Govt keen on Purari hydro scheme

THE government is pushing ahead with the development of the proposed multi-billion kina Purari hydroelectricity scheme in Gulf.
The project is worth between K10.51 billion to K21 billion.
The national executive council recently approved a submission on the issue from Minister for Public Enterprises Sir Mekere Morauta and Minister for Petroleum and Energy William Duma.
It will be the biggest power project in the Oceania region and one of the biggest projects of any sort in Papua New Guinea.
“This is a very significant project that can transform the economy of the nation and, in particular, the Southern region,” acting Public Enterprises Minister Belden Namah said.
“It can bring power to hundreds of thousands of people in the Gulf, Western and Central, create jobs in some very disadvantaged areas and spur agricultural and industrial development.
“The impact on national development and local economic opportunity of this one scheme should not be underestimated and neither should its beneficial impact on living standards.”
The project is being promoted by the government through the IPBC in partnership with PNG Energy Developments Ltd a 50-50 joint venture between the PNG Sustainable Development Limited and Origin Energy of Australia.
Substantial equity will be offered to the government if the project goes ahead.
Cabinet directed that a working group of relevant departments and government agencies be formed to liaise with PNG EDL on a range of issues, including ownership of assets, state equity, taxation arrangements and State, provincial and landowner royalties.
It agreed to target import duty exemptions for the project and to consider exemptions from GST.
A K250 million study has begun in which PNG EDL is looking at the project’s technical, social and environmental feasibility.
Preliminary studies show that the project could generate up to 2500 megawatts of electricity, almost four times the nation’s present generating capacity.
Its huge output could feed into the Port Moresby and Highlands grids and allow for the development of new industries, particularly in the Southern Region, as well as the export of electricity to Australia.