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The Papua New Guinea government has announced plans to sell several loss‑making power stations operated by PNG Power Limited to private and provincial entities. The move is expected to reduce the electricity provider’s annual losses by approximately K80 million.
Minister Richard Maru said the sale is part of a broader strategy to restructure PNG Power, address its growing debt, and eventually introduce private capital through partial privatisation of the company.
PNG Power Limited currently operates a network of power generation and distribution centres across the country. Several of these facilities have been operating at a loss for years, contributing to the company’s financial strain.
The government’s proposal involves transferring ownership of the identified loss‑making centres to private investors and provincial governments. The sale is intended to improve operational efficiency and reduce the burden on the national budget.
Details of the sale process, including the selection criteria for buyers and the timeline for the transfer, have not yet been released. The government has indicated that the restructuring plan will be implemented in phases to minimise disruption to electricity supply.
Stakeholders in the energy sector have expressed cautious optimism that the sale could lead to better management of the power infrastructure and potentially lower costs for consumers.
Article source: www.pngfacts.com | Image credit: www.pngfacts.com
