PPL signs deal for new hydro power

The National National
Source:
The National, Wednesday July 6th, 2016

Papua New Guinea Power Limited and the Divune Development Corporation Limited, the landowners of the Divune Hydro Power Project, signed a memorandum of agreement last month for work to commence on a new hydro power station in Northern.
The agreement was signed in Popondetta by PNG Power chief executive officer Chris Bais, Divune Development Corporation Limited chairman, Paulias Kei and clan leaders and witnessed by the Oro provincial government.
Bais said in a statement that PPL was committed to having the hydro power project come true.
He said PPL was happy that the MOA was signed after negotiations with the landowners over the years.
The Divune Hydro Power Project is part of a Multi Financing Facility (MFF) between the Asian Development Bank and the Government, called the Town Electrification Improvement Programme (TEIP).
The project is a sub project under tranche 1. It is designed to address accessibility to reliable, affordable, clean power and aims at increasing the supply of clean hydro power in Northern, West New Britain and the Autonomous Region of Bougainville.
The project would replace high-cost diesel generation with low-cost hydropower generation and construct transmission lines along main population corridors to connect the hydro power sites to the main urban areas.
Under the TEIP, PNG Power would construct a 3MW run-of-the-river hydropower plant and associated civil works on the Divune River near Waju village in the Kokoda LLG.
Power from this site will feed Popondetta as well as the tourist town of Kokoda.
The distance between Popondetta and Kokoda will comprise of 667 poles with a total distribution line length of 70km.
There are 1500 household beneficiaries and this project will benefit 2366 persons.
PNG Power also made the payment of land purchase for the project site for the sum of K3,155,800 to the landowner company for the site of the power station and dam area.
The contractor for the project will be appointed this month PNG Power expects construction to begin at the end of the year.