The New Zealand-funded project, in partnership with PNG's National Capital District Commission, is two stories high and will host 1500 vendors, and include a café, playground, food court, and parking area.
The redevelopment of 'Gordons Market' was launched last week by National Capital District Governor Powes Parkop and New Zealand's High Commissioner to PNG, Philip Taula.
"Agriculture is a key priority for the PNG Government and New Zealand is pleased to support this in a number of ways - through the Gordons Market and other projects around the country aimed at improving the supply chain for fresh produce," said Mr Taula.
The facility is supported by UN Women under the 'safe cities programme' that aims to improve the safety of women in public spaces and provide greater opportunities for women to participate in decision making.
Mr Taula said the programme was a fundamental part of making sure Gordons Market was a safe space for women vendors.