US invests K196mil in project

MORE than K196 million will be invested in a PNG electrification project by the United States.
US ambassador to PNG, Vanuatu and the Solomon Islands Erin McKee said the investment was to fulfil the commitment made by the US during the 2018 Asia Pacific Economic Cooperation (Apec) forum to support PNG’s goal of connecting 70 per cent of its population by electricity by 2030.
“Only about 13 per cent of PNG’s population has reliable access to electricity today and the US government is aware that access to electricity is key to PNG’s economic growth,” she said.
“The US$57 million (K196.55 million) investment by USAID (US agency for international development) will be focused on reaching PNG’s goal to improve electricity.”
McKee said the project would be implemented by the research triangle institute (RTI), an independent non-profit research institute.
“RTI has implemented more than 650 USAID – funded projects in over 150 countries and 184 of those projects have been energy projects,” she said.
McKee said the progress of the project would require a large scale transmission and distribution line, including households, service providers and business investment from both the public and private sectors.
State Enterprises Minister Sasindran Muthuvel said the investment by USAID would increase his organisation’s capacity, capability and governance.
He said such an investment was profitable for PNG Power which was important to identify the project that would bring profit and success in a challenge. “We encourage private investments but we also need to make sure that our own State-owned company is included to build its capacity and capability,” Muthuvel said.
Energy Minister William Onglo said it was the Government’s target to reach 70 per cent electricity of households by 2030.
Former prime minister Peter O’Neill said it was pleasing to see the US government continuing to follow through on their commitment to the PNG electrification partnership.
“This agreement with our partners in Australia, Japan, New Zealand and US will deliver on our plan to deliver electricity to 70 per cent of our people by 2030,” he said.
“There should be continual work to improve the institutional and regulatory frameworks that govern the power sector and unlock real and competitive private sector participation.
“Over the past year, there have been too many questionable backroom deals that have nothing to do with generating electricity,” O’Neill said.