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Home > Tonga govt. props up Shoreline with $2m injection

Tonga govt. props up Shoreline with $2m injection [1]

Nuku'alofa, Tonga

Friday, January 26, 2007 - 18:00.  Updated on Monday, December 16, 2013 - 22:52.

Hon. Dr Feleti Sevele (centre) , yesterday with Lopeti Senituli (left) and Paula Ma'u.

By Pesi Fonua

The Tongan government injected $2 million into the Shoreline Power company to pay its fuel bills and prop it up following the destruction of its head office in the November 16 riots, it was revealed today.

The government will now have to raise an estimated $60 million to buy back its power generation facility from Shoreline Power.

In a Press Conference at the Prime Minister's office yesterday, the Prime Minister Hon. Dr Sevele said that the interest by foreign companies, particularly Northpower to buy the Shoreline Power ceased following the November 16 events, and therefore government would have to take back the power generation facility.

King George Tupou V, the Chairman of Shoreline Power had declared following his ascending to the throne last year that he no longer wanted to be in business, including the power generation business.

The Prime Minister said that government was looking at some one to come in and run the business, and, "we are still talking to Northpower on that proposition.

"I think this is going to be another loan, but for me, we should have courage, and we will manage," he said.

Loan

Last year it was proposed that the Tongan government needed to raise $60 million pa'anga to buy back the power generation facility that was leased to Shoreline.

Then following November 16 destruction of the Shoreline Building the company encountered financial problems.

During the riot the Shoreline CEO Soane Ramanlal, along with his brother Joseph, the director of Shoreline, left Tonga after looters raided their homes.

Fuel Bill

Hon. Paul Karalus, the Minister for Transport, said today that immediately following the riot Shoreline was not in a position to pay for its monthly fuel supply for November. "There was a Cabinet Decision for government to pay for the fuel bill of about $2 million."

Paul explained that the emergency payment was needed to keep the power running, which was urgently needed at the time. "Government sees it as their responsibility to the public to keep the power supply running."

He said that since government was going to buy back the facility the $2 million might go toward that final payment.
 

Power Supply [2]
Shoreline Power Ltd. [3]
energy [4]
Business [5]

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Source URL:https://matangitonga.to/2007/01/26/tonga-govt-props-shoreline-2m-injection

Links
[1] https://matangitonga.to/2007/01/26/tonga-govt-props-shoreline-2m-injection [2] https://matangitonga.to/tag/power-supply?page=1 [3] https://matangitonga.to/tag/shoreline-power-ltd?page=1 [4] https://matangitonga.to/tag/energy?page=1 [5] https://matangitonga.to/topic/business?page=1