Treasurer Ian Ling-Stuckey met with senior Australian management team of the Australian Infrastructure Financing Facility for the Pacific (AIFFP), headed by Benedict David from Australia’s Department of Foreign Affairs & Trade and Robert Jauncey.
Treasurer Ling-Stuckey said the A$2,000 million AIFFP was a new regional initiative launched by Prime Minister Scott Morrison’s government to boost Australia’s support for infrastructure development in Pacific countries and Timor-Leste.
“Given PNG’s prominence in the region, the country can expect a significant part of the $2,000 million to be allocated to support infrastructure development in the country,” the Treasurer said.
“I have received assurances the AIFFP is focused on delivering quality infrastructure to support PNG’s economic growth and improve the lives of Papua New Guineans - both through the infrastructure itself and through the use of PNG firms and workers.
“The new fund has two funding components. The first is A$500 million of grants. The second is A$1,500 million of long-term loans with an interest rate of around 2 percent.
“The funding is not tied in any way to Australian companies. Indeed one of the objectives of the new facility is to support local firms to gain contracts and build infrastructure. The facility will also have a very strong emphasis on funding quality projects.
“Quality projects are very much in line with the Marape-Steven government’s focus on ensuring projects have a good cost-benefit analysis and a good rate of return.”
The Treasurer thanked the Australian government for its continued support for sustainable development in the region through such innovative infrastructure programs.