STATE PRIVATIZING PART OF ITS OWN POWER COMPANY

The government has moved to privatize a portion of its state-owned power company, PNG Power Limited, to improve on its services to the people.

This was announced by Prime Minister James Marape today at the PNG CORE 2024 Investment Week in Sydney, Australia.

Marape told the PNG CORE Investment Week that Cabinet has approved the decision in one of its final meetings this year the partial privatization of the State-owned enterprise to improve its operations and efficiency of power supply to Papua New Guinea (PNG).

The partial privatization means the State will continue to maintain its interest in PNG Power with the investor taking over management of the enterprise and equity- assets worth over K4 billion in the company.

This will be the second decision the Cabinet has made on PNG Power following an earlier decision that was made to look at the company’s power generation, retail and distribution status.

The Prime Minister then urged investors to keep an eye out for Expressions of Interest soon to be advertised, pointing out the advantage in PNG Power’s “first right to supply power” monopoly in PNG.

“Power supply is a strategic asset and investment, and PNG Power has two important assets. It has asset that are K4 billion in total, and more importantly it has monopoly in first right of supplying power with its community service obligation that it still holds,” said the Prime Minister.

PM Marape said reforms in the energy sector have begun with the government ministry responsible ready to issue licenses to investors willing to partner his government to take power supply to parts of PNG that are out of reach of PNG Power, as up to 70 percent of the country remains without electricity supply.

He also highlighted the Government’s long-term decision to move into clean, green energy in the next 20 years, while pointing out PNG’s numerous clean energy potential in hydro, thermal, wind and solar sources.

He urged investors to seriously consider this space and to look further down the line to selling power over the borders to Indonesia and Australia.

“We want to unlock power in our country by bringing cheaper reliable and cleaner power to our people at the earliest. We have more than enough sources of clean energy where hydro remains the biggest available source.”

“I encourage investors to think big and take up these opportunities that are available in our country,” said PM Marape.