valuation upgrade, page-13

Hi All,

found this on web at "http://www.postcourier.com.pg/20060928/thhome.htm" regarding Ramu project:

Power for Ramu mine
STATE Enterprise and Information Minister Arthur Somare has announced PNG Power Limited’s undertaking to build a 240 mega watt power plant for the Ramu Nickel project in Madang. Mr Somare made the announcement to reporters yesterday after returning from China. Mr Somare said the development of the Ramu 2, a 240 MW hydropower project that would supply the power requirements for the Ramu Nickel Project, would cost K760 million and would have excess capacity to supply other resource projects and provide reliable power to all the centres with the power grid network. Mr Somare led a delegation to China last week comprising of executives from IPBC and PNG Power Ltd to formalize the engagement. Whilst in Beijing he met, with the President of MCC, the parent company of Ramu Nico Management (MCC) Ltd, the major partner and developer of the US$700 million nickel project. The Minister also held separate meetings with the Assistant Minister of Commerce and Oceanian Affairs, Mr. Chen Jian, and Vice President of the China Exim Bank, Mr. Li, to register the Hydro Power Project as an imperative of the PNG Government to access the concessional low interest loan facility of RMB 3 billion (US$400million) under the Chinese Development Corporation Initiative to the Pacific Island States as announced in Suva Fiji earlier this year. “This initiative complements the Government’s strategy and policy which focuses on growing the economy through a stronger state owned enterprises sector,” he said. Mr Somare said this would be one of the biggest undertakings by PNG in a very long time, over the next 36 months. “Pre-feasibility is well advanced and we will be assessing the detailed economic and technical data necessary move to financial close by the end of 2006,” Mr. Somare said. “We have to put the mechanisms in place to coordinate the financing, management and oversight of these infrastructure investment programs. “Our other challenge is to create the appropriate framework and policy environment that would ensure each of the SOEs (state owned enterprises) are able to deliver reliable, efficient, robust and importantly cost effective services to the country.”


PS I Hold