PNG to receive K5.2 billion in new ADB projects

 Papua New Guinea is set to benefit from about K5.2 billion (US$1.2 billion) in new Asian Development Bank projects over the next three years, with funding expected to cover key sectors including transport, energy, water, health, education and agriculture.

The Asian Development Bank (ADB) says the planned investment will also support public-sector management, financial services and other areas aimed at strengthening economic activity and improving essential services across the country.

 PNG to receive K5.2 billion in new ADB projects

ADB Country Director for PNG Takafumi Kadono announced the funding pipeline during the recent Business Advantage PNG Investment Conference in Brisbane, Australia.

“Going forward in the next three years, we have around US$1.2 billion worth of new projects coming up,” Kadono said.

The proposed programme includes projects in energy, health, secondary education, civil aviation, roads, public-sector management, financial access and fresh food marketing.

ADB currently has an active portfolio in PNG worth about US$1.5 billion, with transport accounting for around 60 per cent of the investment.

Much of that funding has gone into roads and civil aviation, while about 25 per cent of the portfolio is directed towards the energy sector.

Kadono said the bank's support would not be confined to major government infrastructure projects.

He said ADB had financing options that could also assist private companies through direct loans, equity investments and credit-enhancement products.

Under the ADB Wayfinder programme, the bank is looking at smaller private-sector investments across the Pacific, particularly projects requiring less than US$10 million.

ADB's Frontier facility is another option being considered for businesses, providing revenue-based financing that allows repayments to be matched with a company's income cycle.

Kadono said the arrangement could be particularly useful for agricultural businesses whose earnings fluctuate according to seasonal production.

ADB is also supporting efforts to make PNG's public-private partnership centre operational.

The initiative is intended to bring more private capital, technology, technical knowledge and management expertise into major infrastructure projects and public services.

Kadono said the bank now had a broader range of financing mechanisms available to meet the needs of both government agencies and private companies.

“We now have all the instruments to cater to all types of requests and financing needs—public sector and private sector,” Kadono said.

ADB has already provided PNG with about US$5.4 billion through loans, grants and technical assistance.

Between 2021 and 2025, the bank's lending to PNG averaged about US$380 million a year.

The new three-year project pipeline is expected to further expand ADB's involvement in PNG's infrastructure, economic and social development.