K350mil loan to improve performances of SOEs

THE Asian Development Bank (ADB) has approved a US$100 million (K350.1 million) policy-based loan to improve the operational performance and financial sustainability of state-owned enterprises (SOEs) in Papua New Guinea
“ADB has long been engaged in SOE reforms in PNG and built strong relationships with several SOEs,” ADB Pacific department’s social and public sector management division director Ananya Basu said.
“The PNG government has made good progress on reforms and remains committed to improving the performance of its SOE portfolio.”
ADB said SOEs provided some of PNG’s most critical services, including energy, water, telecommunications, ports and air transport.
“The ADB-supported reform programme aims to help SOEs deliver quality services at affordable prices,” the bank said.
“The programme will support policy actions that help to reduce unsustainable borrowing practices, improve accountability and transparency and encourage private sector participation in service delivery.
“ADB has adopted a programmatic approach to strengthen the legislative and policy framework for corporate governance and improve the financial sustainability of SOEs.
“The programme comprises three annual sub-programmes designed to progress reforms while meeting the government’s budget support needs. ADB’s programme is aligned with Government’s SOE reform plans.
“The programme supports ADB’s strategy 2030 operational priorities focused on strengthening governance and institutional capacity by promoting SOE reforms to improve service delivery and accelerating progress in gender equality by increasing women’s representation on SOE boards.”
ADB said it had coordinated closely with key development partners to design the programme, including the governments of Australia and New Zealand, the International Monetary Fund and the World Bank.