06/03/2026
OFFICIAL COMMISSION THE TARI–HAGEN–YONKI (RAMU) 132KV NATIONAL GRID BACKBONE UPGRADE
Speech – Minister for State Enterprises, Hon William Duma
Mt Hagen, WHP
06th March, 2026
Distinguished leaders, honoured guests, ladies and gentlemen,
Today we mark a defining milestone in Papua New Guinea’s electricity transformation. Under the leadership of our Prime Minister, Hon. Chief James Marape, we officially commission the Tari–Hagen–Yonki (Ramu) 132kV National Grid Backbone Upgrade, a project that strengthens the spine of our national power system and reinforces our commitment to economic stability, energy security, and inclusive growth.
This upgrade transitions the Highlands transmission corridor from 66kV to 132kV, delivering greater capacity, efficiency, and reliability. It is not merely an engineering achievement as it is the tangible result of reform, discipline, and national resolve.
Project Investment and Delivery
This is one of the most significant transmission investments since Independence. Delivered in two phases by TBEA, at a total cost of USD 400 million (PGK 1.6 billion), it was financed through a concessional loan from the Export-Import Bank of China and direct Government funding. Importantly, the Marape-Rosso Government funded this backbone directly through Treasury, reflecting unwavering commitment to national infrastructure.
Phase One strengthened the Mount Hagen–Hides corridor. Phase Two linked Mount Hagen to Yonki, integrating the Yonki hydropower station with the Ramu grid. Together, these investments span 460 kilometres of high-voltage transmission lines, eight substations, and modern towers and replacing the outdated 66kV system with robust 132kV capacity.
A further extension, the Tari–Hides missing link, funded by Kumul Consolidated Holdings at PGK 71 million, completes the Highlands corridor. This ensures resilience, redundancy, and readiness for future power demand and generation projects, including Ramu 2.
Reform and Recovery
This commissioning is the outcome of disciplined reform under the SOE Reform Agenda (2022–2027). We strengthened governance under the Kumul Consolidated Holdings Act, stabilised distressed utilities, mobilised capital for modernisation, and prepared selected SOEs for structured private participation. These were not ad hoc bailouts—they were accountable interventions that restored system stability and confidence.
Technical Significance
The 132kV backbone now enables higher hydropower evacuation from Yonki, reduces losses, improves voltage stability, supports major economic nodes from Tari through Hagen to Lae, and prepares the grid for Ramu 2 and renewable integration. PNG Power has ensured commissioning readiness with relay coordination, SCADA integration, and system testing and reflecting technical discipline and operational integrity.
Economic Impact
Reliable power underpins agriculture, mining, SMEs, healthcare, education, and industrial expansion. The Highlands corridor is more than a transmission line as it is an economic corridor, powering growth and opportunity across our nation.
Governance and Financial Discipline
PNG Power continues to face challenges, but reform is yielding progress: operational performance is improving, outages are reducing, smart metering and renewable integration are underway, and a structured recovery-to-privatisation pathway is being implemented under KCH oversight. Our objective is clear: restore balance sheet strength, improve performance, and responsibly attract private capital.
Closing
This commissioning demonstrates that reform delivers results, governance produces infrastructure, and disciplined leadership secures prosperity. May this 132kV backbone power not only our grid, but power our economic future.
Thank you, Prime Minister, for your leadership. May God bless Papua New Guinea
