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.