22 Sep 2014

PNG looks for private sector efficiency in SOEs

7:55 pm on 22 September 2014

Papua New Guinea's Prime Minister says there's a growing need for private sector participation in the management of state-owned enterprises.

The government is preparing for the partial sale of Air Niugini as the first in a series of privatisations.

PNG Power is also being considered for partial sale early next year.

Peter O'Neill says public/private partnerships are a way to forge greater efficiency of the state enterprises.

He says in the case of the electricity provider, there is a clear need to raise capital to expand the services and meet growing demand.

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Photo: RNZ

"Again it's not only about raising capital but it is also about trying to bring private sector efficiency and management skills into managing the state-owned assets. The state-owned enterprises have been mismanaged for quite a while. As a result, we have not fully been able to realise its potential and its ability to deliver world class services."

Peter O'Neill