By BOSORINA ROBBY
THE National Airports Corporation expects all airports in PNG to be fully privatised by 2030, according to the NAC 2012-2030 strategic direction plan, The National reports.
Most airports are currently managed by the NAC and the state but could use the private-public-partnership (PPP) concept to move them into the status of private sector ownership.
Managing director Joseph Kintau said yesterday they were working on getting some of the airports to be under some form of PPP, to become a policy model on how they could sustain other airports as well.
“An example of what we are doing is that we are considering a PPP with PNG Sustainable Development Programme for the development of the Daru and Kiunga airports,” he said.
“This would help the government realise its objective to provide services to rural areas, using the PPP.
“At the same time, the objectives of PNGSDP and the others are also met, creating a mutually-beneficial arrangement for all.”
Kintau said even though an airport was under a PPP arrangement or fully-privatised, NAC would still maintain a role in managing the airport or non-aviation related areas of the airport.
He said the main issue in the PPP process was the question of certainty of getting government’s contribution on PPPs.
“To rely on the annual budgetary appropriations is not adequate to give necessary security for the investor or service provider,” Kintau said.
“So we have to now work on a more secure model that will guarantee availability of funding to pay for the services or contracts been procured under PPP arrangements.”
He said the aim was to get all airports to be viable and at the same time enhance the value of assets in respective airports.
THE National Airports Corporation expects all airports in PNG to be fully privatised by 2030, according to the NAC 2012-2030 strategic direction plan, The National reports.
Most airports are currently managed by the NAC and the state but could use the private-public-partnership (PPP) concept to move them into the status of private sector ownership.
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| An artist's impression of what the Jacoson Airport would look like |
“An example of what we are doing is that we are considering a PPP with PNG Sustainable Development Programme for the development of the Daru and Kiunga airports,” he said.
“This would help the government realise its objective to provide services to rural areas, using the PPP.
“At the same time, the objectives of PNGSDP and the others are also met, creating a mutually-beneficial arrangement for all.”
Kintau said even though an airport was under a PPP arrangement or fully-privatised, NAC would still maintain a role in managing the airport or non-aviation related areas of the airport.
He said the main issue in the PPP process was the question of certainty of getting government’s contribution on PPPs.
“To rely on the annual budgetary appropriations is not adequate to give necessary security for the investor or service provider,” Kintau said.
“So we have to now work on a more secure model that will guarantee availability of funding to pay for the services or contracts been procured under PPP arrangements.”
He said the aim was to get all airports to be viable and at the same time enhance the value of assets in respective airports.
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