The State and Ramu 2 Hydro Developer, Shenzen Company Limited, are finalizing discussions with the launching expected in November.
Under the agreement the State along with the Provinces of Eastern Highlands and Morobe, and Landowners will own 30% while Shenzen Energy has a 70% stake.
Minister for State Owned Enterprises, William Duma, says discussions with landowners and the Province have already commenced and they are awaiting the commercial agreement to be finalized.
Minister Duma added the construction and operation of the facility w ill bring many spin-off benefit as well.
“Once we get our 30 per cent share of the equity then we will sit down and negotiate with our landowners and provincial Governments.
“The provincial Government and the landowners are very important stakeholders. If you look at the existing Yonki project there is no such arrangements. It was built in the 1970’s and its an unfortunate scene where the Provincial Governments and Landowners are not in the picture,” said Duma.
The Ramu 2 Hydro Project will be built at a cost of K3 billion (US$800 million) with construction expected to begin in early 2019 and completed in 2024.
“I’d say there will be any thong to 900 employees just through the five year construction period. so there will be experts there and there will be certainly lots of jobs for our people and certainly in the construction sector and as the Minister said there will be spin-off activities, we’ve got access roads coming in to provide access. There’ll be power generation and then there’ll be the transmission to get the power from the turbines out to the project sites at Wafi and RamiNico. So it’s an exciting project,” says Kumul Consolidated Holdings Limited Managing Director, Darren Young.
After a 25 year operation, the facility will be given to the state debt free and with a further life span of 75 years.