Dirio a bad investment

YOUR news article yesterday on Dirio Power needing K15 million to clear customs for their turbines comes as no surprise.
The project will be a failure and a waste of landowner funds.
This rings a similar bell to the failed Boroko Casino.
Mineral Resources Development Company (MRDC) did not do a proper feasibility study on the viability of the project considering Niu Power, owned by Oil Search and Kumul Petroleum, has also built a similar power station using the same gas from the LNG Plant and will soon be supplying 50 MW to PNG Power.
So where does that leave the Dirio Power with 45 MW considering there is no more room for their 45 MW in Port Moresby? The numbers don’t stack up.
Why didn’t MRDC do a joint venture with Niu Power and share synergies instead of building another white elephant?
PNG Power is correct in not signing a PPA with Dirio because the price does not meet their cost structure and should not burden consumers with added tariffs.
Residents in Port Moresby are already paying too much for power and Dirio power would have added more cost to consumers.
PNG Power should not enter into a PPA with Dirio.
Hydro is your cheapest power going forward and PNG Power should enter into a PPA with the Brown River hydro scheme and not Dirio Power.

Power User, POM