K1.8mil hydro budget approved

The National National

By HELEN TARAWA
CABINET has approved the second phase of the K1.8 billion Ramu Hydro Power project.
Prime Minister Peter O’Neill revealed this while officiating at the Butuka Primary School project in Port Moresby, thanking the Chinese government through the Shenzhen Municipal government which will be building the project under a partnership agreement.
He said the Ramu Hydro Two project would provide close to 200 megawatts of power to the people.
“It’s a private investment of over US$600 million (about K1.8 billion) they are making. We are not borrowing, so that it can continue to help us develop our country,”O’Neill said.
“I want to express my appreciation to the Chinese government and the municipal government of Shenzhen.”
The Ramu project is expected to increase total electricity generation capacity in the country by 36 per cent as a low-cost renewable source.
The project site is located downstream from the existing Yonki Dam and is capable of generating 180 megawatts of renewable energy.
It is expected to increase Yonki’s electricity capacity from the current 93MW (once all major refurbishment and upgrade works are completed) to 273MW – an expansion of 194 per cent in the scheme’s generation capacity. The development of the Ramu Two project is in line with the PNG development strategic plan 2010-2030, which aims to:

  • Increase household access to electricity from 12 per cent to 70 per cent by 2030;
  • provide a national grid to increase reliability of electricity supply across the country;
  • provide a secure, renewable energy base for PNG development;
  • reduce energy costs through greater hydropower development; and,
  • Deliver on the government’s commitment to support mining and industrial developments in the Highlands and Momase regions.