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July 14, 2020
Business

NEC Approves Commercial Terms For State Investment In Star Mountain Plaza Project


The National Executive Council has approved the commercial terms for the State’s participation and investment in the Star Mountain Plaza Project in Port Moresby.

Prime Minister Peter O’Neill said the project and its facilities are very important to the successful hosting of the Asia Pacific Economic Cooperation (APEC) Leaders’ Summit in Port Moresby in 2018, and the long term development of PNG’s vast tourism potential.

Prime Minister O’Neill said the five star hotel is a mixed-use, fully integrated development project in Port Moresby to be developed by the company, Star Mountain Plaza Ltd.

“It will be developed in three stages; the first include a convention and performing arts centre which totals 3,900 square meters of convention and meeting space over 4 levels, a restaurant, café and related facilities.

“A 212 room hotel and 140 residential apartments will also be built to be used for APEC related meetings. It is critically important that we provide adequate facilities to host the APEC Economic Leaders’ Meetings and the CEO Summit 2018”, he said.

Stage 1 of the project will also include a 568 space car park building to support the core development.

Prime Minister O’Neill said the State will invest in the project through a special purpose State owned company to be incorporated under the Companies Act 1997, called the ‘APEC Infrastructure Investment Corporation’ (AIIC).

“The overall construction of Stage 1 of the Star Mountain Plaza Project is projected to cost around K1,100 million with the second stage to include a second hotel at a further cost of K450 million.

“The State will contribute a total of K316 million (that is K222 million in Stage 1 and a further K94 million for Stage 2) towards the realisation of this aspiration.

“It will purchase 20 per cent of the shares by investing K100 million as its first payment towards the project on 1 April 2016 through either its own lenders or the annual budget.”

When stage one of the project is completed, it will have a convention centre called the Kutubu Convention Centre, a parking space for 441 cars, a 212 room hotel to be called Hilton Hotel at an estimated cost of K700 million.

The initial earthworks and construction of the project has started with most of the facilities expected to be completed and delivered by October of 2017, a year ahead of the APEC Summit in 2018.

Source: Department of the Prime Minister and National Executive Council

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