Northpower looks at Tongan investment

Whangarei-based electricity company Northpower is looking at investing in Tonga.

The Kingdom of Tonga's Crown Prince Tupouto'a has said he wanted $T60 million ($46 million) for Shoreline Power, previously the state-owned Tonga Electricity Power Board, given to him by the royal-controlled government eight years ago in a 20-year lease.

Northpower marketing director Darren Mason confirmed to The Dominion Post that the company had registered an interest in Shoreline.

Northpower had a relationship with Tonga and used Tongan linesmen in Northland, he said.

Late last year, amid signs of growing popular unrest at the lack of democracy in the kingdom and rising power bills, Prince Tupouto'a announced he wanted the Tongan government to buy Shoreline back.

In March Prime Minister Feleti Sevele said that he had discussed a loan of $T60 million for the government to acquire Shoreline's electricity assets with Chinese Premier Wen Jiaobao.

That was the first Tongans had heard of a possible buyback. Mr Sevele later said nothing had been decided.

Tongan Prime Minister's Office press secretary Lopeti Senituli said that any sale would be a public and transparent process.

Northpower operates lines providing electricity to more than 49,300 customers in Whangarei and Kaipara districts, owns a small hydro-electric scheme in Northland, and runs an electricity contracting business operating in Northland, Auckland, Hamilton, Rotorua, Tauranga and Wellington.

Last month it reported net profit for the year to March of $11.9 million, on operating revenue of $125.9 million, up from $105.1 million a year earlier.

Nearly 70 per cent of total revenue came from the contracting division.

- NZPA