Source: The National

PRIME Minister Peter O’Neill says State-owned land will be freed up to assist Papua New Guineans own their own homes.

He said that yesterday during the launching of the First Home Ownership Scheme run jointly with Bank South Pacific.

The occasion was witnessed by Cabinet Ministers, MPs and business executives in Parliament’s State Function Room. O’Neill signed the agreement with BSP Group chief executive officer Robin Fleming where a presentation of K200 million was made.

He said the land provided could then be used to apply for a loan. The first 20 beneficiaries from Department of Finance attended the function.

“Cabinet has made a decision to forfeit all undeveloped land, urban development leases which are not being developed, to be sub-divided and give first home-buyers first preference to buy land,” he said.

“You can then buy the title from us and go and apply for a loan from BSP.”

O’Neill said he was faced with the dilemma of providing affordable housing when he discussed the matter with Fleming.

“He (Fleming) was very accommodative,” he said.

“He understands the challenge we face in providing housing for our people. Many of our people are living in settlements: They don’t deserve to.

“We must have a scheme that will provide for them. It will be very affordable.

“You can borrow up to K400,000 with 4% interest rate over 40 years. That is by far the cheapest housing scheme by far anywhere in the world.

“Every year, the government will put in K200 million. Instead of wasting money everywhere, we will give it to the bank to lend it to as many Papua New Guineans as possible.”

He thanked partners, including Nasfund and Nambawan Super, who have agreed to put up the equity of 10% to 20% to support workers who are going to borrow money.”

Fleming described the project as “a very meaningful and a landmark housing scheme”.

“The objective of which is to put as many people as possible in Papua New Guinea into housing as is possible,” he said.