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Port Moresby
July 31, 2021

Polye: 1st LNG Proceeds To Repay K3 Billion Loan

Member for Kandep and former treasurer, Don Polye, says the first proceeds for the PNG LNG Project will go towards repaying the K3 billion UBS loan.

Mr. Polye is accusing the Prime Minister, Peter O’Neill, for deceiving the people, for he says the benefits will go directly to repaying that loan. He says the PM has tied the revenue with repaying the loan.


Mr. Polye claims the major revenue anticipated to flow through the National budgets, will not be realized because it is mortgaged to the K3 billion UBS loan. He says the Prime Minister is giving false hope to the people, because the benefits from the 19 per cent government’s shareholding on this project will go to repaying the loan for the first part of the project.


Mr.Polye says the government is now faced with the scenario of either repaying the 9 hundred million US dollars collar loan from the national budget, or fund ongoing infrastructure projects. He went on to say the country is now placed in an awkward situation because under the loan arrangement, PNG has to repay that loan within a 2 year period.


The member for Kandep said the people are instilled with false hopes of the PNG LNG revenues. Revenues for the next 2 to 3 years will go to the National Petroleum Company, which will then facilitate repaying the debt, said Mr.Polye.


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