Frequent blackouts in the country’s industrial city, Lae, will now be a thing of the past.
Constant blackouts in the country’s industrial city Lae has caused inconvenience for residents, schools and business houses over the years.
PNG Power Limited (PPL) and Korean contractor – Daewoo International signed the power purchase agreement today in Port Moresby.
Minister for State Enterprise, Ben Micah, was also present signaling the go ahead from his office and the Independent Public Business Corporation (IPBC).
PPL Chief Executive Officer, John Tangit, said the new 30 megawatt thermal power plant will supply additional power to the current 40 megawatt power supply in Lae city.
However, he refrained to give the amount of money spent on the project. He said with the recent 40% tariff subsidy committed by the national government, the project has been strictly budgeted for.
The plant intends to cushion the current demand by Law while PNG Power seeks other long term options of supplying power in Ramu.
Daewoo International Corporation is Korea’s largest trading company. It was established in 1967.
The corporation is known for providing services such as international trading, resource development in foreign countries, domestic and international investments in businesses, foreign projects and supporting the steel, metal, chemical materials, automobile parts, machinery, plants, electronics and textiles.
PNG Power partnered with the Korean company 15 years ago with Hanjung Power at the Kanudi Power Plant.
Its executives are confident to deliver the project within the 13 month timeframe set.
Also present were the Minister for State Enterprise and South Korean Ambassador in PNG, Kim Seong Choon.
The men said bilateral relations between the two countries were also strengthened through this project.
The minister said similar projects will be rolled out in other parts of country shortly.
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