Government has realized the need to support the State Owned Enterprises that are not performing well and paying profit.
In a meeting yesterday, the Prime Minister James Marape was provided with a full status report on the three State-owned enterprises PNG Power, Air Niugini and Water PNG.
After the reports presented, PM Marape said it was overdue that major efforts needs to be put into these SOEs to help them equalize the community service obligation roles they have been playing with profit-making.
Prime Minister has reiterated the need for major interventions by the government to save the struggling State utilities companies.
Therefore, Treasurer Ian Ling-Stuckey presented a K200 million funding to Kumul Consolidated Holdings (KCH).
“State-owned enterprises have been carrying these community service obligations while operating under run-down infrastructure for too long,” said PM Marape.
“In our stock take in the last four years since taking office, we have recognized that all we have been doing over the years has been putting on cosmetic dressing.
“But we need major by-passes, the way a surgeon carries out a by-pass on the heart. We need to keep these SOEs from sinking so we can be able to turn the efficiency of their businesses around.
“At the end of the MTDP4, these SOEs must become fully self-sufficient and contributing to the economy in a much bigger way.
“And so the Government is privileged to give this K200 million.”
The Prime Minister said interventions for these SOEs will be done by utilizing the government’s policies such as the Public-Private Partnership to bring development partners on board.
The meeting highlighted that, the main challenge Air Niugini is faced with aging aircraft fleet that has been causing flight disruptions and impacting revenue. PNG Power has loss in revenue including from huge debts the company is owed while Water PNG has funding constraints as its biggest challenge.
Recommendations were made for securing of a couple of aircraft for Air Niugini to start a new fleet, something that is looking achievable even at this point.
Present at the meeting were Prime Minister James Marape, Treasurer Ian Ling-Stuckey, Minister for SOE William Duma and the Directors and management of KCH.
Minister Duma took time to thank the Government for the funding and commended Prime Minister Marape for his “never-ending support of KCH since 2019”.
