The Asian Development Bank (ADB) has approved three new projects worth a combined $275 million to support Papua New Guinea’s development goals. These initiatives focus on expanding access to financial services, improving road connectivity in rural areas, and strengthening the country’s supply of low-carbon electricity. Together, they are expected to support economic growth, improve access to essential services, and enhance livelihoods across the country.
According to Soon Chan Hong, ADB’s Officer-in-Charge for Papua New Guinea, the bank remains committed to investing in critical infrastructure, supporting private sector development, and helping the government implement important power sector reforms. These efforts are aimed at creating long-term improvements in living standards and economic opportunities for communities throughout Papua New Guinea.
A key part of the approved support is a $100 million policy-based loan under the Improving Financial Access Program. This program is designed to strengthen the regulatory and institutional systems that govern financial services, including payments, remittances, credit facilities, and capital markets at both domestic and international levels.
By improving these systems, the program aims to make financial services more accessible and reliable for households and businesses. Better access to finance is expected to help businesses grow, encourage trade, and create new employment opportunities. A second phase of the program will continue these reforms to ensure that improvements in financial access are sustained over the long term.
ADB has also approved financing for the Sustainable Energy Sector Development Program, which includes a $100 million loan and a $10 million grant from the Japan Fund for the Joint Crediting Mechanism. This program supports the government’s efforts to increase the availability and reliability of low-carbon electricity. It focuses on putting in place strong policy and regulatory frameworks to improve the overall sustainability of the power sector.
The program also aims to improve the operational performance of PNG Power Limited and encourage greater participation from the private sector. These measures are intended to help deliver clean, affordable, and dependable electricity while strengthening the financial and operational stability of the country’s energy system.
In addition, ADB will provide a $65 million loan to support the Transport Project Readiness Facility. This initiative will help prepare and support the upgrading and rehabilitation of key subnational roads across the Southern, Highlands, Momase, and New Guinea Islands regions. These roads are part of important economic corridors identified under the government’s Medium Term Development Plan IV for 2023–2027 and the National Road Network Strategy covering 2018–2037.
Improved road infrastructure will make it easier for rural communities to access markets and essential services. In particular, it will benefit agricultural producers of commodities such as coffee, cocoa, copra, tea, and vanilla by improving connections to trading centers, healthcare facilities, and educational institutions.
The Asian Development Bank is a leading multilateral development institution that supports inclusive, resilient, and sustainable growth across Asia and the Pacific. Established in 1966, ADB is owned by 69 member countries, including 50 from the region. By working closely with governments and partners, ADB uses innovative financial solutions and strategic partnerships to address complex development challenges, build quality infrastructure, and improve lives while protecting the environment.
