oil sub-sector, with more than 15 years of government facilitation of “new” palm oil developments.
He questioned the DSP 2030 and NADP’s aim to triple palm oil exports by 2030, and expressed a strong desire for new investors.
“It appears PNG is being advertised overseas as a large available land bank,” Orrell said.
“Departments and politicians are courting any entrepreneurial proposal, no matter how little expertise, credentials or lack of financial capacity is exhibited.”
He said all these were done with no consultation with the country’s palm oil sector; and no understanding of palm oil development and requirements.
Former DAL secretary Mathew Wela Kanua warned in 2009 that the NADP was doomed to failure because its initial recommendations were not being adhered to and would also have a drastic effect on the agriculture sector in PNG.
THE controversial National Agriculture Development Plan (NADP), which caused a scandal two years ago when millions of kina, earmarked for farmers, was allegedly stolen by “paper farmers” in Waigani, has backfired again on the Department of Agriculture and Livestock, The National reports.
In 2009, an allocation of K100 million was used up in a matter of months, with no proper accountability amid claims that much of it had gone into financing dubious projects and individuals.
This time, major agricultural commodities had rubbished unrealistic projections contained in the “realigned” NADP, which were contained in the Department of National Planning and Monitoring national development strategic plan 2030 (DSP 2030).
The development plan expected agricultural commodities to achieve the projections by 2030.
It expected cocoa to reach 310,000 metric tonnes by 2030 from 28,433 this year; copra 440,000mt from 36,383mt; palm oil 1,600,000mt from 491,715mt; and coffee 500,000mt from 73,868mt.
At least three commodities – cocoa, copra and palm oil – have scoffed these end-of-the-rainbow projections.
They said they were not consulted by DAL or DNPM before making these projections, which would also be part of the much-vaunted Vision 2050.
PNGCCI chief executive officer Dr Eric Omuru described the projections – 554% for cocoa and 400% for copra – as a joke.
Palm oil representative Ian Orrell said, maybe, that was why so much land had been given away as special agriculture and business lease (SABL) for “con” palm oil projects.
These criticisms against National Planning and DAL were made at a workshop last Friday, focusing on the liquefied natural gas project and its effect on the agriculture sector.
“The projections for various agricultural commodities, contained in DSP 2030, have been adopted as key result areas for the realigned NADP,” Omuru said.
“When I first saw these projections, I thought they were a joke!
“For the cocoa and coconut industries , which I represent in my current job, increase in cocoa production by 554% from the current average of 50,000mt to 310,00mt and for copra, an increase of 400% from the current average of 100,000mt to 440,000mt by 2030, are hard to imagine,” he said.
“Without consultation, it is hard to imagine where National Planning got the background intelligence to set these targets.”
Orrell said there had been no government support for the “real” palm oil sub-sector, with more than 15 years of government facilitation of “new” palm oil developments.
He questioned the DSP 2030 and NADP’s aim to triple palm oil exports by 2030, and expressed a strong desire for new investors.
“It appears PNG is being advertised overseas as a large available land bank,” Orrell said.
“Departments and politicians are courting any entrepreneurial proposal, no matter how little expertise, credentials or lack of financial capacity is exhibited.”
He said all these were done with no consultation with the country’s palm oil sector; and no understanding of palm oil development and requirements.
Former DAL secretary Mathew Wela Kanua warned in 2009 that the NADP was doomed to failure because its initial recommendations were not being adhered to and would also have a drastic effect on the agriculture sector in PNG.
USA ejected from Papua New Guinea waters
PNG tells superpower not to fish in ‘our’ waters
PAPUA New Guinea has given notice to the United States that it is not welcome to fish in Pacific waters, The National reports.
Frustrated over the Americans’ stubbornness following two years of negotiations, PNG had opted out of the multilateral treaty on fisheries with the superpower.
The PNG position would be taken up by Pacific Island nations who are members to the treaty.
The treaty allowed US fishing vessels to fish without limit, catching in excess of 500,000 metric tonnes of fish which worked out to about US$2 billion of finished fish products each year.
In return, Pacific Island nation members of the treaty received an average of US$2 million each year in access fees and development components.
Cabinet last Thursday considered and approved a submission by Fisheries and Marine Resources Minister Ben Semri to adopt this course of action.
Acting Prime Minister Sam Abal said the treaty was outdated and could not accommodate recent economic partnership arrangements with other countries such as the European Union where it recently ratified an interim economic partnership agreement.
The EU agreement allowed duty free access for unlimited fish products into the vast European market.
This hardline stance by PNG, on behalf of smaller Pacific Island nations, would sent direct signals to Washington that the multilateral fish treaty was unsustainable.
Abal said in a statement released in Port Moresby: “This is your time, US, to recognise island countries and increase licence fees for fishing.
“The PNG government’s decision is the right thing for the nations in the region. It is about time our friends state clearly and fairly their interest with us. They must give credit where it is due,” Abal said.
“Pacific Island countries want the fishing licence fees to be increased.
“The US would have recognised that the Pacific Ocean, and the fish and fishery products, is the main livelihood of our nations.
“Obviously, we want more for our fish and related products than what has been determined by the treaty so far.”
This meant the fishing effort afforded to the US treaty could now be redirected for domestic production to utilise the opportunities presented in the European market, the world’s largest fisheries consumer market.
The treaty required a 12-month period for notification by state parties.
PAPUA New Guinea has given notice to the United States that it is not welcome to fish in Pacific waters, The National reports.
Frustrated over the Americans’ stubbornness following two years of negotiations, PNG had opted out of the multilateral treaty on fisheries with the superpower.
The PNG position would be taken up by Pacific Island nations who are members to the treaty.
The treaty allowed US fishing vessels to fish without limit, catching in excess of 500,000 metric tonnes of fish which worked out to about US$2 billion of finished fish products each year.
In return, Pacific Island nation members of the treaty received an average of US$2 million each year in access fees and development components.
Cabinet last Thursday considered and approved a submission by Fisheries and Marine Resources Minister Ben Semri to adopt this course of action.
Acting Prime Minister Sam Abal said the treaty was outdated and could not accommodate recent economic partnership arrangements with other countries such as the European Union where it recently ratified an interim economic partnership agreement.
The EU agreement allowed duty free access for unlimited fish products into the vast European market.
This hardline stance by PNG, on behalf of smaller Pacific Island nations, would sent direct signals to Washington that the multilateral fish treaty was unsustainable.
Abal said in a statement released in Port Moresby: “This is your time, US, to recognise island countries and increase licence fees for fishing.
“The PNG government’s decision is the right thing for the nations in the region. It is about time our friends state clearly and fairly their interest with us. They must give credit where it is due,” Abal said.
“Pacific Island countries want the fishing licence fees to be increased.
“The US would have recognised that the Pacific Ocean, and the fish and fishery products, is the main livelihood of our nations.
“Obviously, we want more for our fish and related products than what has been determined by the treaty so far.”
This meant the fishing effort afforded to the US treaty could now be redirected for domestic production to utilise the opportunities presented in the European market, the world’s largest fisheries consumer market.
The treaty required a 12-month period for notification by state parties.
Monday, April 04, 2011
NBPOL inks US$240 million debt facility
NEW Britain Palm Oil Ltd (NBPOL), one of the largest fully integrated industrial producers of sustainable palm oil, last Friday announced the signing of a new five-year US$240 million debt facility, The National reports. The facility will replace the previous 12 month US$200 million facility entered into in April last year to partially fund the acquisition of CTP (PNG) Ltd (now renamed Kula Palm Oil Ltd).
In a statement through the Port Moresby Stock Exchange, the company said the facility was being provided by Overseas-Chinese Banking Corp Ltd, Labuan Branch of Malaysia, Maybank International Ltd, and ANZ (PNG) Ltd.
The facility comprised two equally-sized amortising and non-amortising tranches, and represented terms which the directors believed were very competitive.
The directors were particularly pleased with the level of competition demonstrated by interested lenders during the financing process.
Furthermore, the directors noted the continuing relatively low level of leverage that this facility represented for a company of NBPOL’s size and cash generative ability.
NBPOL chief executive Nick Thompson said: “The high level of competition, the very favourable terms and the extension of NBPOL’s facilities achieved during this refinancing demonstrated the increased strength and standing of the company in the eyes of the lending community.
“As part of the process, it also became clear that risk-appetite for lending to PNG had increased substantially.
“The company now had a very stable and conservative capital structure,” he added.
NBPOL is a large-scale integrated industrial producer of sustainable palm oil in Australasia, headquartered in PNG.
It now has more than 75,000ha of planted oil palm plantations, a further 5,000ha under preparation for oil palm among others.
In a statement through the Port Moresby Stock Exchange, the company said the facility was being provided by Overseas-Chinese Banking Corp Ltd, Labuan Branch of Malaysia, Maybank International Ltd, and ANZ (PNG) Ltd.
The facility comprised two equally-sized amortising and non-amortising tranches, and represented terms which the directors believed were very competitive.
The directors were particularly pleased with the level of competition demonstrated by interested lenders during the financing process.
Furthermore, the directors noted the continuing relatively low level of leverage that this facility represented for a company of NBPOL’s size and cash generative ability.
NBPOL chief executive Nick Thompson said: “The high level of competition, the very favourable terms and the extension of NBPOL’s facilities achieved during this refinancing demonstrated the increased strength and standing of the company in the eyes of the lending community.
“As part of the process, it also became clear that risk-appetite for lending to PNG had increased substantially.
“The company now had a very stable and conservative capital structure,” he added.
NBPOL is a large-scale integrated industrial producer of sustainable palm oil in Australasia, headquartered in PNG.
It now has more than 75,000ha of planted oil palm plantations, a further 5,000ha under preparation for oil palm among others.
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