Papua New Guinea's Prime Minister says there's a growing need for private sector participation in the management of state-owned enterprises.
The government is preparing for the partial sale of Air Niugini as the first in a series of privatisations.
PNG Power is also being considered for partial sale early next year.
Peter O'Neill says public/private partnerships are a way to forge greater efficiency of the state enterprises.
He says in the case of the electricity provider, there is a clear need to raise capital to expand the services and meet growing demand.
"Again it's not only about raising capital but it is also about trying to bring private sector efficiency and management skills into managing the state-owned assets. The state-owned enterprises have been mismanaged for quite a while. As a result, we have not fully been able to realise its potential and its ability to deliver world class services."