PPL inks agreement for Ramu Rehabilitation

 ramu rehab

PNG Power has signed an agreement with Andritz Hydro of Austria to signal the start of the Ramu 1 Hydro Power Station rehabilitation and modernisation project.

PPL CEO Tony Koiri accompanied by Chief Operating Officer Bennie Smith signed the agreement with Andritz Hydro Vice President Dr. Christian Jagob and his delegation in Yonki on July 25 infront of PPL employees, families and locals of Arona Valley.

The signing begins the long awaited rehabilitation work aimed at restoring the Ramu Hydro Power Station to its former glory.

Work will take 18 months to complete but customers will see improvements in reliability once refurbished units are progressively brought back into service over the period of the contract.

Mr. Koiri says the project forms three parts that addresses reliability issues on the Ramu grid.

The first is to increase generation by refurbishing and increasing power output from existing generating stations both Hydro and thermals stations and constructing new Hydro power stations.

He says electricity demand has increased exponentially with limited opportunities for maintenance and overtime, the condition of the major plant showed signs of deterioration. This has resulted in reduced power output and increased incidents of failure thereby affecting power supply to consumers on the Ramu grid.

Andritz Hydro is no stranger to PNG as they have been in the country since the early 1960’s with the construction of Rouna 2 Hydro Station in Port Moresby and were also recently involved in the rehabilitation and modernization of the same station.

Mr. Koiri said Andritz Hydro had the best intellectual property to offer PNG Power the best engineering solution to the issues that are affecting power output from Ramu Hydro.

Dr. Jagob said he was proud to be able to continue the long lasting and successful collaboration with PNG Power and serving the people of Papua New Guinea with their products and services.

He promised those gathered at the ceremony that Andritz will do its best to improve the quality of energy generation and to deliver as promised, providing value for money to the communities of PNG.

“We are looking back on a long track record starting with the first deliveries of many PNG Power station equipment and ending with the recently successfully executed project at Rouna 2,” said Dr. Jagob.

The Ramu 1 Hydro was commissioned in 1975 and has served as the main source of electricity for 30,000 individual consumers on the Ramu grid for over 37 years.

The Ramu grid’s coverage extend from Lae and Madang on the coast and up into the Highlands as far as Wabag in the Enga Province and Mendi in the Southern Highlands Province, an area with a population of over 4 Million people.

Funding of project has come through from financial institutions Bank South Pacific, ANZ, Westpac, NASFUND and Nambawan Super.

Mr. Koiri said it has been a long time coming but was pleased that it has finally happened and work that was planned for execution four (4) years ago can finally start.

He was more than confident that Andritz Hydro will deliver the project with its usual high quality work and within the nominated time frame.