Papua New Guineans are to be offered the chance to own shares in state owned assets up for sale, Radio New Zealand reports.
The government says that partial privatisation of Air Niugini, with 49 percent of the national airline to go on sale, will be the first in a series of privatisations. The electricity provider, PNG Power, is also being considered for partial sale. The Prime Minister Peter O'Neill says Papua New Guineans can feel a sense of pride in Air Niugini's record of service and will have opportunity to take further ownership of their airline. "So we are encouraging our own citizens to take the first chance to purchase the initial issues of shares that are going to be done. If they are not fully subscribed, then we are going to turn to some of our own companies within the country, including the superannuation and others, give them the opportunity to purchase the additional capital through issue of shares that's going to be raised." Meanwhile, T.H.E Party leader Don Polye has also called on Papua New Guineans to buy shares in state-owned entities, He said in a statement yesterday that the Government had pushed for the quick sale of some shares of few SOEs as a few selected politicians would take significant interest in the SOE. Mr Polye said PNG citizens and local institutions should acquire shares in the SOE but it would be also appropriate to invite the private sector from the wider competitive markets to become partners with the SOE "to bring significant changes to achieve full commercialization and improved service delivery while improving financial performance". He said SOEs have lacked relevant technological expertise and financial resources thus confronted with operational issues and unable to develop infrastructure to improve service delivery. "By utilising private sector participants sourced externally through a competitive bidding process, only reliable partners with appropriate management skills, technological expertise and financial resources would enter into partnership with IPBC to reform non-performing SOE," Mr Polye said. "The PPP policy components are value for money." Comments are closed.
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