3 Jul 2007

Tonga's government to buy power generation facilities from Shoreline

10:49 am on 3 July 2007

The Tongan government will buy the national diesel power generation facilities from Shoreline Power this year.

The Matangi Tonga website reports that the Minister of Finance, Siosiua 'Utoikmanu, said a commission would be established soon to manage and operate the power generation facilities.

Initially, a New Zealand company, North Power, expressed an interest in buying Shoreline but following the November riots, it announced it was no longer interested.

There's been speculation that almost half of a multi-million dollar loan that Tonga is about to finalise with China will go toward buying back Shoreline Power.