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Papua New Guinea Laitim Hauslain Project

Papua New Guinea Laitim Hauslain Project

Approved

Type: Energy
Country: Papua New Guinea

The investment will enable PNG Power Limited (PPL) to expand the distribution grid in Morobe and East New Britain provinces. The financing will cover medium and low voltage powerlines, transformers, and household meter connections.

Increasing access to electricity is a key priority of the Government of Papua New Guinea, as it aims to electrify 70 per cent of the country by 2030. Currently, approximately 13 per cent of Papua New Guinea’s population has access to on-grid electricity.

This financing will form part of Australia’s support to the Papua New Guinea Electrification Partnership, a key strategic collaboration between Papua New Guinea, Australia, New Zealand, the United States and Japan announced at Asia-Pacific Economic Cooperation, Papua New Guinea 2018.

Laitim Hauslain is the Australian Government’s contribution to the Power Sector Development Project, which will be delivered jointly with the Asian Development Bank. This project name in Tok Pisin is recognition of the transformational impact of power and translates to ‘bringing light/power to households/community’.

AIFFP contribution

AUD85.8 million

  Amount (AUD million) Amount (USD million) Variable interest rate Tenor
Loan $68.7 $51.5 LIBOR + 0.8% 24 years
Grant $17.1 $12.8 n/a n/a

* Indicative rate of AUD/USD = 0.75, exact AUD amount depends on exchange rate at disbursement, LIBOR is the London Interbank Offered Rate

Delivery partners

Project partners
PNG Power Limited (PPL)

Sovereign partners
Government of Papua New Guinea

Impact

Laitim Hauslain will connect an additional 30,000-40,000 households, schools, and health clinics to the electricity grid for the first time. This is expected to increase PPL's existing customer base by approximately 25 per cent.

Access to electricity is key to improving development outcomes. It lifts the living standards of communities in cities, towns, and remote villages, allows schools and hospitals to deliver essential services and is an essential precursor for the growth of the private sector and industry, including small and medium enterprises. The project will benefit women and girls as the lack of access to electricity disproportionally impacts women, particularly affecting their economic empowerment.

The investment will adopt an implementation approach to provide local employment for Papua New Guineans and capacity and skills training opportunities for local contractors and communities.