In a press conference today, Hela Governor Francis Potape, Southern Highlands Governor William Powi and Central Governor Kila Haoda signed the agreement declaring their stand on the vendor financing.
Gulf Governor Havila Kavo was not present and Western Governor Ati Wobiro is currently serving his term at Bomana Correctional institution.
Powi said the landowners have been missing out on the equity and the decision by the government for a vendor financing is a step in the right direction.
He said the landowners have consulted many consultants regarding the best advice and could not do away about the decision by the government.
“The Government has been so lenient to us and have given us this opportunity which we don’t want to miss out on in owning the project,” says Powi.
Vendor Financing basically means the State will give the shares to the beneficiaries at no cost and will recoup the payment internally through the LNG revenue.
It is a form of lending in which a company lends money to be used by the borrower to buy the vendor's products or property.
Vendor finance is usually in the form of deferred loans from, or shares subscribed by, the vendor whereby the vendor often takes shares in the borrowing company.