Projects not returning enough profit

STATE Enterprise Minister Sasindran Muthuvel says projects approved by the National Executive Council are not yielding the expected results thus impacting profitability and service delivery to the public.
Muthuvel was referring to the Kumul domestic submarine cable installed for more than K800mil.
He said the Government would service loans of almost K1.3 billion for projects under the Kumul Telikom Holdings portfolio.
“The original project also did not include the cost of connecting some of the submarine cable landfalls to the existing telecommunications networks in the main centres of the country and we are providing a solution which costs additional money,” he said.
Muthuvel said he wanted to get the record straight on the poor financial legacies left by the previous government.
“We all agree that the cost of internet access and general telecommunications must come down to a level where more of the population can participate in the digital economy.”
Muthuvel said the huge debt was something that future generations would have to live with.
“We are investigating options for reshaping the telecommunications sector and allowing initiatives to support infrastructure mutualisation that makes internet accessible, affordable and reliable.”
Muthuvel said the Government would have to consider its role in the ownership of the wholesale and retail components of the industry.
“We are serious about reducing the cost of telecommunications and the internet.
“The ever-reducing cost of smart phones means that more Papua New Guineans can participate in the digital economy,” Muthuvel said.