The Shoreline Group is pushing to sell Tonga's electricity generation and distribution assets back to the Tonga government for an undisclosed multi-million dollar price tag.

In statements on April 6, both Shoreline and the Ministry of Finance announced that they are looking for investors to be business partners of the Government of Tonga to buy back the electricity power generation and distribution that Shoreline took over from government in 1998.

The Minister of Finance, Hon. Siosiua 'Utoikamanu, said, "the government and Shoreline are working to secure the best ownership structure and regulatory framework for Tonga's electricity sector".

While in a separate statement, Shoreline Chairman Crown Prince Tupouto'a was quoted as saying, "...…the objective is to ensure the continued reliability, efficiency and sustainability of electricity to the citizens and businesses of the Kingdom of Tonga."

Protests

Shoreline's control of the electric power supply was last year the target of a mass protest march calling for the return of power generation to government. Critics pointed to rising electric power costs, while Shoreline company executives were living a lavish life style. The major shareholder in Shoreline is Crown Prince Tupouto'a.

The private ownership of the national power generation became a big issue following revelations made by the former Chairman of the Tonga Electric Power Board, Clive Edwards, who claimed there were discrepancies over financial remuneration when the power generation and the power distribution assets of the former TEPB were transferred to Shoreline. Clive Edwards and the People's Democratic Party have pursued the matter and a case against Shoreline is to be heard in the Tongan courts later this year.

Following Clive Edwards's revelations, Piveni Piukala, the Shoreline IT engineer, who was fired by Shoreline for leaking information to local newspapers, opened up Shoreline's private accounts to the public, revealing the extent of the personal expenses of the executives. Meanwhile, the public was complaining of rising electricity prices while Shoreline was awarded tax exemptions.

Shoreline chairman

The Shoreline Group reiterated the offer that was made by its Chairman, Crown Prince Tupouto...’a, in May 2005 to transfer to the Government of Tonga and potential partners all the electricity assets owned and managed by the Shoreline Group since 1998.

Tupouto'a was quoted as saying that Shoreline had acquired an "inefficient and underperforming" power supply.

"Having completed significant investment and modernisation of the generation and distribution of power throughout the Kingdom...…I now believe that the time is right for ownership and management to be passed back to the Government and a strong partner with relevant expertise in managing and operating electricity assets," he said.

The statement stressed the "significant investments" that Shoreline had made since 1998, replacing all the pre-existing power stations with up-to-date plant and equipment, and improving the distribution network, significantly reducing line losses.

These initiatives, Shoreline said, had greatly improved operational efficiency in an effort to minimize the costs of electricity production and partially offsetting the significant increase in fuel costs for Tonga's imported diesal generated power supply.