KUALA LUMPUR (Sept 11): Iris Corp has signed a memorandum of agreement (MoA) with Papua New Guinea’s (PNG) local government to develop a satellite township on a 303.76 ha tract, to house students and academic institutions at a cost to be determined later.
In a filing with Bursa Malaysia, Iris said its subsidiary Iris Land (PNG) Ltd (ILPNG) signed an MoA yesterday, to establish a joint venture with The Central Provincial Government of Free Mail Bag, Konedobu NCD, PNG (CPG), and its local partner Jayacorp Holdings Ltd, with equity interests of 51%, 23% and 26% respectively.
“The MOA is a joint collaboration by the parties to establish a joint venture company, wherein ILPNG shall bring into the joint venture company (JVCo), its expertise and skills in building and constructing housing and commercial buildings, using the IRIS-Koto Industrial Building System (“IRIS-Koto IBS”), to establish a satellite township,” Iris said.
The company added that the township will have amenities comprising a secondary school, a technical college and 30 houses measuring 100 sq m each. There will also be 20 educational scholarships offered to 20 CPG students per year for 10 years, to study in a university nominated by ILPNG.
ILPNG will guarantee the funds needed for the project, said Iris, while CPG will transfer the titles to the development land into the JVCo, free from all encumbrances and with valid leases for 99 years. Once the project is completed, the Town Council Authority will remain the responsibility of CPG, Iris said.
Meanwhile, Jayacorp will facilitate the procurement of all licences, permits, approvals, consents and undertake all necessary regulatory and administrative works for the project.
“Barring any unforeseen circumstances, the board [of Iris] is of the opinion that the successful implementation of the project under this MoA, will contribute positively to the earnings of the group in the future,” Iris said.