Monday, February 6, 2017

Port Moresby set for hydro power boost from Chinese company..are they nuts!

Port Moresby set for hydro power boost from Chinese company?

Feb 7, 2017
Papua New Guinea's electricity provider hopes it can provide uninterrupted power supply to the country's capital city Port Moresby with an upcoming hydro project being constructed by Chinese company PNG Hydro Development Ltd.
The Edevu Hydro project is located in the mountains of the Kairuku Hiri District in Central Province and will cost 640 million Kina (AU$263 million).
Chairman of the PNG Power Board Andrew Ogil says the project will provide an additional 50 megawatts to boost power supply in Port Moresby.
Currently PNG Power is struggling to provide consistent electricity supply to the city, which is known for its constant blackouts.
"We will make arrangements under power purchase agreement where [we] will buy power from Edevu and supply the city," Mr Ogil said.
"This is greatly help us and give us some credibility to our power supply system."
State Enterprise Minister William Duma, who has been suspended by Prime Minister Peter O'Neill for his inappropriate involvement in a land deal, officially launched the project on Monday.
He said the project provided a chance for landowners to benefit from derivative business.
"The company got a loan from the Chinese Exim Bank for this project. They are taking a risk because they have confidence in our Government. They know that when [we] finish this project and start selling power they will make money that will benefit landowners as well. There is a chance for us to re-negotiate agreements for landowner benefits," he said.
The project to scheduled to start producing and supplying electricity by 2020.