PPL signs civil works deal with Daiho

 

PNG Power has signed a K17m contract with Japanese firm Daiho Corporation to kick start civil works construction of the Yonki Toe of Dam (YTOD) Hydro Power Station.

CEO Tony Koiri and Daiho’s Project Manager Masamichi Inoue sealed the deal on November 18 in PPL’s boardroom in front of members of EMT, staff, representatives from Daiho and the media.

Mr Koiri said it had been a long road trying to get the project off the ground, mentioning the non-performance of the previous contractor as the main delay to building the 18MW power station.

“But I am happy to say that Daiho has come on board and we share their confidence in getting the civil works completed within a year,” Mr Koiri said.

He said once civil works were done, PPL and its contractor Nippon Koei would complete electrical and mechanical works.

The project is expected to take at least 12 months and the Daiho engineering team has already begun preparatory works.

The construction of YTOD was initially contracted to a Chinese company in mid 2008 but due to their non-performance including civil construction works, PNG Power terminated the contract in March 2010.

PNG Power then took over the project and contracted Japanese firm Nippon Koei to provide advice on difficult technical issues and quality assurance including technical guidance and support in the electrical and mechanical works.

The whole project, now estimated at K75m, is expected to be completed by February 2013.