PNG Power Allots K700M for Power Projects

By: PNG Business News September 24, 2021

Photo credit: Post Courier

According to PNG Power Ltd, more than K700 million in power investment has been committed for the remainder of 2021 and next year, with further projects to be announced.

About ten projects will begin under the PNG electrification partnership, according to PNG Power's director of project delivery Eric Alom, who spoke at a PNG Business Council conference (PEP).

“Since 2018 up to this year, we have never had any real movement on the delivery and coordination of the PEP programme,” he said.

“Now we are able to have a single central entity that is purely focused on project delivery and coordination.”

The following projects are in the works:

  • The Australian government has provided a K128 million loan and grant for the EDEVU to Port Moresby transmission line and substation, which is currently being procured.
  • The Australian government provided a K40 million loan and grant for the LEALEA to Kanudi transmission line. Many companies will be present, and they will require a reliable power supply and network. It's still in the planning stages.
  • A K327 million counter-funded grant and loan from Australia and the Asian Development Bank is being used to enhance the power industry. It's still in the early stages of defining the scope and negotiating the financial terms.
  • PROVINCIAL microgrids – a K40 million Australian grant to build a stand-alone grid with its own supply and distribution. Finschhafen, Maprik, Wewak, Daru, and Kerema feasibility studies are currently being procured.
  • A K6 Million Australian funding for a grid capacitor bank in Port Moresby;
  • Priority minor projects for PPL - a K25 million Australian funding to repair generators and renovate distribution and transmission lines;
  • ENERGY utility performance and reliability enhancement project - a K103 million World Bank financing will begin next year;
  • Rural electrification in PAPUA NEW GUINEA using a K32 million grant from the Japan International Cooperation Agency.

Around 2022, a significant grid densification and intensification initiative centred in Markham and Lae will be implemented in Morobe.

  • A K2.5 million US assistance grant for PPL business infrastructure support, and;
  • PEP is launching a big countrywide home connectivity initiative. The amount of money available has yet to be determined.


Reference: The National (23 September 2021). “K700mil for electricity projects”.

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