Deal signed to study hydropower options

Business

Papua New Guinea Forest Products and the landowners of Gurokor and Timini, in Morobe, have signed a memorandum of agreement for feasibility study into a proposed hydro power project in those areas.
In a statement, the company said they currently operate three hydro power stations at Baiune, with a combined capacity of 14.9 MW.
“The 9.4MW Upper Baiune power station was commissioned in January 2013,” the company said.
“It is the only hydro power station that has been constructed in Papua New Guinea by an independent power producer for the sole purpose of supplying power to PPL.
“PNGFP’s Baiune power stations are an integral part of the PPL Ramu grid generating capacity.
“PNGFP is currently in the tender design phase of a proposed fourth 11.4MW hydropower station at Baime.
“This will increase PNGFP’s hydropower capacity to 26MW, and further increase PNGFP’s supply to PPL.
“PNGFP, in pursuing its goals and objectives of delivering cleaner and more cost-effective energy to the people of Papua New Guinea, and in seeking development opportunities in rural areas of PNG, is investigating other suitable locations for hydropower development.
“This has led PNGFP to identifying the Gurokor and Timini areas as having potential for hydropower development.
“The customary landowners of Gurokor and Timini are keen for a hydropower project to be constructed on their land, if it is viable.
“The memorandum gives PNGFP the exclusive right to investigate the hydropower potential of the area, and to carry out a pre‐feasibility study and feasibility study to determine if a hydro power project may be viable.
“If these studies confirm the proposal is viable, then PNGFP has the exclusive right to enter into a landowner agreement with the customary landowners to construct and operate a power station if it wishes to do so.
“The first step is the pre‐feasibility study which is currently in progress and is scheduled to
be completed by the end of this year.
“PNGFP will then evaluate its options for progressing the project based on the outcome of the pre‐feasibility study.”