The house has been built with funds mobilised by Palmerston families on Rarotonga, New Zealand and Australia.
It will provide a central base and much-needed accommodation for Palmerston families when visiting Rarotonga.
This subsidy follows in the footsteps of the Northern Group pilot shipping subsidy project implemented by MFEM in 2018, with vessels operated by Cook Islands Towage and Taio Shipping.
The first voyage, on the MV Lady Moana, to Penhryn, Rakahanga and Manihiki is expected to leave Avatiu Harbour this Friday.
The second, on the MV Grinna, to Palmerston, Nassau and Pukapuka is expected to depart this Saturday.
The subsidy funding, equivalent to 60 per cent of expected operating expenditure for each voyage, has been made available from the 2018/19 Budget Inter-island shipping subsidy appropriation administered by MFEM.