The project was launched on Dec 9, 2015 in Kainantu, Eastern Highlands province where more than a thousand people witnessed the occasion.
Since then, Kumul Consolidated Holdings has focused on phase 1 of a three-phase transaction management process, seeking expressions of interest (EOI) from suitably qualified development partners to develop the project and operate under a Public-Private Partnership (PPP) model.
A total of 65 proponents responded when the project was listed for EOI as a public tender on Feb 29, 2016.
At the close of EOI on March 2, 2016, a total of seven submissions were received and assessed by a panel consisting of representatives from KCH, Advisian (project transaction advisors) and project legal advisors Norton Rose Fulbright.
The assessment process ultimately saw the seven submissions reduced to the top three.
The process rated each proponent based on a number of factors related to their capability and understanding of the project.
The top three proponents were this morning given their letter of advice by the State and Investment Minister William Duma in Port Moresby.
The three proponents were:
- Posco Daewoo, Korea Western Power, Daelim Energy, Hyundai Engineering Consortium of Korea;
- Sinohydro Corporation Ltd of China; and
- Shenzen Energy Group Co. Ltd of China.
Meanwhile, Duma when giving his speech said: “Kumul Consolidated Holdings is following a process of full transparency and due diligence.”
He said for a project of this size, such processes, while time consuming and thorough, are mandatory.
“Inevitably, we will be in a position to give the National Executive Council a detailed and informed recommendations regarding the Ramu 2 Project.”