PNG Power has awarded two contracts to a joint venture firm for the Yonki Toe of Dam Surge Tank Projects and the Warangoi Hydropower Station Refurbishment Project.
The contracts were co-signed by AG Investments and Dongfang Electric International Corporation.
The projects cost around US$30 million (K98m) and fall under the Town Electrification Investment Program Tranche 2 Project funded by the Asian Development Bank (ADB).
PPL acting managing director, Carolyn Blacklock, said the maintenance works were crucial to ensure PNG achieves its targets of less-cost power generation.
She said while there are many discussions on other forms of power generation, what they should focus on is rehabilitating existing assets.
“Since I’ve been here it’s really about generation, we know that our lowest cost generation in PNG equals that of the lowest generation in the world,” she stated.
“So we can talk about what might happen with coal, with solar, with wind, that actually what we should be doing is exactly what we are signing today (Oct 29), which is rehabilitating their existing assets.
“It is 35 years since we have built a hydro power station in PNG. This is terrible.
“We are a nation of great rivers. And if we don’t look after what we’ve already built and we don’t build new ones, we get into the pickle that we are currently in with PNG Power where we rely on diesel and heavy fuel ore. This is unacceptable,” she said.
The Yonki Project will involve Construction of Yonki Toe of Dam Surge Tank and other remedial works.
It will be completed within 18 months and costs nearly US$10 million.
Yonki will supply 18 megawatts of power once the project is complete.
The engineering, procurement and construction of Warangoi Hydro Refurbishment Project will cost nearly US$20 million and a timeframe of 2-and-a-half years. Once complete it will generate 10MW.