Who Actually Benefit from the UBS K3 billion Loan? The Prime Minister Peter O’Neil is defending the decision of the Government of Papua New Guinea to borrow K3 billion from the international money lenders UBS to fund Oil Search’s commercial business interest for Oil Search to buy 40 percent shares in InterOil’s Gulf / Elk-Antelope LNG as the “Best Deal for the country”. How the Prime Minister finally arrives at his final conclusion (best deal) is this fundamental question. Who actually benefit from this whopping UBS K3billion loan? Since the PM has not come clear on what is actually the best deal for the country, for the benefit of doubt, we assume the PM must be referring to the following. 1. Create 100,000 job opportunities every year to reduce the high unemployment rate in the country, reduce law and order problems, solve the bottle neck education system to minimize the school dropouts created by his free education policy; 2. Build 100,000 homes every year to make housing affordable, reduce the high cost of living and improve the quality of life of the people; 3. Build a modern township in Kutubu (like the ones MPs like to visit in overseas) to compensate the people of Kutubu for billions the of Kina in Oil revenues generated for the national coffers for over 20 years; 4. Build a school of technology research and invention centre for Papua New Guineans to do research and invent their own technologies and phase out Asian junk goods in the country; 5. Develop five (5) hydro dams to implement the government’s white paper policy on energy security and reduce high energy cost. This will attract investment into downstream processing, manufacturing industries, agricultural industries, food processing industries and other industries. This will fuel economic growth, job creation, reduce high cost of living and improve the quality of life of the people. 6. Develop ten (10) food crop farms and five (5) livestock farms to implement the government’s white paper policy on food security. This will encourage the growth of food processing industries, reduce the high cost of living, encourage healthier life styles, improve the quality of life, and achieve one component of Vision 2050 to make PNG a healthier society in 2050. 7. And there are many more on the shopping list of the government that will be achieved by this K3 billion loan. If nothing of the above is in the pipeline for this massive loan, definitely this loan is not the best deal for Papua New Guineans. It should be a best deal for InterOil, Oil Search, UBS and the brokers of this deal. How can O’Neil justify that this deal is the best deal for PNG when the government of Papua New Guinea does not have any track records with legacies for all its world class resource projects. The landowners of Kutubu still live like their ancestors despite Oil has been produced and exported for more than 20 years generating billions of kina in revenues to the State’s coffers. The landowners of the world class Porgera gold mine are illegal gold miners on their own land. They don’t know why they have to mine their own gold illegally. The landowners of the world class Ok Tedi gold-cope mine live around polluted river systems with less contact to the outside world. The government of PNG is now trying to wrestle control over funds meant to compensate the OK Tedi landowners for their environmental damages. The landowners of the Panguna world class copper mine went to civil war with the government over royalties resulting in the loss of thousands of innocent precious lives. The PM is now trying to open the blood mine by inspecting an illegal army guard of honor with his close friend Jimmy Maladina. The landowners of the world class Lihir gold mine see everyday holes are dug on their island. Their provincial government has been pushing for autonomy as a result of the royalties of the mine. The same question still pops up again. Who will actually benefit from the UBS K3 billion loan? Lucas Kiap Patriots - PNGACMC
Posted on: Tue, 18 Mar 2014 01:01:20 +0000