The Asian Development Bank has approved a $60.9 million loan to strengthen urban water supply and sanitation services in Port Moresby and Vanimo, Papua New Guinea. The financing package includes $30 million from regular ordinary capital resources and $30.9 million from concessional ordinary capital resources, with the Government of Papua New Guinea contributing $3 million in counterpart funding. In addition, ADB will provide a $1.5 million technical assistance grant to support digital systems integration, institutional strengthening, and the exploration of public–private partnership opportunities.
The Urban Water Supply and Sanitation Security and Resilience Improvement Project marks ADB’s first loan investment in Papua New Guinea’s water sector in over 25 years. According to ADB Country Director for PNG Takafumi Kadono, the initiative reflects a renewed focus on enhancing urban services and represents an important milestone in the partnership between ADB and PNG. The project aims to expand access to safe water, improve public health outcomes, and build resilient and sustainable systems in both targeted cities.
More than 160,000 people, including residents of informal settlements, are expected to benefit directly from improved access to reliable and safe water supplies. The project will enhance the reliability of piped water systems, rehabilitate wastewater infrastructure, and strengthen the operational and financial capacity of the state-owned utility, Water PNG Limited. Sanitation facilities will also be upgraded to ensure treated wastewater is safely discharged, protecting both public health and the environment.
Papua New Guinea currently faces some of the lowest levels of access to water and sanitation services in the Pacific region. Rapid urbanization, aging infrastructure, and the growing impacts of climate change—including prolonged droughts, rising temperatures, and flooding—are placing additional pressure on water security. The project incorporates climate adaptation measures to enhance resilience and safeguard essential services against these risks.
In Port Moresby, planned investments include the rehabilitation of the Mount Eriama Water Treatment Plant, expansion of storage and distribution networks, reduction of nonrevenue water, and refurbishment of the Waigani sewage treatment ponds to improve effluent quality. In Vanimo, where no reticulated water supply system currently exists, a new climate-resilient system will be developed, drawing on groundwater and spring sources, with treatment facilities and metered household connections.
The project supports Papua New Guinea’s National Water, Sanitation, and Hygiene Policy 2015–2030 and aligns with ADB’s Strategy 2030 Midterm Review, particularly in advancing climate action, digital transformation, and private sector development. Founded in 1966 and owned by 69 members, ADB continues to play a key role in promoting inclusive, resilient, and sustainable growth across Asia and the Pacific through strategic investments and partnerships.
