Following identification of the Naoro Brown Hydropower as a potential source of power generation for Port Moresby in 1982 and development of its feasibility study in 2011, the World Bank agreed to provide PNG Power with financial support to engage a transaction advisory team to investigate, define and execute the optimal competitive tendering process for procurement of a private developer. Multiconsult was selected to lead the team of transaction advisors in early 2016.
The Naoro Brown Hydropower Project comprises a 20 m high concrete gravity dam on the Naoro River, a 12.5 km long water conveyance system including intake, headrace tunnel, vertical pressure shaft and pressure tunnel, and a surface power station on the left bank of the Brown River, housing 4 x 20 MW turbines.
Scope of work
Multiconsult is assisting the Government of Papua New Guinea and PNG Power Ltd in defining a structure and strategy for private-sector participation in the Naoro Brown Hydropower Project; developing a balanced, well-structured and bankable Project Development Agreement; selecting a project developer; negotiating a Power Purchase Agreement; and completing negotiations through to financial closure.
- Review of feasibility study, power sector and environmental and social requirements
- Risk assessment
- Investor survey report
- Project and sector financial modelling
- Transaction structure and prequalification and bidding documents
- Marketing documents / Project Information Memorandum
- Bid evaluation