KCH RESCUES PPL WITH K20 MILLION
Kumul Consolidated Holdings (KCH) today (March 17 2022) went to the rescue of PNG Power Limited with K20 million.
The fund will help PPL to settle creditors who are independent power producers (IPP).
KCH Acting Managing Director, David Kavanamur said this was in line with statements made earlier this month regarding the Government’s support of PPL.
“KCH has continued to support the open dialogue between PPL and its various creditors, “ Kavanamur said.
“It is encouraged by the cooperation and will continue to assist when necessary. This includes a review of all power supply contracts to PPL with action being taken on power purchase agreements that are found to be illegal.
“KCH has also provided capacity backing to the finance and commercial teams at PPL, to collect monies owed to the company.
“It is imperative that all power bills are settled in a timely manner, so that they can meet creditor payments.
“The majority of homes and businesses are connected to the Esi-pay system, which makes cash flow easy to manage. But similarly, many residences and businesses are on postpaid meters. We are assisting PNG Power with a conversion programme and to introduce more smart metering and pre-paid Esi-Pay meters.
“The smart meter systems and more community awareness programmes will assist PNG PPL to reduce the amount of generated power that is lost to illegal connections and theft.
“Nearly a third of all power generated is stolen. This is major cost to PNG Power and is not sustainable or acceptable. “
Kavanamur indicated that the grid stabilisation projects had commenced and would ramp up with funding allocated toward network infrastructure rehabilitation and grid continuity.
“A further K11m has been invested in PPL projects in Port Moresby for grid stabilisation,” he said.
“Engineers and contractors are carrying out several activities that will build power reliability.
“This complements existing rehabilitation, connection and expansion programmes with donor partners.
“KCH is working closely with PPL teams to review longer term business transformation and continuity. This includes investing in the digitalisation of internal and external systems, training, and skills development, strengthening commercial and financial modelling, and reinvigorating the company culture.
“This is all contributing toward a new business model for PPL that is fit for purpose, effective and sustainable. PPL will once again become a place where people are proud to come to work and contribute to the growth of our nation.”