By GEORGINA MICHAEL
MINISTER for International Trade and Investment and Minister responsible for PNG Power Limited, Hon. Richard Maru, says PPL will be ready for partial privatisation by November, with the sale process expected to be completed by February 2027.
Mr Maru said Papua New Guineans must be given the first opportunity to invest in the restructured PPL, including superannuation funds, landowner companies and PPL employees.
“We must bring in private sector investment. By December, we will go to market and invite private companies, especially our super funds, landowner companies and staff of PNG Power, to buy into PNG Power,” Mr Maru said.
He said he wanted the private sector to hold the largest share in the new business going forward.
The restructured PPL will cover the core profitable grids of Port Moresby, Ramu and Gazelle. Other B and C centres will be offered separately to private sector investors.
Mr Maru said proceeds from those sales would be used to fund upgrades to Ramu, Yonki and other key infrastructure to enable them to operate at full capacity.
The new company will also invest in hydro, solar and wind projects to deliver cheaper, cleaner and more reliable electricity.
Mr Maru said partial privatisation would involve bringing private capital and technical expertise into PPL while maintaining government ownership.
“It is not a full sell-off of the national utility,” he said.
“Any sale process will be transparent and subject to NEC approval, with the State retaining a strategic interest in the national grid and in the affordability of power for households and businesses.”
At the same time, PPL’s balance sheet will be stabilised, with the Government not seeking further international borrowing to recapitalise the utility.
Public funds will instead be prioritised for health and infrastructure.
“This is not a company we can rescue with another loan. It is a company we must fix and restructure, and open to serious long-term investment through operational discipline and private capital,” Mr Maru said.
He said the Government would also review Independent Power Producer (IPP) agreements to reduce the cost of electricity purchased by PPL.
Kumul Consolidated Holdings will lead the sale process through an Information Memorandum and a formal market process.
Mr Maru said the Government would provide monthly public updates on progress under the three-step, six-month plan.