Moen pies * PRESS RELEASE Proposed RAMU 2 Power Purchase Agreement pol Mn wethout tear or favour releases this a reasonable apprehensive of the present and future intorwste of frambers being affected by the current economic situation facing the Country and ir particular PNG Power Lt (P PSEA is obtyated to defend the woltare, job security and well-tyeing of the National Employees most of wh Sa members. The concems and opinions expressed stom from; + Present economic climate bs not conducive to PPL. Thus any proposed new long term contracts for PPL at this tem Would ie dotimental and of litle benafit to PPL from commercial and technical perspectives ‘+ Thesnew proposal needs a thorough commercial, financial, social and technical evaluations to be + Armameen undertaking a this time can have serious long term repercussions, thus thorough and deta and due digence are required. + PPL has existing PPA’ which aro proving difficult to service, jo Dirio Power PPA and Niupawa PPA. The stl otmmined shows PPL's inability to service these PPAs. Signing of another major PPA, will have de @n both PPL and its capability to continue operating as.a going concer. This will affect employae Proposed Agreement We hold & very Strongly opinion and position that the signing of the Proposed Ramu 2 PPA at this time is. best mierest of PPL and the Country and we plead with the Goverment to heed our stance. It is our opinion that the Country has entered into unfavourable agreements in the past resulting in missed revenues and mi spin of benelits. We are of the opinion that without proper technical and commercial analyhsis and in depth understanding, past Governments have been misled into signing PPAs that have ensiaved PPL into repayments that are currently Affcutt 0 service ‘Highlighted beiow are key adverse areas in the proposed PPAs: + All uke are to be borne by PPL (Force Majeure, Technical, Commercial, Environmental etc.) PPL's risk exposure ‘6 very high + The total dependency on Wafl-Goipu and other mining ventures to uptake bulk of the generated load is @ huge Ciuh for PPL given that the uptake parties have not formally agreed to do so. \Mirirnal to 2010 jobs creations for Papua New Guineans. * Minimal to zero development of the local industry and spin-off SMEs. * An RO) on BOT for 25 years with an initial 7 years for construction, implying 25 years of PPL. buying power from the developer at a fixed price whether or nat PPL selis the power *+ Zero benetit to other areas of PNG. s are, @ 100% guarantee tor this project, symbolic sign of poor projects akin to others in the ‘The bey ‘ects point to poor commercial, social, technical, financial and strategic outcomes for Stakeholders We huive observed over the years, how PPL has become a politiciséd institution, serving the interests of a few individual at the expense of the country and its people. PNGEWA cannot sit in silence anyrnore when key facts clearly show that PPL's iniernsts and the wall-being of the staff and the Country are at stake here. The stakes are high at the ‘moment and PNGEWA wil stand united to protect all olizens’ rights ensuring equitable participaton, benefit sharing and protection of the future: We sland on “Take Back PNG” for the energy Sector, deploring the Proposed PPA and strongly plead with the ‘Government to explore batter alternatives where a win-win situation is actueved for all parties