NEW ZEALAND has stopped its rural electrification project in Tsak Valley following ongoing tribal fights in Enga, Foreign Affairs Minister Justin Tkatchenko says.
According to RNZ, a spokesperson for New Zealand’s Ministry of Foreign Affairs and Trade said contractors stopped work at the site in Wapanamanda’s Tsak Valley last August.
Tkatchenko said New Zealand High Commissioner Peter Zwart met Department of Foreign Affairs secretary Elias Wohengu on Jan 9 to explain the decision.
“Both sides agreed that PNG and New Zealand have strong ties, but it is unfortunate that the project could not continue,” Tkatchenko said.
” High commissioner Zwart told secretary Wohengu that this was not an easy decision.
“The project was first paused for 18 months in 2023, restarted in early 2025, but had to stop again because of conflicts. Keeping contractors during the delays was very expensive.”
New Zealand invested NZ$6.7 million (about K17m) over the last six years into the Enga Electrification Project which aimed to connect at least 4,000 households in the area to electricity.
It was part of combined efforts with the US, Australia and Japan to help 70 per cent of PNG homes get connected by 2030.
Tkatchenko said New Zealand would now handover the high-voltage equipment in Tsak Valley to PNG Power Limited.
He said running this equipment would need extra funding from another source.
“Since the project was funded by both Australia and New Zealand, some of the materials may be moved to the Ramu Grid so the money invested in PNG’s energy sector is still used,” Tkatchenko said.
Former prime minister Peter O’Neill agreed on the PNG Electrification Partnership with leaders from Australia, New Zealand, Japan and the US, following the 2018 Apec Leaders Summit held in Port Moresby.