Nauru has a range of State Owned Enterprises (SOEs), that are governed by an overall Public Enterprises Act 2019 (PEA), as well as specific enabling legislation.
Where there is inconsistency between provisions in specific SOE enabling legislation and the PEA, the PEA prevails.
According to the PEA, the primary objective of a SOE is to be a successful business. It is to be at least as profitable and efficient as comparable businesses in the private sector, and generate each financial year a net operating profit tax that is not less than its weighted average cost of capital as a percentage.
The Government is progressively implementing the PEA, with a view to improving the efficiency and effectiveness of State owned businesses.
The implementation is being supported with technical assistance funded by the Asian Development Bank.
As part of this implementation, it is expected that there will be progressive improvement in the performance of SOEs, and in the publication of key governance artefacts, including annual reports and audited annual financial statements.
Budget Paper No 2 includes information about SOEs. An extract related to SOEs is below.
In 2020, the Government adopted a Community Service Obligation policy for SOEs. Details are in the document below.
List of Public Enterprises
State owned enterprises include:
- Nauru Rehabilitation Corporation
- Nauru Maritime and Port Authority
- Eigigu Holdings Corporation (including the Menen Hotel, Eigigu Solutions Corporation and Eigigu Supermarket)
- Nauru Utilities Corporation
- Cenpac Corporation
- Nauru Airlines Corporation
- Naoero Postal Services Corporation
- Nauru (Regional Processing Centre) Corporation
Government controlled entities include:
- Nauru Fibre Cable Corporation
- Nauru Fisheries and Marine Resources Authority
- Nauru Tourism Corporation
In 2020, the Government adopted a Community Service Obligation Policy.
In the 2020-21 Budget, the Government made provision for three Community Service Obligations to deliver a specified social benefit to residents of Nauru as follows:
- Nauru Utilities Corporation to support affordable electricity
- Nauru Airlines to support a weekly affordable air freight service
- Nauru Port and Maritime Authority to support affordable Port use fees
All the Community Service Obligations seek to alleviate cost of living pressures for Nauruan residents, and ensure the availability of key essential services.
Secretary for Finance
Department of Finance