The European Investment Bank (EIB), through its international development division EIB Global, is to provide $25 million in funding for the expansion of drinking water networks in Papua New Guinea. The initiative will enable around 400,000 more people to gain access to safe and reliable water in various parts of the country, including the capital, Port Moresby. The agreement was announced during the EU–Papua New Guinea Business Forum held in the capital.

The project will be carried out by the state-owned company Water PNG and forms part of a national programme aimed at improving water supply and sanitation. Currently, only around 20% of the country’s population has access to reliable water services, so the investment aims to expand urban coverage and reduce water losses in existing infrastructure.

In addition to the loan provided by EIB Global, the European Union will contribute €16.4 million, divided between an investment grant and funds for specialist technical assistance. The project forms part of Global Gateway, the European strategy to promote sustainable infrastructure and development in partner countries.

The funding forms part of a water supply and sanitation programme valued at $77.3 million, which has been supported by the World Bank since 2017. Whilst the World Bank is funding initiatives in six municipalities, EIB Global will support projects in other cities across the country.

The partnership between the EIB and Papua New Guinea dates back to 1978. Since then, the Bank has financed projects worth over €250 million in sectors such as transport, energy, water, agriculture, mining and business development. Among the most recent projects is the construction of nine climate-resilient bridges, designed to improve connectivity and access to essential services.

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