private company to supply electricity, page-10

Friday, 24 May 2013




PNG’s human development indices remain in a woeful state because of the lack of performance of various government departments and poor delivery of services.


Among the key deliverers of services are state-owned enterprises which in recent months have been the subject of significant discord and disarray.

Then there is the recent news that Energy World International, the parent of LNG-focused, Australia-listed Energy World Corporation, was awarded a contract that would enable it to operate some power generating facilities built and owed by the SOE, PNG Power.

This intriguing development only came to light following a Post Courier report of a statement from Public Enterprises Minister Ben Micah and it remains unclear if any due processes were followed in this deal which is as clear as mud.

Officials indicated the decision had not been made by the PNG Power Board and EWI had not been among the top three companies shortlisted for such a role.

The Minister’s statement followed closely on the announced resignation of the Chief Executive of PNG Power, Tony Koiri, who suddenly quit his position virtually overnight.

It is understood Mr Koiri in recent years had built additional diesel-fired capacity at its Kanudi operation which will now, according to the Minister, be operated by EWI. There was no mention if EWI would make any investments as part of the deal to allow it to take over the Kanudi power plant.

Koiri previously had gone through an exhaustive process of tendering the construction of additional diesel-fired units and short listing of a number of tenderers. But he eventually decided to go it alone because the pass-on power costs for a third party, Build-Operate-Transfer operation was considered excessive.

Micah, who now resides in three plush apartments in Port Moresby’s only 5-star hotel, Grand Papua, did not give any substantive reasons for awarding of this contract or the benefits to be gained. Neither did he provide any background on EWI.

EWI does not have a public profile in PNG even though its subsidiary EWC has been touted as a partner of InterOil as the company contracted to build a modular LNG plant in Gulf Province.

http://www.pngindustrynews.net/storyview.asp?storyid=798530114§ionsource=s0