Home > Corruption, Papua New Guinea > More money down the drain – Casino hotel on hold

More money down the drain – Casino hotel on hold

Construction work on the K200 Casino hotel in Boroko has been halted for several months and might never be completed says the Post Courier newspaper (see report below). K26 million has been invested in the project by two petroleum landowner companies managed by the Mineral Resource Development Company (MRDC). The project was sponsored by Trade and Industry Minister Gabriel Kapris and supported by the PNG government.

Casino hotel behind schedule

CONSTRUCTION of a K200m five-star casino hotel in Boroko, NCD, is eight months behind schedule – and may have even been abandoned.

Money spent so far – to the tune of K26m – has been put up by two petroleum landowner companies: Petroleum Resources Gobe (PRG) and Petroleum Resources Moran (PRM). There’s another PNG partner in the project but its identity is unknown. The two companies are managed by Mineral Resources Development Company (MRDC).

Sources said yesterday that MRDC was about to release another K24m into the project recently but that had been blocked by its board of directors unless proper equity holdings, project agreement and licensing issues were clearly spelt out.

Korean company CMSS (PNG) Ltd is the main investor with full backing from the PNG government. However industry sources told Post-Courier yesterday that the company had not put up any of its own capital in the project to date. Another source said last night CMSS was contracted to build the casino by Pacific Equities and Investment Limited – a successor to the Investment Corporation of PNG.

Industry sources told the Post-Courier yesterday that construction work on the casino hotel had stopped for several months. Work started in October 2008 and was to have been completed in April this year. The land on which it stands is owned by the Works Department where at one stage was home to the department’s largest transport and mechanical depot and workshop between Eda Ranu and Boroko Traffic Police Station. It was to be the first casino in PNG.

Trade and Industry Minister Gabriel Kapris assisted in seeking Cabinet approval for the project and in September 2009, as Trade and Industry Minister, he was in the company of CMSS managing director Jimmy Kim to give the media a tour of the project site.

Mr Kapris said then that “this project is supported by the Government as it will attract tourists and business people”.

All attempts to speak to Mr Kapris yesterday was fruitless. Mr Kim and MRDC executives were all overseas and could not be reached for comment. Security workers at site told Post-Courier: “nogat workman na nogat boss stap long hia.” (The staff and bosses are not here).

  1. February 3, 2011 at 8:58 pm

    Seems like something went terribly wrong here. Maybe a suspicious person left the country with a suitcase full of dollars…

  2. OB
    March 14, 2011 at 3:27 pm

    We have ATTITUDE problem in PNG frm the top ranks down to grassroot level..very sickening.Its time we should close our eyes and open our minds..foreign companies importing building materials back from their countries sounds scary**??

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