270910 OGIO’S SUPPLEMENTARY BUDGET
By Tom Kathoa

Increased revenue and wealth created by the LNG Project in the Highlands Region has forced the National Government to prepare a Supplementary Budget says the Member for North Bougainville, Hon Michael Ogio.

The LNG Gas Project is in the Southern Highlands Province and is the single largest revenue earner for the country.

Papua New Guinea stands to earn billions of kina from the project which will start selling its gas products to overseas buyers in 2014.

Mr. Ogio who is also the National Minister for Higher Education Science and Technology said Papua New Guinea stands to earn K553 billion from the project.

This is a huge amount of money for the country and its people.

Due to this big money coming into the country, the national government is preparing a supplementary budget.

He told the people of Tinputz that a supplementary budget is prepared only when there is surplus money around.

Minister Ogio predicts the next annual budget for Papua New Guinea to be around the eight billion kina mark.

The minister was in Tinputz to present an Ambulance to the Tearuki Health Centre and some water tanks to the people of Kovanis and surrounding coastal villages.

A total of seventeen (17) water tanks costing more than K70, 000.00 would be delivered to these areas including the Six (6) presented at the weekend.

Comments

[illiterate Economist]

@Sam, you just spoke the right language that any Educated intelligence Papua New Guinean must u.nderstand. Can you also explained what would happen if the STATE LAWYERS, strike a 50-50 Share ownership with Landowners and MCC..

[Sam]

During the Development Forum(CIMC) it was also announced that much of the LNG inflows will be kept in a sovereign wealth fund overseas. It will only be released little by little so there is very little hope of the Kina appreciating in value even then there appears to exist a BPNG policy to restrict the kina to no more than 0.40 against the USD because of anticipated potential impact on the Agriculture sector called Dutch Disease.This is an economic sympton first realised in the Netherlands where by the agriculture sector collapsed with the discovery of Gas in that country.

One of the currently mooted investments is to purchase US government bonds and tickle the proceeds in just on a needs basis.

Currently it appears every mind in PNG is all for the sovereign weath fund and there has been very little debate.

Now this is very very risky if in the most unlikely case the USD was to collapse. And it almosdt did during the 2008 global financial crisis only tro be rescued by China because China didn't want to loose its US2. trillion foreign reserves.

China has since changed its policy not to restrict its foreign reserves to USD opting to denominate its foreigh reserves into various major currencies.

Where will PNG get the money from to rescue the US economy if another global financial crisis strikes.

Sam.

[Sam]

This news is very inaccurate and doesn't make any sense at all.

I was in the gathering where the governor of the BPNG announced the excess inflows leading towards the expected supplementary budget. It has nothing to do with LNG project but every thing to do with current high commodity prices of Gold, Copper and oil.

During the first 6 months of 2010 BPNG recorded 533 Million Kina above expected revenue estimate in the 2010 budget hence the supplementary budget to account for the excess revenue.

Sam.

The LNG is not a revenue earner as yet but will be from 2014.

[Paulus]

@joe
Yes - that sounds very good.
Environment protection and sustainable mining is necessary.
To sell our copper is the right way but but only with the best protection of the environment .
This is the only earth we have and we need it for our children.
Paulus

[joe]

Ok, Paulus, a few years ago I went to witness my brother's ordination in Broken Hill, two days before his ordination, he took me around the mine site, around Broken Hill, he was driving me around and after an hour, I asked him, where is the mine? He said 'we right ontop of the mine site', This is sustainable mining, he said, no pollution, when price are bad, mining stops, rivers are still pristine, I was blown away, so I wondered, why can't this methodology of mining be used on Bougainville? I still wonder today about this...

[Paulus]

@Panagah
In this I trust our Government.
Paulus

[Panagah]

You can talk about the copper,gold, LNG & whatever - yes, resources are important
But the wild animal that must be tamed, nurtured, grown & must be able to serve is the human being.The greatest need is honest people, true & true as a needle to the pole. Ol noken stilim moni na servis no save kamap.

[Paulus]

"These billions of kina if used wisely will bring a lot of changes."

Yes - but the LNG billions are not ours. The money will go to the owners of the LNG company, the LNG landowners and the PNG Government. And only a very small amount could come to us.
We will see.

If we want to have enough money to build up a strong - proud - and independent Bougainville we have to sell our copper.

We could try to find copper in different areas of Bougainville.
This money would go to our copper company - to our landowners - to our Government.
We - the People of Bougainville - elected our Government. This Government has now to make the right decisions.

The goal is a strong - proud - and independent Bougainville :
A Bougainville in which our children can live happy.
A Bougainville in which we have enough workplaces.
A Bougainville that can help other countries.
Paulus

[Lanbong]

These billions of kina if used wisely will bring a lot of changes.

How good are we in managing funds? It is big for now, but when it is mis-used will bring pain to the country.

Let's look at exporting direct from Bougainville to generate revenue. LNG might be a disabled person o Lek No Gut (LNG)

[mikai]

Ok, good for those water tanks, they will relieve the women folk from walking long distances to fetch water. These are just a minute fraction, of the delivery of goods and services, to the populace. With all this wealth, the state of the infrastructure still remains in a sorry state. Olo road i bagarap, haus sik nogat marasin na masin, illiteracy and numeracy still just 50%, and the list goes all the way to the moon,,,,

Na fellows stop the rethoric and get real!

woki yewo, na'mung impa!

[Kina]

By the way, when LNG goes into its production, BioFuel might have made fossil fuel obsolete and LNG will be a failed project. Who knows...only the Greenish probably knows...

[Kira]

Oh well, “If its big enough, why worry”. We can live with that, but how ironic...

[Kina]

Then what about buying a 777 Mackerel Tinned Fish at a cost of 70 Toea and cash back of 30 Toea. Then with the 30 Toea you buy 1 Kg rice and you feed 4-6 people.

[Paulus]

I would never drink Coca Cola - even if I could buy 10 Cans of it for 1 Kina.
Paulus

[Kina]

If Politicians can make the Kina Power to buy 4 Can of Coca Cola, I will have High Hope for the LNG project....

[Paulus]

@Kira
You are right.
But we can do with K1000 million much much more than Australia or the US with K10 000 million.
Paulus

[Kira]

It is definitely a lot of money.. but K553 Billion compared to how much will be earned by Australia and the US out of this same project, one will than realise how tiny and small that amount is..

...for something that is in your own backyard !

[Paulus]

"The LNG Gas Project is in the Southern Highlands Province and is the single largest revenue earner for the country.

Papua New Guinea stands to earn billions of kina from the project which will start selling its gas products to overseas buyers in 2014."

billions of kina - without comment
Paulus