Tonga Power pays $1m dividend to government

Tonga Power Ltd made a $1 million pa'anga dividend payment to the Government on November 10, the first time ever for a government-owned electricity provider to pay the Tonga government dividend.

TPL CEO Peter McGill handed the Minister of Finance, Hon Afu'alo Matoto a $1 million cheque.

In return the minister handed Tonga Power Ltd. a $1 million cheque, representing an investment by government to finance the laying of underground cable to supply electricity to the Nuku'alofa Central Business District.

The government is the sole shareholder in Tonga Power Ltd, and the $1million cheque from government increases the total equity of government in Tonga Power to $36 million.

Afu'alo explained that the laying of underground cable for telecommunications and electricity is part of a $20 million project that is funded by government. The civic work has started with the building of footpaths and a drainage system. The laying of underground cable is scheduled to start early next year.

Sitiveni 'Esau, Tonga Power Ltd's accountant said that the exchange of cheques might appear unusual but the underground cable would be a property of government although the work will be carried out by Tonga Power Ltd.