KUMUL Review July 2016

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OUR GREEN FUTURE KARIMUI HYDRO PROJECT FEASIBILITY STUDY During the last month of 2015 and the first month of 2016, two important milestones were achieved that will shape the future of Papua New Guinea. On Wednesday December 9, the Ramu 2 Project was launched - a project that is expected to increase the existing Yonki Dam electricity capacity by 194%. It was to be one of the final achievements of Minister Ben Micah during his term as Minister for Public Enterprises and State Investments. The other milestone came immediately at the start of Minister Duma’s term – the completion and presentation of the Karimui Hydro Dam Project Feasibility Study on Friday January 29, 2016. The Karimui Hydro Dam Study follows a Memorandum of Understanding - between the Government of Papua New Guinea, the Simbu Provincial Government and Italian company Salini Impregilo - which came in to effect on May 8, 2015. Salini Impregilo is a global industrial giant with over 100 years’ experience in the construction of major, complex projects such as dams and hydroelectric plants, hydraulic works, railways and metro systems, airports and motorways. Salini Impregilo is especially recognized as a world leader in the construction of infrastructure projects in the water sector, having built 257 dams and hydroelectric plants. The company is currently involved in the development of the Grand Ethiopian Renaissance Dam, one of the most complex and ambitious infrastructure challenges in the world, which will be the largest dam in Africa with a total installed capacity of 6,000 MW and an average estimated production of around 15,700 GWh/year (see story opposite page). In the Karimui Hydro Dam Feasibility Study, Salini Impregilo highlights challenges that go beyond construction of the dam including the building of road and bridge infrastructure throughout Simbu province leading up to the dam site to facilitate construction activities. This will include the upgrade and replacement of 42 bridges between Lae and the site. The study also covered other aspects of the proposed project including social and environmental considerations. The installed capacity of the Karimui Hydro Dam Project is 1,800MW which will make it by far largest and most ambitious hydro-power scheme in Papua New Guinea to date. Construction is expected to commence in 2017 and be completed by 2023. Both the Ramu 2 Project and the Karimui Hydro Dam Project are part of the PNG Development Strategic Plan 2010-2030 which outlines the following priorities: • increase household access to electricity from the current 12% to 70% by 2030; • provide a national grid to increase reliability of electricity supply across the country; • provide a secure, renewable energy base for the PNG development pathway; • reduce energy costs through greater hydropower development; and • deliver on the Government’s commitment to support mining and industrial developments within the Highlands and Momase regions. It is significant that both events involved hydro projects, with renewable energy as a way of powering Papua New Guinea into the future. A win for the environment and a win for the people of Papua New Guinea. Mr Garry Hersey, Managing Director of Kumul Consolidated Holdings (centre) being presented with the Karimui Hydro Dam Feasibility Study by Mr Leopoldo Carlesimo, Executive Director, Salini Impregilo during the presentation at the Grand Papua Hotel on Friday January 29, 2016. p14 Kumul Review July 2016 Kumul Consolidated Holdings Limited DRAFT LOGO Kumul Consolidated Holdings Limited DRAFT LOGO (Reverse Option)
The Karimui Hydro Dam Project A visionary plan to address PNG’s energy challenge The following are excerpts from the Feasibility Study Executive Summary Background The move towards a Feasibility Study began in November 2013 when the Simbu Province Governor and Salini lmpregilo entered into a Memorandum of Understanding (MOU) to study the development of a 1,800MW hydroelectric dam project at Karimui, Simbu Province. The MOU received constructive input from the National Executive Committee and was endorsed by the Minister for Public Enterprises and State Investments and the Minister for Treasury. On May 8, 2015 the MOU came into force requiring Salini lmpregilo to deliver a Project Feasibility Study, based on a Build Operate Transfer (BOT) structure. Outcome The Project Feasibility Study concludes that the Project will provide significant benefits to Simbu Province and Papua New Guinea in the following key ways: 1. Power to support national economic growth PNG’s Gross Domestic Product (GDP) expanded 8% in 2014 supported by mining and construction activities. Forecast economic growth is predicted at around 4%, but this growth figure, provided sufficient electrical power is available, may substantially be revised upwards. The Project, with its proposed 6 year construction period, will be delivered in time to provide up to an additional 1,800MW of sustainable growth-generating power. 2. Project location in an uninhabited area close to construction materials The Project is located in the Simbu Provence, upstream of the Wahgi and Asaro junction on the Wahghi River side. The ETHIOPA’S GREEN REBIRTH – A MODEL FOR PAPUA NEW GUINEA The Grand Ethiopian Renaissance Dam (GERD) Project is Salini Impregilo’s most challenging fast-track project. The site is located 700 kilometers northwest of Ethiopia’s capital Addis Ababa along the Blue Nile. The impounded reservoir will cover an area of 1,874 square kilometers and once completed, it will be the biggest dam in Africa, producing a massive 6,000 MW of electricity for the country and its neighbours. Compared to the Karimui Hydro Dam Project with its installed capacity of 1,800MW, the GERD at 6,000 MW is a giant. Nonetheless, the Karimui Project is just as challenging, and the rewards just as great. In a recent interview the Ethiopian Prime Minister Hailemariam Desalegn said his country was living a “green” rebirth. This is partly thanks to the GERD, where 9,000 people are working at full speed to complete the project by 2017. The dam will enable Africa’s second most populous country– where 77% of its people don’t have access to electricity and other basis services – to power its growth with the production of renewable energy. Ethiopia has the aim of becoming carbon-neutral as it works towards becoming a regional economic power. Similar fortunes await our country with both the Karimui Hydro Dam Project and the Ramu 2 Hydro Project working in tandem to power Papua New Guinea into the twenty-first century. advantages of this location include: • no known habitation of the catchment basin reduces social impact concerns; • suitable construction materials can be sourced locally reducing transportation impacts on roads; and • the natural drop distance from the Wahgi River power intake to the power house on the Tua River is about 5OOm which ensures excellent power generation performance. 3. Upgrade and expansion of national infrastructure The Project’s remote location means road upgrades between the Port of Lae and the dam site will improve the Lae- Goroka-Chuave highway as well as other ancillary roads. These visible road refurbishments will benefit permanently the people of Papua New Guinea as well as support further economic activity. 4. Employment and high skill jobs The Project, including the Port of Lae and road upgrades, is a significant infrastructure project on a global scale. At the peak of construction (during the 6 year development phase) several thousand people will be employed including construction workers and foremen as well as professional engineers and specialists. A large portion of this work force will be PNG nationals who will have the opportunity to acquire technical and infrastructure development knowledge. 5. Secondary economic activity The Project will generate secondary demand for goods and services including: transportation, importation of construction materials, work for local construction companies, security services, general suppliers and engineering and consulting services. Photo courtesy of Salini Impregilo image library Kumul Consolidated Holdings Limited DRAFT LOGO Kumul Review July 2016 p15 Kumul Consolidated Holdings Limited DRAFT LOGO (Reverse Option)
Page 1 and 2: Kumul Consolidated Holdings Limited
Page 3 and 4: DECEMBER 9, 2015 Launch of the Ramu
Page 5 and 6: 10:49 WEDNEsday JANUARY 27, 2016 Mi
Page 7 and 8: ‘I will continue the good work’
Page 9 and 10: 08:33 Wednesday December 9, 2015 Ai
Page 11 and 12: Kumul Consolidated Holdings Limited
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