By GEORGINA MICHAEL
The United States, through the Department of Defense, has awarded a USD400 million (PGK1.6 billion) for the construction of a large-scale fuel storage facility near Port Moresby that will benefit Papua New Guinea and the Pacific region.
The fuel storage facility, with a capacity to store over 1.6 million barrels of oil, will generate jobs and attract further investment. The project is implemented under the US –PNG Defence Cooperation Agreement.
The comes at the request of the PNG Government of PNG and has the potential to increase the diversity of fuel available for the PNG market and the Pacific Islands region.
“This investment reflects the importance we place in our bilateral relationship, and the results of continued discussion and collaboration,” said Ann Marie Yastishock, US Ambassador to Papua New Guinea.
The contract implementer, DGCI Corporation of the United States, offers mission-critical and innovative solutions by fostering enduring partnerships with the countries and communities they work in founded on mutual trust and respect, with a focus on advancing economic development.
US Indo-Pacific Command commander Admiral Samuel Paparo said: “The project will power aircraft and ships It will sustain readiness, and it will ensure that both the US forces and operating defense forces, especially in times of emergency and when it matters most, I applaud DGCI for hiring global workers for creating jobs, for transferring skills and for driving opportunity here in Port Moresby.
“This facility, positions, property gain at the center of the Pacific and the gateway to the Pacific Islands, a logistics hub for crisis response or humanitarian deterrence, and delivers tangible benefits today, while strengthening the partnership and securing the future.”
The project is expected to provide 400 construction jobs, 200 plus permanent jobs, raining programs, 90% local content for operations that is local staffing and subcontracts, providing investment opportunities to boost local business and contractors and community benefits.