THE Chairman of Dirio Gas and Power Company (Dirio), Issac Lupari, in a statement today highlighted that a sum of K240 million owed by the State-Owned Enterprise has led to suspension of power supply by Dirio Gas and Power Company.
“Dirio first commenced the sale of electricity to PNG Power Limited (“PNG Power”) under a long-term Power Purchase Agreement (“PPA”) in November 2021,” Lupari said.
He said Dirio, together with its partners, has operated the Dirio Central Province Power Station in accordance with the PPA terms to meet the electricity demands of the residents and businesses of Port Moresby.
Lupari said despite having 45MW of capacity available, PNG Power has refused to take any more than 30MW, limiting the power generation available to Port Moresby residents.
“PNG Power has continued to neglect its obligations under the PPA despite numerous attempts by Dirio to engage and elicit a commitment to pay Dirio and its landowner shareholders under the PPA,” said the Chairman.
“The situation has now become untenable, and PNG Power owes Dirio more than PGK 240 million,” he stated.
Mr Lupari further added that Dirio Gas & Power Company Limited has advised PNG Power that it is exercising its right under the PPA to shut down its power station in Port Moresby as of 12.00pm today, 27 September 2024.
“Dirio is Papua New Guinea’s first Independent Power Producer entirely owned by PNG landowners from the regions affected by the PNG LNG Project.
“Dirio was founded in 2017 in line with PNG Government policy to increase local participation in key industries to PNG’s economic growth, and to ensure the Government’s target of 70% electrification by 2030.”
Lupari said since its inception Dirio has never been the beneficiary of any government support, such as tax concessions or state guarantees.
“Dirio does not intend to inconvenience Port Moresby businesses and residents.
“By providing advanced notice, Port Moresby users will be prepared for any supply interruptions.
“Dirio is committed to being a source of reliable electricity for customers in PNG, and we hope that a resolution to this issue of non-payment can be resolved.”
