Multi-million kina power project

 PNG Power Limited will undertake a US$83 million (K231m) Port Moresby grid development project to meet the increasing power supply demand in the capital city.
The management yesterday signed an agreement with German company Fichtner GimbH Co HK in Port Moresby regarding the project.
The three-year project will be funded by the Asian Development Bank (US$66.7m) and the Government (US$16.3m).
Acting chief executive officer Chris Bais said the demand for electricity had grown over the past five years from 4% to 6%.
“Due to increased business spin-offs, new constructions and industries expanding, PPL has decided to carry out the project,” he said.
Bais said the feasibility studies were carried out five years ago with the review tender documentation process to meet international standards.
He said Fichtner would be involved in procurement, tendering, installation and commissioning of the project plus training of  PPL staff.
The project will cover six sub-projects including the construction of new substation at Kilakila, installation of static compensators for Boroko and Konedobu, improvement of a 11kv distribution network, a programme to minimise energy wastage and replacing aging equipment.
Director of Fichtner Tobias Metzger said it was a big project which the company was happy to undertake.
The project will involve the refurbishment and upgrading work on the Rouna One and Sirinumu Toe of Dam hydro-power stations, and distribution and transmission lines in the Port Moresby.
The Kilakila substation will provide electricity supply to about 3,000 households. The substation will also take some load off the current substations and extend the Port Moresby system.