Our first steps on the market

By the end of 1985 the Government had succeeded in converting a K3.5 million subsidy to the four Waterboard districts of Lae, Madang, Wewak and Mt. Hagen into a K0.5 million surplus over operating costs. Subsequently, as a result of the success with cost recovery in 1st January 1987, the Government converted the Waterboard into a commercial statutory authority (CSA) under a new (1985) Act that concentrates on undertaking revenue-generating activities. As a CSA, the Waterboard is required to earn a rate of return on its investments as set by the Budget Priorities Committee each planning period and will undertake noncommercial activities as requested by the Government only when the necessary subsidy funds are made available. The Budget Priorities Committee has set 1990 as a target year for the Waterboard to achieve full cost recovery (i.e. operation plus capital costs)