Government’s lease-to-own vision set to save state K450 million annually

Prime Minister James Marape has defended the government’s decision to relocate the Office of the Prime Minister and the National Executive Council (NEC) to the privately owned Melanesian Haus in Port Moresby.

He said the move is part of a long-term plan for the State to eventually own more government office buildings.

Related news: https://thepngbulletin.com/news/pms-office-move-sparks-debate-in-parliament/ 

Responding to questions from North-Fly MP James Donald in Parliament on Wednesday, Mr. Marape said Papua New Guinea could no longer continue spending hundreds of millions of kina on leasing office space from private property owners.

He said the government was now pursuing a “lease-to-own” policy that would allow leased office buildings to eventually become State-owned assets in the future.

Mr. Donald questioned the reasons behind relocating from a State-owned building to Melanesian Haus, a privately owned property.

He also raised concerns about the cost of the relocation, the ownership of the building, the procurement process, and possible security risks associated with operating from a privately owned facility.

However, Prime Minister Marape explained that the Office Allocation Committee had earlier advertised for government office space.

He stressed that Papua New Guinea had relied on leasing office buildings from private owners since Independence in 1975, costing the State approximately K450 million every year.

“Our government has made a deliberate decision that we will not continue to lease forever. The country must own buildings,” Mr. Marape told Parliament.

The Prime Minister said the government’s lease-to-own arrangement would allow buildings leased by the State to eventually become government property over time.

He said the owner of the building, located opposite Parliament House and the Supreme Court, initially offered only the top five floors for lease, while the lower four floors were intended for commercial shopping space.

According to Mr. Marape, the government decided to lease the entire nine-floor building to avoid possible security and management concerns that could arise from having a shopping center operating directly opposite Parliament and the National Court Haus.

He also assured Parliament that the Prime Minister’s Office has full control of the new building and that additional security measures have been put in place to protect national interests.

Meanwhile, Mr. Donald’s second question focused on the cleanliness of Port Moresby, highlighting concerns over poor waste management and inadequate health and hygiene standards that affect the city’s image internationally.

In response, Mr. Marape commended NCD Governor Powes Parkop, describing him as one of the country’s best-performing governors.

Mr. Marape said conditions in the capital had improved compared with previous years and praised ongoing efforts to improve the city.

He stressed that maintaining a clean city was not only the responsibility of the government or the governor, but also the responsibility of residents and the general public.

“Port Moresby belongs to all of us. Let us protect the city and take care of it,” he said.

The Prime Minister concluded by saying the government wanted to see a cleaner, safer, and more modern capital city by 2028 as Papua New Guinea prepares for the 2028 NRL competition.

He challenged citizens to change their mindset as the country moves forward.

Steven Kenda
Steven Kendahttp://www.thepngsun.com
Mr Steven Kenda holds a Bachelor of Art in Journalism and Public Relations from the University of Papua New Guinea (UPNG).

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