Law change eyed in water firms merger

Merging of two State-owned entities Water PNG and Eda Ranu will be completed at the beginning of next year, according to Public Enterprises and State Investments Minister William Duma.
Responding to a query yesterday on the status of the merger, he said: “We are working in getting the legislative amendments approved by the National Executive Council before Parliament enacts the amending laws.”
In a statement in March of this year, Duma had said the proposed move was part of “plans by both Kumul Consolidated Holdings to ensure that the water utility owned by KCH provides a return on investment and at the same time provide affordable water and sewerage services to our cities and towns”.
He said the Government planned to reform the water, sanitation and hygiene sector under the Wash Policy 2015-2030.
“Currently, Water PNG Ltd is responsible for water supply and sewerage services in the country – except for the National Capital District which Eda Ranu is responsible for,” Duma said.
“Kumul Consolidated Holdings Ltd, as the sole shareholder of both entities, will merge them through the shorter form of amalgamation process under the Companies Act 1997 once their respective enabling legislations are amended to cater for the merger. This will allow KCH shareholding in Eda Ranu to be cancelled and Water PNG Ltd 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 programme will be put in place and appropriate statutory approvals will be sought to implement the merger programme.”