Project depends on low-cost power: Marape

PRIME Minister James Marape says investment into the Ramu Two power project will go ahead if low-cost power can be produced.
Marape was responding to a report that a Chinese investor in the Ramu project had said it was a private investment and nothing to do with the Government.
He said the investment was undertaken as part of the public-private partnership, which the Chinese government wanted to invest in.
According to reports, the investment would cost about K6.94 billion (AU$2.6 billion) to be built by a Chinese hydro-power company.
It is to be financed, built and operated by China’s Shenzhen Energy for 25 years before being handed to PNG.
Marape said the Ramu project had been around for some time.
“State Enterprises Minister William Duma and the State-Owned Enterprises are handling that,” he said.
“If the numbers are determined, the project will go ahead,” he said.
“If it’s not burdensome on PNG Power and if they produce low-cost power supply, then I don’t see any issue with it.”
He said if the numbers “don’t stack up” then the project might not go ahead.
“It’s something that PNG Power will have a handle on at their level,” Marape said.
The 180mw Ramu 2 plant will be one of the world’s most expensive hydro-power projects, with a construction cost of at least K32.8 million per megawatt.