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MPPS Housing Project – Expression of Interest (EOI) Information Sheet / FAQ

3 minutes ago
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This information sheet has been prepared to assist landowners and interested parties with enquiries relating to the MPPS Housing Project Expression of Interest (EOI). The information below is based on the project concept and EOI requirements.


1. Why is Government developing housing for MPPS employees instead of addressing housing issues for the private sector?

Government recognises that limited, costly housing affects families, businesses, and employers across Rarotonga, including the private sector.


The MPPS Housing Project does not prioritise Government employees over the wider community. It addresses a specific workforce risk to essential shipping services, particularly those serving the Pa Enua and transporting food, fuel, medical supplies, building materials, freight, and passengers.


MPPS needs qualified maritime personnel, often recruited from overseas or elsewhere in the Cook Islands. A shortage of suitable long-term accommodation makes these workers difficult to recruit and retain, potentially affecting shipping reliability.


This is not free housing. Tenants will pay market-based rents under a cost-recovery model.


The EOI may also identify broader opportunities to increase housing supply. Overall, the project aims to protect essential shipping connections that support Cook Islands communities and the economy.

The EOI seeks to identify suitable land in Rarotonga that may be available for Government to either:


  • purchase, or

  • enter into a rental agreement, with landowners.


The land/ housing project will be used to develop economical long-term accommodation for shipping personnel employed by the Ministry of Finance and Economic Management's Major Projects and Procurement Support (MPPS) Division.


The housing project is reliant on Government acquiring land by way purchase from, or rental agreement with, landowners.

The selling and purchasing of land happens all the time in the Cook Islands, usually by the 2 real estate agents on Rarotonga, but often by way of private sales. 


As noted above, Government is looking for suitable land to purchase or rent from interested landowners.


When land is sold, it is generally over a leasehold property where the lease provides for commercial purposes, for an agreed term, up to a maximum of 60 years. At the end of the agreed term, the land is returned to the landowner.


Likewise, with a rental agreement, the rental is agreed and at the end of the rental period, the land is returned to the landowner.


What about Occupational Rights?


It is more difficult, but not impossible to enter into a rental agreement with respect to land that is held by way of an occupation right. Occupation rights are usually granted for residential purposes so that occupational right holders can build themselves a home. There are some occupation rights, however, where the land court has allowed a commercial purpose as part of the conditions of the occupation right order. MPPS may consider occupation rights that provide a commercial purpose for landowners that express an interest in a land rental agreement.


Importantly, the land will always return to the landowner at the end of the agreed term with Government, whether that be by way of a sale of land to, or rental agreement with, Government.

Government will either purchase land or enter into a rental agreement with landowners. The intention is to construct accommodation on the land/ site. Discussions and negotiations about ownership of the buildings/ accommodation when the lease or rental terms come to and end, will be agreed upon before the project on selected land begins.

As outlined in the EOI, land should:


  • Be located on Rarotonga.

  • Have legal road access.

  • Be suitable for residential-type development.

  • Have access, or the ability to connect, to utilities and essential services.

  • Be of sufficient size to support multiple accommodation units.


Preference may be given to sites that minimise development costs and can be developed efficiently. 

No, the EOI is an information-gathering process only, a site has not yet been selected.

 

Submission of an EOI does not guarantee a commitment by Government to purchase land or enter into a rental agreement with landowners. All submissions will be assessed alongside project requirements, funding availability, and value-for-money considerations.

Respondents must provide all information requested in the EOI to enable MPPS to properly assess the suitability of the proposed land. Submissions with missing information may be difficult to evaluate and could be excluded from further consideration.


The only exception is the proposed lease rate or sale price. MPPS recognises that some landowners may not yet know the market value of their land. Indicative pricing may be provided if available, however valuations and commercial discussions can be undertaken following the evaluation process.


All information submitted through the EOI will be treated as strictly confidential and used solely for the purpose of assessing potential sites for the MPPS Housing Project.

The exact number of units has not yet been determined.


The project is currently in the planning stage, and the final accommodation design, layout, and capacity will depend on:


  • Land availability;

  • Site characteristics;

  • Budget;

  • Planning requirements; and

  • Operational needs.

The project is expected to utilise economical and durable housing solutions, which may include:


  • Modular housing;

  • Prefabricated housing systems; or

  • Kitset buildings.


The preferred option will be determined during the design and planning stages.

Following closure of the EOI:


  • Submissions will be reviewed.

  • Suitable sites will be evaluated.

  • Further discussions may be undertaken with shortlisted landowners.

  • Feasibility assessments and due diligence will be completed.

  • Recommendations will inform the project's planning and funding process.

Assessment may include:


  • Location;

  • Accessibility;

  • Site size and shape;

  • Availability of utilities;

  • Development suitability;

  • Environmental and planning considerations;

  • Lease or purchase costs; and

  • Overall value for money

MPPS welcomes and encourages enquiries from interested landowners and members of the public. If you have any questions about the EOI requirements, land suitability, or the submission process, please contact the person listed in the EOI advertisement and documentation.


We encourage potential respondents to seek clarification where needed to ensure they can submit a complete and informed response. Any additional information required during the evaluation process will be communicated directly with respondents. All enquiries and submissions will be treated in confidence.


Important Disclaimer


The EOI is not a tender and does not constitute a commitment by Government to lease, purchase, or otherwise acquire any property. The information gathered through the EOI will be used to inform project planning, feasibility assessment, and future decision-making processes.




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