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Port Moresby
July 7, 2020
Business Featured News

PNG Government Invests K316 Million in Massive Hotel

 

The Papua New Guinean Government has decided to invest K316 million on a 20 per cent stake in a massive hotel project in Port Moresby, while the Opposition has criticized the move.

The Mineral Resource Development Company announced the Government’s investment in the K1.2 billion Star Mountains Plaza Project and welcomed the investment.

MRDC Managing Director, Augustine Mano says the O’Neill-Dion government has promised funding of K316 million.

“BSP is financing K200 million, government is putting K316 million and the balance of it, the Landowners are putting more than K600 million, I would like to thank them,” says Mano.

It comes after Opposition Leader, Don Polye, criticised the government for spending money on the project.

“What the government is doing does not benefit the people of Papua New Guinea, it benefits a few businesses and a few people, it only causes the people to become poorer and poorer,” says Polye

The Opposition Leader said the spending would add more stress and pressure on the already existing financial crisis and already a receding economy.

Landowner Company with the highest share, Petroleum Kutubu Resources Chairman, Abraham Murupe and his directors have welcomed the National Government decision to be part of the project.

“ This investment by the government is not a free money to us, its an investment for the people in this country, in this project,” says Murupe.

Petroleum Kutubu Resources, Mineral Resource star mountains and Mineral Resources Ok Tedi are the landowner company’s with the shares.

The announcement of the government’s involvement comes when the country’s economy is struggling against falling commodity prices.

The hotel will be completed two months before the Apec Summit in 2018.

Construction is said to be on schedule.

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