Minister for International Trade and Investment Richard Maru has declared his full support for the proposed 90-megawatt Kaugel Hydropower Project in the Southern Highlands Province, calling it a “transformational project of highest national priority.”
“The proposed K2.5 billion (USD 625 million) project, which will take four years to construct, has my highest support. This is a transformational project. We have a very high demand for cheaper, clean and reliable electricity in our country not only for our people but importantly to drive economic growth,” Maru said.
The minister called on all stakeholders to collaborate with the project’s proponents — including Kaugel Hydro Limited, landowners and the respective Provincial Governments of Southern Highlands, Enga and Western Highlands — to unlock the project’s potential and prioritise it for development.
“The Kaugel Hydropower Project is precisely the scale and quality of foreign direct investment PNG must prioritise. This hydro can provide long-term electricity to Porgera Mine, the proposed Baiyer and Ruti SEZ, Mt Hagen City and parts of Southern Highlands Province,” he said.
Maru also underscored the need for reliable electricity in the Highlands region, citing the deteriorating condition of the existing grid infrastructure including the Yonki hydro scheme, which is no longer able to meet demand.
“Persistent power outages stifle growth, deter investment and hold our people and country back from progress and development,” he said.
The minister also stressed the importance of securing broad community support and equitable benefits, especially for landowners and provincial governments involved.
“Clearly, we have to secure a social license for the project by securing clear landowner equity participation and business spin-off benefits, the participation in equity by the respective Provincial Governments and other benefits. These are critical issues that must be handled carefully and sensitively,” Maru stated.
According to the minister, the Kaugel Hydropower Project aligns with national goals for rural electrification, industrial development and the shift to low-emission energy systems.
He thanked Kaugel Hydro Limited Managing Director Karl Yalo and his team for their continued efforts to progress the project.
“We wish them every success to secure anchor customers to make the project bankable and we also hope that they can secure license from the National Energy Authority,” said Maru.
He added that his ministry and department remain fully committed to supporting the project.
“My Ministry and Department stands ready to champion this potential high impact and transformational project to demonstrate the unwavering commitment of the Marape-Rosso Government to renewable energy transition, equitable distribution of benefits and setting the foundations for a better and brighter future for our people and country as we celebrate 50 years of independence and chart our way forward for the next 50 years,” he said.
