PAPUA NEW GUINEA

Supplementary (Appropriation) Act 2010.

No. 21 of 2010.

Certified on: 19 MAY 2011

Supplementary (Appropriation) Act 2010.

ARRANGEMENT OF SECTIONS.

PART I. - 2010 SUPPLEMENTARY BUDGET.

1. Grant of K653,300,000.
2. Appropriation.
3. Adjustment of appropriation between services.
4. Direction for Additional Expenditure.

PART II. - REDUCTION OF 2010 APPROPRIATION.

5. Reduction in appropriation - Recurrent.
6. Reduction of appropriation - Development.

PART III. - TRANSFER TO TRUST OF 2010 ITEMS.

7. Grant of K40,000,000.
8. Appropriation.
9. Direction for expenditure funded from trust.

Schedule 1.
Schedule 2.
Schedule 3.
Schedule 4.
Schedule 5.
Schedule 6.
_______________

No. 21 of 2010

AN ACT

entitled

Supplementary (Appropriation) Act 2010.

Being an Act to grant and apply out of the Consolidated Revenue Fund a further additional sum for expenditure for the year ending 31 December 2010 and to appropriate that sum, as well as reduce the appropriations contained in the Appropriation (Recurrent Expenditure 2010) Act 2009 and the Appropriation (National Development Expenditure 2010) Act 2009,

MADE by the National Parliament.

PART I. - 2010 SUPPLEMENTARY BUDGET.

1. GRANT OF K653,300,000.

Subject to authorization from the Minister, the Secretary for Treasury may issue out of the Consolidated Revenue Fund and apply for additional expenditure for the year ending 31 December 2010 the sum of K653,300,000.

2. APPROPRIATION.

Sums granted by this Act out of the Consolidated Revenue Fund for additional expenditure for the year ending 31 December 2010 are appropriated for the approved purposes to the Agencies in Schedule 1.

3. ADJUSTMENT OF APPROPRIATION BETWEEN SERVICES.

Where there is insufficient or no appropriation to meet expenditure for a particular activity, the Secretary for Treasury may direct the re-allocation of any unexpended appropriation under this Act through the Secretary's Advance, provided that doing so does not contravene the directions contained in Section 4.

4. DIRECTION FOR ADDITIONAL EXPENDITURE.

(1) K552,3000,000 of the amount appropriated in Section 1 must be immediately transferred to trust accounts identified in Schedule 2, for the approved purposes expressed in this section.

(2) Where a trust account specified in Schedule 2 does not exist, a new trust account is to be established by the Minister for Finance under Section 15 of the Public Finances Management Act 1995 and the transfer will take place immediately on the establishment of the trust account.

(3) These funds cannot be utilized or transferred for any other purpose and in the event that the amounts expressed in Schedule 2 are not transferred as directed by this section, the appropriation shall lapse and the amounts will be returned to the Consolidated Revenue Fund.

(4) The approved purposes for which funds are transferred to the trust funds as specified in Schedule 2 are ‑

(a) K100,000,000 for payment of outstanding PNG LNG liabilities under the following Memorandum of Agreements ‑

(i) Kutubu; and

(ii) Gobe; and

(iii) Moran Central; and

(iv) Hides Gas; and

(b) K100,000,000 for counterpart funding for the ADB Highlands Road Maintenance Program (HRMP) and the Highlands Region Roads Improvement Investment Program (HRRIIP); and

(c) K70,000,000 to maintain the Port Moresby road network; and

(d) K50,000,000 to maintain the Lae City road network; and

(e) K50,000,000 to support the rural road network; and

(f) K40,000,000 to be transferred equally in the amount of K2,000,000 to each of the twenty Provincial Governors for the Provincial Services Improvement Program; and

(g) K40,000,000 for High Impact Infrastructure Projects including –

(i) Tari-Kutubu-Kikori Road; and

(ii) Kom-Tari Road; and

(iii) Hela City Development (Phase 1); and

(iv) Tari International Airport (Phase 1); and

(v) Komo Township; and

(vi) Magarima Township; and

(vii) Kutubu Township; and

(viii) Koroba Township (Including Hospital); and

(ix) Nogoli Growth Centre; and

(h) K30,000,000 for District Office rehabilitation; and

(i) K20,000,000 to assist landowner groups in the LNG project area to form Incorporated Land Groups (ILG) for purposes of identifying land boundaries and landowners; and

(j) K20,000,000 for the Business Growth Centres program; and

(k) K10,000,000 to rehabilitate National Parliament infrastructure; and

(l) K5,000,000 to support the development of mobile police barracks; and

(m) K3,300,000 to support the Reducing Emissions from Deforestation and Forest Degradation (REDD) Program; and

(n) K 3,000,000 to provide Incentive Fund support; and

(o) K 2,000,000 to support the establishment of enhanced audit and legal teams in the Department of Finance; and

(p) K2,000,000 to support the Prison Industries program; and

(q) K2,000,000 to cater for the cost of legal advice on Mining policy issues; and

(r) K2,000,000 to rehabilitate the office accommodation of the Mineral Policy and Geohazards Management Department; and

(s) K2,000,000 for support to Co-operative Societies; and

(t) K1,000,000 to rehabilitate Variarata National Park.

(5) The balance of the funds appropriated in this Part is for additional expenditure to be undertaken before 31 December 2010, with funds to be transferred out of Division 207 for the following purposes:

(a) K20,000,000 to the National Development Bank for Equity Retail Banking; and

(b) K15,000,000 for Internal Revenue Commission for income tax refunds; and

(c) K10,000,000 for the National Parliament to replenish its 2010 Recurrent Budget appropriation; and

(d) K10,000,000 for Department of the Prime Minister and National Executive Council (PM&NEC) for the Prime Minister's commitment towards coastal areas; and

(e) K10,000,000 for the Electoral Commission to replenish its 2010 Recurrent Budget appropriation; and

(f) K10,000,000 for Small Business Development Corporation for SME support; and

(g) K10,000,000 to reimburse 2010 Recurrent Budget funds used to meet the urgent payment of K10,000,000 to the Police for LNG Support in October 2010; and

(h) K9,000,000 for Defence Ex-Servicemen's Entitlements; and

(i) K5,000,000 for Department of Prime Minister and National Executive Council to undertake planned strategic meetings and important local initiatives in 2010; and

(j) K2,000,000 for Bainik University Campus through the University of the Environment and Natural Resources.

PART II. - REDUCTION OF 2010 APPROPRIATION.

5. REDUCTION OF APPROPRIATION — RECURRENT.

The Appropriation (Recurrent Expenditure 2010) Act 2009 is amended to reduce the appropriation by K35,000,000, in accordance with the details set out in Schedule 3.

6 REDUCTION OF APPROPRIATION - DEVELOPMENT.

The Appropriation (National Development Expenditure 2010) Act 2009 is amended to reduce the appropriation by K40,000,000, in accordance with the details set out in Schedule 4.

PART III. - TRANSFER TO TRUST OF 2010 ITEMS.

7 GRANT OF K40,000,000.

Subject to authorization from the Minister, the Secretary for Treasury may issue out of the Consolidated Revenue Fund and apply for additional expenditure for the year ending 31 December 2010 the sum of K40,000,000.

8 APPROPRIATION.

Sums granted by this Act out of the Consolidated Revenue Fund for the year ending 31 December 2010 are appropriated for the approved purposes to the Agencies in Schedule 5.

9 DIRECTION FOR EXPENDITURE FUNDED FROM TRUST.

(1) The K40,000,000 appropriated in Section 8 is to be immediately transferred to the Trust Accounts identified for the approved projects expressed in Schedule 6.

(2) Where a trust account specified in Schedule 6 does not exist, a new trust account is to be established by the Minister for Finance under Section 15 of the Public Finances (Management) Act 1995 and the transfer is to take place immediately on the establishment of the Trust Account.

(3) These funds cannot be utilized or transferred for any other purpose and in the event that the amounts expressed in Schedule 6 are not transferred as directed by this section, the appropriation shall lapse and the amounts will be returned to the Consolidated Revenue Fund.

(4) The approved purposes for which funds are transferred to the trust funds as specified in Schedule 6 are –

(a) K10,000,000 for 2011 National Census funding; and

(b) K30,000,000 for Provincial Government Members' entitlements.

SCHEDULE 1.

Estimates of Expenditure in PART I of this Act for the Year ending 31 December 2010.

DIVISION
	SUMMARY	KINA.	
207
	Department of Treasury and Finance (miscellaneous)	653,300,000	
	Total Appropriation	653, 300,000	
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SCHEDULE 2.

Immediate Transfer of Funds Appropriated in Part I of this Act from Division 207 to Specified Trusts for the year ending 31 December 2010.

SUMMARY
	KINA.	
Infrastructure Development (MRDC) Trust Account
	100,000,000	
Highlands Highway Rehabilitation Trust Account
	100,000,000	
Hubert Murray Highway Upgrading Project Trust Account
	70,000,000	
Transport Sector – Lae City Roads Subsidiary Account
	50,000,000	
Transport Sector District Roads Account
	50,000,000	
Provincial Services Improvement Program Trust Account
	40,000,000	
PNG LNG High Impact Infrastructure Projects Trust Account
	40,000,000	
Regional Finance & District Administrators Offices Establishment Trust Account
	30,000,000	
ILG and Issues Committee Trust Account
	20,000,000	
Business Growth Centres Trust Account
	20,000,000	
National Parliament Infrastructure Rehabilitation Trust Account
	10,000,000	
Mobile Police Barracks Trust Account
	5,000,000	
REDD Program Trust Account*
	3,300,000	
Incentive Fund Support Trust Account
	3,000,000	
Department of Finance — Audit and Legal Team Support Trust Account*
	2,000,000	
Corrective Institutional Services- Prison Industries Program Trust Account*
	2,000,000	
Mining Legal Cost Trust Account*
	2,000,000	
Mining Office Rehabilitation Trust Account*
	2,000,000	
Cooperative Societies Establishment Trust Account
	2,000,000	
Variarata National Park Rehabilitation Trust Account*
	1,000,000	
Amount to be Transferred from Division 207 to Trust	552,300,000	

* These Trusts will have a sunset clause inserted that requires funds to be expended before 31 December 2011 when the trust will be closed. Any unused funds at that time will be returned to the Consolidated Revenue Fund.
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SCHEDULE 3.

Reduction of Appropriation (Recurrent Expenditure 2010) Act 2009.

DIVISION
	SUMMARY	KINA.	
299
	Debt Services (Interest Expense)	35,000,000	
Total Reduction in Appropriation	35, 000,000	
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SCHEDULE 4.

Reduction of Appropriation (National Development Expenditure 2010) Act 2009.

DIVISION
	ACTIVITY	KINA.	
206
	Provincial Government Members' entitlements	30,000,000	
204	2010 National Census
	10,000,000	
Total Reduction in Appropriation	40, 000,000	
_______________

SCHEDULE 5.

Estimates of Expenditure as set out in PART III for the Year ending 31 December 2010.

DIVISION
	SUMMARY	KINA.	
207
	Department of Treasury and Finance (miscellaneous)	40,000,000	
Total Appropriation	40, 000,000	
_______________

SCHEDULE 6.

Immediate Transfer of Funds Appropriated in Part III of this Act from Division 207 to Specified Trusts for the year ending 31 December 2010.

SUMMARY
	KINA.	
Provincial Government Members' entitlements Trust Account
	30,000,000	
2011 National Census Trust Account
	10,000,000	
Amount to be Transferred from Division 207 to Trust	40,000,000	
_______________

I certify that the above is a fair print of the Supplementary (Appropriation) Act 2010 which has been made by the National Parliament.

Clerk of the National Parliament.
19 MAY 2011

I certify that the above is a fair print of the Supplementary (Appropriation) Act 2010 which was made by the National Parliament on 16 November 2010.

Speaker of the National Parliament.
19 MAY 2011