Australia announces US$414 million in grant financing to upgrade Papua New Guinea's ports

Australian Prime Minister Scott Morrison announced an investment of A$580 million (US$414 million) for ports in Papua New Guinea (PNG). Upgrades and repairs are planned for PNG's major port in Lae, but upgrades will also be made to ports in the provinces of Manus, New Britain, West and East Sepik, and New Ireland.

Morrison stated that port improvement is an investment in the economic prosperity and well-being of the people of Papua New Guinea. Many of PNG's provincial capitals are not connected by road and are, therefore, reliant on ship-bourne freight.

Funding will be provided through the A$2 billion (US$1.4 billion) Australian Infrastructure Financing Facility for the Pacific. This fund was established in July of 2019 by combining grant financing of up to A$500 million (US$358 million) with long-term credits of A$1.5 billion (US$1.1 billion).

The A$500 million grant financing component was drawn from reductions in other assistance activities in the Pacific. Until the PNG ports announcement, the Australian Infrastructure Financing Facility had announced very limited lending activity.

Press release - Prime Minister of Australia