Hydro power boost from China

Papua New Guinea – 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 a power purchase agreement where we will buy power from Edevu and supply the city,” Ogil said.

“This will greatly help us and give us some credibility to our power supply system.”

State Enterprise Minister William Duma, who has since 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.

Meanwhile, Duma – and the Defence Minister Fabian Pok – have been stood down while allegations against them are investigated by police and the Ombudsman Commission.

The ministers are accused of benefitting from the purchase of land by government corporation Kumul Consolidated Holdings, for a new naval base west of Port Moresby.

Duma is the minister responsible for Kumul Consolidated Holdings, but is alleged to own or have a proxy interest in a parcel of land purchased by that company.

He told parliament he was not a shareholder in the company which owned the land and the purchase did not involve fraudulence or corruption.

Pok is accused of appointing his brother-in-law as the secretary of the Defence Department and of being inappropriately involved in directing the Defence Department to make land purchases involving the naval base project.

He denies both allegations.

- ABC