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By Staff Reporter : PNG Today

Merger to improve Services, says Minister Duma

It is better to have just one company to provide water and sanitation service rather than two companies doing the same job.

That was the message from the Minister for Public Enterprise and State Investments, William Duma when explaining the reason for merging both state owned enterprises, Water PNG Ltd and Eda Ranu Ltd.

Duma said the planned merger is important to ensure that water utilities owned by Kumul Consolidated Holdings Ltd (KCHL), provide affordable water and sewerage service to the various centres because the government plans to also reform the Water, Sanitation and Hygiene Sector under the WaSH Policy 2015 to 2030.

Currently, Eda Ranu is responsible for services in Port Moresby city only, while Water PNG looks after the services for the rest of the country.

“KCHL as the sole shareholder of both entities will merge the entities through the shorter form of amalgamation process under the Companies Act 1997 once their respective enabling legislations are amended to cater for the merger,” said Minister Duma.

“This will allow KCHL shareholding in Eda Ranu to be cancelled and Water PNG to acquire the Eda Ranu assets, staff and customer contract. The merged business will come under the control and management of Water PNG Ltd.”

“In the coming weeks, the merger implementation program will be put in place and appropriate statutory approvals will be sought to implement the merger program,” he said.

Meanwhile, Minister Duma assured Eda Ranu employees that none will lose their jobs or have issues with their salaries as a result of the merger because the work force is needed to carry out the big task once the merger is officially made.

Picture1: Minister Duma- picture sourced from www.pmnec.gov.pg

 PNGFM/PNG Today

Posted by Staff Reporter : PNG Today on 8:40 AM. Filed under , , . You can follow any responses to this entry through the RSS 2.0. Share this Article

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