EIB Global, the development arm of the European Investment Bank (EIB), is providing $25 million (approximately K95 million) in financing to PNG to expand networks for drinking water in towns across the country and in the capital Port Moresby.
The project aims to bring steady supplies of potable water to an extra 400,000 people in Papua New Guinea.
The EIB Global support takes the form of a loan to the government of PNG, the most populous Pacific island nation with more than 10 million inhabitants. State-owned utility Water PNG will carry out the project.
This concessional loan is supported by the European Union with a €13.4 million (approximately K55 million) investment grant and €3 million (approximately K12 million) for expert help to implement the project, in line with the EU’s Global Gateway investment strategy.
Only about a fifth of PNG’s population has access to reliable water services. The EIB Global loan will finance new water connections in underserved urban areas and reduce water losses in Port Moresby. This in turn will support national efforts to increase urban water coverage to 95% by 2030.
EIB Vice-President Ambroise Fayolle, who oversees its operations in the Pacific region said that the financing will help Papua New Guinea extend clean, reliable water services to more communities, improve living conditions and support more resilient and sustainable growth across the country.
“Investment in water systems is essential to improving public health and strengthening long-term development.”
The financing agreement was announced today in Port Moresby during the EU–Papua New Guinea Business Forum.
European Commissioner for International Partnerships Jozef Síkela stated: “The new loan agreement, supported by the €16.4 million (approximately K67 million) EU financial contribution, to improve access to clean water for an additional 400,000 people in PNG shows that the
partnership between the European Union and Papua New Guinea is delivering real impact.”
“In line with the EU’s Global Gateway investment strategy, we work together to build modern infrastructure, create jobs, boost health, climate resilience, prosperity and quality of life for local communities.”
PNG Secretary for Treasury Andrew Oaeke said: “The European Investment Bank is a valued partner in PNG’s development journey.”
“This framework loan under the EU’s Global Gateway strategy reflects our shared commitment to high-quality sustainable infrastructure.”
Mr. Oaeke said that through this investment, they are strengthening the resilience of the urban water services against climate change and ensuring that their provincial centres are equipped to support a growing population and a vibrant, rural based-economy.
EIB Global financing forms part of a $77.3 million (approximately K294 million) Papua New Guinea water supply and sanitation programme, which the World Bank has supported since 2017. While the World Bank is financing works in six municipalities, EIB Global will support other towns.
We have a population of 10,000 with a teachers college, primary schools and elementary schools and many working class people who go to work in Mt.Hagen city, approximately 13km of travel by bus.
We have a few water sources but no water supply in place. We have registered a community Youth development association to promote, improve and draw up a sustainability plan for a long-term water and sanitation for the 10 000 plus community at Kelua 1 and 2 communities around Hagen Rural LLG.