Prime Minister James Marape has seen the need for major interventions by the government to save struggling State-Owned Enterprises (SOEs) like PNG Power, Air Niugini and Water PNG.
To save the face of the SOEs, the Treasurer presented a K200 million funding to Kumul Consolidated Holdings (KCH) on Friday June 14th.
After a 4-hour long meeting during which the Prime Minister was provided a full status report on the three State-owned enterprises, PM Marape said it was overdue that major efforts be put into these SOEs to help them equalize the community service obligation roles they have been playing with profit-making.
“State-owned enterprises have been carrying these community service obligations while operating under run-down infrastructure for too long,” said PM Marape.
He stated that in the government’s stock take in the last four years since taking office, it has recognized that SOEs were putting on a ‘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,” PM Marape stated.
“And so the Government is privileged to give this K200 million.”
The Prime Minister said interventions for these utilities SOEs will be done utilizing government policies such as the Public-Private Partnership to bring development partners on board.
The meeting on Friday July 15 highlighted that, for Air Niugini, the main challenge facing the airline is an aging aircraft fleet that has been causing flight disruptions and impacting revenue.
For PNG Power, it is the loss in revenue including from huge debts the company is owed; and for Water PNG, funding constraints have been named as its biggest challenge.
Recommendations were made for the securing of a couple of aircraft to start a new fleet, something that is looking achievable even at this point.
At the meeting with the Prime Minister was Treasurer, Ian Ling-Stuckey, Minister for SOE, William Duma and directors and management of KCH.
Minister Duma thanked the Government for the funding and commended Prime Minister Marape for his never-ending support to KCH since 2019.
He highlighting that it was PM Marape and his government who supported amendments to the enabling KCH legislation to enable some of the rehabilitative work that have since gone into the struggling SOEs.