Tonga’s New Government Revokes Lupepau’u Airport Privatisation Plan
The Tongan government has reversed a key decision made by the previous administration, revoking the planned privatisation of Lupepau’u Airport in Vava’u. Prime Minister Hon. Dr. ‘Aisake Eke announced the move during a media conference on Friday, following his Cabinet meeting.
The decision marks a shift from the previous stance taken by former Acting Prime Minister Hon. Samiu Vaipulu, who stated in December that a New Zealand company was set to take over and redevelop the airport. However, the new administration has decided to halt the privatisation plan to allow for further review and assessment of the proposal.
“Cabinet has decided to revoke that decision to ensure that all aspects of the proposal are carefully examined before proceeding with any significant changes to airport management and ownership,” said Prime Minister Dr. Eke.
The move signals the new government’s commitment to maintaining state control over key infrastructure while ensuring that any future developments align with national interests.
Emphasis on Transparency in Public Enterprises
In addition to halting the airport privatisation, the government also revoked a controversial decision that allowed board members of public enterprises to automatically extend their terms beyond their end date of March 15, 2025. This was seen as an act by the previous administration to keep their ‘people’ in their role as board members for another four years.
Dr. Eke emphasised that all board positions would now be open for public applications, ensuring a fair selection process. “This decision upholds the principles of transparency and accountability. It is essential that all qualified individuals have an equal opportunity to apply for these positions,” he stated. Current board members will still be eligible to reapply.
The reversal of these decisions highlights the new administration’s policy direction, focusing on transparency, good governance, and thorough assessment of major economic projects.
Public and Business Sector Reactions
The revocation of the privatization deal has drawn mixed reactions from the public and business sector stakeholders. Some support the government’s cautious approach, arguing that key national assets like airports should remain under state control. Others, however, see privatisation as a necessary step to modernise infrastructure and attract foreign investment.
As the government moves forward with its review process, further discussions and consultations with key stakeholders are expected. The fate of Lupepau’u Airport remains uncertain, but for now, it will continue to be managed by Tonga Airport Limited under the existing state framework.
