And the cost – around $2 billion – would have to be guaranteed, and repaid, by the PNG Government at a time when the state debt level is already too high.
It is possible a number of the other projects Andrew Forrest is "evaluating" In Papua New Guinea are worthy – but that should be left to the Australian Government, working with the PNG Government, encouraging the private sector, both in PNG and Australia, to consider involvement. The "green energy" agenda is clearly going to be very attractive to investors in the immediate future.
But there is a second reason why Purari merits Australian Government serious consideration.
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As a major iron ore exporter, Andrew Forrest not unreasonably has extensive connections in the Peoples Republic of China. The Chinese Government, via a state grant of around $30 million, has secured a foothold in the proposed Kikori –Ihu economic zone in the Gulf Province. The economic zone is very close to the Purari River estuary where the hydro plant would be located.
Given the proximity of both the Kikori-Ihu economic zone, and the Purari River to Australia it is clearly in the Australian "strategic national interest" to watch what happens on our northern border - and that most certainly encompasses both Kikori-Ihu and Purari. And it certainly includes the island of Daru which I have written extensively about.
I have seen no evidence China is interested in Purari – its focus seems to be more on ports, fishing zones and forestry, as well as mining and gas.
But what the development of Purari would do is enhance the feasibility of establishing major industry – including hydrogen and even a smelter, at Kikori-Ihu where the PNG Government has on offer the most generous taxation and other incentives that are very attractive to major project development.
That might interest the Chinese!
It MUST interest Australia. We simply cannot afford to rely on dribbling out funding support under the Australian Infrastructure Financing Facility for the Pacific (AIFFP).
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I have just looked again at the AIFFP website (aiffp.gov.au). Just one project in Papua New Guinea is listed – a solar energy farm in the Markham Valley that might not even proceed!
Quite frankly, the AIFFP website should be taken down. It is just not delivering the substantial impact Australia needs in Papua New Guinea and the South Pacific!
But a partnership with a businessman of substance – Andrew Forrest – offers Australia enormous potential.
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