Australia is increasing its investment in Papua New Guinea’s economic and social infrastructure, with several major programs moving through procurement while a parallel skills initiative aims to build the workforce needed to deliver and maintain new projects.
Australia is expanding its infrastructure investment in Papua New Guinea from around A$200 million annually to more than A$250 million a year, creating a growing pipeline of opportunities across construction, engineering, telecommunications, energy, health and professional services.
The program is backed by more than A$1 billion already committed through the Australian Infrastructure Financing Facility for the Pacific for infrastructure projects in Papua New Guinea. Australia’s wider 2026–27 development allocation for Papua New Guinea is estimated at A$680.5 million.
Several programs are currently moving through procurement or planning. DFAT’s Development Procurement Pipeline includes the second phase of the Papua New Guinea Economic and Social Infrastructure Program, or ESIP2, which is intended to deliver infrastructure across power, telecommunications and social sectors while strengthening the capacity of Papua New Guinea organisations to plan, operate and maintain assets.
Other activity includes health infrastructure and advisory programs, the Western Province Partnership and new opportunities associated with the Australian Infrastructure Financing Facility for the Pacific. In September, a tender was also released for quantity surveying services associated with the refurbishment of the GWARE building at ANGAU Memorial Provincial Hospital in Lae and new staff housing at Daru Hospital.
Australia is increasingly linking infrastructure investment with workforce development.
Pacific Australia Skills, Australia’s regional skills program, works with Papua New Guinea institutions to provide training and Australian-accredited qualifications while strengthening local training providers. It is also designed to complement the AIFFP and the Pacific Australia Labour Mobility scheme.
Its predecessor programs, including the Australia Pacific Training Coalition and Skills for Sub-National Growth Investment, delivered full Australian qualifications to more than 4,000 Papua New Guineans across construction, electrical trades, manufacturing, automotive, tourism, hospitality, health and community services.
For Australian and Papua New Guinea businesses, the expanding program points not only to contracting opportunities but also to a broader effort to build local capability alongside infrastructure investment.
