The provision of water and sewerage connections into homes must be a social obligation of the National Government, says Sinasina-Yongomugl MP Kerenga Kua.
He also raised in Parliament yesterday the idea of merging Eda Ranu and Water PNG. This is to help in providing this adequate need, which in many provincial centres is non-existent.
“The most profitable centre is Port Moresby, which falls under Eda Ranu and the other centres which are not profitable are placed under Water PNG. That is why Water PNG is unable to afford and finance the cost of provision of clean water supply and sanitation to the rest of the country,” Kua said.
“Can the minister look at reviewing this arrangement in a view to merge Eda Ranu and Water PNG so one authority, with one balance sheet and one cash flow, looks after the water supply throughout Papua New Guinea?
“The profits generated from Port Moresby can also be used to help other parts in PNG; we are part of one country,” Kua stated.
“In the new arrangement, can we categorise the mandate of the new entity from a profit to nonprofit organisation so that it cannot declare dividend to the Government as a shareholder, but all the profit it will return and continuously redeploy to the maintenance of the water supply system?”
Kua said this should be carried out until all the water and sewerage supply system is working 100 percent (in the country) then the mandate can be changed to profit.
“So it can pay dividend because it is losing money when paying dividend.”
But State Enterprise Minister William Duma said there is no need for merging and all state owned companies must continue to pay revenue to the National Government.
“They must provide dividend because if we see a SOE as a non-dividend company, the staff and management will have no motivation and will become compliant,” Duma responded.
Caption: Rural water treating plan for Yangoru Station in East Sepik Province owned and operated by Water PNG.