MP says PPL’s decision to end deal was ‘unethical’

Business

PNG Power Ltd’s decision to terminate a power purchase agreement (PPA) signed six years ago with PNG Biomass is unethical and not in the nation’s or public’s interest, Aitape-Lumi MP Patrick Pruaitch says. Pruaitch said the biomass project had been well-conceived and executed and would have seen communities and landowners benefit from it.
He said PNG Power and the Government procrastinated over final project approvals. He said the termination of the PPA was unethical because it had seen PNG Biomass complete feasibility studies and to commence planning and implementation at considerable cost, including a sustainable tree farming project with local landowners. On the back of these commitments, landowners three years ago used their first land rental payments from PNG Biomass to purchase a three-tonne truck, creating an income stream for the local community.  Since then, technical assistance from PNG Biomass has enabled local farmers to build a vibrant honey business, using native stingless bees, with additional substantial revenues from “intercropping”. Pruaitch said the Independent Consumer and Competition Commission, in August 2016, approved a reference price for the Ramu grid of US54c (K1.89) per kilowatt hour based on the PPA signed by PNG Power with PNG Biomass.