Australian taxpayers funded a major upgrade to Papua New Guinea’s Lombrum naval base on Manus Island, a project that has ballooned to about AU$500 million (US$326 million) from the originally flagged AU$175 million. Defence Minister Richard Marles announced the updated cost as he joined PNG Prime Minister James Marape to mark the handover of the expanded facility, a ceremony held in wet conditions on the PNG coast.
The cost overrun has been attributed to a combination of delays caused by the COVID-19 pandemic and disputes with local landowners, with Marles noting that the extended timeline helped push the price higher. He stressed that despite the blowout, the project represents Australia’s largest infrastructure undertaking in the Pacific and is delivering tangible strategic benefits for both nations.
Tender documents published after the fact show the initial contract was valued at AU$228 million, underscoring how budgeting in such large, multi-year projects can evolve. The redevelopment includes extending the WWII-era wharf, upgrading roads and power networks, and building new accommodation blocks. PNG has said the expansion could allow it to double the number of military personnel at Lombrum to around 400, with more than 700 jobs created in PNG and over 350 of those in Manus.
The broader context emphasizes the base’s strategic significance. PNG has described Lombrum as a sovereign asset, while Australia’s navy will be able to operate from the port under the new defence framework being shaped with Port Moresby. Australia and PNG have signaled that the enhanced facility will contribute to joint security efforts, with the overarching aim of deepening defence ties and interoperability between the two forces.
The redevelopment comes as the United States has also invested in PNG’s security infrastructure, providing about US$25 million for a new facility for PNG Defence Force small boats and a training facility. The U.S. presence is part of a broader set of arrangements that grant access to multiple PNG defence facilities under a 2023 defence cooperation framework. These moves are widely seen as part of a coordinated strategy to bolster regional security in the face of evolving security dynamics in the Indo-Pacific.
Tuesday’s handover occurs in the run-up to a landmark defence treaty expected to be signed around PNG’s Independence Day. Both governments say the treaty will formalise greater access to each other’s military facilities and deepen cooperation, while leaving the exact terms and scope to be finalized ahead of a formal ratification process in PNG.
Analysts say the Lombrum expansion and the looming defence treaty fit into a broader push to reinforce Australia’s security partnerships in the region and to counterbalance rising external pressures, particularly from China. The project is also framed as a platform for PNG to bolster its sovereignty and disaster-response capabilities, while expanding practical cooperation with Australia.
Extended maritime capability at Lombrum is designed to support training, logistics, and response activities, even though the new harbour still cannot accommodate the largest Australian ships. In the near term, those vessels would operate from the deep-water harbour with support from smaller launch craft, illustrating a phased approach to expanding regional naval access.
What this means for readers
– A clear signal of strengthened PNG–Australia security cooperation, with a concrete infrastructure upgrade that underpins future joint operations and training.
– The base’s expansion is part of a broader regional security strategy that includes US involvement and potential impacts on regional balance in the Indo-Pacific.
– The defence treaty, when finalized, could broaden basing and access arrangements, affect mobility for personnel, and shape interoperability between PNGDF and the Australian Defence Force.
Key takeaways
– Lombrum’s upgrade has a final price tag approaching AU$500 million, with the original budget and contract values revised upward along the way.
– The project has generated substantial local employment and modernised critical port and support facilities.
– Australia and PNG are moving toward a formal defence treaty on the independence anniversary, reinforcing long-standing security ties.
Possible follow-ups for publication
– A Q&A explaining what a bilateral defence treaty would mean in practice for access, basing, and personnel exchanges.
– An explainer on the role of the Lombrum base within regional security architecture and how it complements joint exercises like Talisman Sabre.
– A piece on the impact of US security assistance in PNG and how it integrates with Australia–PNG cooperation.
Hopeful note
The Lombrum expansion, alongside the anticipated defence treaty, represents a steadying development for Pacific security collaboration. When paired with transparent governance and sustained capacity-building, these steps could enhance regional stability, bolster disaster response, and support peaceful, constructive engagement among Pacific nations.
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