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

The Wau Highway is one of Papua New Guinea’s main thoroughfares.

Maintaining the Wau Highway in Papua New Guinea

Papua New Guinea

Signed and Announced

Type:
Transport and urban infrastructure Investment:
AUD76.3 million Project name:
Connect Papua New Guinea - Roads Repair

Delivery partners

Government of Papua New Guinea
Papua New Guinea Department of Works

We’re proud to support the Government of Papua New Guinea on the Wau Highway project.

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 Wau Highway works will benefit communities producing fresh food, fish and coconuts, along with the mining, forestry, cattle and large-scale poultry industries.

80 per cent

of jobs to target semi-skilled or low skilled workers

The project’s long-term maintenance contracts are expected to generate local jobs through contracts with local firms, 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.

AIFFP contribution

AUD76.3 million

	Amount (AUD million)	Amount (USD million)	Interest rate	Tenor
Loan	$61.6	$43.1	SOFR+ 1.23%	23 years
Grant	$14.7	n/a	n/a	n/a

*Exchange rate: AUD/0.70USD

Impact

Investment in the Wau Highway 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.