Govt. advance to Shoreline, loan not grant [1]
Tuesday, January 30, 2007 - 09:15. Updated on Monday, December 16, 2013 - 22:53.
Editor,
May I take this opportunity to clarify the position of Government in the matter of its advance to Shoreline Power late in 2006 as reported in Matangi Tonga [2] on Friday 26th January, 2007.
As a Director of the Tonga Electric Power Board I am very much aware of Government's role and duty in ensuring that electric power, as an essential utility, is supplied in a continuous and uninterrupted manner.
After the events of the 16th November, 2006, there was a brief period where the power supply was rationed to a few hours per day and the monthly payment for the fuel supply to the generating company was approaching (20th November, 2006).
The destruction of the Shoreline building was accompanied by the need to restore the billing system and in the ensuing time Government was obliged to advance the payment of one month's fuel supply to Shoreline to maintain the power supply.
It is of the utmost importance to note that this payment by Government was in the from of a loan and not a grant, and that it could be part of the payment by Government to Shoreline in an eventual buy back of the generation and distribution of electricity supply if, and when, that occurs.
I am,
Yours,
Hon. Paul Karalus. Director TEPB.
minister1 [at] mca [dot] gov [dot] to