Papua New Guinea is set to significantly expand its drinking water infrastructure following a $25 million concessional financing agreement from EIB Global, the international development arm of the European Investment Bank.
The project, supported by an additional €16.4 million contribution from the European Union under its Global Gateway investment strategy, aims to extend reliable potable water services to an additional 400,000 people across urban areas, including the capital city, Port Moresby.
Currently, only around 20% of Papua New Guinea’s population has access to dependable water services. The new investment will focus on expanding water networks in underserved towns, improving distribution systems, and reducing water losses in existing infrastructure.
The state-owned utility Water PNG will implement the project, which is part of broader national efforts to increase urban water coverage to 95% by 2030. The initiative is expected to strengthen public health outcomes, improve living conditions, and enhance climate resilience in rapidly growing urban centers.
European Investment Bank officials emphasized that access to clean water is essential for sustainable development and long-term economic growth. The financing is designed to support infrastructure upgrades that will ensure more stable and equitable water distribution across the country.
EU representatives highlighted that the investment reflects a broader commitment to improving quality of life, creating resilient infrastructure, and supporting sustainable development partnerships in the Pacific region.
Papua New Guinea officials also welcomed the agreement, noting that improved water systems are critical for managing population growth and strengthening resilience against climate change impacts.
The water supply initiative is part of a larger $77.3 million national programme that also includes support from the World Bank, which is financing projects in several municipalities. Together, these investments aim to modernize water and sanitation systems across the country.
The project underscores growing international cooperation to address infrastructure gaps and ensure equitable access to essential services in developing regions.
