Provincial govts sign agreement to share benefits

THE governments of Eastern Highlands and Morobe have signed a benefit-sharing deal on a proposed K3.2 billion (US$902 million) hydro power project.
Morobe Governor Luther Wenge and his EHP counterpart Simon Sia signed the agreement on the proposed Ramu Two power project located along the border of the two provinces.
Sia called it a mega impact project.
“Everyone is (having) power blackouts. Hopefully one day, we will put this thing in the past,” he said.
“It is a very important project initiated by the previous government around 2015. It will benefit the whole country. This is what we need.”
Wenge said Morobe agreed that the project would benefit both provinces and the country.
“We are forever having problems and PNG is one of the worse countries in the world with power blackouts every day,” Wenge said.
The hydro-power project is located between Kainantu and Obura-Wonenara in Eastern Highlands, and Markham in Morobe.
Both provinces will receive landowner benefits, spin-off benefits and free carry equity from the project.
Kainatu MP William Hagahuno said the understanding with the Government was that the Chinese government would spend about K3.2 billion to develop the Ramu Two hydro-power project.
“The Government, through Kumul Consolidated Holdings, has offered 20 per cent of the ownership each to Morobe, EHP and the landowners,” he said.