PPL buys 12 gen sets

By HELEN TARAWA
PNG Power has purchased 12 new generators to replace its K40 million per annum leasing arrangement with Aggreko/LCS, board chairman Andrew Ogil says.
Ogil told The National that the exercise was part of the company’s upgrade of its aging equipment and cease the arrangement with Agrgreko under which 37mw of electricity was generated for PNG Power.
Responding to claims that the PNG Power board and management had been wasting and mismanaging a lot of its facilities, Ogil said it was the board’s decision to purchase the 12 generators at a cost of about K9 million.
He said the first six generators had arrived and would replace the facilities in smaller centres including Lorengau, Popondetta, Alotau, Kavieng, Mendi and Tari.
It is understood that for the past few years, PPL had been leasing generators from the Scottish company for K45 million.
According to information from several sources, former chairman Larry Andagali had approved the lease of the Cummins brand generators at a cost of about K800,000 per 1mw.
The sources claimed that some of these generators had arrived in PNG but had not been installed while the board was approving more leases of generators each costing K1 million per annum.
According to the sources, the board had not obtained multiple quotes or called for tenders (a policy requirement) before awarding contracts to Aggreko/LCS.
It is understood that the board may have acted outside of its powers by approving purchase of over K10 million.
Ogil said it was an undertaking by PPL to purchase the generators to replace the lease arrangement.
“We are carrying out some upgrade in Lae at the moment and we have extended the lease by another six months to maintain quality of security in that area,” he said.
“That arrangement would end in June to allow for the commissioning of the 30mw generator at Munum station.
“The other six generators will arrive at a later date. Madang will have a 5mw generator installed in April.”