The Governor for NCD, Hon. Powes Parkop, has signed a landmark deal with IFC, the International Finance Corporation, to provide affordable, green and climate- resilient housing in the country’s capital, Port Moresby.
The deal, the first of its kind for PNG is aimed at demonstrating a model for large scale affordable housing for low and middle- income families in Port Moresby, to help ease the growth of the city’s informal settlements. It was announced by Governor Parkop during the Pacific Urban Forum, now underway in Fiji, which is focusing on the challenges of urbanization in Papua New Guinea and other Pacific Islands nations.
“The project will target both lower and middle- income earners through a mix of single unit family dwellings and affordable flats,” Governor Parkop said. “We need to encourage greater housing density in a way that is culturally appropriate, and with adequate amenities for people. The pilot project will complement other measures that we are now undertaking to tackle Port Moresby’s housing crisis.”
According to government statistics, over 45 percent of the 370,000 residents of Port Moresby live in informal settlements without security of title or access to basic infrastructure, such as water, sanitation and power.
With more people moving from rural areas to the city, informal settlements are growing fast and are expected to shelter almost 60 percent of the population by 2030. To keep pace, it’s estimated about 3,000 affordable housing units need to be built every year over the next ten years, a number far greater than the current level of production.
“Papua New Guinea has one of the fastest growing populations in the world, so it’s important to look for solutions to overcrowding in informal settlements,” said Thomas Jacobs, IFC Country Manager for PNG and the Pacific, Australia and New Zealand.
It marks the second planned project for green, climate resilient affordable housing in the Pacific region. The Fijian Government has already given the go-ahead to a similar project for its country. IFC will draw on its global work in helping tackle housing affordability issues. For example, an IFC supported project in Odisha, India, is expected to build 2,600 affordable homes for about 12,000 people. Further support in the state of Bihar will result in a statewide network of green affordable housing projects across multiple cities that could create about 7000 housing units and mobilize about US$ 120 million in private sector investment.
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. For the last 30 years we have advised governments on public-private partnerships and have worked on over 450 transactions. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
Papua New Guinea Partnership
IFC’s work in Papua New Guinea is guided by the Papua New Guinea Partnership. Australia, New Zealand and IFC are working together through the Partnership to stimulate private sector investment and reduce poverty in the Pacific.