This is in line with the requirements of the approved Dividend Policy, which forms an integral part of Government revenue and contributes significantly to the budget.
The expectation is outlined in the 2017 National Budgets Economic & Development Policies, and states key reforms, one of which is the Dividend Policy, will improve the State’s commercial interests.
The Dividend Policy is one of several policy reforms that promote Government objectives that support the attainment of better returns from SOEs, statutory bodies and equity investments.
Other policy reforms include: On-Lending and Guarantee Policies, Community Services Obligation (CSO) Policy and Public-Private Partnership (PPP) Policy.
The policies are aimed to promote commercial decision-making, greater transparency, good governance and enhanced competition.
This is in line with the Government’s expectation of SOEs to operate on commercial terms so they function competitively and efficiently.
This will be done through the following measurable objectives in the medium term, which include:
- Improving SOE service delivery in telecommunications, electricity, water and sanitation, seaport and airport services, banking and finance and motor vehicle insurance;
- Improve PNG’s share of revenue from the extractive industries and state investments;
- Enhance the governance frameworks supporting SOEs and State investments; and
- Improve the recapitalisation of SOEs and State investments.
The Government says SOEs are critical in determining development outcomes through their mandated roles as providers of essential services and infrastructure.