US$600 Million Power Project
Korea Western Power announced on May 16 that its consortium was selected as the preferred bidder for the international bidding for a hydroelectric power generation project in Papua New Guinea.
The project, worth US$600 million, was launched by Kumul Consolidated Holdings in February this year for the construction of a 180 MW-capacity hydroelectric power plant. Korea Western Power formed the consortium with POSCO Daewoo, Daelim Energy and Hyundai Engineering.
The project is the largest private investment-based national project in the history of Papua New Guinea. The ordering agency is to carry out social and environmental impact assessments on its own while Kumul Consolidated Holdings provides the project site downstream the Yonki Hydro Complex across the Ramu River. The national holding company held a pre-bid meeting in December last year and asked 65 companies to submit expressions of intent in February this year. Seven groups, including the Korean consortium, did so and it was selected as the preferred bidder on May 5.
The electric power that is generated as a result of the project is planned to be sold to PNG Power, the national power company of Papua New Guinea. Korea Western Power is planning to start the construction process once it wins the final contract in December this year and financing is completed in March 2017.