Minister Maru supports the proposed Kaugel hydropower project in Southern Highlands

The Minister for International Trade and Investment, Richard Maru says he fully endorses the proposed 90MW Kaugel Hydropower Project in the Southern Highlands Province as a transformational project of highest national priority.

“The proposed K2.5 billion project, which will take 4 years to construct, has my highest support. This is a transformational project. We have a very high demand for cheaper, clean, and reliable electricity in our country not only for our people but importantly to drive economic growth,” said Minister Maru.

Minister Maru urged all stakeholders to work together with the proponents of the project including local partners, Kaugel Hydro Limited, landowners, and the respective Provincial Governments of Southern Highlands, Enga and the Western Highlands to unlock this project as a high priority.

“The Kaugel Hydropower Project is precisely the scale and quality of foreign direct investment PNG must prioritize. This hydro can provide long-term electricity to Porgera Mine, the proposed Baiyer & Ruti SEZ, Mt. Hagen City and parts of Southern Highlands Province,” said Minister Maru.

Minister Maru highlighted the need for Kaugel Hydropower Project, citing the chronic power shortages crippling the highlands grid due to the inadequacy of infrastructure like Yonki hydro.

“Persistent power outages stifle growth, deter investment, and hold our people and country back from progress and development,” said Minister Maru.

Minister Maru further stated: “Clearly, we have to secure a social license for the project by securing clear landowner equity participation and business spin-off benefits, the participation in equity by the respective Provincial Governments and other benefits. These are critical issues that must be handled carefully and sensitively.”

Minister Maru said Kaugel Hydropower Project aligned with the country’s national goals for rural electrification, industrial development, and reducing carbon emissions.

Minister Maru thanked the Managing Director of Kaugel Hydro Limited, Mr. Karl Yalo and his team for the tireless efforts so far.

“We wish them every success to secure anchor customers to make the project bankable, and we also hope that they can secure license from the National Energy Authority,” said Minister Maru.

Minister Maru further added: “My Ministry and Department stands ready to champion this potential high impact and transformational project to demonstrate the unwavering commitment of the Marape-Rosso Government to renewable energy transition, equitable distribution of benefits, and setting the foundations for a better and brighter future for our people and country as we celebrate 50 years of independence and chart our way forward for the next 50 years.”