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Govt To Settle K94.7m ANG Debt To NAC

Prime Minister James Marape has announced that the National Executive Council (NEC) has approved a 12-month funding support package of K94.7 million for the National Airports Corporation (NAC).

The funding will come under the Government’s K5.5 billion economic stimulus package to ensure the Airports continue to operate at acceptable safety and security compliance levels.

Minister for Civil Aviation Lekwa Gure said last Friday that the impact of Covid-19 pandemic and its aftermath on the domestic and international aviation industry has severely affected the industry with the restrictions on air travel and closed international borders.

Mr Gure said the International Air Transport Association (lATA) forecasts a 40 percent reduction in global aviation revenue from April to June 2020.

He said NAC revenues have declined sharply as a result of drastic reductions in aircraft, cargo and passenger movements, citing that NAC could not further continue to sustain operations in such environment.

“NAC requires Government funding support to keep all 22 airports fully operational at acceptable safety and security certification levels for domestic air travel, cargo, emergency medical supply delivery and limited international operations at Port Moresby International Airport. This is in line with Government’s requirements during and following the aftermath of this pandemic,” he said.

Mr Gure said therefore the government has stepped in with this emergency rescue package for NAC to ensure that the 22 national airports, which are critical economic infrastructures stay open for use during these uncertain times.

Minister for Civil Aviation MrGure is responsible for NAC and the Minister for State Owned Enterprises, Sasindra Muthuvel is the Minister responsible for ANL.

Both ministers have jointly agreed for both entities to sit together with other sister state-owned-enterprises (SOE) to work out a payment strategy and schedule an order of K8 million per month over the 12-months.

Source: https://postcourier.com.pg/govt-to-settle-k94-7m-ang-debt-to-nac/

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