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An AIFFP loan and grant package is enabling the Government of Papua New Guinea to expand the electricity distribution grid in Morobe and East New Britain provinces.

Powering homes and businesses in Papua New Guinea’s Morobe and East New Britain provinces Papua New Guinea aims to electrify 70 per cent of the country by 2030.

Powering homes and businesses in Papua New Guinea’s Morobe and East New Britain provinces

Morobe and East New Britain provinces, Papua New Guinea

Signed and Announced

Type:
Energy
Investment:
AUD91.9 million

Delivery partners

Government of Papua New Guinea
Papua New Guinea Power Ltd

We’re proud to support the Government of Papua New Guinea to increase access to affordable electricity.

With around 13 per cent of Papua New Guinea’s population having access to on-grid power, the project will provide support for medium and low voltage powerlines, transformers and household meter connections.

30,000 to 40,000

households, schools, and health clinics connected to electricity

25 per cent increase

in Papua New Guinea Power Ltd customers

Known in Tok Pisin as ‘Laitim Hauslain’, which translates to ‘bringing light/power to households/community’, the project will help to lift the living standards of communities in cities, towns, and remote villages and enable schools and hospitals to deliver essential services.

The project will connect an additional 30,000 to 40,000 households, schools and health clinics to the electricity grid for the first time, and is expected to increase Papua New Guinea Power Limited's existing customer base by approximately 25 per cent.

‘Laitim Hauslain’ is the Australian Government’s contribution to the Power Sector Development Project, which will be delivered jointly with the Asian Development Bank. The financing also forms 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.

Our financing package includes a loan of AUD73.6 million and a grant of 18.3 million to the Government of Papua New Guinea. 

AIFFP contribution

AUD91.9 million

 Amount
(AUD million)
Amount
(USD million)
Variable interest
rate
Tenor
Loan$73.6$51.5LIBOR + 0.8%24 years
Grant$18.3$12.8n/an/a

*Exchange rate: AUD/0.70USD, exact AUD amount depends on exchange rate at disbursement.

Impact

Access to electricity is key to improving development outcomes. The project will improve the living standards of communities across the two provinces, particularly benefitting women and girls as lack of access to electricity disproportionally impacts women and their economic empowerment.

The project will provide employment opportunities for Papua New Guineans and capacity and skills training opportunities for local contractors and communities.