BY ESWIN PLESIO
THE Government is preparing to make tough decisions to rescue financially troubled PNG Power Limited, International Trade and Investment Minister and Minister looking after PNG Power Richard Maru says.
Maru made the commitment in Parliament after Abau MP Puka Temu questioned the Government’s plan to revive the state-owned power company, which has suffered years of financial losses, mounting debt and unreliable service.
Temu referred to Prime Minister James Marape’s recent description of PNG Power as being in a “terminally ill situation”, comparing the company’s condition to stage-four cancer.
He said the description reflected the seriousness of the problems facing the country’s main electricity provider.
Temu also questioned the Government’s plan to have 50 per cent of its vehicles running on electricity by 2030 when PNG Power was struggling to provide reliable electricity.
“Minister, tell the country, how are you going to revive this dead animal?” Temu asked.
Maru said he was preparing a submission to Cabinet containing several measures to stop PNG Power from continuing to lose money.
One proposal is to open a tender process to transfer the company’s loss-making B and C centres to provincial governments or private companies.
Maru said the move would “stop the bleeding” and allow provinces and private investors to take responsibility for the centres.
The profitable Ramu and Gazelle grids would remain under PNG Power.
The Government is also considering the partial privatisation of profitable centres to attract private investment.
Maru said the Government was further considering settling some of its outstanding debts to PNG Power through the supplementary budget.
The proposed measures build on Maru’s three-step, six-month rescue plan announced on August 14, which focuses on stabilising PNG Power’s finances, improving
operations and attracting private investment.
Maru said the Government could no longer afford to delay difficult decisions on the future of PNG Power.