The proposed Namosi hydroelectric renewable power project – valued at $US150 (approx. $F330.9m) – is being funded as an independent power producer (IPP) and all the financing will come from the Chinese owners of the project – Nantai.
The Fiji Times has established that at this stage, Nantai is committed to funding the entire project.
HydroFiji Pty Ltd executive chairman said while the company could arrange whatever debt it required, there was no such indication for that at present “because they’re wealthy companies and they can probably do it without debt if they want to”.
HydroFiji via its Fiji-based Hydro VL company signed a power purchase agreement (PPA) with Energy Fiji Ltd (EFL) last week for the development and supply of renewable electricity from a new group of run-off-river hydropower projects.
Now, Dr van der Riet said the company needed to re-establish the environmental impact assessment (EIA), engage with the landowners to get the leases back in their name, and secure all other required permits and approvals over the next three to six months.
He said they had a 12-month period to complete all the conditions precedent which are in the PPA.
“We have up to 12 months to do that work, and that work involves bringing the EIA up to speed, the landowner arrangements, etc. All that will e done in that 12-month period,” Dr van der Riet told this newspaper.
“The fact that this project will take a decent step along the way is the most significant thing, especially in light of what’s going on in the Middle East at the moment.
“Fiji is on the way to becoming a renewable energy-based economy and self-sufficient.”
Dr van der Riet said there was also local job creation given the need for skilled and unskilled work in all phases of the project.
Power Construction Corporation of China (POWERCHINA), formerly Sinohydro Corporation – the same company that built the Nadarivatu project 15 years ago, has been contracted for the Namosi project.
“There’s tunnels to be built, pipelines to be laid, machinery to be manufactured and brought to site and installed, transmission lines to be constructed; there’s a whole range of different activities to be done as part of the construction program and all that will be done under a contract managed by POWERCHINA.”
EFL chief executive officer Fatiaki Gibson said it was his fervent prayer that the people of Namosi would embrace this development and offer their support and be contributors to national development.
“In today’s world, energy resilience is not optional, it is essential. By investing in domestic renewable energy resources, we are taking control of our energy future,” Mr Gibson said.
He said the PPA meant strengthening Fiji’s energy security, accelerating the transition to renewable energy, creating opportunities for economic growth, and laying the foundation for a more sustainable future.
Upon completion, the Namosi hydroelectric power project is expected to deliver a combined installed capacity of 32MW and generate approximately 120GWh of clean electricity annually – all of which will be purchased by Energy Fiji Limited (EFL).
