Red Sea Housing in payment row with Papua New Guinea

Police officers and their families in Papua New Guinea have refused to evacuate houses constructed for them by Saudi Arabia’s Red Sea International Co., asking the firm to settle the ongoing dispute with the government, the local police union said at a press conference reported by the country’s EMTV.

The Saudi company which makes modular housing units, had granted the police officers and their families a 30-day grace period to evacuate the buildings which they seized after Papua New Guinea’s government refused to pay the project costs estimated at SAR 50 million (PGK 40 million).

In 2014, Red Sea International’s local affiliate was awarded contract to construct 150 houses for the Royal Papua New Guinea Constabulary in Port Moresby. The houses were built in 2014, but were left vacant due to the outstanding payments for almost two years.

Last week, 150 police officers and their families moved into the new houses in Bomana Barracks upon directives from senior officers in the police department, EMTV reported.