The Asian Development Bank (ADB) has sanctioned a significant loan of $60.9 million aimed at enhancing water supply and sanitation services in the cities of Port Moresby and Vanimo in Papua New Guinea. This investment marks ADB’s first foray into the country’s water sector in over 25 years, highlighting a renewed commitment to improving urban infrastructure.
The initiative is designed to benefit more than 160,000 residents, particularly those living in informal settlements, by facilitating access to safe and reliable water as well as upgrading sanitation facilities. This improvement is essential to safeguarding public health and protecting the environment, especially in a region where Papua New Guinea has some of the lowest levels of access to water supply and sanitation services in the Pacific.
The financing arrangement includes a $30 million regular loan along with a $30.9 million concessional loan, with the Government of Papua New Guinea contributing an additional $3 million. Moreover, a technical assistance grant of $1.5 million will be allocated to support the integration of digital systems and strengthen institutional capacities, as well as to explore public-private partnership opportunities.
ADB Country Director for PNG, Takafumi Kadono, emphasized the significance of this project, stating, “This is an important milestone in our partnership with PNG—our first loan investing in the country’s water sector in more than 25 years. It will expand access to safe water, improve public health, and build more resilient and sustainable water and sanitation systems for urban communities.”
The project will focus on rehabilitating existing water and wastewater infrastructure while developing new resilient systems and enhancing the operational capabilities of Water PNG Limited. This initiative promises not only immediate improvements in water access and sanitation but also lays a critical foundation for long-term urban sustainability and public health in Papua New Guinea.
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