PNG Power Limited will pay K6 million to the Arona Valley Development Authority (AVDA), a landowner group at Yonki Dam in the Kainantu District of Eastern Highlands Province.
This is following a memorandum of agreement (MOA) reviewed and signed yesterday between PNG Power Limited Chief Executive Officer Obed Batia and AVDA team and management in Port Moresby.
This K6 million is a Development Assistance Package (DAP) that will help the landowners to improve their living standard and other impact projects.
It was derived from the socio-cultural and environmental impacts Yonki hydro development has on the lives of the people.
Representing the landowners, AVDA Chairman Bethuel Ponu said he is happy to sign the MOA as it will help the people.
“This K6 million will assist the landowners of Yonki dam. I am happy to sign this MOA to work collaboratively with PNG Power for the good of the country as Yonki hydro played a vital role for the economy of this country in terms of providing energy to power the country,” he said.
Yonki hydro is providing power supply to the entire Highlands and Momase Regions though equipment are aging but they still provide service.
On that note, AVDA General Manager Patrick Kavare also acknowledged PNG Power for the Development Assistance Package.
“It is a way of compensation for social cultural and environmental effects to the Yonki Project. This package goes towards improving the lives of people at Yonki through economic projects, community services and direct benefits to the landowners,” he said.
Mr Kavare further said the NEC decision on this issue still remains outstanding though various submissions made to PNG power to the value of K160 million.
“I believe with coorporation between PNG Power and AVDA we can achieve some common understanding based on the original NEC agreement that was in placed,” Kavare said.
General Manager Kavare appreciated the leadership of Mr Batia as some changes and recognition were made in broadening the local participation in the project and he was happy to sign the MOA.
PNG Power Chief Executive Officer Obed Batia thanked the AVDA team for a job well done after stringent review of the MOA.
“Whatever responsibilities or whatever terms and conditions in the agreement are final, we all must observe that, nobody between PPL and AVDA must flee the agreement,” he said.
He said they will review the agreement when it expires in the next five years and if there is changes they will do and signing again.
