Government will continue renting buildings owned by Provincial Council Companies under a new policy shift aimed at strengthening indigenous participation in commercial property ownership.
Cabinet has endorsed the transition of Government-leased buildings developed under the Build, Operate and Transfer (BOT) scheme to a Build, Operate and Own (BOO) model.
The move follows a review of the BOT scheme, introduced in the late 1990s to enable Provincial Council Companies to invest in property development and expand iTaukei involvement in business.
Under the new arrangement, Provincial Council Companies will retain long-term ownership of their buildings, while Government remains a tenant under updated lease agreements.
Rental rates will also be revised to reflect current market valuations.
Government says the shift is intended to support the financial sustainability of Provincial Council Companies while ensuring the continued use of the buildings for public services.
