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Water companies merger progressing, official says

The merger of Eda Ranu and Water PNG will proceed once all the processes are completed, an official says.

Kumul Consolidated Holdings Ltd (KCHL) managing director Isikeli Taureka said that even if the Bill was passed in Parliament, there was a process that would follow in order for the merger to take place.

Parliament recently passed the National Water Supply and Sanitation (Amendment) Bill 2020 which would now enable the merger of two state-owned entities, Eda Ranu and Water PNG.

The Bill was to repeal the National Capital District Water Supply and Sewerage Act 1996 and to amend the National Water Supply and Sanitation Act 2016 to allow for the merger.

Water and sanitation in the country had been governed by two separate laws which allowed Eda Ranu to supply water and sewerage in NCD while Water PNG Limited took care of the rest of the country.

The bill looks to enable Water PNG Ltd to be the only authority to inspect and provide licences to any person supplying water and sanitation systems whether for public or private use.

All Eda Ranu assets would be transferred to Water PNG Ltd including all obligations and liabilities.

The employees would become part of Water PNG Ltd on the same terms and conditions of employment.

Officer-in-charge of the merger Parkop Kurua said KCHL and Water PNG were restructuring the company.

He said the two entities would have to be restructured to reflect the decisions that had been made.

Kurua said Port Moresby would now be incorporated into the Water PNG business.

Source: https://www.thenational.com.pg/water-companies-merger-progressing-official-says/

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