MANILA, PHILPPINES (5 December 2022) — The Asian Development Bank (ADB) has approved a $250 million policy-based loan to help Papua New Guinea’s (PNG) state-owned enterprises (SOEs) deliver high-quality, affordable services through Subprogram 3 of the ADB-supported SOE Reform Program.
Subprogram 3 supports PNG’s efforts to improve the operational performance and financial sustainability of SOEs and strengthen service delivery. The final subprogram has helped further improve performance and created space for the private sector in critical services such as telecommunications.
“This policy-based program has helped PNG strengthen its legislative and policy frameworks for SOEs, enhanced governance and transparency, and improved the financial position of SOEs in key sectors such as energy, water supply, and aviation,” said ADB Financial Management Specialist for the Pacific Matthew Rees. “We are very happy to see the program delivering results. Supported by recent reforms, SOE Kumul Consolidated Holdings paid the government a dividend of 80 million PNG kina ($22.9 million) this year for the first time since 2015.”
The program is being delivered in close coordination with the Australian and New Zealand governments.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.