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Chinese company breaks ground on Kerema water project
#1

To piggy-back on the other China articles in the news after O'Neill's trip to the China summit, dirt is being turned in Kerema town for the long-awaited water project.  A Chines company is constructing this project and Kavo makes statements at the end of the article of how Gulf with be a hub of activity in the next few years.  Wouldn't be surprised to see China being an off-take customer on the PNG LNG expansion.

Kerema town to get water

By MELISSA MARTIN

Kerema town, the provincial capital of Gulf Province, will have access to water supply for the first time – within six months.
Water PNG has launched a water project worth K9.1 million in Kerema town last Friday.
It was a sigh of relief for the people of Kerema town who for so long have relied on rainwater and water from wells or nearby creeks.
The town itself is like a rural outstation, but one without access to water since the colonial days, depending wholly on nature for sustenance.
Last Friday was a new beginning for the 7,000 residents of Kerema town as they gathered to witness the groundbreaking ceremony marking the commencement of the water project.
The ceremony was officiated by Gulf Governor Havila Kavo and the Water PNG acting general manager for engineering and major projects, Ila Renagi.
The project is financed by the government’s Public Investment Program (PIP) fund and counter funded by the Gulf Provincial Government through its Provincial Services Improvement Program (PSIP) grants and other funding sources.
The project will be constructed by China Jiangsu International.
Mr Renagi said the project is expected to be completed in six months.
“Clean water is essential to people’s lives, and our focus is to have water supplied throughout Kerema town in May or June next year,” Mr Renagi said.
“We cannot live and have a healthy community without water. I urge town residents and landowners to take ownership of service such as water treatment facilities.”
Mr Renagi said the project would take three stages to complete, and involves the equipping and commissioning of bore water.
“This will cover the equipping of an existing borehole that was recently redeveloped under a separate contract, an elevated water storage tank, installation of chlorination treatment facility and standby generator, house connections, water meters and others,” he said.
“This will mainly cover the town area and will take four months to complete at a cost of K5.3 million.”
Mr Kavo also urged the people not to demand any land compensation as such demands are a hindrance to the nation’s development.
“Land compensation demands are an obstacle to the advancement and development of our country and I urge Gulf people to refrain
from such and allow for services,” Mr Kavo said.
“We will be the centre of focus in the next few years and we will be contributing immensely to the country’s economy with big projects ahead. Let’s cooperate and take ownership of new developments in the province.”
He said the Gulf Provincial Government has spent a total of K50 million so far this year for infrastructure development in the province on infrastructure and other projects.

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#2
Duck Sr.,
Since CH gobbled up 1/2 of PNG LNG 2 train production with OTs making that project possible I have a hunch CH is 'in' the expansion trains as well. You cannot have FID sans OT's and doing business with existing customers is the speediest route. Think that OSH stake that PNG is keen to maintain was discussed with those CH bankers?
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#3
Most High Tree,

I think many major things are being discussed with China. A while back there was an article posted here about China's newly increased desire for LNG. I would guess O'Neill has spoken with China about funding to buy back the OSH shares as part of a national interest campaign. Will be interesting to see how Abu Dhabi tries to "peddle" those shares to drive up the amount PNG might have to pay to retire the bonds attached to those OSH shares. If China comes to the rescue, they will want something nice in return
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#4
I suspect if you were on the inside of a lottery ball machine it might look something like the IOC office where they are trying to put together the selldown deal(s).
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