Over VT13 million in VUI concession dividends paid to SANMA, Luganville
The Minister for Climate Change and Energy, Ralph Regenvanu, handed over to the SANMA Provincial Government Council (SPGC) and to the Luganville Municipal Council (LMC) the long-awaited dividends from their share of the concession fee of 2% of the gross annual revenue earned by the Vanuatu Utilities Infrastructure (VUI) from its management of the Santo electricity concession on Friday 23rd May, at the SANMA Provincial Government headquarters in Luganville.
When the Santo concession agreement was first signed between the Government and VUI in 2019, the agreement allocated a concession fee of 2% of the Gross Annual Revenue (GAR) to be shared between the Government (50%), LMC (10%), SPGC (15%) and the National Green Energy Fund (25%)
The cheques handed over on Friday were for amounts of VT5,262,622 for the LMC and VT7,893,933 for the SPGC, which is the total dividends owing to the two local authorities for the period from the start of the concession agreement in 2019 until 31st December 2023.
In April 2024, Council of Ministers Decision 153 of 2024 changed the designation of the shares of the concession fee, removing the 25% share going to the National Green Energy Fund, reducing the share of SPGC from 15% to 10%, and awarding a new 30% share to the Fanafo Area Council. This change was made to recognise the contributions of the custom owners and the communities of the Fanafo area and to support their development aspirations, including addressing the undertakings made by the Government during the early days of the Sarakata hydro project to support the people of Fanafo with electrification of all households.
As of the beginning of 2024, therefore, the concession fee of 2% of the gross annual revenue is now shared 50% to the Government, 10% to the LMC, 10% to the SPGC and 30% to the Fanafo Area Council. The shares for the SPGC and the LMC are aimed at resourcing these local authorities to implement their strategic plans and objectives.
The cheques were received by the Secretary General (SG) of SPGC and the Clerk of LMC. Both the SG and the Clerk assured the Minister that they will continue to work together to ensure that their objectives and activities are streamlined to achieve the Government’s overall objectives under the National Sustainable Development Plan.