Civil servants in Papua New Guinea will enjoy a government subsidy of up to 27-thousand US dollars to buy low-cost homes built by an Australian-based company.
The National newspaper says the government has released 12 million dollars to the Bank South Pacific to manage the subsidies.
The homes will be built by Australasia Pacific Panel, which has set up a factory in Port Moresby to manufacture the building materials.
One thousand houses are expected to be built, with the first 200 to be constructed on state land.
Under the scheme, the government will buy the houses from the Australian company and resell them to civil servants.
The government hopes the scheme will help attract good employees, make homes more affordable, and encourage the production of local building materials.