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PNG Govt has three Multi-Million Kina Loans outstanding

Treasury Secretary Dairi Vele has revealed that PNG Government has three multi-million kina loans outstanding, which it is repaying on behalf of State-Owned Enterprises - that is captured in its 2019 Supplementary budget.

These include K150 million for NCD roads, the relocation of the Motukea Ports by PNG Ports worth K800 million with K600 million Government guarantee and the K375 million for the Nautilus Solwara 1 project.

Mr. Vele when responding to questions by journalists whether more SOE debts will be included in the 2020 Budget, said the government will have to critically assess that first.

“NCD asked us to help, so we helped. PNG Ports asked us to help so we helped and the Nautilus Solwara Eda Kopa, Kumul Minerals is not established yet not like Kumul Petroleum so we’re paying on their behalf.

‘If we wanted to take those out of our books – we’d just stop paying.

“But the theory around bringing that in is because of risks, so people like the IMF will tell you if you are connected to Government in any way – doesn’t matter whether you’re paying or not, it should be there.

“So PNG Power are not on the list now, but they got loans. If they went broke tomorrow, Government would have to step in unless we sold it. As long as we own it, we control it and we run it – it’s our responsibility.

“And therefore strictly speaking, all of the debts of SoEs – everyone should come in,” Mr. Vele said.

NBC News / PNG Today

Picture Source: Lamana Development Limited

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