KCH hands over new transformers to PNG Power, calls for better maintenance and procurement practices

Two brand new high-capacity transformers valued at K4.2 million were handed over to PNG Power Limited [PPL] by Kumul Consolidated Holdings [KCH] to help stabilise Port Moresby's power supply.

The transformers, procured directly from ABB, a global leader in electrical engineering, will be installed at the Bomana and Kanudi substations. Manufactured under licence by Hitachi Energy in Vietnam, the units are part of the Government’s PPL Recovery Program aimed at addressing the city’s chronic power infrastructure challenges.

According to KCH Managing Director Professor David Kavanamur, the new transformers will ease load pressure at key substations in Konedobu, Waigani, and Moitaka, ultimately reducing blackouts in Port Moresby's high-demand areas.

“There is a growing demand for power. We want to bring that demand back onto the PPL grid. Demand actually, in terms of installed power for the pump grid, has exceeded 156 megawatts,” Professor Kavanamur said.

"This investment marks a critical step in restoring public confidence in the city’s electricity supply and strengthening the backbone of Port Moresby’s power system.”

He credited the Marape-Rosso Government for facilitating the procurement through targeted funding of K3m under the ongoing K111m recovery program.

Beyond the handover, Professor Kavanamur urged PNG Power to now turn its focus towards improving operations and maintenance [O&M] and asset management systems to ensure the long-term reliability of its grid infrastructure.

“I'd like to appeal to PNG Power to ensure that appropriate operations and maintenance is maintained for this equipment, but also the development of global standards, asset management practices, and quality control into the company,” he said.

PPL chief executive officer Paul Bayly acknowledged the support, admitting that the state-owned enterprise has been struggling over the years to improve its infrastructure.

“It's no surprise and no secret that our [PPL] network across the region is under stress. Things like this is building resilience back into the network, that's why we're so pleased about having this in here,” Bayly said.

Meanwhile, professor Kavanamur also challenged PPL to adopt more strategic procurement methods, encouraging direct engagement with original equipment manufacturers rather than relying on third-party mediators.

“It's a very good example of a procurement process, straight from PPL with a factory, and the specs were provided directly by PPL to the factory, and bought those machines directly,” he said of the procurement process in purchasing the two transformers.

“There is no middleman involved, and so therefore it's a very, very efficient buy.

“I'd like to encourage that going forward and you should build those strong relationships with the factory, and buy directly so that it's cheaper, helps with procurement processes and your ordering systems.”

Meanwhile, installation of the transformers is underway and will be commissioned next week.