The Minister for State-Owned Enterprises (SOE) and Member for Hagen Open, Wiliam Duma, has announced that the Yonki Hydro Power Project in Eastern Highlands Province will remain the primary power supplier for the Highlands region.
The good minister made this statement in response to questions raised by the local Member of Parlaiment (MP) for Kainantu, William Hagahuno in Parliament this week regarding the project.
“The Yonki hydro Power Energy will continue to be the primary source of energy for the entire Highlands Region and will not be replaced in the medium to long term,” Minister Duma stated.
He emphasized to the people, particularly those from the Eastern Highlands and the entire Highlands Region, that currently, no power is being sourced from the gas in Hela Province. He clarified that no gas has been utilized, nor will it be in the near to medium future to generate energy for the population’s needs.
“For gas to be utilized, a power purchase agreement must exist between PNG Power and either the gas owners or a third party,” the Minister said.
Duma informed the House and the people of Eastern Highlands that, under a loan agreement with the Exim (Export- Import) Bank of China, PNG Power has engaged a contractor to construct high-voltage transmission lines and towers that will begin in Hela Province and extend into Eastern Highlands Province.
“These new transmission lines and towers are intended to replace the outdated infrastructure established by the colonial administration in the early 1960s, which now poses a risk of collapse.”
He also addressed the critical issue of benefits for the traditional owners of the land where the Yonki Hydro scheme is located. He recognized instances of misused funds allocated for landowners and the disputes that have arisen among them.
“Unfortunately, this arrangement was set up by the colonial administration prior to our independence (1975), and successive governments have not adequately addressed these issues for many years.”
“I can confirm that some payments have been made by PNG Power to the landowners. It is incorrect to claim that no payments have been made,” Minister Duma said.
However, he assured that the government is not ignoring these issues and is willing to review such arrangements, emphasizing that it would be contrary to public policy for any government to overlook those agreements.
“We will explore options to accommodate our people within the existing framework and, if necessary, consider including them in the new Ramu 2 project.”
“In this arrangement, PNG Power will retain 60% of the shareholding for the benefit of the people of this country, while 40% will be transferred to the affected landowners and the provincial governments of Eastern Highlands and Morobe. We will allocate 20% each to the people of Eastern Highlands and Morobe provinces.”
“This is a groundbreaking initiative, the first of its kind in the country, implemented by the Marape-Rosso government. Once the Treasury Department finalizes the terms of the guarantee, we expect construction or preliminary work to commence by mid-next year,” Minister Duma stated.