The Australian Government has extended enormous financial support to Papua New Guinea with K1.5 billion to upgrade ports infrastructure throughout the country.
Australian Prime Minister, Scott Morrison and Prime Minister James Marape met virtually on Friday, 21st of January to sign agreements for PGK1.5b (AUD$580 million) in upgrades and refurbishments to several priority ports.
Prime Minister Marape said the deal continued the support rendered under the PNG-Australia Comprehensive Strategic and Economic Partnership arrangement.
“Upgrades to these key ports will facilitate trade and investment opportunities for PNG local products to reach designated domestic and international markets, create local employment, stimulate economies of scale and build business confidence to grow our economy,” he said.
Minister for State Enterprises, William Duma stated that this funding would help PNG Port realise the objectives set out in the 30-year Ports Infrastructure Master Plan launched in June 2021. This will ensure PNG Ports improve infrastructural compatibility with modern industry and safety standards.
“PNG Ports will ensure the funding delivers port infrastructure that stands the test of time and has positive effect on the lives of our people going forward,” Minister Duma said.
The investment will position Lae Tidal Basin to become a regional hub to the Pacific by improving its capacity to service dedicated container ships from South East Asia. The agreements will also see works undertaken on Kimbe in West New Britain, Lorengau on Manus Island, Kavieng in New Ireland, Vanimo in West Sepik and Wewak in East Sepik.
“We are humbled by this gesture of support from the people of Australia to the people of PNG. I reassure the Government and the people of Australia that PNG Ports Corporation will continue to work in close consultation with the Australian High Commission and the Australian Infrastructure Financing Facility for the Pacific.
Meantime, Prime Minister Morrison said the agreement paves way for refurbishments to several priority ports, through a series of loans and grants.
“This is about enabling, supporting the sovereignty and the independence and the self-sufficiency of Papua New Guinea and that has always been our absolute goal with all of our support interventions and assistance,” he said.
PM Morrison said this investment will improve trade and connectivity in the region, support economic recovery from COVID-19 and help safeguard the development of critical infrastructure in Papua New Guinea.