New agriculture SOE gets NEC approval

The National Executive Council has approved the establishment of a new state-owned enterprise (SOE) tasked to hold the State’s interests in all agricultural investments throughout Papua New Guinea.

The newly endorsed Kumul Agriculture Limited (KAL) will operate as a wholly owned subsidiary of Kumul Consolidated Holdings (KCH).

Minister for Public Enterprises and State Investments, William Duma, says KCH will transfer all legal titles of agricultural assets, whether held directly or indirectly, to KAL.

“The agricultural assets that will be transferred to KAL include National Plantation Management Agency Limited, Sepik Agro Industries Limited and Central Dairy Limited. Both KCH and the Department of Agriculture and Livestock will transfer the shares and ownership interest in Livestock Development Corporation Limited together with its functions, management and assets,” Minister Duma said.

The establishment of KAL is endorsed by the Government’s Alotau Accord II that emphasises diversification of the economy through increased investment in agriculture.

Minister Duma says: “Agriculture plays a vital part in the country’s livelihood, contributing nearly a third of GDP and is the largest employer.

“By consolidating the State’s agriculture investments and projects, land and resources, we hope to improve productivity and yield.

“We will open up an investment space for public private partnerships.”

Meanwhile, NEC has directed all relevant Government departments and State agencies to cooperate with KCH in the facilitation and establishment process of KAL.

(Parliament filepic)

Press release