PNG POWER UP FOR PARTIAL PRIVATISATION
SOE MINISTER DIRECTS ALL PARTIES TO WORK TOGETHER
THE Marape-Rosso Government is moving forward with the partial privatisation of PNG Power Limited, and considering options that will provide the best outcomes for the benefit of customers and investors, while serving the interests of the Nation.
The Minister for State Enterprises, Hon. William Duma, in a recent statement emphasised that the process of privatising an essential state-owned service is complicated and must be done properly and transparently.
“The National Government is restructuring scenarios proposed for the scheme of arrangement outlined by KordaMentha, which will form the basis of “It discussions and negotiations,” Minister Duma confirmed.
“It has taken a lot of work and co-ordination to advance to this point, and I look forward to this effort continuing now that we have a roadmap, and all parties must continue to make their contribution to negotiations. “The proposed scenarios consider elements of PPL’s operations that could feasibly be privatised alongside potential timeframes involved.
“PPLs operations cover a range of grids from large down to micro levels, so there may not be a standardised approach to each of these networks.”
Minister Duma said it is no secret that PPL is a liability to the State, but as a commercial operation has significant potential, and these are the matters being discussed by the National Executive Council (NEC).
The NEC has approved the 2024-2026 PPL Corporate Plan and directed that tenders be prepared consistent with the decision on partial privatisation.
“This year, NEC approved the PPL Privatisation Road Map, from which KCH engaged professional privatisation. consultants to assist with stabilisation and “This included reports that covered stabilisation plans, solvency tests, legal review and valuation and information memorandum for privatisation.
“Looking at the specifics of these reports, a significant part of the findings was consistent with previous market analysis. “A short-term stabilisation plan to improve PPL’s financial performance and cashflow in preparation of partial privatisation.
“The current solvency position of PPL is clear that a transition to partial privatisation shareholder contributions required to maintain operations.
“Further, creditors and other factors such as current court claims, should generally be attended in order to prevent delays in the process.”
The Minister made the point that there can be no more delays in moving towards the partial privatisation of PNG Power Limited.
“For many years there have been a lot of talk, but no action in relation to the privatization of PPL.
He says, the Marape-Rosso Government will deliver PPLs partial privatisation with due consideration of the range of issues involved, and in the interests of Papua New Guinea and investors.
