Ramu 2 PROJECT: Submission of Feasibility Study Report

Wednesday January 28, 2015 – The National Executive Council (NEC) appointed IPBC as the lead agency to explore options to increase hydro-electric power generation in the RAMU SCHEME. (NEC Decision: NG 137/2011 on Dec 6, 2011).

After following due governance process, IPBC appointed leading world-wide engineering consultants PARSONS BRINKERHOFF as the lead agency supported by KRAMER AUSENCO as a local counterpart

Today, Parsons Brinkerhoff submitted its final report to the Minister for Public Enterprises & State Investments, Hon Ben Micah through the IPBC at a media conference at the Gateway Hotel, Port Moresby.

The extensive and detailed report provides the blueprint for the progression of the Ramu 2 project. The purpose of the Ramu 2 project is to optimise the water resources within the existing Ramu hydro-electric scheme to generate additional capacity and meet increasing demands particularly from mining and industrial developments in the Highlands region of Papua New Guinea. Improvement in the utilisation of natural water resources will also reduce dependence on diesel to generate additional power capacity.

The existing Ramu hydro-power scheme is located at Yonki, Kainantu in the Eastern Highlands Province of Papua New Guinea and currently generates 67 megawatts (MW) from of an install capacity of 93MW.

The prospect of boosting the entire Ramu hydro-electric scheme capacity by a further 180MW is now confirmed technically feasible.

Implementing and managing agency IPBC has commissioned the feasibility study through a consortium comprised of leading world-wide engineering consultants Parsons Brinkerhoff as the lead contractor. Also in the consortium are Douglas Partners (Geotech Specialists) and Kramer Ausenco (Environmental and Social Reviewer). Other supporting activities were sub-contracted to Websters Drilling (Drilling Contractor); G4S (Security Services); Heli Niugini (helicopter services); and various landowner companies (labour mobilisation).

Ramu 2 Project milestones to date have been:

2010-2012: Project definition and pre-feasibility studies commenced in Q1/ 2010 and ended Q3/ 2013. The study confirmed the project as technically feasible with strong recommendation to proceed to full feasibility.

2013-2014: Full feasibility study undertaken by Parsons Brinkerhoff-led consortium. The study includes FEL 2 design and drawing, drilling of 13 holes with 1.5km aggregate depth along the proposed 7km tunnel; as well as environmental impact assessments.

The next step is for the IPBC to undertake economic analysis, develop an information memorandum, and work with the Government of PNG, PNG Power Limited and other stakeholders towards achieving a final investment decision before the end of 2015.

Chairman of the IPBC Mr Paul Nerau said that the Ramu 2 Project was yet another major infrastructure project being undertaken by IPBC on behalf of the Government and people of Papua New Guinea and thanked the IPBC Management Team led by the Managing Director Mr Wasantha Kumarasiri.

“IPBC has successfully recently completed the Lae Tidal Basin Phase 1 Project and is now working on Phase 2 of that Project. As well, IPBC is the implementing and managing agency for projects such as the Port Moresby Port Relocation Project and the Port Moresby Sewerage Upgrade Project. The Ramu 2 Project is yet another project being managed by IPBC under its well-documented auspices of good corporate governance,” Mr Nerau said.

ENDS