NEC approves commercial terms for State investment in Star Mountain Plaza project

Artistic expression of Star Mountain Plaza in Port Moresby

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.

Telephone: +675 327 6525 E-mail: media@pm.gov.pg (Page 2/2)

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.