Questioned about a proposed $60 million loan by the Tonga government from China to buy back Tonga's power generation assets from Shoreline, the Prime Minister, Dr Feleti Sevele, at a May 3 press conference quoted the bible: "Knock and the door shall be opened, and ask and you shall be given."

He said he believed that China was in "a generous mood".

The $60 million loan is requested in a bilateral proposal covering a multi-million package of loans and grants that was presented by Dr Sevele to the Chinese Premier, Hon. Wen Jiaoao in Nadi, Fiji on April 5. Also included in this package was a "once off" special grant of $TOP12 million from China to balance Tonga's forthcoming budget.

Dr Sevele said that during the first China-Pacific Island Countries Economic Development and Cooperation Forum in Nadi from April 5 to 6, there was evidence that the Chinese were in a generous mood, and that was why they presented the proposal for the $60 million loan to buy back the power generation assets from Shoreline, "because government has agreed to buy it back from Shoreline," he said. But even though the loan had been requested by Tonga he stressed that no loan had been signed as yet.

Dr Sevele said that the only thing that was definite, was that government had agreed to buy back its power generation assets, but the exact amount and when to proceed with the loan had yet to be confirmed because of ongoing negotiation between the parties involved, the Tonga Electric Power Board, and Shoreline; and the People's Democratic Party, led by the former Chairman of the TEPB who is sueing Shoreline over asset ownership issues.

In addition, Dr Sevele said that, "a loan of this amount ($60 million) will have to be approved by the House."

With regards to the $12 million Special Grant to balance the budget, which some people assumed to be a sign that the economy was truly in deep trouble, Dr Sevele did not think there was anything drastically wrong with asking for $12 million to balance the budget, and he agreed that the economy was not in a good shape but he sincerely believed that if Tongans utilised wisely their resources, land, that with hard work and imagination the Tongan economy could bounce back in two years time.

Commissioners

The down-sizing of the Civil Service had been finalised, and Dr Sevele said that government has said that it could afford a redundancy package for 1000 Civil Servants, and it was now in the hands of the Public Service Commission and the three new commissioners.

"As I said before if there are shortfalls, there are services that will be affected. As it stands at the moment assessment is still going on. Government assets will also be for sale in order for us to be able to reduce our deficit."

New advisor

The Prime Minister concluded his first Press Conference by announcing that Lopeti Senituli had been appointed as his Political Advisor-Press Secretary. He said that the appointment of Lopeti was a political appointment.

Lopeti is the current vice president of the Tonga Human Rights and Democracy Movement, and the Director of Tonga Trust.