The Asian Development Bank (ADB) has announced the approval of a significant loan amounting to $60.9 million aimed at enhancing water supply and sanitation services in the urban areas of Port Moresby and Vanimo, Papua New Guinea (PNG). This initiative marks ADB’s first investment in the water sector of PNG in over 25 years, showcasing a renewed commitment to improve urban infrastructure and services.
The financing structure comprises a $30 million regular ordinary capital resources loan alongside a $30.9 million concessional ordinary capital resources loan. Furthermore, the Government of PNG will contribute $3 million in counterpart funding, complemented by an additional $1.5 million technical assistance grant from ADB that will focus on integrating digital systems, strengthening institutions, and exploring public–private partnership opportunities.
Takafumi Kadono, ADB’s Country Director for PNG, highlighted the project’s importance, stating, “This is an important milestone in our partnership with PNG. It will expand access to safe water, improve public health, and build more resilient water and sanitation systems for urban communities in both Port Moresby and Vanimo.”
The Urban Water Supply and Sanitation Security and Resilience Improvement Project is designed to bolster the reliability of existing piped water systems, rehabilitate wastewater infrastructure, and enhance the operational and financial capabilities of Water PNG Limited, the state-owned utility company. More than 160,000 individuals, including residents in informal settlements, are expected to benefit directly from improved access to safe and reliable water.
PNG faces some of the lowest access levels to water supply and sanitation services in the Pacific region, exacerbated by rapid urbanization and climate change challenges such as prolonged dry spells and flooding. The project includes measures to adapt and increase resilience against these threats, ensuring the stability of essential water services.
For Port Moresby, the project involves rehabilitating the Mount Eriama Water Treatment Plant, expanding storage capacity, enhancing distribution networks, and reducing water loss. Additionally, the Waigani sewage treatment ponds will be refurbished to ensure better effluent quality and environmental safeguards.
In Vanimo, a completely new reticulated water supply system will be developed to serve the area, which currently lacks such infrastructure. This resilient system will include groundwater and spring sources, treatment facilities, and metered household connections.
Furthermore, this project is aligned with PNG’s National Water, Sanitation, and Hygiene Policy 2015–2030 and also corresponds with ADB’s Strategy 2030 Midterm Review, particularly its emphasis on climate action, digital transformation, and private sector engagement.
ADB continues its mission as a leading multilateral development bank dedicated to supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. With its innovative financial strategies and partnerships, ADB aims to address complex challenges and improve the quality of life through significant infrastructure initiatives that prioritize health and environmental conservation.
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