PRESS RELEASE
‘Paga Hill Estate Tourism Special Economic Zone’
Paga Hill Development Company (PHDC) is excited to announce the Marape-Steven Government’s declaration of Paga Hill Estate as a ‘Tourism Special Economic Zone’, providing a range of financial incentives designed to attract investment and prioritise its development. Having long supported the initiative as a “game changer”, and having already achieved so much in transforming the city, this marks a bold new phase of Governor Parkop’s Amazing Port Moresby.
The decision is a strong show of support for Paga Hill Estate and what it can do for the local economy, particularly with respect to tourism. The approved suite of incentives, including tax and customs duty concessions, are precisely what is needed to give PNG a competitive advantage in attracting overseas investment to our shores and fast-track the completion of Paga Hill Estate, bringing forward its forecast benefits to the city and PNG as a whole. These include realising the planned tourism infrastructure and venues, creating thousands of jobs in the areas of construction, tourism, hospitality and more, as well as transforming the face of the capital, establishing a vibrant focal point along our city’s waterfront for all to enjoy.
The Project Agreement between PHDC and the State was signed yesterday at a ceremony at Government House by Governor General Sir Bob Dadae, NCD Governor Hon. Powes Parkop, Department of Commerce & Industry Acting Secretary Joseph Vutliu and PHDC CEO Gudmundur Fridriksson. Also in attendance was Finance Minister Hon Rainbo Paita, PHDC Director Stanley Liria, as well as Miss Paga Hill Estate and Miss PNG Lucy Maino.
The Project Agreement being signed yesterday by Governor General Sir Bob Dadae, NCD Governor Powes Parkop, Department of Commerce & Industry Acting Secretary Joseph Vutliu and PHDC CEO Gudmundur Fridriksson
PHDC CEO Gudmundur Fridriksson, Miss Paga Hill Estate and Miss PNG Lucy Maino, NCD Governor Hon Powes Parkop, Governor General Sir Bob Dadae, Minister for Finance, SEZs and Public Private Partnerships Hon Rainbo Paita, CEO Director Stanley Liria and Department of Commerce & Industry Acting Secretary Joseph Vutliu at Government House yesterday
The ‘Paga Hill Estate Tourism Special Economic Zone’
The Marape-Steven Government has declared the geographic area of Paga Hill Estate, comprising over 23 hectares, a ‘Tourism Special Economic Zone’. Construction and business activity within the area will now be incentivised, including tax and import duty concessions, in order to attract investment and expedite its completion. During construction, this will involve a range of job opportunities, as well as on-job training and certification for trades and the like.
The decision comes as a major boost for PNG’s tourism industry. Plans for Paga Hill Estate feature key tourism infrastructure that will together transform the visitor experience to Port Moresby. These include a cruise terminal, cultural & exhibition centre, war museum and restored WWII relics, all in a vibrant waterfront setting. Once completed, these tourism products and services will attract increased visitation to PNG, support a range of tourism, hospitality and other jobs, as well as create a vibrant waterfront precinct for all to enjoy.
Artist impression of the completed Paga Hill Estate waterfront, featuring a range of key tourism infrastructure that will transform the visitor experience to PNG
Paga Hill Estate is the future of Port Moresby. The SEZ’s financial incentives are also geared at attracting foreign companies to relocate their headquarters here, firmly establishing Port Moresby as the financial and commercial hub of the South Pacific. This will create a range of job and career opportunities for local Papua New Guineans, with the commercial towers and employees adding to the dynamic nature of the Paga Hill Estate, transforming this spectacular destination into a place for locals and visitors to live, work and be entertained.
Marape-Steven Government strategy for SEZs
The PNG economy is largely dependent on natural resources and some agricultural commodities. Our economic fortunes will therefore always be tied to global commodity prices unless we diversify and grow other industries.
Part of a bold strategy to promote investment in PNG industry, create jobs and diversify, Paga Hill Estate will be the first of a collection of SEZs that the Marape-Steven Government is strategically promoting. These SEZs will serve to attract foreign investment, create employment, as well as drive targeted industries that serve to diversify the PNG economy, making us less susceptible to fluctuations in commodity prices.
Paga Hill Estate is the first of these SEZs and has been prioritised for its forecast benefits to tourism and nation-building. This Marape-Steven Government strategy also aligns with NCD Governor Powes Parkop’s vision for ‘Amazing Port Moresby’: Paga Hill Estate stands to more than double the existing Port Moresby downtown area, establishing a vibrant focal point for tourists and city residents to enjoy at all hours.
Why Special Economic Zones?
Used in countries all over the world to stimulate investment and drive innovative projects, a SEZ allows for a government to apply a unique set of conditions to a geographic area. Perhaps the most renowned example of how effective Special Economic Zones can be in stimulating economies is Shenzhen in China. Shenzhen was one of China’s first four SEZs, quickly transforming from a small town in 1980 to becoming a major commercial hub that has underpinned China’s growth.
Next steps
PHDC wishes to thank Prime Minister James Marape, Governor Powes Parkop, Ministers Rainbo Paita, William Duma and Emil Tamur for their strong leadership and bold support for our landmark project. We look forward to sharing exciting announcements and new developments in the near future.
For any questions or comment, please email info@pagahill.com
Quotes
Hon Rainbo Paita, Minister for Finance, SEZs and Public-Private Partnerships
“The Marape Govt is open for business – this policy tells foreign companies that we’ll create favourable conditions for you to invest, creating jobs and stimulating industry where it’s mutually beneficial for us”
Hon Emil Tamur, Minister for Cultural and Tourism
“We have incredible diversity of culture, flora and fauna that people would want to see if it was a little more accessible. This project is key to our national tourism strategy to improve infrastructure and capture a share of the growing cruise market. It puts in place the tourism products and services that we need to attract and entertain many more tourists, all within a waterfront setting so close to the CBD.”
Gudmundur Fridriksson, CEO, Paga Hill Development Company
“We’ve always stayed true to a comprehensive vision for Paga Hill Estate that will transform Port Moresby and support Governor Parkop’s ‘Amazing Port Moresby’, and I thank the Marape Government for seeing this potential and doing their part with this bold strategy of support”
