(1)   Is the department and the Export Finance and Insurance Corporation (EFIC) considering extending facilities to companies involved in the Papua New Guinea (PNG) liquefied natural gas (LNG) project; if so: (a) what is the country of incorporation for each project partner or participant; and (b) is the main project sponsor registered in the Bahamas.

(2)   Are applicants required to provide action plans pursuant to the International Finance Corporation Performance Standards before EFIC and the Government can extend an EFIC facility; if so: (a) will action plans be available for public comment; and (b) has Esso Highlands Limited, Santos and Oil Search provided EFIC with the required action plans.

(3)   Will EFIC respond to public submissions on potential EFIC supported projects before it provides/extends EFIC facilities; if not, does this comply with Organisation for Economic Co-operation and Development’s ‘Common Approaches on the Environment and Officially Supported Export Credits’.

(4)   Is the department and EFIC aware of concerns that Transparency International has expressed about the PNG LNG benefits sharing agreement; if so, will this affect their approach to the project.

(1)   Yes, The extension of finance in support of the PNG LNG project is being considered.

(a)   The current sponsors in the joint venture and their country of incorporation are: Exxon Mobil - (United States) Oil Search - (Papua New Guinea) Santos Limited - (Australia) Nippon Oil - (Japan) Mineral Resources Development Corporation - (Papua New Guinea) Petromin - (Papua New Guinea) Independent Public Business Corporation - (Papua New Guinea) The list of participants in the joint venture (each sponsor may have more than one participant) is yet to be finalised. The current participants in the joint venture undertaking the project are incorporated in Papua New Guinea or the United States. The company specifically formed to raise debt financing for the project (Papua New Guinea Liquefied Natural Gas Global Company LDC) is yet to be registered.

(b)   No. None of the project sponsors are incorporated in the Bahamas.

(2)   Yes. EFIC expects applicants to provide environmental and social impact assessment and management information (including relevant action plans) pursuant to the International Finance Corporation Performance Standards.

(a)   EFIC also expects that the project’s information disclosure would be consistent with the International Finance Corporation Performance Standards including making public relevant environmental and social impact assessment and management information (which may include action plans).

(b)   The project proponents have provided extensive information related to environmental and social impact assessment and management (including relevant action plans). Some information (including some action plans) is still being prepared and EFIC will continue to receive and assess that information as part of its on-going due diligence.

(3)   The Organisation for Economic Co-operation and Development’s ‘Common Approaches on the Environment and Officially Supported Export Credits’ (the Common Approaches) require that an export credit agency disclose its potential involvement for some types of project and also disclose some specific information. The disclosure is to occur at least 30 days before a final commitment to provide support. The Common Approaches do not include any requirement to respond to submissions that may be received in response to that disclosure. EFIC carefully considers and takes account of issues raised in submissions and endeavours to respond to submissions.

(4)   EFIC and the department are aware of the concerns raised by Transparency International with regards to the PNG LNG benefit sharing agreement. In assessing a request for finance EFIC considers information and views from a wide range of sources, and undertakes due diligence to ensure a project is undertaken consistent with EFIC’s Environment Policy (the Policy covers both environmental and social issues) before offering support for any project (including the PNG LNG project).