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An AIFFP loan and grant package is enabling the Government of Papua New Guinea to undertake long-term rehabilitation and maintenance to 359 kilometres of road surface along the Wau and Sepik Highways.

Upgrading the Wau and Sepik Highways in Papua New Guinea The Wau and Sepik Highways are two of Papua New Guinea’s main thoroughfares.

Upgrading the Wau and Sepik Highways in Papua New Guinea

East Sepik and West Sepik provinces, Papua New Guinea

Signed and Announced

Transport and urban infrastructure
AUD76.3 million

Delivery partners

Government of Papua New Guinea
Papua New Guinea Department of Works

We’re proud to support the Government of Papua New Guinea to upgrade key corridors in East Sepik and West Sepik (Sandaun) provinces and to develop designs for the proposed Trans-National Highway.

The road works will facilitate improved access for remote communities to essential services, and make travel safer through measures such as bridge designs which account for both vehicle and pedestrian use.

Along the Sepik Highway, the improved connectivity will benefit small-scale producers of fresh food, cocoa, fish, rubber and the burgeoning vanilla industry, while the Wau Highway works will benefit communities producing fresh food, fish and coconuts, along with the mining, forestry, cattle and large-scale poultry industries.


kilometres of road


jobs created annually

The project’s long-term maintenance contracts are expected to generate at least 600 jobs annually, 80 per cent of which target semi-skilled or low-skilled workers from local areas.

Gender equality is also being prioritised, with a target of a minimum of 20 per cent of roles being undertaken by women. The project is also supporting training for women on their rights to equal employment.

Our financing package includes a loan of AUD61.6 million and a grant of AUD14.7 million to Papua New Guinea Department of Works.

Target of 20 per cent

of roles filled by women

18 per cent

of Wau Highway works complete

AIFFP contribution

AUD76.3 million

 Amount (AUD million)Amount (USD million)Fixed interest rateTenor
Loan$61.6$43.1LIBOR + 0.8%23 years
Grant $14.7n/an/an/a

*Exchange rate: AUD/0.70USD


Investment in the Wau and Sepik Highways will improve transport connectivity for remote, rural and agricultural communities, including to essential services such as health and education.

The project design will take account of the different needs of road users including pedestrians transporting heavy or bulky market items and children travelling to school. Improved road safety will also be a focus through a road safety campaign, particularly for women and children who travel by road to markets, schools and health facilities. The campaign will raise awareness of traffic safety, road rules, use of road crossings, understanding of safety signs and awareness of the importance not to damage road infrastructure and signs.