The National Housing Corporation in Papua New Guinea says it will build 40,000 new homes for public servants in Port Moresby to address the massive housing problem there.
The managing director, John Dege, says the government used to provide housing as a condition of employment to public servants.
But he says because the housing shortage in Port Moresby is critical, all government properties are occupied and some public servants are forced to live in shanties.
"It is very critical. The housing shortage has not been addressed for over 20 years. That's how bad it is. And most of our senior public servants, I'm talking about lawyers, accountants, medical doctors, engineers are currently living in shanties and coming to work each morning."
John Dege says so far the government has secured two urban development leases at Durand Farm, outside Port Moresby, and at the back of the National Research Institute in Waigani.
He says it will build a minimum of 2,000 houses each year over the next 20 years.