Water PNG Has Potential To Rake In K100 Million Profit
Public Enterprise Minister Sasindran Muthuvel says Water PNG has the potential to make K100 million in profit after it merges with Eda Ranu.
He said this when responding to questions regarding the merger of State entities including Air Niugini and PNG Air, Telikom and B Mobile and Eda Ranu and Water PNG.
“Merger of Eda Ranu and Water PNG will bring a saving of K40 million per annum, for example, Water PNG, as small as it is, its governing principle is one of the best of all the SOEs.
Mr Muthuvel said in the last 10 years between 2008 and 2018 they declared almost K98.3 million profit while they only utilised 75 megalitres a day of water whereas Eda Ranu used 175 megalitres of water per day almost 200 times more than Water PNG to declare only K40 million in profit.
“This merged company has a great potential to even make at least K100 million net profit if it sticks to the true intent of the merger and bring efficiency into the company,” he said.
He was responding to questions from Komo-Magarima MP Manaseh Makiba on the mergers.
Mr Makiba asked whether the government was proceeding with the mergers of those companies and what would happen to their liabilities.
Mr Muthuvel in response said a recent letter from ICCC confirmed they were not approving the merger between Air Niugini and PNG Air.
“Liabilities of any company, of course, we will be taking both the assets and liabilities but the latest letter from ICCC confirms that it is not going ahead with the merger, so each company will manage to the Covid-19 situation and come out of it,” he said.
“I call on the government to look at perspective and assist both companies in whatever ways possible so we can come out of the Covid-19 impact of loss of business and loss of revenue.”
On the merger of B Mobile and Telikom, Mr Muthuvel said both entities had different loan structures. For instance, Telikom has a loan from ANZ of over K100 million and B Mobile had a similar K100 million loan with BSP.
“The technical merger that Cabinet has endorsed is to manage the network.”