Deal for hydropower

By GYNNIE KERO
THE State has signed an agreement with an Australian firm to use hydro and geothermal resources to produce power for domestic and commercial use.
The US$40 billion (K136.6 billion) capital works agreement was signed with Fortescue Metals Group (Perth) in Port Moresby yesterday.
Prime Minister James Marape said the deal secured a partnership that would develop the country’s hydropower resources to support green industrial options for domestic consumption and export to international markets.
He said: “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.”
State Enterprises Minister Sasindran Muthuvel said: “After extensive investigations of Papua New Guinea’s rivers and water resources, Fortescue has determined that there is great potential to generate sustainable energy for a series of environmentally-friendly industries.
“This is more than just a hydro-electric power scheme.
“Hydro-electric power is not a new technology for our country. We have been using our water resources to generate power since the late 1950s.”
Muthuvel said the Fortescue technical team had flown over several potential hydro-electric sites over the past seven days and were excited at the prospect of developing these projects.
“There is the potential to generate in excess of 25 gigawatts or more,” he said.
“Fortescue has a proven track record of developing projects that have minimal impact to the environment.
“Their investment and activities will fully comply with the laws of PNG.
“We have to be open minded and consider each proposal not just as a business opportunity, but as an innovative investment that places PNG as a world leader in green sustainable industries.
“This represents tens of billions of dollars in investment and thousands of jobs for our Papua New Guinea citizens.”