U.S. Ambassador to PNG, Vanuatu, and the Solomon Islands, Erin McKee, yesterday launched the five-year, PGK200 million (US $57 million) United States Agency for International Development (USAID)-PNG Electrification Partnership (PEP).
The project will provide electricity to at least 200,000 households in Papua New Guinea.
The USAID PEP project will contribute to the broader PNG Electricity Partnership, along with the United States, Australia, Japan and New Zealand, created during the 2018 Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit in Port Moresby.
Today, only about 13 percent of Papua New Guineans have reliable access to electricity and the partnership aims to increase that to 70 percent by 2030.
“Access to electricity is key to Papua New Guinea’s economic growth,” said Ambassador McKee. “Electricity lifts the living standards of communities in cities, towns and remote villages. It allows schools and hospitals to deliver essential services. It is also an essential precursor for the growth of the private sector and industry, including small and medium enterprises.”
Through the project, USAID will strengthen PNG Power Limited’s capacity to expand connections, reduce system and commercial losses, and increase its revenues, as well as develop at least ten viable off-grid electrification models in select remote communities.
The project will help develop policies and methodologies to promote efficient delivery of energy services.
USAID will also catalyse private investment for energy projects by helping develop a pipeline of bankable projects, providing transaction advisory support and collaborating with financial institutions on energy project opportunities.
“This contribution to the commitments we made at APEC represents our partnership in action,” said Ambassador McKee. “We are excited about this step forward, where together we will drive inclusive growth, development and empowerment to communities throughout Papua New Guinea.”
The U.S. and PNG share longstanding historical and commercial links, people-to-people ties and defense partnerships.
Through USAID, the U.S. government works with the PNG government, the private sector and civil society organisations to bolster their ability to lead the country’s journey to self-reliance. USAID assistance focuses on strengthening disaster preparedness and environmental resilience, health and democratic governance.
(Diplomatic representatives from Australia and New Zealand pose with Ambassador McKee, USAID Senior Development Advisor, David Hatch and PNG SOE Minister Sasindran Muthuvel, along with Energy Minister Onglo)