2025 marks a major phase of development, with Paga Hill Estate to take major steps in becoming PNG’s first true world-class tourism and business hub.
The project continues to make progressive transformation backed by the Marape-Rosso Government, the multi-billion-kina project has positioned itself as Papua New Guinea’s flagship SEZ, driving investment, job creation, and economic diversification. PNG has traditionally been heavily reliant on strong commodity export prices for economic prosperity, and the SEZ policy is about establishing industries that diversify PNG’s economy, with Paga Hill Estate primarily focused on tourism.
Paga Hill Development Company (PHDC) is leading the charge with Paga Hill Estate, ensuring the project meets stringent SEZ key performance indicators (KPIs) while attracting foreign and local investment. Since its designation as a SEZ, Paga Hill Estate has emerged as one of PNG’s most dynamic development projects which covers 25 hectares adjoining downtown Port Moresby.
SEZs in PNG are subject to rigorous performance standards, with license holders given 12 months to meet key KPIs or risk having their licenses revoked or suspended.
SEZ Authority Board Chairman Dr Lawrence Sause emphasised the importance of a SEZ delivering on its forecast goals as core requirements for maintaining SEZ status.
“Each SEZ is selected for its potential to deliver sustained economic diversification. For Paga Hill Estate, this is primarily through tourism, but it also aims to establish Port Moresby as regional hub for finance and trade.” Dr Sause said.
SEZ incentives are time-bound, with the intent they establish new industries and competitive advantages for PNG that are self-sustaining and lasting. Paga Hill Estate’s primary focus is tourism, delivering major tourism infrastructure with the likes of Radisson, but the project’s impact is expected to be even broader.
International Trade and Investment Minister Richard Maru has emphasised that SEZs are set to become economic drivers for PNG. The government encourages foreign investors to collaborate with local businesses and landowners, ensuring sustainable development.
SEZ incentive tax and other concessions extend to purchasers and tenants of completed development. Local and international organisations will therefore financially benefit from relocating to Paga Hill Estate. In its transformative vision for the city, a vibrant new downtown is envisaged that improves the visitor experience to Port Moresby, as well as the daily lives of residents and workers.
“Paga Hill Estate is about announcing to the region that we are open for business and we welcome your investment. Our SEZ incentives will reward those organisations who relocate to Paga Hill and is part of our goal to establish the city as the region’s new leader in finance and trade.” said Minister Maru.
Paga Hill Estate is Port Moresby’s first officially designated Special Economic Zone (SEZ) and holds License Number One, according to Paga Hill Estate Chairman Peter Barge. Speaking at the PNG-Asia Investment Conference in Hong Kong on October 17, 2023, Barge outlined the ambitious vision for Paga Hill Estate, stating that it would give Port Moresby a new identity and announce PNG’s arrival to the world.
The 25 hectare development is set to reshape Port Moresby’s skyline, featuring:
- 500,000 square meters of built infrastructure,
- 13,000 square meters of green and open spaces,
- Cultural and tourism attractions designed to enhance visitor experiences.
Barge emphasised that Paga Hill Estate would have an even greater impact on Port Moresby, doubling the size of the Central Business District (CBD) and offering much needed office, retail, and residential space.
With only 3% of PNG’s land available for development, Paga Hill Estate is a critical solution to the nation’s real estate constraints, accommodating the growing demand for commercial and residential space from multinational companies, embassies, and expatriates.
Major Infrastructure Developments, 2024-2025
Radisson Blu Hotel
On December 19, 2023, Paga Hill Estate and Radisson Hotel Group officially announced their partnership to develop a Radisson Blu-branded hotel at Paga Hill.
The luxury hotel will feature:
- 229 hotel rooms and 20 luxury villas with access to exclusive amenities.
- Infinity pools, restaurants, bars, executive lounges, a gym, and a health spa.
- Port Moresby’s largest conference and event facility, with panoramic views of the harbor.
- Long-stay apartments and boutique retail outlets.
According to Radisson Hotel Group’s Managing Director for Australasia, Lachlan Hoswell, the project aligns with PNG’s growing economy and increasing corporate and leisure tourism demand.
PHDC is pursuing the Radisson Blu as part of a broader precinct atop Paga Hill that features a range of residential elements. These include villas and a range of apartment types, with all benefiting from access to the Radisson’s amenities and services.
Radisson and PHDC are working with international and local financial institutions to working with international and local financial institutions to package the Radisson precinct as an investable product. Speaking on the matter to PNG Business News, PHDC Managing Director Gudmundur Fridriksson said “bringing Radisson to Paga Hill is a major coup for PNG tourism, and the design is something we’re extremely proud of. We see it becoming a new icon of Port Moresby, something everyone will be proud of, and the ability for mums & dads to invest gives everyone a chance be part of the city’s transformation and share in its benefits”.
Satellite and Permanent Casino: A Tourism Game-Changer
Following the Radisson Blu announcement, PHDC broke ground on October 11, 2024, for the construction of a satellite casino at Paga Hill’s waterfront. The casino is expected to:
- Boost international tourism and prolong visitor stays.
- Stimulate the local economy by creating demand for year-round entertainment.
- Provide insight into market demand, informing plans for a permanent casino.
PHDC will not be involved in the casino itself. The land and licence are being transferred to specialist investors who are currently negotiating with a suitably credentialled and experienced casino operator, with an opening expected in the third quarter (Q3) of 2025. The scale of the eventual permanent casino will be informed by the Satellite Casino’s market response.
Foreshore Promenade
The Marape Government has approved a monumental contribution to the city’s public infrastructure. Spanning the entire 1.2-kilometre foreshore perimeter from APEC Haus and around Paga Hill Estate, a community-oriented foreshore promenade will be constructed, with Stage 1 expected to be delivered ahead of PNG’s 50th anniversary of Independence this September.
In an extension of Paga Hill Estate’s vision of a transformed capital city, the community-oriented design features a range of green and open space, public amenities, entertainment and recreation opportunities, commercial venues and social gathering spaces. Stage 1 primarily focuses on the area between APEC Haus and Paga Hill Estate, establishing a public beach, mangrove revegetation and boarded walkway, restaurant & bar, lookout and playground as it pans around to Paga Hill Estate.
The Government is eyeing a once-in-generation opportunity in delivering Stage 1 ahead of the nation’s 50th anniversary of Independence – with international dignitaries set to be present in the nation’s capital, with special guests, international media and world’s eyes upon us, the foreshore development provides an opportunity to showcase PNG’s progress, demonstrating PNG is a progressive nation and is well on its way to becoming a regional force in finance, trade and tourism.
PHDC is contributing land, development expertise and capability, with construction on Stage 1 about to commence. Subsequent stages will continue the promenade as it wraps around Paga Hill, developing a variety of public infrastructure that activates the foreshore and establishes a vibrant new focal point for the city.
Casino Regulations and Community Impact
Modelled after Singapore’s casino regulations, the Paga Hill casino will primarily target foreign nationals, with entry restrictions and high fees for PNG locals.
Additionally, 30% of all gaming revenue will go to the National Gaming Control Board (NGCB), supporting community programs, churches, and social initiatives.
PHDC is transferring the satellite casino site and licence to specialist investors, who are in the process of selecting a global casino operator to manage the facility, ensuring it meets international standards and operates responsibly within PNG’s regulatory framework.
Infrastructure Expansion and SEZ Incentives
As a flagship SEZ, Paga Hill Estate benefits from significant government incentives, including:
- Customs duty and GST exemptions during construction.
- Expedited approvals for development projects.
- Corporate tax exemptions for commercial tenants.
- Accelerated depreciation benefits for investors.
These incentives enhance profitability for investors and reduce construction costs, making Paga Hill Estate a highly attractive investment destination. Importantly, these incentives also extend to purchasers and tenants of completed development. In this way, operators of the likes of hospitality businesses, as well as commercial office tenants are all incentivised to relocate, supporting the SEZ’s goals of establishing a new regional hub of finance & trade.
The government is committed to improving infrastructure to support the SEZ, with:
- Road expansions enhancing accessibility to Paga Hill.
- Upgraded utilities, including reliable power, water, and telecommunications.
- New public amenities, such as parks, waterfront promenades, and cultural spaces.
Under PNG’s strict SEZ regulations, license holders must meet their KPIs within 12 months or face license suspension or revocation.
Paga Hill Estate remains the leading SEZ, with continuous progress on:
- Job creation in construction, hospitality, and tourism sectors.
- Infrastructure completion for tourism, commercial, and residential developments.
- Investment attraction, with global brands like Radisson Blu committing to long-term projects.
According to International Trade & Investment Minister Richard Maru, the project represents the future of Port Moresby, offering a diverse and sustainable economic foundation beyond PNG’s traditional resource sectors.
Paga Hill Estate is expected to reshape Port Moresby’s economic landscape and PNG’s profile on the global stage.
