Prime Minister Hon. James Marape has announced a sweeping review of Papua New Guinea’s state-owned enterprise governance system, warning that layers of boards and holding structures are undermining service delivery and contributing directly to persistent blackouts, water shortages and poor infrastructure performance.
Speaking as Cabinet convened today, Prime Minister Marape said Government is now examining the entire Kumul Consolidated Holdings (KCH) structure and how major utilities such as PNG Power, PNG Water and Air Niugini report through multiple governance layers.
“We are also looking at the entire KCH structure — how PNG Power reports to the mother board, how PNG Water reports to the mother board, how Air Niugini reports to the mother board,” he said. “I think a couple of layers of boards have become a quagmire. That in itself can be an impediment.”
The Prime Minister said the current system has created too many bureaucratic choke points, delaying decisions, weakening accountability and slowing urgent investment and maintenance.
“Our citizens have been laboring too much on blackouts, water issues — all of this,” he said.
“We are taking a holistic look into all this.”
Fixing the structure, not just the politics
Prime Minister Marape stressed that the review goes beyond ministerial reshuffles and will focus on the actual architecture of government and state enterprises, which he described as the “engine room” of service delivery.
“Just like we are looking at the entire central government structure, we are also looking at the KCH structure,” he said. “This review will not only be at Cabinet level, but more importantly at the structural level of these key government institutions.”
He said the aim is to create a streamlined, professional and accountable system that allows state-owned companies to function efficiently while still protecting integrity, due process and good governance.
“We want a structure that is tidy — that allows for expeditious work without compromising integrity, due process and good governance,” Prime Minister Marape said.
One-month deadline for reform blueprint
Prime Minister Marape said Government expects to complete the review within the next month, with the Chief Secretary leading the technical work alongside Cabinet.
“The Chief Secretary is under the pump this week and this month,” he said. “Today, as we start our Cabinet, we will be running this work so that we put in place the correct structure of government that is working to serve our people, come what may.”
The Prime Minister said this is a long-term reform designed not only for the current Government, but for whoever forms government after the 2027 General Election.
“In 2027, whoever takes office must inherit a structure that is already fit for service — not one they must struggle to fix,” he said. “We want a system that can serve our people better, not one that slows them down.”
The review is expected to cover governance, reporting lines, board structures and accountability frameworks across all major state-owned enterprises, with a particular focus on electricity, water and aviation — sectors that directly affect households, businesses and national economic growth.