Chimbu funds project


THE Kundiawa-Gembogl District Development Authority has been putting K1 million from its District Services Improvement Programme into a hydro project, local MP and Minister for Tourism, Arts and Culture Tobias Kulang says.
He said Chimbu, like most other centers in the Highlands faced a lot of power-related issue which also affected economic activities in the province.
Yesterday, Kulang received the environment permit from Conservation and Environment Protection Authority for a K72 million hydro power project.
The permit is one of the prerequisite for the Gembogl hydro power project in his electorate which the Kundiawa Gembogl District Development Authority has been pursuing in the last three years.
“The project will be using the Simbu River, from the foothills of Mt Wilhelm all the way downstream to Kundiawa town. We are looking at over 100 MW of power generation but it initially starts with 6-12 MW of power,” Kulang said.
“For the first 6-12 MW, we want to bring online in 12 months time.
“We have now completed phases one and two.
“There won’t be any major dams.
“We are working with AG Investments Ltd. “With this permit, the next stage is the power purchase agreement with PPL.
“Once that is done, we are looking at 20 months construction period to bring on board the 6-1 2MW of power to the PPL grid.
“We are excited because we have a huge problem with power.
“We hope PPL will agree and we move onto construction.
“The project is 18 phases with small stations.
“We have also progressed the power purchase agreement with PNG Power Ltd several months ago and we trust a decision will be forth coming in the near future.
“The project purpose is to supply power to the PNG Power Limited grid through a power purchase agreement.
“The project has very strong support from the Simbu government, the Kundiawa Gembogl district and the landowners. AG Investments Limited is the developer and has significant experience in Papua New Guinea and overseas in construction and hydro power projects.
“The landowners have agreed to provide access to their land in return for equity in the project.
“This provides the landowners with financial benefits from the use of their natural resources.”

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