After more than two years of construction, the second phase of Papua New Guinea’s Ramu Grid Extension Project—stretching the 132kV transmission line from Mt. Hagen to Yonki—has reached a major milestone. The line has now achieved full connectivity and is entering its final commissioning stage. Once energized, this project is expected to significantly transform power access and reliability across the Highlands region.
Funded and constructed by Chinese company TBEA Co., Ltd. under the banner of the PNG Power Grid Project Phase II (PPG II), this infrastructure forms part of the country’s broader Ramu Grid System—a strategic national initiative to modernise and expand energy access.
The implications of this upgrade are considerable. The completion of the transmission line will allow for power interconnection and balancing across several provinces. Specifically, it will enable surplus electricity generation from the western Highlands provinces (Hela, Southern Highlands, and Western Highlands) to be redirected to meet deficits in the eastern provinces (Jiwaka, Chimbu, and Eastern Highlands), and vice versa. This interconnectivity is projected to improve the stability of the grid and increase the reliability of power supply by over 70%.
Electricity access in PNG remains among the lowest in the Asia-Pacific region. According to World Bank data, fewer than 20% of the country’s population has access to electricity, with rural electrification even lower. The Highlands, despite being densely populated and agriculturally rich, has long suffered from chronic under-electrification. Frequent power outages, weak transmission infrastructure, and high fuel dependence have stifled industrial development and limited social service delivery.
This new infrastructure could be a game changer. A more reliable grid will support the growth of key economic sectors—mining, agriculture, forestry, and manufacturing—and could reduce the cost of doing business. The social impacts are also significant: schools, hospitals, and households stand to benefit from more consistent electricity access, which could improve education outcomes, healthcare delivery, and overall living standards.
The project also reflects the growing role of China in PNG’s infrastructure development. Through concessional financing, construction contracts, and bilateral cooperation, China has become a major player in the country's energy, transport, and telecommunications sectors. While some critics raise concerns about project transparency, sustainability, and long-term debt implications, proponents argue that Chinese-funded projects have filled critical infrastructure gaps that might otherwise remain unaddressed.For the Government of Papua New Guinea, the challenge now lies in ensuring that the benefits of this investment are equitably distributed. The successful commissioning of the Ramu Grid extension must be accompanied by efforts to expand local distribution networks, regulate tariffs, and maintain the infrastructure over time. Without downstream investment and local capacity-building, high-voltage transmission lines may not translate into tangible power access for rural communities.
As PNG continues to pursue its ambitious goal of providing electricity to 70% of the population by 2030 under the National Energy Policy, the PPG II project marks a noteworthy step forward. But as with all large-scale infrastructure, its ultimate impact will depend on effective implementation, maintenance, and governance.

