Origins of PNG Forest Products and hydro power in Bulolo

By MALUM NALU

PNG Forest Products originally evolved from Bulolo Gold Dredging (BGD) Ltd, a mining company that commenced mining operations in Bulolo in 1932, according to company archives.

BGD was owned by Placer and it operated seven dredges in what was then the world’s largest gold field.

These dredges were powered by hydro power stations that remain vital to the area’s industrial activities to this day.

In the late 1930s, there were three hydro power stations operating in the Bulolo area with an installed capacity of 7.9MW.

 Peak load on the system was 5.4MW:

·         Pine Tops        2.4MW (Was not rebuilt after World War 11);

·         Lower Baiune 3.5MW (still operating today); and

·         Upper Baiune  2.0MW (still operating today).

The original power station was located at Pine Tops. 

Original power station located at Pine Tops. The station had four 600KW generators and used 8.5m3 of water per second at full load, with an effective head of 30.5m. It was not rebuilt after World War 11.

The station had four 600KW generators and used 8.5m3 of water per second at full load, with an effective head of 30.5m.

 It was not rebuilt after World War 11.

“All the gold dredges were driven by electric motors and as more dredges were added, firstly the Lower Baiune, and then the Upper Baiune hydro- power stations were built,” according to the company’s website.

One of the iconic Bulolo dredges during Morobe gold rush days.-Pictures courtesy of PNGFP

“These power stations were sabotaged in 1942, as part of the Australian army's Scorched Earth policy.

“Consequently, extensive rehabilitation work was required after the end of WWII.

“The electrical plant to rebuild the power stations was manufactured in 1944, and commissioned in 1946-1947.

“However, a fire in 1984 totally destroyed the Upper Baiune power station and it was rebuilt in 1985.”

The Baiune hydro-electric power stations supply all the electricity consumed in the Wau and Bulolo areas.

Although the technology used is old, the equipment was manufactured to an extremely high standard, and as a result the Lower Baiune station has operated continuously since 1947.

PNG Forest Products powers up PNG from Bulolo

 By MALUM NALU

One of the major infrastructure projects I covered this month was the opening of the K100 million PNG Forest Products' Upper Baiune Hydro Power Project in Bulolo, Morobe province
PNG Forest Products now operates three hydro power stations with a combined installed capacity of 14.9MW at Baiune, some 20 minutes from Bulolo, following the opening of the Upper Baiune Hydro Power Project on Saturday, March 2, 2013.

 These power stations supply all of the company’s production, commercial and residential power requirements. 

The new Upper Baiune hydro power station.-Nationalpics by MALUM NALU

PNGFP also supplies bulk power to PNG Power’s Ramu grid and to Wau.

PNGFP operates as the power supply authority in Bulolo supplying power to local businesses and domestic consumers.

PNGFP plaque acknowledging major contributors to the project.

PNGFP has just completed the construction of a new 9.4MW power station at Upper Baiune to generate additional power to supply to PNG Power’s Ramu grid.

This is a major undertaking for the company and is the first such project in PNG whereby a hydro power station has been built by a private organisation as a commercial venture for the sole purpose of supplying power to PNG Power.

Visitors touring the new hydro power plant on Saturday, March 2, 2013.

“The Upper Baiune Hydro Power Project was first conceived in late 2006 when PNGFP became interested in supplying additional power to PNG Power,” says PNGFP managing director Tony Honey.

“It was obvious that a good potential for further hydro power development existed immediately above the existing Upper Baiune intake as there is a 270m fall in the river over a straight line distance of only 2km.

“PNGFP engaged the services of Snowy Mountain Engineering Corporation (SMEC) to conduct a prefeasibility study to confirm the potential for further hydro power development and we then subsequently negotiated a power purchase agreement with PNG Power.

“With a commitment from PNG Power that they would purchase the power that would become available if the project was viable, we were able to proceed with a full feasibility study which was conducted by SMEC.

Intake area at the Baiune River.

“During the feasibility study, it became apparent the project would be viable so we immediately proceeded with an environmental impact assessment and applied to DEC for the necessary environmental permits for the construction and operation of the new power station.”

“On completion of the feasibility study we moved into the design phase with SMEC preparing the tender documentation for construction.

“We then advertised for tenders in both PNG and overseas and the tenders were evaluated by Infratech Management Consultants.

“The contracts for the civil work were awarded to China Railway Construction Group (CRCG), who had undertaken several large projects in Port Moresby, one notable project being the Vision City shopping complex.

“The contract for the electro-mechanical installation was awarded to Asia Pacific Power-Tech (APP) from Hangzhou, China.

“Infratech Management Consultants were appointed as the project manager and resident engineer.

“The construction of the substation, new 33kV transmission line to Lower Baiune and the switch yard at Lower Baiune was carried out by PNGFP.”

Construction work commenced with a ground breaking ceremony in June 2011 and supply of power to PNG Power commenced in December 2012.

“PNGFP also supplies surplus power from its existing power stations to PNG Power.

“The amount of surplus power available is dependent upon the daily load being drawn by PNGFP’s production facilities, and also the water flow in the Baiune River.

“The total amount of power supplied to PNG Power can be as high as 11.5MW on weekends.”

New private ambulance service for Port Moresby

An exciting new venture was launched in Port Moresby this week - Emergency Medical Services PNG Ltd.

The new service features fully equipped ambulances staffed by fully-trained Australian paramedics.

The service is the brainchild of Dr Fa Pulotu and his wife Lydia to give patients a better chance of survival if they suffer an emergency condition in Port Moresby.

Lydia and  Fa Pulotu and  Australian paramedic Mark McCarthy in front of one of their fully-equipped ambulances with Boroko Rotary president, Lionel Melville

Dr Pulotu currently runs successful clinics at Ela Medical Centre in town and Jacobi Medical Centre at Boroko, where two of the ambulances will be based.

The ambulances are fully equipped to Australian standards, with equipment such as oxygenators, stretchers, defibrillators and medication to deal with cardiac or any medical trauma.

 “The idea came to us as we are often faced with the question, would you survive a heart attack in Port Moresby “McCarthy said.

"With this service, these ambulances, all the vital equipment and fully-trained overseas paramedics, we are confident your chances will increase significantly.”

The ambulances will be stationed around the city to give quicker access to any emergency they are called to.

The first two Mercedes ambulances are already here, and two more arrive in the next week, and another 4WD All Terrain Landcruiser ambulance is currently on order.

The service will be a subscribers’ service, but is affordable for everyone at a rate of K1 per day (K365 per annum), and 50t for children under 12 (K182.50 per annum).

Corporate companies are encouraged to look at providing the service to their staff and families.

The service will go live later this week at which time it can be accessed by a toll free, 24 /7 phone number, featured prominently on the vehicles - 1567.

ADB: PNG growth to ease to 5.5% in 2013

By MALUM NALU

The Asian Development Bank projects Papua New Guinea’s economic growth to ease to 5.5% in 2013, as the scaling down of LNG project construction reduces construction and transport activity, with spillovers to other sectors such as retail and wholesale trade, according to ADB’s Pacific Economic Monitor released on Monday this week.

The report said moderating prices of key agricultural exports and a strong kina were expected to depress rural incomes and consumption. 

ADB’s PNG country economist Aaron Batten shows off the Pacific Economic Monitor on Monday.-Picture by MALUM NALU

“Continued declines in oil production, due to depletion of reserves in major fields, will likely also weigh down growth in 2013,” it said.

“Increasing mining output will partly offset the declines in other sectors, as production bottlenecks are addressed at key gold and copper mines, and production at the new Ramu nickel and cobalt mine ramps up. 

“The onset of LNG exports in late 2014 will boost mineral output, with overall growth in the sector expected to reach more than 60%.

“ADB projects the economy will grow by 6% in 2014.

“The national budget provides for large budget deficits in 2013 and 2014.

“The government plans significant increases in funding for infrastructure to raise long-term growth.

“However, the extent to which this supports economic activity will hinge on how much private investment is crowded out by government spending. 

“Inflation is projected to reach 6.5% in 2013 and 7.5% in 2014.

“High government expenditures are likely to stoke price growth for domestically produced goods and services.

“Expected depreciation of the kina is likely to lead to resurgent imported inflation.

“Downward pressures on prices will largely come from the winding down of LNG construction as shortages of skilled labor and private sector capacity constraints subside.

“Accompanying declines in capital imports are also likely to ease port congestion. “

The ADB said although large budget deficits are planned for 2013 and 2014, public debt was expected to remain low by historical standards— peaking at around 35% of GDP in 2014.

It said PNG needed to ensure that higher spending did not undermine the fiscal buffers that have allowed the country to withstand recent economic shocks such as the 2008 global financial and economic crisis.

To achieve this, a number of policy actions are suggested:

• ·         Spending must remain within the government’s deficit reduction plan. To keep public debt below 35% of GDP, the 2013 budget plans for zero nominal growth in the public wage bill, and low growth in goods and services spending up to 2017;

• ·         Government will have to manage the growing challenge of financing its deficit spending.

• ·         Government should restructure its debt portfolio to reduce how often it needs to refinance its debt; and

• ·         Fiscal risks created outside the budget process must be better managed.