Divune Hydro Power Project MoA signed
PNG Power Ltd (PPL) and the Divune Development Corporation Ltd (DDC), the landowners of the Divune Hydro Power Project (Divune HPP) signed a Memorandum of Agreement on June 24.
This agreement will now pave the way for PPL to progress work on the construction of the new hydro power station.
The MoA was signed at the Northern Motel in Popondetta by PPL CEO, Chris Bais, DDC Chairman, Paulias Kei and his clan leaders and witnessed by the Oro Provincial Government.
PPL was committed to having the Divune HPP come true and was happy that the MoA was signed after negotiations with the landowners over the years.
The negotiations have been challenging but we are happy that it has provided a good outcome and I am sure this project will be delivered effectively with such co-operation which is essential for the success of any project.
The Divune Hydro Power Project is part of a Multi Financing Facility (MFF) between the Asian Development Bank and the Government of PNG, called the Town Electrification Improvement Program (TEIP). The Divune HPP & Line is a sub project under tranche 1. The TEIP project is designed to address accessibility to reliable, affordable and clean power.
PPL is implementing the TEIP which is aimed at increasing the supply of clean hydropower energy in Oro Province, West New Britain Province and the Autonomous Region of Bougainville.
The Project will replace high-cost diesel generation with low-cost hydropower generation and construct transmission lines along main population corridors to connect the hydropower sites to the main urban areas.
Under the TEIP, PPL will construct a 3MW run-of-the-river hydropower plant and associated civil works on the Divune River near Waju village in the Kokoda LLG of Oro Province. Power from this site will feed the provincial capital, Popondetta, as well as the tourist town of Kokoda.
The distance between Popondetta and Kokoda will comprise of 667 poles with a total distribution line length of 70km. There are 1,500 household beneficiaries and this project will benefit 2,366 persons.
PPL will work with the Oro Provincial Government and the landowners to bring electricity services into Oro and thanked the landowners for their continued cooperation.
I am sure that when the Divune Hydro Power Station comes online, there will be a lot of people happy with the electricity services been received and the many benefits that will come with electricity.
The signing of the MoA signifies the importance of the project to go ahead and I am sure the DDC are happy that they have achieved something that they will cherish for the rest of their lives and for generations to come.
I appreciate the valued understanding that the landowners and the Oro Provincial Government has had with PPL during the times of negotiations as this project will not only benefit the people of Divune but Oro Province as a whole.
PPL also made the payment of land purchase for the project site for the sum of K3, 155, 800 to the landowner company for the site of the power station and dam area.
The contractor for the project will be appointed this month and we anticipate mobilization and construction to begin at the end of the year.
Chris Bais, Chief Executive Officer, PNG Power Ltd
