US$1.2bil power deal ‘not aid’

By LUKE KAMA
PNG Power acting managing director Carolyn Blacklock says the K4 billion commitment to bring electricity to 70 per cent of Papua New Guinea was in response to a request made by the PNG Government to its longstanding bilateral partners.
The United States, Japan, Australia and New Zealand signed an agreement during Apec last Nov to make this happen.
The United States and its allies Australia, Japan and New Zealand – in what is seen as an effort to counter Chinese influence in the Pacific and particularly Papua New Guinea – signed a US$1.2 billion (K4bil) agreement to provide electricity to 70 per cent of Papua New Guinea by 2030.
“To be clear, it’s not an aid project,” Blacklock told the petroleum and energy summit.
“It’s a loose partnership project, which the bilateral partners made their own choice to support the rollout of electrification to 70 per cent of PNG.
“It’s not a project that is driven by any country, except Papua New Guinea.
“It is Papua New Guinea, which is the host country of Apec, that requested for assistance with bilateral partners based on the rural electrification plan that it has to bring electricity to 70 per cent of the country by 2030.”
Blacklock said PNG Power Ltd, under its recent restructure, had a project management team to work with relevant State agencies to roll out this project.
Energy Minister Sam Basil said it was a “political announcement” which relevant agencies of State needs to work together to advance.
“It’s a political announcements and commitments which been made,” he said.
“We are waiting for Foreign Affairs, Finance, Treasury, Planning and all the other related Government departments to come together and to negotiate with the countries that have made commitments,” Basil said.