Housing Minister Paul Isikiel today clarified that the Duran Housing Project is a public private partnership and not a loan arrangement.
Minister Isikiel said the government has identified land, and the Chinese will be financing the project through a joint venture agreement with the government.
China State Corporation Engineering will finance the project while Niule Number 16 will construct the houses.
The project is expected to kick off next week.
In a press conference today in Port Moresby, Housing Minister Paul Isikiel, together with investor China State Construction Engineering Corporation Limited, announced the next phase of the negotiations.
The developer will deliver 3 thousand houses in the first year and increase in coming years.
The developer was identified by the investor to deliver the project and the investor says it has confidence in the developer.
Minister Isikiel clarified that this is a public private partnerships in which the investor will recoup its money through the sale of houses and the state will benefit through the joint venture arrangement.
He said the recently announced 2 hundred million kina loan facility announced by the Prime Minister will compliment this project.
Duran Farm is one lands identified, along with some portions of land at the National Research Institute and Gerehu.
He assured the public that the houses will be of PNG standard and prices will range from 1 hundred thousand kina to 150 thousand kina for houses of medium costing.
The project alone will create over 1 thousand employment opportunities for Papua New Guineans.
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