A loan facility agreement has been secured for the Duran housing project in Port Moresby.
Minister for Housing, Paul Isikiel, recently travelled to China and successfully negotiated the deal with the Industrial and Commercial Bank of China. This will enable the construction of 40, 000 houses.
Duran farm on the outskirts of Port Moresby will be the center of a major housing project to be carried out by the National Housing Corporation. The ground breaking of the project was witnessed early this year.
The project is now close to reality with the successful negotiation of a loans facility agreement. The financier will be the Industrial and Commercial Bank of China.
Under the arrangement, ICBC will provide the financing through the public Private Partnership, whereby NHC and its business arm, National Housing Estate Limited and Niule #16 Ltd, a reputable industry player, are joint partners in the arrangement.
The build, sell and share concept will be applied to the end product for Papua New Guineans to buy at affordable costs. The houses will range from K100, 000 low costs houses to K150, 000 for medium while high costs houses, and will be left open for market forces to determine.
The project will become a satellite township with its own police station, schools, recreation facilities and shopping centers
Also under the arrangement, a factory for the production of prefabricated buildings will be established, while local building materials will be fully utilized to replace imported materials. This is intended to reduce the cost of mobilization.
Minister Paul Isikiel said, the project will get off the ground soon once cabinet endorses submission including import duty exemptions.
He said, chronic housing shortages has compelled the government to explore such opportunities available in the market to deliver much needed shelter to people.
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