Implementing key energy projects, harnessing natural resources to generate cost effective power.

Kumul Consolidated Holdings is the implementation agency for a number of energy projects throughout Papua New Guinea.


The 180 megawatt (MW) Ramu 2 Hydropower Project is the largest power infrastructure project ever undertaken in Papua New Guinea to date. It is set to increase the Ramu System Capacity by over 200% and the national generation capacity by a third (33%), using clean, sustainable and least cost sources of power.

The State team led by KCH have concluded negotiations of all technical, legal and commercial terms of the project agreements with the Consortium partners, and are awaiting the final clearance and approval by National Executive Council (NEC) before parties execute the agreements.

Seen as a nation building project, the Ramu 2 project is structured to supply base load energy to Wafi-Golpu and Ramu Nickel mines as well as clean, cheap and reliable electricity to the vast majority of people living within the Ramu system. The project is valued at about K3 billion (US$ 939 million) and seeks to articulate the government’s long term strategic outlook to harness our abundant hydro resources into generating least cost energy for the local industries and its people.

Shenzhen Energy Group of China is lead consortium partner in the Ramu 2 Hydropower Project. The PNG Government through the NEC appointed the Shenzhen Energy Sinohydro Consortium in 2016 to deliver the project under a build, own, operate, and transfer (BOOT) model.

Under the BOOT model, the Ramu 2 asset will be transferred back to the Government after 25 years of operation – debt free. The State, the Eastern Highlands and Morobe Provincial governments; and the landowners will then own this multibillion kina power infrastructure asset that will continue to operate for up to 75 years; offering a long-term least cost energy for the country.

During the construction period, the project will provide employment for thousands of skilled and semi-skilled PNG citizens. Upon commissioning and operation the project will employ PNG citizens within the hydro scheme. The engineering skills capacity enhancement that this project will bring to the industry, is significant, and will benefit the country for decades to come.

KCH has completed its review of the project agreements based on NEC directives and is ready to present back to NEC for approval once clearance is obtained from the PNG Power Board on the PPA; and State Solicitors Office on the entire transaction before the parties can execute the project agreements.


KCH Key deliverables for 2018

  • Commercial Close and Financial Close dates are scheduled for 31 October 2018
  • Early works scheduled for 1 November 2018
  • Construction commencement date scheduled for Q2/2019

Ramu 2 Hydropower project