The man in charge of resettling Manam Islanders in Papua New Guinea's Madang Province says a lack of funding is making the project a nightmare.
About ten thousand people were displaced after the Manam volcano began erupting more than five years ago.
The resettlement project's operations manager, Paul Akuram, says they are currently in temporary centres, where the living conditions are not good.
The Government is to make 7 million US dollars available to settle Manum Islanders at Andarum in Madang's Bogia District.
Paul Akuram says he has not yet seen any of the promised funds, and it would take much more to built the new settlement.
"It's in the middle of the jungle. We have to build roads in first and then we have to survey the new site, building in roads plus subdividing into individual blocks for family groups. We expect about five thousand families to be resettled."
Paul Akuram says the project would cost more than 800 million US dollars.
He says he hopes more funds will be confirmed in the Government's budget next year.