S.I.G PREPARES TO ENGAGE WITH K-WATER ON TINA HYDRO PROJECT
L-R Anne Tully (World Bank), Deveshta Ratnanayagam (IFC), Shobana Venkataraman (IFC), PM Sogavare, Fred Conning (TRHDP), Mark France (RHDP), Derek Futaiasi (PMO): Photo credit: OPMC.
The Government is now preparing to engage with Korean Water (K-Water) for the development of the Tina River Hydropower Project (TRHDP), Central Guadalcanal.
This revelation was made following a decision by the only other qualified bidder for the hydropower project, Australian Energy Company Origin to withdraw its bid.
Prime Minister Hon Manasseh Sogavare was updated Monday this week about the turnout of the bids for the significant project by a five-member delegation comprising International Financial Corporation officials, World Bank and Tina Hydro Project officials.
Prime Minister Sogavare was informed, K-Water was very reasonable in its comments on the project documents and structure and what it required were well within the range seen on other independent Power Producer projects for emerging markets around the world like Solomon Islands.
K-Water is one of the largest global players in water and hydro-electric power generation having hydro schemes in Korea and other countries including Pakistan and Cambodia and that it is now quite actively looking at the Pacific and the Tina Project may provide them with this opportunity.
SIBC News gathers, if negotiations with the company can produce a tariff comparable to that expected from competitive processes, the Power Purchase Agreement will be signed by September or October this year.
Meanwhile, Prime Minister Sogavare thanked the joint WB, IFC and TRHDP team for updating him on the progress of the Tina Hydro project and expressed anticipation to see it get off the ground.
The Prime Minister has also agreed to a proposal to brief caucus on the latest developments on the project after the 2015 budget is passed in April.