Hydro-power project under review

THE Ramu 2 hydro-power project in Eastern Highlands and parts of Morobe is still under review, according to the Kumul Consolidated Holdings Ltd (KCHL).
The K2.86 billion proposed project is recognised by the Government as a natural supply source of electricity for the Wafi-Golpu project, with both the size of demand, hydrological resource reliability and location providing synergies that benefit the Ramu 2 and Wafi-Golpu projects.
KCHL managing director Isikeli Taureka said: “The Ramu 2 hydro project is currently being reviewed by stakeholders.”
It is a significantly large project with scope expanding beyond just the construction of a generation facility.
The project blueprint includes the construction of a weir and storage facility, an eight-kilometer underground tunnel, a power station, a permanent camp facility, 34 kilometers of access roads, and 12 kilometers of 132kV transmission line to the nearest PNG Power Limited substation.
The total project cost which includes the engineering, procurement and construction is around US$902 (K2.86 billion).
International benchmarking of dollar per megawatt is based on a combined ECP and non-EPC cost only which in the case of Ramu 2 project is well within acceptable range.
With a lifespan of up to 100 years, the two provincial governments and their landowners are guaranteed revenue streams for the future.