THE Asian Development Bank (ADB) has approved a $USD60.9 million loan to improve water supply and sanitation in the Papua New Guinean cities of Port Moresby and Vanimo.
This marks ADB’s first investment in PNG’s water sector in more than 25 years.
The project aims to directly benefit over 160,000 residents, including those in informal settlements, by expanding access to safe and reliable water and upgrading sanitation facilities to protect public health and the environment.
PNG has some of the lowest levels of access to water supply and sanitation services in the Pacific region.
The ADB’s financing package includes a $USD30 million regular loan and a $USD30.9 million concessional loan, with the government of PNG contributing $USD3 million in counterpart funds.
Additionally, a $USD1.5 million technical assistance grant will support digital systems integration, institutional strengthening, and the exploration of public-private partnerships.
“The project signals ADB’s renewed focus on strengthening urban services,” said Takafumi Kadono, ADB Country Director for PNG.
“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 rehabilitate existing water and wastewater infrastructure, develop new, resilient systems, and strengthen Water PNG Limited’s operational capacity.