Fortescue Future's private initiative is already in the Legislature

The project includes the private initiative presented by the Australian firm, also adjusting the suggestions made by the Special Commission that evaluated the document and decided in favor of its declaration of public interest.

In addition, it includes the general conditions that will govern the public bidding procedure for the awarding of the use of provincial fiscal lands for the execution of the project. Also, the collection of a canon as consideration in favor of the province, the term and the general and basic conditions of the agreement, which may later be complemented by the Executive Power.

The project establishes specific uses for the funds received by the province as canon. It is considered a priority to allocate a part of such income to the setting up of a local and regional development fund, with the purpose of financing equipment or works that contribute to the improvement of infrastructures for economic, urban and sanitation needs. 

Moreover, it is also contemplated that a percentage of the canon to be paid to the Province will be co-participated among the Municipalities, making it possible for all the regions and cities to participate in the economic benefits of this project, thus promoting provincial integration policies.

Details

The main purpose of the initiative is to declare the provincial public interest of the private initiative proposed by Fortescue Future Industries within the terms of Law 3484, in order to carry out all the necessary infrastructure works for the generation of electric energy from renewable sources, exclusively for the production of the so-called green hydrogen and its by-products.

The agreement for the execution and development of the project will be granted on an onerous basis, for a term of 50 years, renewable for a period of 25 years more.

As consideration for the agreement, a periodic canon will be charged, in US dollars, directly linked to the total bid surface. 

This canon is made up of two components: "Land in production", value that is established for the land affected to the infrastructure, and "Land retained for production in future stages", value that arises from the fiscal lots that are not being effectively used, but could be used in future actions. The canon is updated by reference to the annual variation rate of the U.S. Consumer Price Index (CPI).

The amount of money received by the Province as a canon for the agreement will be distributed as follows:

- 30% to the constitution of a Green Provincial Development Trust Fund, intended to finance equipment or works that contribute to the improvement of infrastructure for economic, urban and sanitation purposes. Also, the implementation of social, health, educational, hospital, housing or road policies, in rural or urban areas; the satisfaction of works and credits resulting from the execution of productive works and those aimed at sustainable development and productive diversification, with explicit restriction to apply the same to current expenses.

- A 10% share among the Municipalities, according to the indexes established in the Annex of the Co-participation Law. These funds must be used exclusively to finance equipment or infrastructure works, with explicit restriction to apply them to current expenses.

- The remainder shall be destined to the Provincial Treasury.