http://www.koreatimes.co.kr/www/news/biz/2007/10/123_12248.html


Daewoo International Director Lee Sang-ha, head of Daewoo PNG Power Plant, operates the computerized control system of the power plant in Port Moresby, the capital of Papua New Guinea, Wednesday. / Korea Times

By Ryu Jin
Korea Times Correspondent

PORT MORESBY _ In the remote island state of Papua New Guinea (PNG), where cultures of the Old Stone Age and modern times coexist, a South Korean power plant is lighting up the future of the underdeveloped country.

Daewoo PNG Power Plant, built by Daewoo Corporation in the tough times of the financial crisis in the late 1990s, has grown to become an important ``cash cow,'' accounting for over 40 percent of the total electricity of the capital area of Papua New Guinea.

Now in its eighth year of operation, the power plant already retrieved its investment in 2003 and has recently been earning about $5 million (4.6 billion won) in net profits annually.

Business in the Back Country

A 12-hour flight via Singapore brings people from Seoul to Port Moresby, the capital of Papua New Guinea, which occupies the eastern part of the world's second largest island and is subject to volcanic activity, quakes and tidal waves.

Seated just above Australia in the southwestern part of the Pacific, Papua New Guinea is the world's most diverse country in terms of language, with more than 700 native tongues, and a country with rich natural resources such as oil and copper.

Without infrastructure, however, the country still remains underdeveloped and a lot of people here go through electricity failures several times a day even in core facilities of the capital such as the airport and hotels.

But the situation has gradually improved. Daewoo PNG Power Plant is playing a leading role with an annual capacity of 24MWH, according to Daewoo International, a leading trading company that succeeded Daewoo Corporation.

Under the official name ``Hanjung Power Pty. Ltd.,'' the power plant was launched in 1997 with a joint investment by Daewoo Corporation and Hankook Heavy Industries, which was later merged with Doosan Heavy Industries & Construction.

Since starting operation in 1999, the plant's two 12MWH-class electric generators have been producing 460MW of electricity around the clock every day for the domestic consumption over the past eight years.

Business results were also excellent. ``Since it retrieved the investment in 2003, the power plant gave a dividend of $5.2 million in 2003, $5.7 million in 2004, $4.3 million in 2005 and $4 million in 2006 to Daewoo International,'' said Lee Sang-ha, chief of the plant.

Future Opportunities

Daewoo International officials said that the success of the power plant business, which was the first-ever independent project abroad by a private company, is also creating more business opportunities in the country, haunted by robbers armed with guns and bush knives.

``In addition to the hot tropical weather, we've risked the unstable security situation in this country,'' said Lee, who has spent more than six years in Papua New Guinea. ``But this has also granted a lot of chances for new businesses in the backlands.''

Daewoo International said that it would push for similar investment in such nations as Vietnam, Azerbaijan and Mongolia, and expand its business into the area of exploration of natural resources such as oil and liquefied natural gas.

jinryu@koreatimes.co.kr

lol..I nearly made a fool of myself. Mi ting bai gat wanpla car factory kamap long PNG. Why not? My hubby had a daewoo espero but it was expensive to maintain since we had to import the parts overseas. It was costly so he had to sell it after six months.

Apart from that, something good for the country.

Would be great to have power factory that runs on coconut oil somewhere in PNG...i mean bouganville has most of its vehicle on coconut oil.

tingting tasol