By Staff Reporter

O'Neill Urges PNG PM Marape to Clarify Dirio Power Deal

15/10/2024

Former Papua New Guinea Prime Minister Peter O'Neill has called on Prime Minister James Marape to clarify his involvement in the ongoing Dirio Power deal. O'Neill's comments came after Dirio Power announced a midday shutdown today, demanding a payment of K240 million from PNG Power. The former leader described the move as "extraordinarily arrogant" and criticized Dirio Power for holding PNG Power and its customers hostage over a financial dispute.

O'Neill raised concerns about the high prices Dirio Power has been charging PNG Power for electricity, suggesting that these prices are inflated and unfair to the public. He also highlighted that despite being operational for several years, the Dirio power station has yet to fully comply with the Electricity Grid Code, a regulatory framework designed to prevent large-scale accidents in the electricity supply sector.

The former prime minister further claimed that money paid to Dirio Power may end up with unknown shareholders based in the British Virgin Islands, a location notorious for tax evasion and corruption. According to O'Neill, this money would not benefit the genuine shareholders of Dirio Gas and Power Limited, raising questions about the transparency of the company's financial dealings.

To address the potential impact of Dirio Power's shutdown, O'Neill urged PNG Power and its long-term partner, ExxonMobil, to urgently restart the 25MW gas-fired power plant. This, he said, would help mitigate the electricity supply shortages in Port Moresby and surrounding areas, ensuring that the city is not left at the mercy of Dirio's actions.

O'Neill expressed disappointment that PNG Power and its shareholder, Kumul Consolidated Holdings, have allowed the interests of Dirio Power and Petroleum Energy Consultants (PEC) to dominate the situation. He emphasized that these entities should prioritize the welfare of Port Moresby residents and businesses, rather than bowing to the demands of foreign-controlled companies.

The former prime minister also addressed the issue of land ownership, arguing that the land on which the Dirio Power Station is built should have been transferred back to indigenous landowners, not foreign interests. O'Neill urged the landowners to take a stand for the benefit of all Papua New Guineans and prevent their land from being exploited by foreign shareholders.

O'Neill held Prime Minister Marape accountable for the Dirio Power deal, stating that Marape has been directly involved in negotiations from the beginning. O'Neill urged Marape to clarify whose interests he is truly representing, calling on him to side with the people of PNG and not with foreign shareholders or close associates.

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