December 10, 2019
Reforms will occur across all SOEs with key measures including corporate restructuring to optimise operational and financial performance
Monday 9th December, 2019 – Port Moresby:
Kumul Consolidated Holdings has now developed a well-articulated implementation strategy that will guide the reform agenda of State-owned enterprises.
The strategy and the recently endorsed SOE reform matrix by the National Executive Council articulates the reform policy framework that was put together by the Ministry of State Enterprises.
The reform program is a key pillar of the Marape government’s agenda to take back PNG and has received strong support from both the public and private sector, as well as the members of parliament.
The reform agenda was also critical in underpinning Australia’s recent decision to provide $300 million in budget support.
Acting managing director of KCH Parkop Kurua believes the reform program which is already set in motion will see SOEs transformed into lean corporatised entities with a stronger focus on customer service and a mandate to deliver sustainable profits while ensuring improved levels of service delivery.
“Reforms will occur across all SOEs with key measures including corporate restructuring to optimise operational and financial performance. The reform agenda also envisages sales of non-core assets and refinancing of unsustainable debts.
“Options for partial privatisations will also be modeled, while recognising the importance of retaining sovereign control of critical infrastructure assets,” Mr Kurua said.
“The reforms will initially focus on the more distressed entities- currently PNG Power and Kumul Telikom Holdings – to prevent further deterioration in their financial performance as well as to restore their ability to improve service delivery.”
He said in addition to the $300 million support recently announced by the Australian government, the government is also in dialogue with the Asian Development Bank for a possible policy loan of up to US$750 million to support the SOE reform agenda.
This will be used to refinance some of the unsustainable domestic commercial debts incurred by SOEs in previous years and will also be used to underpin the 2020 budget.
Kumul Consolidated Holdings, in collaboration with PNG Power Ltd (PPL), is seeking Expressions of Interest (EoI) from owners of suitable alienated land to enter into a lease agreement with a future independent power producer under which the land will be used for the installation and operation of a solar farm.
Acting Managing Director of Kumul Consolidated Holdings (KCH) David Kavanamur, presented Chief Executive Officer of Nasfund, Ian Tarutia and his Investment Team with the Information Memorandum for the partial privatisation of Telikom Limited.
Kumul Consolidated Holdings (KCH) Chairman Peter Aitsi and Chair of the KCH Audit & Risk Committee James Gore today announced that their Board had endorsed a Whistleblower Policy.