State puts in K300m

Main Stories

THE Government will invest K300 million in the Star Mountain Plaza project in Port Moresby – a move welcomed by landowner companies already part of the K1.2 billion project.
The five-star 212-premium room hotel, to be managed by the Hilton Group, will be one of the central venues for the 2018 APEC meeting in Port Moresby.
The Hilton Port Moresby is part of the Mineral Resources Development Company’s latest development projects.
MRDC managing director Augustine Mano said the Government last week approved the K300m investment to become a shareholder in the hotel project.
“We are happy that the Government at last has agreed to invest,” Mano said.
“This is a true partnership in every sense between the landowners and the Government.”
Landowners will take 80 per cent and the Government 20 per cent in the project.
In the past two years, Mano said the MRDC had spent more than K200 million on the Star Mountain Plaza.
He also noted the Bank of South Pacific’s K200 million financing of the project.
The landowner firms chipped in K613 million.
“The major shareholder is the Petroleum Resource Kutubu (PRK),” he said.
“It has a net asset of K1.1 billion and its total assets is K1.8 billion.
“It has 45 per cent shareholding in the project. Shareholders from Ok Tedi own 25 per cent.”
Mano said Cabinet in 2014 approved the concept and in 2015 endorsed the project agreement.
“Last Thursday, the Government identified the source of funding following up the two NEC decisions,” Mano said.
“I’m proud to announce that the Government has committed K300 million for the project.”
Marc Sakai, a director of Petroleum Resources Kutubu, hailed the investment.
“We (landowners) have already committed ourselves as you can see from the work (Star Mountain Plaza construction) so far,” he said.
“I remind critics that this is not a free gift from the Government.
“It is investing and it will be a shareholder in the development.”
Fellow PRK director John Kapi Natto said he was excited by the Government’s investment.