Papua New Guinea could soon be exporting fresh water from the Highlands via a 1500 kilometre pipeline to Australia under an ambitious new plan approved by government.
The National Executive Council has approved $US6.5 million for a feasibility study into the project, which will give the PNG Government a 25 percent stake, with options for further equity participation.
The National newspaper reports that Mt Giluwe Water Limited has been endorsed as the company to oversee the operation of the project in PNG.
Cabinet's blessing formalises more than 16 years of data collection, with the initial project designed by an Australian company and other industry experts.
The project is to be based on a gravity-fed system that will power itself by sourcing water from 5500 feet in altitude from Mt Giluwe in Imbonggu district down to the headwaters of Murray-Darling Basin in Central Queensland.
The proposal also includes plans to build six to 10 hydro power stations along the PNG side of the pipeline.