by Tokana Hassavi – EM TV, Port Moresby
A public-private partnership between IPI Catering and the University of PNG has reaped over K1 million in profit.
The innovative and lucrative partnership is a first in the country, and for both parties, since its launch in 2013.
The deal is fairly simple, yet enterprising – IPI sells food items to UPNG’s canteens at a subsidized rate, while the large amounts of ‘hungry’ students on campus buy them.
The profit at the end of the day is calculated and distributed evenly between UPNG’s Student Representative Council and IPI.
Today, K216,000 from last year’s profit, was presented to the SRC President, Roy Cornelius.
Cornelius says the funds will go towards the construction of a printing shop, which will open next week, while future plans include a supermarket.
An increase of K2,000 from the previous year.
It’s not a common trend in PNG to have a public university and a private company work together to achieve profit, especially when the company is profit-based, but IPI’s Peter Denmead says, valuing community needs has its positives.
“It’s obviously a new concept – although it comes with its risks, in terms of profitability, we want to ensure a sustainable relationship with the University and we are optimistic that the business activities that surround this deal will work in the future” said Denmead.
Unchartered waters for IPI and UPNG, as they both strive to achieve profit from this unique partnership. But it’s more of a win for the University.
Three years ago, it was plagued with corruption, aging infrastructure, poor leadership and massive debt into the millions, but under the new administration, unique business ventures as such, can help ease some of their burdens.