PNG Power and Other Shareholders Reviewing Their Options
To bring capital into the business, PNG Power Limited, along with Kumul Consolidated Holdings and other shareholders, are reviewing all their options.
Managing director Flagon Bekker said that this will be based on the cost of capital and getting the best deals available.
“It will allow the broadening and deepening of the PNG financial sector, showing that it is becoming more sophisticated and more in line with how other regional countries’ developed their sectors,” he said.
In the next few months, Mr Bekker said they will improve the dispatch of the Dirio power plant.
“A normal practice in power station development to manage disruption to the Grid and in line with customer connection rate, substations is critical. In the interim we do not have a shortage of power for the POM Grid,” he said. “Substations are the nodes that allow customers to connect to power sources. They are integral and critical to the future of economic growth in Port Moresby as they are across all our cities, towns and villages. Investing in infrastructure is made against the background of a balanced business case in the context of our commitment to Vision 2030. We will build out substations in the most optimal order, aligned with our commitments to the connection of customers.”
Meanwhile, Niupower chief executive officer Michael Uiari said they are also in talks with PPL management on ways where capital can be realized to restore the reliability for customers.
“At least 2 of the IPPs in Port Moresby along with our local financial institutions are key to realising this capital for PPL, without further burdening our Government,” he said. “There is broad alignment amongst these stakeholders on this objective. We hope to progress discussions in February, mindful that PPL’s needs are immediate.”
Former KCH chairman Peter Aitsi said that it is also important that they should pay for their long-outstanding bills, and to put in much-needed funds back into PPL. This will be used for upgrading and repair of the infrastructure.
“The appointment of a new CEO by the Board of PNG Power is a positive step forward and will require the ongoing support of all stakeholders in order for us to see long term change and improvements in services to customers,” he said.