THE combined worth of assets under State enterprises is about K13 billion and contributes to the country’s gross domestic product (GDP through provisions of services that are paid for and payment of employees, a says minister.
Speaking at a ground-breaking ceremony for the Kumul Haus project in Port Moresby recently, State Enterprises Minister William Duma said the building would be an asset to the State at a value of K138 million.
To be owned by Kumul Consolidated Holdings (KCH), the Kumul Haus is a commercial office complex to be built at the Fairfax Harbour, downtown, which will later be called the Garden prescient.
“This is to strengthen the State’s balance sheet and create lasting value for our people,” Duma added.
“The construction of the Kumul Haus will be done through a Design, Build, Operate, Lease, and Transfer (or DBOLT) module.
“KCH will only contribute the land portion, valued at K40 million as equity in the project.
“The project will cost about K148 million.
“After 15 years, the building will be given back to KCH at a value of around K138 million – a direct asset to the State,” Duma added.
“This will save us about K101 million which KCH and the SOEs (State-owned Enterprises) have paid in rent to private landlords over the years.
“But today, every Kina paid by KCH and its SOEs is a Kina invested in PNG, in an asset that, in 15 years, the people of PNG through KCH, will own outright,” Duma said.
The project is done in full compliance with the Public Private Partnership Amendment Act 2023, the PPP Regulations 2023, and the Kumul Consolidated Holdings Authorisation (Amendment) Act 2021.
Legal clearance for the project has been issued by the State Solicitor’s office after having the state solicitor review the DBOLT agreement and the transaction documents.
