Ground breaking for K130 million Kumul Haus development

Port Moresby is set for another major transformation with the groundbreaking of Kumul Haus, a new 10 storey office complex that will become the central home of Papua New Guinea's State Owned Enterprises [SOEs]

The groundbreaking ceremony was held today at the Portside waterfront precinct, with construction expected to begin in the coming weeks.

The building will accommodate up to 100 people on each floor and is expected to take about two-and-a-half years to complete. The project is scheduled to be completed by 2028, with government agencies and state-owned enterprises expected to move into the building in 2029.

Kumul Haus is being developed as part of the Government's plans to strengthen the management and partial privatisation of State-Owned Enterprises while improving coordination between agencies.

Motu Koitabu dancers lead dignitaries to the site where Kumul Haus will stand. (Image: Supplied)

Once completed, the building will house the Ministry and Vice Ministry of State Enterprises, Kumul Consolidated Holdings, PNG Ports, DataCo and several other majority state-owned enterprises.

The project is also expected to end decades of reliance on rented office space by providing a permanent headquarters for key state entities.

"This will end decades of rental dependency and establish a true one-stop shop for our state-owned enterprises.

"This project will also stimulate local economic activity, creating employment during construction and operations, developing our people's skills, and establishing this portside garden", SOE minister William Duma said.

Minister Duma further highlighted that the development will not place any burden on the national budget, increase public debt or require external loan refinancing.

The project will be delivered under a Design, Build, Operate, Lease and Transfer [DBOLT] arrangement, with development partner Jurudaya Joint Venture Phoenix Limited responsible for designing, financing, constructing and operating Kumul Haus before leasing it back to Kumul Consolidated Holdings for 15 years.

Upon the expiry of the lease in 2041, ownership of the building will transfer to KCH at no additional cost, adding a K130 million asset to its portfolio on prime waterfront land.