City gets K185m

webmaster National, Normal
Source:

The National, Wednesday 29th May 2013

 By MALUM NALU

THE Asian Development Bank (ADB) and the national government yesterday signed a US$83 million (K185 million) agreement to implement the Port Moresby power grid development project, which will boost access to reliable electricity in the capital city.

The project agreement, signed by ADB’s PNG country director Marcelo Minc, Independent Public Business Corporation (IPBC) managing director Wasantha Kumarasiri and PNG Power Ltd (PPL) acting chief executive John Tangit, followed the signing of two loan agreements on May 2, comprising US$15 million (K33 million) from the Asian Development Fund and US$51.7 million (K115 million) from ADB’s ordinary capital resources.

In addition to ADB’s US$66.7 million (K149 million) contribution, the government is contributing US$16.3 million (K36 million) to the total cost of the project, which will be implemented over four years.

By extending existing electricity grids in urban and peri-urban areas, the project aims to boost electricity access rate in Port Moresby to 74%. 

The project is targeting grid extension to an estimated 3,000 low-income households.  

“This signing ceremony is one of the projects that will help PNG Power to try to supply electricity to 70% of PNG’s population by 2030,” Tangit said.

“This particular agreement is mainly to improve the power supply for Port Moresby.

“It is jointly funded by the ADB and the PNG government to the tune of US$83 million.

“PNG government is responsible for 19.7% of the cost, which is US$16.3 million.

“PNG Power is going to be the implementer of this project, which has six different sub projects.”

The six sub-projects are:

  • Construction of a new sub-station at Kilakila;
  • Sub-station capacitator and statcom augmentation;
  • Upgrade of 11kv to open loop marsh;
  • Loss reduction study;
  • Rouna 1 hydro power station upgrade and refurbishment; and
  • Sirinumu toe-of-dam generating facility upgrade.

Minc said: “The idea is to reduce losses, create efficiency, have cleaner power generation and for more access to electricity by the population of the country.