The Asian Development Bank (ADB) has approved $275 million in financing for three major projects in Papua New Guinea (PNG) aimed at expanding access to financial services, improving rural connectivity, and boosting low-carbon electricity supply. The initiatives are designed to strengthen infrastructure, promote private sector development, and support transformative reforms in the country’s power and transport sectors.
A $100 million policy-based loan will fund the first subprogram of the Improving Financial Access Program, focusing on enhancing the regulatory and institutional framework for domestic and international financial services, including payments, remittances, credit, and capital markets. The program aims to create employment and trade opportunities for households and businesses, with a second subprogram planned to sustain improved access to finance nationwide.
The Sustainable Energy Sector Development Program will receive $100 million in loans and a $10 million grant from the Japan Fund for the Joint Crediting Mechanism. This initiative supports PNG in expanding its low-carbon electricity supply, revitalizing PNG Power Limited’s operational performance, and fostering private sector participation to deliver affordable, reliable, and sustainable energy. The program also establishes a policy framework to ensure the long-term sustainability of the power sector.
A $65 million loan will fund the Transport Project Readiness Facility, which focuses on upgrading and rehabilitating subnational roads across PNG’s Southern, Highlands, Momase, and New Guinea Islands regions. These road improvements aim to connect rural communities producing coffee, cocoa, copra, tea, vanilla, and other commodities to markets and essential services such as healthcare and education, supporting economic growth and regional development in line with national strategic priorities.
Through these projects, ADB seeks to enhance economic opportunities, promote sustainable energy, and improve connectivity across PNG, contributing to inclusive, resilient, and sustainable development. The Bank, owned by 69 members, continues to leverage innovative financial tools and partnerships to support its mission of transforming lives and building quality infrastructure across Asia and the Pacific.
