The Minister for Public Enterprises, Sir Mekere Morauta, said today there would be no redundancies at PNG
Power Limited as a result of any PPP arrangement to fix Port Moresby’s power problems.
“No one will lose their jobs as a result of the current exercise,” he said.
“No PPL employee will lose any of their existing entitlements or suffer any loss of their employment terms and
conditions, including wages, superannuation, staff loans, savings and loans and salary sacrifice arrangements,
accrued leave and long-service leave.
“Those are guarantees that are part and parcel of the current negotiations.
“I do not know where rumors to the contrary have come from, but they are untrue.
“The Government values PPL staff, as does PPL and IPBC. Retaining existing staff is a critical part of the plan
that the Government has for fixing Port Moresby’s power supply problem.”
Sir Mekere said he had offered, through PPL, to meet union representatives to reassure them of the
Government’s good intentions.
He said he would also be happy to explain the Government’s plan in more detail.
In particular, he said, he wanted to tell workers that NO power generation asset was being sold to anyone.
“The assets will be transferred from PPL to a wholly owned subsidiary to be called Port Moresby Power Limited.
So PPL, through Port Moresby Power Limited, will continue to own the assets,” he said.
“Similar arrangements will be used to expand the Ramu scheme with a big new power station at Yonki.
“If current negotiations with LR Group are successful, LR Group and PNG Power will have a 50-50 management
contract to refurbish, maintain and manage the assets owned by Port Moresby Power Limited. LR will have a half
share in managing the assets, not any form of ownership at all.”
Sir Mekere said PNG Power employees who may be transferred to Port Moresby Power Limited will do the same
work they have always done, on the same employment terms and conditions.
The only difference will be that they will have new skills, new equipment and new financial resources to do their
“And the people of Port Moresby will have a reliable power supply once more and endless electricity price rises
will be a thing of the past for consumers.”
Mekere Morauta KCMG MP
Minister for Public Enterprises
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