17/05/2026
FORMAL COUNTER-REBUTTAL - PUBLIC STATEMENT
8 Mandatory NEA Processes - Not One Completed for Lomban Hydro Project
In response to the news article below.
Before any tender, developer appointment, or construction can lawfully proceed for the Lomban Hydro Project (6.5 MW run-of-river, Lai River, Wabag District), the National Energy Authority Act 2021 (NEA Act) - gazetted 6 July 2021 - mandates a clear sequence of statutory processes. LHDA confirms that not one has been satisfied.
*PROCESS 1 - NEA Generation Licence - NOT OBTAINED*
Operating in the electricity supply industry without a licence is an offence under the NEA Act, carrying a fine of up to K10 million. No generation licence for the Lomban Hydro Project has been published or gazetted. NPC Tender 2026-11 was issued without this licence in place, making the tender legally premature.
*PROCESS 2 - Formal Landowner Identification - NOT CONDUCTED*
The NEA Act and the Hydro Energy Policy 2025 - 2030 (Chapter 13.2) require formal landowner identification and social mapping before any project development proceeds. The Kaiyaul and Piau communities - 49 registered families across five subclans - have never been formally identified under the NEA Act framework, and no identification has been submitted to the Minister for approval.
*PROCESS 3 - National Content Forum - NOT HELD*
Under Section 80 of the NEA Act, a National Content Forum is required to discuss benefit-sharing between governments and landowners before construction commences. The Governor's long-promised Development Forum - the appropriate venue for this - has never been convened. Landowners have not sat at any NEA-facilitated negotiating table. No date has been set.
*PROCESS 4 - Compensation Agreement for Land Use - NOT ESTABLISHED*
Under Section 135 of the NEA Act and Section 14.6 of the Hydro Energy Policy 2025 - 2030, the developer or licence holder must pay compensation to landowners for all loss or damage suffered - including loss of crops, restrictions on land use, disturbance, and disruption of agricultural activities. The compensation rates are determined with reference to values set by the Valuer-General. No compensation agreement has been entered into with LHDA or any Kaiyaul or Piau landowning family.
*IMPORTANT NOTE ON ROYALTIES*
While Section 82 of the NEA Act contains royalty provisions, the Hydro Energy Policy 2025 - 2030 (Chapter 10.5) explicitly states that the royalty concept from the extractive industry does NOT apply to hydro projects, because water is returned to the waterway after use. The NEA has stated its intention to review and amend Section 82 accordingly. LHDA therefore grounds this claim in the unambiguous right to compensation - not royalty - as confirmed by the governing Hydro Energy Policy.
*PROCESS 5 - Equity Benefit Option - NOT OFFERED*
Under Section 83 of the NEA Act, the State has the right to acquire up to 20% equity in any energy project, and may allocate that entitlement to affected provincial governments and landowners (Hydro Energy Policy 2025 - 2030, Section 10.3). LHDA has formally declared a minimum 40% equity position for the Kaiyaul and Piau communities. Even the statutory 20% baseline has never been offered, discussed, or tabled with LHDA by any government agency or developer.
*PROCESS 6 - PNG Citizen Company Reservation - BYPASSED*
The NEA Act reserves generation licences for projects up to 10 MW for Papua New Guinea citizen companies. The Lomban Hydro Project at 6.5 MW falls squarely within this reservation. Yet NPC Tender 2026-11 was issued as an open tender - a process that may invite participation inconsistent with this statutory preference.
*PROCESS 7 - Benefit-Sharing Agreement - NOT AGREED*
Under the NEA Act and Hydro Energy Policy Chapter 15.2, a Benefit-Sharing Agreement must be reached between the licence holder, national government, host provincial government, and landowners, with outcomes agreed through the National Content Forum. No such agreement - no MoU, no Heads of Agreement, no Development Benefit Agreement - exists between the Enga Provincial Government and the Kaiyaul and Piau communities.
*PROCESS 8 - CEPA Environmental Clearance - NOT CONFIRMED*
The Hydro Energy Policy 2025 - 2030 (Section 6.2.3) makes the Environment Permit from the Conservation and Environment Protection Authority (CEPA) a mandatory prerequisite for any Generation Licence. Under the Environment Act 2000, an Environmental Impact Assessment (EIA) or Initial Environmental Examination (IEE) must be approved before construction proceeds. No EIA or IEE approval for the Lomban Hydro Project has been publicly documented, gazetted, or shared with affected landowners.
*WHAT LHDA DEMANDS - NOW*
1.) The Governor of Enga Province immediately convenes the long-promised Landowner Development Forum and provides the committed seed capital to LHDA without further delay.
2.) The National Energy Authority formally acknowledges LHDA's challenge to NPC Tender 2026-11 and suspends the tender pending completion of all mandatory NEA Act processes.
3.) The National Procurement Commission halts or reviews Tender 2026-11 until landowner identification, the National Content Forum, and the Benefit-Sharing Agreement have been completed under the NEA Act 2021.
4.) The Minister for Energy formally initiates landowner identification with LHDA as the approved representative body of the Kaiyaul and Piau communities.
5.) The State Solicitor urgently advises on the legality of any tender or contract proceeding without NEA Act compliance.
Issued by the Lomban Hydropower Development Association Inc. (LHDA) Inc. No. 5-105293 - on behalf of the Kaiyaul (Awain Tribe) and Piau (Yanaitin Tribe) customary landowning communities, Wabag District, Enga Province.
Signed: John Mendokon, Chairman (LHDA) l Contact: [email protected] | LHDA Secretary Jeffery Karao: 74467659
"Graun bilong mipela. Wara bilong mhipela. Lo i stap long mipela."
"The land is ours. The water is ours. The law is on our side."
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The Lomban hydropower project is one of the major energy infrastructure projects initiated by the Enga Provincial Government to provide a reliable and constant electricity supply to the province's six districts.
