PPL yet to meet sale conditions

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STATE Enterprises Minister Sasindran Muthuvel says the Government will not allow independent power producers (IPP) to provide any amount of power which it cannot sell.
He told Parliament on Tuesday that PNG Power Ltd (PPL) had not met the conditions of getting a power sale agreement or removed the take-out pay for the minimum power it can buy.
He said Ramu 2 was one of the largest private investment projects by IPP to produce 180 megawatts of power.
“There are many unsolicited projects that come to PPL,” the minister said.
“The power purchase agreement (PPA) had been seen as a lucrative way for any business to use.
“This project purely depends on conditions. PPL does not have the capacity to buy 180 megawatts.”
Muthuvel said in the contract, PPL was seeking to clarify the take-out pay component of minimum of 113 megawatts needed to buy the power.
He said the project was subject to power sale agreements with resource projects, especially Wafi-Golpu and also Ramu NiCo.
“We have consulted extensively with both parties and also the lawyers’ consent in terms of the proposal.
“This project was well before my time and if I’m not mistaken, Kumul Consolidated Holdings had spent K30 million to K40 million for feasibility studies.
“The project cost is K3.5billion (US$947mil) and the entire PPL worth could be a billion kina so we take every measure to ensure that it is not going to hurt PPL in terms of its operations,” he said.
Muthuvel said they had sought some clarifications from the project developer.
He said the project developer had given its consent and PPL had given its requirements. “This project was started almost 40 years ago.”

2 comments

  • We the taxpayers want service and since PPL cannot provide a reliable and quality power service to the rate and tax payers then allow IPP to generate and provide the long over due reliable/quality power to the consumers. Who cares if PPL benefits or not we had enough of the constant power outage that’s disrupting the business and everyday activities of every PNG households. Get real Mr Minister.

  • How much dividend has PNG Power Ltd declared so far? From the outset, PNG Power seems to be a redundant entity that needs major overhaul if it wants to continue on as a business of the future.

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