An engaging presentation delivered by Dianne Barclay, Minister-Counsellor, Economics, Health & Infrastructure at the Australian High Commission, outlined Australia’s ongoing commitment to Papua New Guinea’s development through a range of infrastructure projects. The presentation was part of an Australia Papua New Guinea Business Exchange 2024 breakfast meeting organised by Austrade, bringing together business leaders and government officials to discuss ongoing and future collaborations aimed at boosting PNG’s economic growth and development.
Dianne Barclay addressing the breakfast meeting in Port Moresby. Photo: Dev Nadkarni
Australia is delivering AUD 200 million in grants annually through the Department of Foreign Affairs and Trade (DFAT) as part of its bilateral infrastructure program. In addition, the Australian Infrastructure Financing Facility for the Pacific (AIFFP) is providing AUD 800 million in concessional loans over the next eight years. These funds are being used to support key sectors, including power, telecommunications, roads, maritime infrastructure, and social services.
Power Sector Initiatives: A major focus of Australia’s infrastructure support is the improvement of PNG’s power sector. Working in partnership with PNG Power, Australia is helping to increase on-grid electrification in urban areas, while also improving energy access for remote communities. Governance reforms are also being introduced to ensure long-term sustainability in the power sector.
Telecommunications Development: In the telecommunications sector, Australia is backing PNG’s efforts to achieve ambitious connectivity targets. This includes maximising the use of the Coral Sea Cable System, which connects PNG to Australia and provides faster, more reliable internet. Australia’s support also aims to reduce the cost of connectivity and explore additional international cable options to further strengthen PNG’s telecommunications infrastructure.
Roads and Maritime Investments: Australia’s investment in road infrastructure is vital to PNG’s economic connectivity. More than 1,800 kilometres of PNG’s national priority road network are maintained annually with Australian support, representing 40% of the country’s critical roads. The AIFFP is also involved in long-term maintenance projects, such as the Wau Highway.
In the maritime sector, Australia is financing upgrades and refurbishments at six key ports: Kimbe, Kavieng, Oro Bay, Daru, Lorengau, and Lae. These improvements are expected to enhance PNG’s trade capabilities and boost economic activity.
Aviation and Social Infrastructure Support Australia’s infrastructure support also extends into aviation, where it is helping Air Niugini with its fleet expansion by providing technical assistance and helping negotiate financing for new aircraft. A feasibility study is underway for a new maintenance hangar at Jacksons Airport.
In addition, Australia continues to invest in social infrastructure, including health centres, schools, and markets, to improve service delivery and promote economic development. Projects such as the renovation of Kimbe Market have made a significant impact. Through the Incentive Fund, Australia has invested over PGK 750 million in community-level projects across 20 provinces since 2000.
Barclay highlighted that Australia’s infrastructure projects are designed to be high-quality, climate-resilient, and aligned with PNG’s governance reforms. These efforts are not only enhancing PNG’s economic and service delivery capacities but also ensuring a sustainable and mutually beneficial partnership between the two nations.
