New electricity project to cost over K1 billion

By JAMES GUMUNO
AN electricity supply project expected to cost more than K1 billion was launched in Mt Hagen yesterday by Prime Minister Peter O’Neill.
The 32kV power transmission lines would run from Mt Hagen in Western Highlands to Tari in Hela.
The project will be in four stages. Four substations will be built at Keltiga in Hagen Central, Paunda at the border of Southern Highlands and Western Highlands, Mendi town, and Tari. The work will be carried out by an electricity company from China.
O’Neill said the project would benefit 4.5 million people, involving clean energy generated by the Hides gas power plant in Hela.
He said consumers would see a reduction in their electricity bills when the project was completed.
“This new power is not only for businesshouses in the provinces but for all people, even those living in the rural areas,” he said.
O’Neill said the current power supply from Yonki hydro station was not enough to cater for the growing population in the Highlands region.
He urged landowners not to disrupt the project.
It is funded through a concessional loan from the Chinese government at an interest rate of 1 to 2 per cent per annum to be repaid over 30 years.
Minister for Public Enterprise and State Investment William Duma said the Chinese government trusted the leadership of O’Neill and lent the money for the project.
The chief executive of the Chinese company, Ma Suping, said they would be using the latest technology for the power project.
Western Highlands Governor Paias Wingti praised O’Neill’s leadership.
“This government is pro-active and now we are seeing many changes and developments taking place all over the country,” he said.