Landowners unhappy over dismissal of Biomass project

LANDOWNERS in Markham and Wampar in Huon Gulf, Morobe, who gave their land to plant trees for the PNG Biomass project, are concerned that the Government has stopped the project.
Landowner Frank Godfrey, chairman of Atzumin business group in Umi Atzera local level government, Markham, said they (locals) gave many hectares of their land to plant trees for the project and for the Government to cancel the power purchase agreement (PPA) was a big letdown.
Early this month, PNG Power Ltd managing director Flagon Bekker said PPL had exercised its legal rights under relevant clause to issue the “notice of termination” to Oil Search Ltd regarding the PNG Biomass project.
Bekker told The National that the notice to terminate a power purchase agreement, which was signed in Dec 2015 between both companies, was close to the expiry date for the successful financial closure of the project written into the contract between the parties.
“The Government is talking about taking back PNG and these are some of the projects that will help us (the people) to help the Government make this come true,” Godfrey said.
He said the PNG Biomass power project had the potential to benefit not just the immediate landowners and people in Markham and Huon Gulf, but also those in the rest of the province and even neighbouring Madang and some province in the Highlands.
He said the Wafi-Golpu mining project and the Nadzab Redevelopment currently underway would have significant power demands.
“Our tress are matured and are ready to be harvested and we want the power plant to go up so that we can earn money through that but this sudden notice by the minister to have the PPA revoked has not gone down well with us,” he said.