Caption: Minister
for State Enterprises Ben Micah (centre) speaking to journalists.
By MATTHEW VARI
THE once
strongly monopolized electricity generation sector, will now be partially
opened up to private companies to generate electricity and sell back to the
current supplier PNG Power for distribution.
That is the
response the government is currently undertaking to address the serious issue
in the shortfall of power supply to some of the major urban centers in the
country.
Minister for
State Enterprises Ben Micah reveal the approach now undertaken in light of
public criticism of current electricity supplier PNG Power Limited, last week
at the swearing in of the new IPBC Board Chairman Paul Nerau.
“Prime
Minister has instructed me and I have given instructions to IPBC and PNG Power,
in the next few days they must advertise IPPs (Independent Power Purchase
Agreements) with private companies to provide power in Rabaul, Kimbe, Wewek,
and Madang,” Minister Micah said.
“Because
IPBC does not have the money, and the government does not have it either- the
government wanted to address this in Port Moresby and Lae, in November and the
New Year when everybody are complaining about power.”
He said the
government had a strategy to address the immediate issue of blackouts faced,
however even that strategy attracted wide criticism.
“When the
government wanted to address it- they complain about the solution, we are
giving that solution to private sector companies now,” he said.
“They will
produce the powers and sell it back at agreed tariff rates that will not
increase beyond the cost of what PNG Power is providing- wholesaling it back to
PNG Power and they will distribute it.”
“The other
instruction I have given to them is that all IPPs which have already been given
for Port Moresby and Lae and other places have to be cleared by IPBC as soon as
possible, so that we can start to move some of these things.”
He added
that the saga that occurred at PNG Power were now back to normal, with the
focus now on delivering the vital service of electricity generation.
“The power
situation has now been restored, meaning all the uncertainties and issues of contention
have now been resolved,” Micah said.
“We now have
a board, under the chairmanship of Mr Larry Andagali, and CEO John Tangit.”
“All issues
will be dealt by the board and the ministerial committee, who have been tasked
to carry out their job.”
He said that
PNG Power is just like so many other state companies that have problems.
“We have to
address them systematically in a coordinated way between IPBC and the Ministry,
which is the direction we are now taking.”
“We will
systematically address all those legacy issues which I did not create,” he
added.
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