Papua New Guinea is set to expand access to drinking water through a new financing package led by EIB Global, the development branch of the European Investment Bank (EIB), aimed at strengthening water infrastructure across the country.
Announced in Port Moresby during the EU–Papua New Guinea Business Forum, the initiative includes a $25 million concessional loan from EIB Global to the Government of Papua New Guinea, complemented by a €16.4 million contribution from the European Union. The EU support comprises a €13.4 million investment grant and €3 million in technical assistance for project implementation.
The programme is expected to provide reliable potable water services to an additional 400,000 people, helping address a major infrastructure gap in a country where only around 20% of the population currently has access to dependable water services. The investment will fund new connections in underserved urban areas and measures to reduce water losses in the capital, Port Moresby.
State-owned utility Water PNG will implement the project, which supports the country's objective of achieving 95% urban water coverage by 2030.
“Our 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,” said EIB Vice-President Ambroise Fayolle, who oversees its operations in the Pacific region. “Investment in water systems is essential to improving public health and strengthening long-term development.”
The project is being delivered under the European Union’s Global Gateway strategy, which promotes sustainable infrastructure investment worldwide.
European Commissioner for International Partnerships Jozef Síkela stated: “The new loan agreement, supported by the €16.4 million EU financial contribution, to improve access to clean water for an additional 400,000 people in Papua New Guinea 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.”
The EIB financing forms part of a broader $77.3 million water supply and sanitation programme supported by the World Bank since 2017, with EIB Global funding works in additional towns beyond the six municipalities already covered by the World Bank.
