THE Central provincial government will build a new capital city at Bautama outside Port Moresby with a K300 million loan from the Exim Bank of Malaysia, Governor Alphonse Moroi confirmed yesterday.
He said the provincial government would be presenting a submission to the National Executive Council for assistance to secure the loan.
He said he had met with the bank’s representatives who indicated that they were ready to fund the project.
He added that Prime Minister Sir Michael Somare had also confirmed the Government’s commitment to fund the establishment of a capital for the Central province.
Port Moresby will then become a federal territory and remain the capital of PNG.
Prior to the current parliamentary sitting, Sir Michael said the economic climate was right to build a new capital for Central province.
“It will be treated as a national project to be implemented by the National Government,” Sir Michael said.
Mr Moroi said work on the new city would begin soon.