PPL says leasing generators best business option


THE PNG Power board has decided to lease generators to ensure a reliable electricity supply is maintained, chairman Andrew Ogil says.
Ogil said due to legacy issues, the board made the decision as it had an obligation to provide reliable electricity.
Responding to media reports that the board preferred leasing to buying generators to alleviate the ailing power supply, Ogil said the board was also making genuine efforts to reduce the number of leased generators by purchasing new generators.
“Ideally, if PPL had the financial capacity it would replace all the aged generators.
“PNG Power has 101 generators and out of these units, 83 should have been retired.
“Some of these generators are not fully operational while others that are operational have high operational and maintenance costs.
“The best business and commercial option to take is to lease generators to avoid total blackouts or load shedding situations until the company’s financial position improved.
“The leasing arrangements were temporary and based on PPL’s needs to avoid load shedding and blackout situations,” Ogil said.
“We have taken steps to replace the lease generators with 16 new generators including the 12 generators purchased from the Carpenters Group of Companies.
“Six open generators from the 12 purchased from Carpenters have arrived and have been sent to Wewak, Vanimo, Lorengau, Alotau, Popondetta and Kavieng to be installed, tested and commissioned.
“The other six generators are expected to be in the country in a couple of weeks and will be for Arawa, Buka, Wabag, Wewak and Kavieng.”
The other four are for Popondetta, Alotau, Manus and Buka to replace the aged generators there.
PPL currently leases 44 generators which produce 37MWs throughout the country at a cost of K3.7 million per month.

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