THE Gulf provincial administration has sealed a 20-year oil-based infrastructure development deal with a Singaporean company.
The Havila Kavo administration and Energy World International yesterday signed an agreement that would benefit the province from millions of dollars’ worth of projects to be carried out over a 20-year period.
Energy World managing director Stewart Elliot was Mr Kavo’s counterpart at the signing ceremony in Port Moresby.
The deal gives Energy World 80% stake in the project for a 20-year period, while the provincial government owns 20%.
During this period, the company will build infrastructure at no cost to the provincial administration.
After the 20-year period expires, the company will transfer 40% of its shareholding interest to the Gulf administration.
The company’s remaining interest would allow it to continue managing the project.
Over the 20-year period, Energy World plans to develop the Orokolo Bay area into a petroleum park to host a liquefied natural gas (NLD) terminal, petroleum refinery, deepwater port, a cement plant and housing and industrial estates.
“International support for the project is amazing,” Mr Elliot told a news briefing in Port Moresby yesterday.
He said international financiers and large companies had shown interest in the project, adding that it would officially be launched before the end of the year.
“We are serious about these developments. We have been criticised for too long,” Mr Kavo said.
Saying he was serious about development for his people, Mr Kavo believed the project would drastically change their lives for the better.