Telefomin District in West Sepik Province is accessible only by air.
O’Neill was responding to questions from Telefomin MP Solan Mirisim in Parliament on Tuesday.
He said cabinet on Monday approved funding for this particular project and also other national highways.
“A statement will be released in Parliament by me or Works Minister,” O’Neill said.
The Prime Minister also said the cabinet had approved an increase in infrastructure tax credit scheme, from 1.75 to 2 percent, to support road constructions.