Directors of Dirio and PNG Power signed an agreement on Wednesday on 20th of October, which paves the way for Dirio to supply power into the Port Moresby PNG Power grid.
Dirio built and commissioned a 45 mega-watt (MW) power plant at Caution Bay in Central province in November 2020, but was unable to supply electricity due to PNG Power not building a transmission line nor having sufficient capacity and stability on the existing transmission line to take the full supply as per the Power Purchase Agreement.
Dirio and PNG Power worked together to resolve the Port Moresby grid transmission network stability issue, and on 20 October 2021 signed another significant agreement which allows the supply of power to begin on October 30, 2021.
“This is the first phase of the full implementation of the agreement,” Chairman of Dirio Ambassador Isaac Lupari said at the signing.
“There has been some delay due to technical issues, but those have now been resolved, and I thank our Directors and everyone for being patient.
“This business is owned by landowners. I am proud that our people are getting into the downstream processing business.
“Our aim is to provide stable, affordable power to consumers in the capital city, and generate sustainable income from the business,” Mr Lupari said.
Meantime, Hela Governor Philip Undialu, representing the landowners and provincial governments who own Dirio Power, said it was a bold decision to get into the power business.
“For too long, we have left it to foreigners to dominate the electricity sector in PNG. That must change. Papua New Guineans must get into this sector and I am glad we have taken the bold stand with this initiative,” Governor Undialu said.
He thanked the board and management of Mineral Resources Development Company and Dirio for working hard to deliver the project.
Dirio is owned by PNG LNG Project landowners and the Hela, Southern Highlands, Gulf, and Central Provincial Governments.