A K35 million contract has been signed between PNG and a Malaysian firm for the construction of a 40 megawatt substation at Kilakila in the Nations Capital.
The contract which was signed today between PNG Power Ltd and a Pestech will see the design, supply, construction and commissioning of the Kilakila substations infrastructure.
The PNG Government and Asian Development Bank (ADB) funded substation will make it possible for a transformer to be taken off the line without causing any disruption to connect consumers and will have a power evacuated capability of 20MVA under normal operation.
PNG Power Board Chairman, Andrew Ogil, says currently there is a situation where there is aging equipment while the demand for electricity is increasing.
He said currently there is upgrading work carried out on the Rouna Hydro Power Station and thus improvements were needed in the substations.
“At the moment our Boroko and the Gerehu substation are saturated so this will totally relieve the pressure that we have.
“We also saw the need to do our Gerehu substation to handle the 50 Megawat project from the new project that the Government has announced, the IDP, so that will then accommodate, there will be lines built to go into Gerehu substation, so all these projects are in line with trying to improve the power supply here.
“And of course were not stopping here but looking at other major centres like Ramu Grid and of course Gazelle,” Ogil added.
Malaysian firm Pestech has previously worked two PNG Power substations in Erap and Hidden Valley-Hamata substations in Morobe Province.
Pestech Sales Director, Lim Hong Seng, said tells Loop PNG they have 24 months to complete the construction of the substation.
“We are going to start anytime after this contract signing,” he said.
The work on the substation will include 6.1 kilometres of 66 kilovolt double circuit transmission line, a 66 kilovolt Air Insulated substation switchyard, 2x20/30 megawatt . 66/11 kilovolt transformers, and 10 outgoing 11 kilovolt feeders.
The project cost sits at $ US 11, 640, 410 (K34,884,253.15).
Picture: Andrew Ogil, chairman of PNG Power Board signing the contract papers.