The Asian Development Bank (ADB) has approved a $60.9 million financing package to upgrade urban water supply and sanitation systems in Papua New Guinea, marking its first loan investment in the country’s water sector in more than 25 years.
The funding includes a $30 million regular ordinary capital resources loan and a $30.9 million concessional loan, alongside $3 million in counterpart financing from the PNG government.
ADB will also provide a $1.5 million technical assistance grant to support digital systems integration, institutional strengthening, and the exploration of public–private partnership (PPP) opportunities.
The Urban Water Supply and Sanitation Security and Resilience Improvement Project will rehabilitate and expand infrastructure in Port Moresby and develop a new reticulated water system in Vanimo, where no piped network currently exists.
More than 160,000 people are expected to benefit from improved access to safe and reliable water and sanitation services.
In the capital, the project will upgrade the Mount Eriama Water Treatment Plant, expand storage and distribution capacity, reduce nonrevenue water, and refurbish the Waigani sewage treatment ponds.
In Vanimo, new groundwater and spring sources, treatment facilities, and metered household connections will be installed.
The program will also strengthen the operational and financial capacity of state-owned utility Water PNG Limited, as rapid urban growth, aging infrastructure, and climate pressures strain service reliability.
PNG has among the lowest levels of water and sanitation access in the Pacific. The project incorporates climate adaptation measures to address prolonged dry periods, flooding risks, and rising temperatures, aligning with ADB’s Strategy 2030 priorities on climate resilience, digital transformation, and private sector participation.
For infrastructure investors, the inclusion of PPP assessments and utility reform signals potential pathways for future private capital participation in the country’s urban water sector.
InfraCapitalAsia.com
