Regulator Gives The Nod For Dirio Power
Consumer and Competition regulator ICCC has given the nod for the US$65 million (K221m) Dirio Gas fired power plant with the issuance of its electricity generation licence yesterday in Port Moresby.
ICCC Commissioner Paulus Ain presented, the latest entrant into the power generation space, its license stating that this now brings the total number of entrants into the generation sector of since the development of the third party access code to 10 in total.
The 45 megawatt producing power plant received its license to generate around 31 megawatts into the PNG Power grid, with pricing set at around 36-37 toea per kilowatt, just below the regulator ceiling of 38t. Mr Ain said the process in granting the license was conducted with thorough due diligence.
“ICCC and Dirio have been going through the process for the issuance of a generation license. “This process has been very rigorous process to ensure that all technical, financial requirements are met before a license is issued, just like any other licensees who participate in the electricity industry.
“Since the development of the third party access code by the ICCC, we have had a number of potential generation participants in the electricity industry. “This has seen a growth for almost 9 and to date those seated before you brings the number to 10.
The most recent one as you are aware was the Niupower plant with a capacity of 58 megawatts (MW) was recently issued,” Mr Ain said.
Chairman of Dirio Gas & Power, Isaac Lupari said the project was incepted three years ago when PNG LNG gas project and oil producing landowners and provincial governments decided that there was an opportunity to invest in downstream processing.
“That was consistent with the government then on encouraging landowners, provincial governments, our people to go into business spinoffs in the extraction industry. “Investors from the provincial governments, landowners, particularly from the PNG LNG gas field undertook a deliberate business approach that resulted in some of us making decision to form a company called Dirio Limited.
He said while the journey to achieving the license was a long one, it was also difficult convincing fellow Papua New Guineans in the ability of a local venture from the MRDC group of companies’ member.
“It wasn’t an easy journey for us because we needed to convince a lot of people, our own people, that we can participate in certain segments of our oil and gas industry in our country that was power generation.
“With this it brings to the end of the compliance process that we need,”
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