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PORT MORESBY, Papua New Guinea (PNG Post Courier, October 1) – Papua New Guinea (PNG) Power will spend PGK120 million [US$43 million] to upgrade, renovate and replace existing facilities and equipment at the Rouna Two hydro power station.

The project will see the replacement of 40-year-old equipment with the latest. PNG power said yesterday this project would result in greater quality and reliability of power supply to customers in the Port Moresby.

A contract agreement was signed yesterday between PNG Power and VA Tech Hydro, a European company which has won the tender to upgrade the station and its equipment. PNG Power chief executive officer Patrick Mara said through this project, PNG Power would deliver more reliable, efficient, better quality and more importantly, cost-effective electricity services to the consumers. "The project is worth more than K120 million, and is funded by PNG Power from its own balance sheet, and loan funding from local commercial banks," Mr Mara said.

Minister for State Enterprises, Arthur Somare said during the signing this was a win-win for both the Government and its State- owned enterprises and the private enterprise. "The Government is focused on growing the economy through the state-owned enterprises sectors because it is a sleeping giant of economic growth in PNG," Mr Somare said. VA Tech is the same company which installed the present equipment 40 years ago.

October 2, 2006

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