Muthuvel Opts To Stop Solwara 1

Gorethy Kenneth | Post Courier | October 7, 2019

The government is faced with a major challenge on the country’s Solwara 1 project of which K400 million had already been spent while it faces legal implications in the Canadian Court.

State Owned Enterprise Minister Sasindaran Muthuvel in his recent press conference told reporters that the State was faced with K1.8 billion debt to commercial banks and other service providers and that his personal view was to discontinue the Solwara 1 project.

“You see, B-Mobile owes BSP K96 million and KCH owes ANZ another K130 million, first and foremost, we need clarity on this in order to deal with those costing us millions,” he said.

“Then we have another K375 million that has sunk into the ocean – the Solwara 1 project. The government has already spent over K400 million on this Solwara 1 project and as you know, in the recent news, we lost the case with the developer Nautilus in the Canadian Court and we need to take our next course of action,” Mr Muthuvel said.

“Although they have written to the Prime Minister James Marape to see that they are still keen to work with the government, but my personal view is that we have already lost about K400 million, and my personal fear is that of we continue to engage in the project we are going to be forced to further cash calls to invest in that project.

“It is a pity, in fact that project from day one it started came with a negative impact. We are not going to support a project that doesn’t have a net positive income and that doesn’t have the minimum rate of returns. There are other SOEs that we need to concentrate on like the BMobile and that has to be a collective effort and we prioritise to sell off those not making money.

“If we continue to fund this, there is no satinity we can get and we cannot invest in a project that doesn’t have minimum rate of returns… We need a turn around.”

2 Comments

Filed under Financial returns, Mine construction, Papua New Guinea

2 responses to “Muthuvel Opts To Stop Solwara 1

  1. Kuini Lutua

    Pacific Islands must stand firm against the devastating effect of these huge money making investors who do not give a care about our lives, those of us who live on islands. The greed of Corporations and Board Room shareholders will stop at nothing unless we in the Pacific Unite and stand to protect our natural resources.

  2. The government is mute, the people are blind. Sorry my fellow Papua New Guineans, wait until the right time comes.

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