MANILA — The Asian Development Bank (ADB) has approved three projects totaling $275 million to expand access to financial services for individuals and businesses, improve rural connectivity to markets and social services, and boost low-carbon electricity supply in Papua New Guinea (PNG).
“ADB is committed to investing in essential infrastructure, creating a more enabling environment for private sector development, and assisting the Government of PNG to implement transformative power sector reforms that improve lives and livelihoods,” said ADB Officer-in-Charge for Papua New Guinea Soon Chan Hong.
A $100 million policy-based loan will fund subprogram 1 of the Improving Financial Access Program to strengthen the regulatory and institutional framework for domestic and international financial services—covering payments, remittances, credit, and capital. It will also support households and businesses in creating employment and trade opportunities. Subprogram 2 will continue the reform process and sustain improved access to finance in the country.
A $100 million loan and a $10 million grant from the Japan Fund for the Joint Crediting Mechanism will finance the Sustainable Energy Sector Development Program. The program, composed of two subprograms, supports the Government of PNG in enhancing the adequacy of the country’s low-carbon electricity supply. It will support the government in establishing an enabling policy framework to restore the sustainability of the power sector, revitalize PNG Power Limited’s (PPL)operational performance, and increase private sector participation to deliver clean, affordable, and reliable electricity.
Lastly, a $65 million loan will fund the Transport Project Readiness Facility, which will support the upgrading and rehabilitation of subnational roads in all four regions:Southern, Highlands, Momase, and New Guinea Islands.. These roads are part of the economic corridors and the government’s strategic priorities under the Medium Term Development Plan IV (2023–2027) and the National Road Network Strategy (2018–2037). The project will help better connect rural communities—mainly producing coffee, copra, cocoa, tea, vanilla, and other agricultural commodities—to markets and essential services, such as health and education.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
