A Financial Advisory Services Agreement was signed on Tuesday between the government of PNG and the International Financial Corporation (IFC).
The agreement aims to build more than a thousand affordable homes for families within Port Moresby under a new affordable, climate resilient, green house project that comes as a strategy to tackle the need for more and proper housing to meet the growing population in the country’s capital.
As part of the agreement, IFC will act as the lead transaction advisor and assist the government in structuring and implementing a public-private partnership (PPP) that will help provide a variety of single-unit family dwellings and affordable flats.
Chief Secretary, Ambassador Ivan Pomaleu affirmed that the project is a first of its kind Whole of Government (WoG) approach for Public Servants Housing under a Public Private Partnership
The Public Service Housing Project will be built on Portion 1212 Granville-Bomana, outside Port Moresby.
“Through this WoG, PPP arrangement based on NEC decision No.129 of 2012 that directed the Department of Planning and Monitoring (DPM) to prepare and deliver a revised Public Service Home Ownership Program (PSHOP), and further affirmed through the recent NEC decision No.233 of 2022” Pomaleu said.
Prime Minister, James Marape said, contributions into this project will help drive down the costs of these dwellings that will be built, putting them in reach of hard-working families.
“A secure home is also a cornerstone of a productive workforce, which can in turn drive more economic benefits for our nation,” the Prime Minister stressed.
DPM Secretary, Ms Taies Sansan said the FASA has a timeframe of 36 months from time of execution and covers two phases; the Feasibilities studies and tender process to identify a suitable developer for the development of houses.
IFC will assist the government in running an open and completive bidding process to identify a highly experienced private developer to design, finance, build and maintain the housing for a defined period.
The corporation’s advisory role will end once the winning bidder is selected by the government and project agreements are signed between the parties.
This affordable housing project will also provide a stock of climate resilient homes that incorporate green design specifications.
IFC Country Manager for the Australia, New Zealand, Papua New Guinea and Pacific, Judith Green, expressed that the initiative is more than just about bricks and mortar.
“It’s also about building communities that are sustainable and resilient,” Green said.
The development of this affordable housing project has been supported with funding from the Australian Government.
Officiated by the Deputy Prime Minister, John Rosso, the ground breaking ceremony for this WoG Public Service Housing Project took place on the 14th of September, 2022.