Launched in 2015, the Ramu 2 hydropower project is one of the biggest impact projects for both the people of the Eastern Highlands and Morobe provinces. This, according to Mining Minister and Kainantu MP Johnson Tuke.
He said, “Ramu 2 is a power project which the government has done its feasibility studies with a decision made by the National Executive Council, but the hold-up is with the PNG Power Limited (PPL) to endorse the Power Purchase Agreement (PPA). If endorsed, it will be the second biggest impact project in the Eastern Highlands apart from Ramu 1. It will provide vital economic flow, job opportunities, allowing the people of the Eastern Highlands province to benefit. The Kainantu people have given their land for the country’s development, Ramu 1 and if it’s the government’s intention to give an impact project for the people of Eastern Highlands.”
Mr Tuke added that Ramu 2 should be given consideration as the project benefits both the Eastern Highlands and Morobe. He said that he has given the benefits of supplying power to all mining operations to PPL but as time passed by, PPL has proven to be unreliable and the mining companies have established their own power.
He added that the project can add value to existing mines and other new projects. “The Mining Ministry has issued the first writ of refusal to PNG Power Limited, if incapable of providing power to mines then the mining companies will look for alternatives to settle for,” he said.
The Ministry of State Enterprise, meanwhile, said in Parliament that the government doesn’t want to rush the K3.5 billion power project as this can affect PPL. Minister for State Enterprise Sansindran Muthuvel said that this Ramu 2 is one of the biggest projects to date and that it can allocate 180-megawatt power.
He added that this project depends on other situations such as that the PNG Power doesn’t have the capability to buy 180-megawatt power. In the contract, they seek to take up the pay component of a minimum of 130-megawatt power and so, the project is subjected to a power sale agreement.
