The National, Tuesday, May 3, 2011
COMMERCE and Industry Minister Gabriel Kapris has assured investors and shareholders that a five-star casino will be completed in six months.
Kapris brushed aside media claims that the Port Moresby five-star hotel was running into serious financial problems.
“The hotel will be completed by end of November,” he said.
“I am honoured to announce that loan funding has been approved and materials have been ordered for the casino hotel project to be completed within the next six months,” he said yesterday.
Kapris said the project was one of the impact projects approved by the Somare government and facilitated by the Commerce and Industry Department to cut accommodation costs in the capital city by making more rooms available.
“This hotel has been the main catalyst to all new and redevelopment investment seen in the hotel industry,” he said.
He said existing hotels had to upgrade to remain competitive and to meet the demand created by the boom in the resource sector and its multiple effects on other related service industry sectors.
“This development is unique in every sense and is set to lift the profit of the hotel industry in PNG,” Kapris said.
He said the hotel was 80% complete based on the owner’s equity alone and “is on a very sound footing to attract loan financing from financial institutions”.
“My department has been working closely with the developer and majority shareholder CMSS (PNG) Ltd, which holds 85% of the stake in the casino hotel to secure offshore venture capital to put the final interiors and exterior touches this prestigious hotel and casino complex.
“The other 15% is held by Petroleum Resources Gobe, Petroleum Resource Moran and Papindo Ltd and will not be affected in any way with the financing arrangements.
“They gain substantially once the casino hotel is in operation,” he said.