4 million US dollars towards improving Tonga's electricity power distribution network.
The Tonga Village Network Upgrade Project was launched this week by the New Zealand High Commissioner, Jonathan Austin.
Presenter: Tongan journalist, Monalisa Palu
Speaker: Peter McGill, CEO of Tonga Power Limited
McGILL: Several things, originally the project was really designed around improving poor quality lines into the villages, which were both unsafe and very unreliable and then as the project was scoped and became developed, there was a very strong emphasis placed on training and upskilling Tongan labour, particularly around linesmen, which there's a shortage throughout the region. And subsequent to that, with New Zealand aid being supported ........, which is a certifying body has also come on board. So at the end of the two year project, the ten trainees in the project will be fully certified with New Zealand standards, which means they'll be able to work either in New Zealand or Australia, which is very good.
PALU: Now apart from creating new jobs for Tongans and upskilling, what can users expect with this project?
McGILL: I think it's about improving the lifestyle within the villages. There's about 20% of the population in Tonga that doesn't have electricity and this is going to certainly improve all villages to have equal opportunity to have a good supply of electricity and safe supply. And another important factor is the reduction of line loss. Line loss is where poor quality lines and networks. You actually lose electricity through poor joints etc and this is going to greatly improve the efficiency and as you improve line loss, it reduces the cost to produce electricity, which then gets passed on the consumer and creates more affordable electricity for the consumers.
PALU: I understand that this is the first stage and it covers about 86 villages. Is there any possibility of extending this?
McGILL: Absolutely. It's actually part of the Tonga energy road map and so New Zealand aid are the first on board to invest a little over five million New Zealand for the first 17 to 20 villages. There's a little of 86 actually, but we've identified 100 villages throughout the country over the next five years. So we're expecting more funding to come through term, through other donor funders, such as ADB or the World Bank or Australia Aid so that the program will continue on.
PALU: So come this time next year, what can Puke expect from the electricity supply that they're getting?
McGILL: Well, in actual fact, Puke in the next month will be fully upgraded. We're using a new system called ABC Cabling, so they'll be single lines into the village. We've also taken the opportunity to install energy efficient LED lighting, street lighting and we'll have underground feed to all the houses. So they'll have an absolutely superb power supply.
PALU: In these difficult economic times, how does this help improve Tonga's situation?
McGILL: I think as the project expands and as we improve our efficiency, which, as I said earlier reduces the cost of producing electricity, this will be passed onto the consumers. So we'll gradually see a decline through the cost of electricity.
PALU: Knowing the Pacific region, how does Tonga's tariff stand in comparison to theirs?
McGILL: They're mid to high, we're not the highest, but we're not the cheapest. The disadvantage for Tonga, unlike Fiji and Samoa, they have a percentage of hydro-electricity which is renewable and relatively cheap to produce. Currently all of Tonga's electricity is produced from diesel, however, New Zealand Aid program is also funding a nine million dollar one meg solar power station, which is under construction at the moment. And when that's completed and operating in July, it'll be the largest of its type in the South Pacific, which really puts Tonga on the map. And more importantly, it will produce 15% of the total power production during the day for 85% of the population.
PALU: Now Peter, there's some disturbing stories coming through about their supply. Will this affect us immediately and is there any subsidy coming from the government?
McGILL: The government was very active in the middle of last year when the price of oil hiked and they subsidised the first 100 kilowatt hours, which is roughly represents about 62% of the population that's all they consumed. So I'm sure that the government would be mindful about moving forward. Within the country itself, the Tonga Power in conjunction with the Ports Authority under the blessing of His Majesty's government is looking at improving the fuel terminals and bringing in mid range tankers which is going to have a significant reduction in the cost of fuel through fuel efficiency or the supply chain efficiency. So we're doing all these things to endeavour to hedge, if you like, against significant rises in fuel.
