Manila: The Asian Development Bank (ADB) has approved a $150 million loan to improve state-owned enterprises (SOE) in Papua New Guinea (PNG).
"ADB has long been engaged in SOE reforms in PNG, and built strong relationships with several SOEs," said ADB Principal Public Management Specialist for the Pacific Pamela Wyatt in a press release on Friday.
"The Government of PNG has made good progress on reforms and remains committed to improving the performance of its SOE portfolio," she added.
Most essential services in PNG, such as energy, water, telecommunications, ports, and air transport, are provided by SOEs. The ADB-supported PNG SOE Reform Program aims to help SOEs deliver high-quality services at affordable prices. The program is expected to reduce unsustainable borrowing practices, improve accountability and transparency, and encourage private sector participation in service delivery.
The program comprises three annual subprograms, which are designed to progress reforms while meeting the government’s budget support needs. ADB’s program is aligned with the government’s own SOE reform plans.
ADB has coordinated closely with key development partners to design the program, including the governments of Australia and New Zealand, the International Monetary Fund and the World Bank.