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December Qtr 2015, ISSUE No. 1 Standing Hela Province A drive for health, wealth and growth. Changing Hela Development Agiru’s journey paradox to First Gas District in 18 profile 24 32 Finance Agriculture 24 25 SOVEREIGN WEALTH FUND PASSED Reflection Finance 32 16 AGRICULTURE BEFORE OIL & GAS O’Neill Hela’s ray of hope TABLE OF CONTENT FEATURE 20 Private equity fund on the way page 4 LNG highway approved page 5 Cover Story page 6-8 Agriculture before oil & gas page 9 AMBUA LODGE page 10 Governor Agiru’s FLOWERS Targeting enemies of development journey to First Gas Health service revived page 12 MSF calls for quality health care page 15 O’Neill is Hela’s ray of hope page 16 Hela development paradox page 18 Publisher: William Bando P.O. Box Tari, Hela Province Forging a new Hela page 22 Produced by: Private Public Media Ltd. P.O. Box 1761, Vision City, NCD. District Profile - Koroba Lake page [email protected] Kopiago 24-28 Editor: Frank Senge Kolma Matiabe’s Roost page 30 Graphics and layout: Franklin Kolma Our journey to First Gas page 32 For enquiries and/ or contributions, contact PPML on: P.O. Box 1761, Vision City, NCD. Drought & Frost strike Wage page 36 [email protected] on +(675) 7666 2937 page 38 Cover picture: The iconic Koroba Lake Oil search helps drought victims Kopiago District Administration office lit up at night. Pic by Hon. Philip Undialu Hela Hydro page 39 The FIRST WORD am tempted, in this first issue of Hela Dawn, to beat I my chest and pat us all on the back. And there is much cause for celebration. 2015 marks 41 years since the late Andrew Wabiria moved for a separate Hela Province in the House of Assembly in 1974 and it is 40 years since Independence in 1975. Three years ago we realized Wabiria’s dream Hela Governor, Hon. Anderson Agiru, MP when Parliament passed the Hela and Jiwaka bills. Wabiria has sadly moved on but I know he celebrated total dedication to the task of building our province with us in the spirit. and our society up. In 1998, a year after I was first elected to office as Here I name four social behaviors that have become Governor of Southern Highlands, there were moves a menace to our communities, our new province and for a second access to the sea from Hela and Southern our country. They are Alcohol, Drugs, Gambling and Highlands to the Gulf of Papua. Today, it is a reality Guns/Tribal Fights. with only 34 kilometers remaining to complete. A For me, these time and money wasting and violent sea port in the Gulf is almost certain and next on the pastimes are the single most dangerous enemies of agenda. development and progress. They must be expunged In 2000 I fought bitterly when the National from our midst if we are ever to create anything out of Government proposed piping PNG gas to Queensland, the opportunities that near paralyze us. These behaviors Australia. I wanted for Hela’s last mother pig, gas, to be are related and feed upon each other. killed onshore. That was realized in May 2008 with the Illiteracy and ignorance we can find cures for with signing of the PNG LNG Gas Agreement. time and education. Criminally deviant behavior we In July 2015 I stood beside Prime Minister Hon. can safely lock away in maximum security jails with Peter O’Neill to see the LNG tanker, the Spirit of Hela, good policing, a robust judiciary and a functioning sail away with the historic first shipment of LNG and Corrective Institutions Service. a week later was with the PM, Tari Pori MP James The social evils I speak off are growing on top of and Marape, and Koroba Lake Kopiago MP Philip Undialu despite education and time. They are the cancer upon when Hela sailed into the majestic Tokyo Bay to deliver our individual and corporate bodies that need urgent its cargo. It was truly a joyous moment. cauterizing or we will suffer a slow, withering, and As I key this, the first benefits of LNG is about to be painful death as a society and nation. brought on-shore. Finally, I wish to direct our attention away from the These achievements are truely remarkable and a glamor of the LNG project back to our land. good cause for celebration. Yet now is not the time to The wealth that we have on top of the land in the rest on our laurels. There is much more to be done. things we can grow are limitless, and sustainable. Every With opportunities always come challenges; with individual can engage in farming with little knowledge blessings come curses. There is always that flip side of or capital. My government is embarked on introducing the coin. As individuals and as a nation we are not very a series of agro-industrial centers which will show case good at guarding ourselves against the flipside of every our agricultural prowess and prove that the sustainable golden opportunity. billions, and therefore our future, is on our top soil. So we have a new province. How do we develop it? My government will concentrate on delivering What are the opportunities, what are the challenges markets, knowledge and opportunities to develop our and how do we tackle both? agriculture and combine that with supply of cheap How do we deter the negative impact of opening electricity and a strong road transport infrastructure up our society to the outside? How do we differentiate to help our people prosper. That is where we shall be between genuine investor and fly by night con-artist spending a lot of our revenue for gas because when the from the flood of inbound migration? How do we stem gas runs out, a strong and vibrant agricultural sector outbound migration of Hela talents, intelligentsia and will secure our future for posterity. money? I thank our brother and our Prime Minister, the Rt And what do we do with increased revenue from Hon. Peter Paire O’Neill for all his support and for his the LNG to grow the needs of today’s generation while first visit to Hela in September, 2015. With him in the keeping enough left over for future generations? cockpit, our Hela dreams and aspirations can travel in When you consider all these questions, you will comfort and luxury and land safe, sound and on time. agree with me that there is much more to be done by May the Great Spirit, Datagaliwabe bless Hela. every person, big or small, important or unimportant, man or woman in every conceivable field to give our Hon. ANDERSON PAWA AGIRU, MP December Quarter 2015 3 Private equity fund on the way I intend to create the biggest private equity fund in PNG and the region. Anderson Agiru Governor of Hela he Hela Provincial Government is set nothing to show for them afterwards. of others and plan for the future.” Tto create a private equity fund to park “I do not want that repeated with Governor Agiru said the plans are all its LNG revenue. revenue for the LNG project. advanced for the establishment of the Governor Anderson Agiru says the “For the provincial government I equity fund. equity fund would be similar to the intend to create the biggest private equity On current conservative estimates Finance Sovereign Wealth Fund but would be fund in PNG and the region. At least PNG is likely to receive K90 billion privately operated. 50 per cent of revenue to the provincial over the 30 year life of the LNG project, Agiru said: “The experience so far with government we will saved for the future a third of which will go to provincial resource development in Papua New generation in this fund. There are many governments and land owners. Hela Guinea is that there are revenue flows examples like the the Norway fund and is likely to end up with a third of that to the national government, the the Albertanian Fund of Canada and there portion which amounts to approximately provincial government and are many other private equity funds K10 billion. the landowners but there is so we will learn from the mistakes There are two lots of revenues. One is direct to the landowners in royalty and equity money which is often very difficult to control. The second lot is the provincial government revenue which comes in the form of royalty as well as MOA or UBSA infrastructure projects and development levies funded directly by the national government through the development budget. The Hela government’s 2013-2014 development grants are still stuck in the alternate dispute resolution in court. Some landowners have contested the provincial government’s claim on the funds. He said revenues will be saved in the Hela equity fund will hold interest for the provincial government and the future generations in perpetuity. “After the gas is gone we must be able to provide the capital venture resources that will be able to fund the programs that we fund during the peak period of gas production so that is the whole idea,” Agiru said. “On our current economic modeling if we save 50 per cent of that we will realize what we are aiming for.” December Quarter 2015 4 Finally, that LNG highway The PM performing the groundbreaking ceremony of the LNG highway during his first visit to Hela in September 2015. abinet in November 2015 maintaining the Halimbu Junction and plant and materials. Capproved a contract worth to Komo Road.” The Hela Roads Joint Venture K87,428,803.46 to be awarded Direct and indirect employment is a 50/50 joint venture between to Hela Roads Joint Venture to in relation to this project is Hides Gas Development Company upgrade and seal the “missing substantial and will benefit a lot of (HGDC) and Shamrock Civil link” road from Nogoli to Komo local contractors and individuals.