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An AIFFP loan and grant package is supporting the Government of Papua New Guinea to repair and refurbish seven ports and one basin across the island nation.

Upgrading ports across Papua New Guinea The project is refurbishing seven ports across Papua New Guinea.

Upgrading ports across Papua New Guinea

Kavieng, Kimbe, Daru, Oro Bay, Lorengau, Vanim, Wewak and Lae, Papua New Guinea

Signed and Announced

Type:
Maritime
Investment:
AUD621.4 million

Delivery partners

Government of Papua New Guinea
Papua New Guinea Ports Corporation Ltd

We’re proud to support the Government of Papua New Guinea to refurbish, replace and upgrade key port assets prioritised in Papua New Guinea’s 30 Year Ports Infrastructure Master Plan.

The project is facilitating essential improvements to selected coastal wharves in Kavieng, Kimbe, Daru, Oro Bay, Lorengau, Vanimo and Wewak.

It also includes upgrades of Lae Tidal Basin to serve as a trans-shipment hub for the Pacific region with the ability to accommodate container ships that operate major trade routes.

Upgrades to 7 ports and 1 basin

across Papua New Guinea

30 per cent of workers

are Papua New Guinean (expected)

With more than 90 per cent of internationally traded goods in Papua New Guinea being transported via sea, the project will increase access to goods, trade and services for communities.

The project is supporting local jobs via local construction companies and supply chains, with a minimum target of 30 percent local expenditure on local content.

Our financing package includes a loan of AUD521.4 million and a grant of AUD100 million to Papua New Guinea Ports Corporation Ltd to deliver the upgrades.

An AIFFP funded pilot boat, purpose-built for Papua New Guinea Ports Corporation Ltd, is launched in a ceremony attended by Minister for International Development and the Pacific, the Hon Pat Conroy MP (fourth from left), November 2022.

An AIFFP funded pilot boat, purpose-built for Papua New Guinea Ports Corporation Ltd, is launched in a ceremony attended by Minister for International Development and the Pacific, the Hon Pat Conroy MP (fourth from left), November 2022.

AIFFP contribution

AUD621.4 million

 Amount (AUD million)Amount (USD million)Variable interest rateTenor
Loan$521.4$365.0LIBOR + 0.8%24 years
Grant$100.0$70.0n/an/a

*Exchange rate: AUD/0.70USD

Impact

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. Ports provide major gateways for the transport and distribution of goods both domestically and internationally.

The project will ensure communities can continue to access goods and services through urgent refurbishments made to the deteriorated coastal wharves. It will also create employment opportunities through the use of local construction companies and supply chains, providing a much-needed boost to Papua New Guinea’s economic recovery from COVID-19.