Prime Minister James Marape has called for greater private sector investment in electricity generation after the completion of the K263 million Ramu Transmission System Reinforcement Project, saying reliable and affordable power is essential to achieving the government's ambition of building a K200 billion economy by 2030 and beyond.
Speaking at the project's completion ceremony at Taraka Substation in Lae, Marape said the government had invested billions of kina in roads, electricity transmission and telecommunications to support economic growth, but more generation capacity was needed to meet rising demand.
He urged superannuation funds, landowner companies, domestic businesses and international investors to develop independent power projects, particularly in renewable energy.
“If you can bring us proposals to generate reliable electricity from renewable sources at competitive prices, particularly below 50 toea per kilowatt-hour, our Government will support you,” Marape said.
The project, supported by the Japan International Cooperation Agency (JICA), is designed to improve electricity reliability in Lae and surrounding areas and increase the Ramu Grid's capacity to meet future demand.
It includes about 134 kilometers of additional 132-kilovolt transmission lines, 326 transmission towers, telecommunications systems and upgrades to the Ramu Switchyard and the Singsing, Erap and Taraka substations.
Funding comprises a Japanese concessional loan commitment of ¥8.34 billion, equivalent to about K237.2 million at indicative exchange rates, and K54.7 million in counterpart funding from the Papua New Guinea government.
According to JICA, the reinforced network is expected to substantially reduce power outages caused by transmission problems in Lae and nearby areas.
Government seeks 2,000MW generation capacity
Marape said PNG should aim to have at least 2,000 megawatts of electricity generation capacity available by 2035 to support an expanding economy.
Additional power would be needed for major projects, including Wafi-Golpu, as well as mineral processing, agriculture, forestry, fisheries and manufacturing.
He said the government would encourage renewable energy investments using hydroelectricity, solar, wind and geothermal resources, while existing facilities such as the Yonki hydroelectric project would remain important to the country's electricity supply.
The prime minister also called on PNG Power Ltd. to strengthen partnerships with independent power producers to expand generation while keeping electricity reliable and affordable.
“We cannot continue to have power blackouts affecting our businesses, industries and communities. This must come to an end,” he said, apologizing to Lae residents and businesses for years of unreliable supply.
Marape said the Treasury's Mid-Year Economic and Fiscal Outlook placed PNG's nominal gross domestic product at K160 billion as of July 2026, potentially bringing forward the government's K200 billion economic target by two years.
K1.9 billion invested in transmission network
The government has spent more than K1.9 billion since 2019 on the 132kV transmission network linking Tari, Mt. Hagen, Yonki and Lae, Marape said.
The corridor accounts for about 60% of the country's economic activity and population, according to the prime minister.
He said the investments in electricity transmission, rehabilitation of the Highlands Highway and fiber-optic telecommunications had established three key foundations for economic development.
“We have the highway, we have the power transmission infrastructure, and we have fiber-optic connectivity. These are the essential enablers of economic development,” he said.
Marape urged provincial governments along the Highlands Highway corridor to work with PNG Power and private investors to extend electricity distribution networks to district towns and rural communities.
He identified Bulolo, Mutzing, Kainantu, Okapa, Lufa, Asaro, Kundiawa, Tambul, Mendi, Nipa, Margarima, Tari and Komo among the communities that should benefit from improved electricity connections.
The government is also seeking to strengthen electricity infrastructure along other economic corridors, including Lae-Madang-Wewak, Kerema-Port Moresby, Lae-Bulolo-Garaina-Popondetta, Kokopo-Kimbe, Kavieng-Namatanai and Buka-Arawa-Buin.
Marape said better access to electricity, roads and telecommunications would support agriculture, tourism, manufacturing and rural enterprise.
Japan partnership spans five decades
Marape thanked Japan, JICA and Japanese Ambassador Mochizuki Hisanobu for their support of PNG's electricity infrastructure.
He said Japanese development assistance had supported major power projects over nearly five decades, including Warangoi, Rouna 4 and Yonki.
Together with the Ramu transmission upgrade, Japan's official development assistance loan commitments to these major electricity investments total about ¥26.3 billion, equivalent to approximately K748 million at indicative exchange rates.
The prime minister also acknowledged the contractors and PNG Power's board, management and workforce for delivering the project.
He said reliable electricity was central to the government's goal of expanding economic opportunities and improving living standards, including progress towards the national target of providing electricity access to 70% of the population by 2030.
The target is expected to support improved access for about 3.4 million people.
Marape urged investors not to underestimate PNG's economic potential, saying private capital would be critical to meeting the country's growing demand for power.
“Do not underestimate the resilience and economic potential of our people. The opportunities are there. Invest, innovate and work consistently, and you can build successful businesses while helping our country develop,” he said.
He reaffirmed the government's commitment to productive infrastructure investment, saying electricity projects should be measured by their contribution to jobs, industrial activity and improved living standards.
“I would rather invest K2 billion in electricity infrastructure that drives economic growth, creates jobs, supports industries and improves the lives of our people,” Marape said.
