THE ASIAN DEVELOPMENT BANK (ADB) and Air Niugini have signed a $35.8 million financing package to modernize Papua New Guinea’s national airline fleet.
This initiative will improve Air Niugini’s efficiency, raise safety standards, and boost PNG’s domestic and international connectivity.
The package includes a $19 million loan from ADB’s capital resources and a $16.8 million loan from the Leading Asia’s Private Sector Infrastructure Fund 2 (LEAP 2), administered by ADB.
Funds will finance the purchase of six Airbus A220-100 aircraft, replacing older models with more reliable and fuel-efficient planes.
Officer-in-Charge of ADB’s PNG Resident Mission, Soon Chan Hong said the project highlights ADB’s commitment to sustainable and inclusive development in PNG.
“By supporting Air Niugini’s fleet renewal, we aim to improve the country’s connectivity, boost economic growth, and enhance air travel safety in the Pacific region,” Hong added.
Air travel is crucial for PNG’s economy, given the country’s challenging terrain and limited land transport options.
Air Niugini plays a central role in connecting communities across the country and internationally.
The new Airbus A220-100 aircraft are expected to be 20 per cent more fuel-efficient than older models, reducing operational costs and environmental impact.