Australia is partnering with the Government of Papua New Guinea to finance an AUD580 million investment to upgrade and refurbish selected Papua New Guinea’s (PNG) ports. The regional ports were identified as part of the PNG Ports Infrastructure 30 Year Master Plan.
The AIFFP finance will include the upgrading of the Lae Port to be the key deep water port servicing Papua New Guinea’s Highlands, and the premier transhipment hub for the Pacific. As Papua New Guinea’s largest port, it will be able to accommodate dedicated container ships that operate major trade routes in the Indo-Pacific to make direct calls to Papua New Guinea. This benefits not only Papua New Guinea, but our wider Pacific region.
The Papua New Guinea Ports Infrastructure Investment Program will deliver sustainable maritime infrastructure for regional ports with a design life of at least 50 years.
|Amount (AUD million)||Amount (USD million)||Variable interest rate||Tenor|
|Loan||$486.7||$365.0||LIBOR + 0.8%||24 years|
* Indicative rate of AUD/USD = 0.75, exact AUD amount depends on exchange rate at disbursement. LIBOR is the London Interbank Offered Rate
PNG Ports Corporation Ltd
Government of Papua New Guinea
Ports are critical for connectivity and economic growth in Papua New Guinea, which relies heavily on coastal trade and maritime access to essential goods and services.
As part of the critical economic infrastructure in Papua New Guinea, ports provide major gateways for the transport and distribution of goods domestically as well as imports and exports. More than 90% of internationally traded goods are shipped to/from ports in Papua New Guinea.
Local communities will benefit from the investment program. Communities will be able to continue to access goods and services through urgent refurbishments made to the deteriorated coastal wharves. Coastal shipping is often the most affordable transport option for local communities. These communities depend on access to coastal wharves for shipping of food, transport to services such as healthcare and education, and accessing imported goods and trade.
The investment program will create local jobs through the use of local construction companies and supply chains providing a much-needed boost to Papua New Guinea’s economic recovery.