PNG Power broke

Photo: PNG Power Limited/Facebook

Papua New Guinea State Enterprises Minister William Duma says PNG Power Limited has reached a critical point where all financial indications show that it is in danger of insolvency.

“Major contributing factors over the past 15 years that have affected the power system reliability, cost and accessibility, include human capability, ageing infrastructure, an almost non-existent asset management programme and a lack of capital investment in core assets,” he said.

He tabled in a ministerial statement PNG Power’s rescue and reform plan and told Parliament the company had not made a profit since 2016.

It instead accumulated losses from 2013 totaling to K593.4 million (US$165.5 million). “It owed about K883 million (US$246 million) to unsecured creditors at the end of last year,” he said.