PNG signs agreement with Australia’s Fortescue Metals Group to develop hydropower resources in country

Papua New Guinea signed an agreement with Australia’s Fortescue Metals Group that paves the way for potential international investment in hydroelectric power plans, and sustainable heavy industry in the country.

The agreement was signed between the  State , represented by Minister for State Enterprises and Public Investments, Hon. Sasindran Muthuvel and Founder  of Fortescue Metals Group, Dr.  Andrew “Twiggy” Forrest,  and Deputy CEO, Julie Shuttleworth,  at the  Parliament  State Function Hall on Tuesday, September 1, 2020.

“This is a historic agreement which demonstrates that it is possible to attract investors and developers to our country , on terms which recognise  our country  and our people as major contributors and benefactors and not just minor participants, said Prime Minister, James Marape.

The agreement  triggers investment in feasibility and assessment studies in the impact areas, and  further secures a partnership that will seek to develop PNG’s hydropower resources to support green industrial operations for domestic consumption and export to international markets.

Prime Minister Marape encouraged all stakeholders, Governors, Members of Parliament, local leaders and landowners to engage  openly, adding, “ we must look at these opportunities not simply as business deals, but as a way to industrialise  our country.

“We have  a chance to lead the world in environmentally sustainable industries  that will create mass employment for our people, opportunities for our future generations, value for impact communities, and a diversified  revenue stream for local and national government.”

Mr Marape commended Minister Muthuvel  and  his team’s efforts in securing  the agreement with Fortescue and further acknowledged the  Ministry for State Enterprises and Kumul Consolidated Holdings for establishing a program  of engagement   that has led to this  signing.

Prime Minister welcomed Dr. Forrest and the Fortescue team to Papua New Guinea and hoped  that this  agreement  signaled the start of a productive and mutually beneficial relationship for the country.

“COVID-19 has presented  many challenges to my Government and to our economy in 2020. However, I am greatly encouraged that despite these challenges, Papua New Guinea still represents significant  investment potential for a major multinational like Fortescue.”

The government has undertaken discussions with credible,  serious international investors,  who are willing to develop PNG’s resources in an environmentally sustainable and responsible way.

The occasion was witnessed by  Governors, and Members of Parliament

The Fortescue team led by Dr. Forrest  was  in  PNG since August 24 and left after spending seven days in the country.

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