ADB's Work in Papua New Guinea

Papua New Guinea (PNG) is a resource-dependent, lower-middle-income country. Its economy is driven by capital-intensive mineral and petroleum extraction, alongside a labor-intensive agriculture sector. In recent years, the service sector has gained increasing importance. However, PNG faces challenges such as weak governance and institutions, high vulnerability to economic shocks, and an underdeveloped private sector. As a small island developing state (SIDS) and a fragile and conflict-affected state (FCAS) in the Pacific, PNG’s economic resilience remains a key concern.

ADB is one of PNG’s largest sources of official development assistance, with an average annual lending of 414ドル million over 5 years from 2020 to 2024. ADB’s support is aligned with the Government of Papua New Guinea’s development plans, including the Medium-Term Development Plan IV 2023–2027, the Development Strategic Plan 2010–2030, and Vision 2050.

Sovereign operations. As of 31 December 2024, ADB has committed 277 public sector loans, grants, and technical assistance totaling 5ドル.1 billion to PNG. ADB’s current sovereign portfolio in PNG includes 18 loans and 2 grants worth 1ドル.65 billion.

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Building on reforms implemented through a 500ドル million policy-based loan program from 2020 to 2022, ADB further committed a 100ドル million policy-based loan in 2024 to improve governance and accountability across the public sector by improving fiscal management, enhancing state-owned enterprise governance, and strengthening the country’s accountability institutions.

ADB is financing large-scale infrastructure investments in transport, including the ongoing 1ドル billion Sustainable Highlands Highway Investment Program for the rehabilitation and maintenance of 430 kilometers of highway, upgrading bridges, improving road safety, and establishing logistics platforms for agricultural products in the highland areas. In 2024, ADB committed 265ドル.4 million in loans and grants to improve 5 district roads totaling 120 kilometers and 19 bridges in the highland region. The project also aims to implement a comprehensive social, gender, and livelihood program. These investments address weathered roads that particularly constrain the movement of vulnerable groups, including women.

Support to PNG’s aviation sector includes the ongong 162ドル.9 million Civil Aviation Development Investment Project II (CADIP II), which is rehabilitating five airports as well as piloting the upgrade of four rural airstrips, and envisioned to serve as a replicable model throughout PNG. In 2024, ADB committed 2ドル million in technical assistance to prepare for the forthcoming CADIP III to further improve aviation safety, efficiency, and network coverage. ADB also approved nonsovereign financing for the re-fleeting of Air Niugini to improve the air link in the country and network efficiencies enabled by CADIP.

ADB is also supporting human capital development in PNG. The second additional financing of 42ドル million for a health services program, with 21ドル.6 million cofinancing from the Government of Australia, is currently supporting the construction of an additional district hospital in Buin, Autonomous Region of Bougainville, and a National Reference Laboratory. ADB is also helping strengthen the technical and vocational education and training institutions to equip the workforce with the skills needed to participate in the labor market and contribute to economic growth.

In 2024, ADB committed 2ドル million in technical assistance from the Japan Fund for Prosperous and Resilient Asia and the Pacific to support the expansion and better management of protected areas, promote legal and low-emission logging and afforestation, and encourage eco-tourism and other sustainable livelihood opportunities.

Nonsovereign operations . Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in PNG as of 31 December 2024 amounted to 32ドル.58 million, representing 0.25% of ADB’s total private sector portfolio.

Cumulative disbursements. Cumulative sovereign and nonsovereign loan and grant disbursements to PNG amount to 3ドル.77 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds.

Operational challenges. PNG faces operational and program implementation challenges common to countries in a fragile and conflict-affected situation. To improve program implementation, key issues need to be addressed including delays in procurement and approval of contracts; insufficient government counterpart funding; low capacity of executing and implementing agencies in contract and financial management, as well as social and environmental safeguards; and weak capacity of contractors and consultants in project management and coordination.

Knowledge Work

Beyond financing development projects, ADB serves as a knowledge broker—helping members address regional issues, including climate change and ocean health. ADB’s key publications such as the Asian Development Outlook and Pacific Economic Monitor offer macroeconomic forecasts and analyze key economic and topical issues, guiding national policy development and decision-making. Additionally, pioneering knowledge works such as Leadership Matters: Benchmarking Women in Business Leadership in the Pacific was published in 2024.

ADB works closely with PNG in identifying and responding to both country and regional knowledge needs. In PNG, knowledge solutions are geared toward supporting reforms related to state-owned enterprises, public financial management, and regulatory business environment; and providing advice for the development of social protection systems. ADB organizes events to keep stakeholders informed about the bank’s operations in PNG, conducting tailored workshops as part of projects or capacity-building programs such as those focused on improving financial management.

ADB Projects in Papua New Guinea Project data sheets for loans, grants, TAs

Financing Partnerships

Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in PNG:

• Sovereign cofinancing: 752ドル.72 million for 28 investment projects and 12ドル.37 million for 15 technical assistance projects since 1980
• Nonsovereign cofinancing: 204ドル.64 million for 4 investment projects since 2009

In 2024, PNG received 700,000ドル in grant cofinancing from the Ireland Trust Fund for Building Climate Change and Disaster Resilience in Small Island Developing States for the Sustainable Highlands Region Core Road Network Project.

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Future Directions

ADB’s indicative country assistance pipeline for PNG for 2025–2027 outlines planned investments of around 2ドル.5 billion in the following sectors: transport (68%), energy (12%), finance (9%), public sector management and governance (6%), human and social development (3%), and water and urban development (2%). The pipeline strongly supports climate change mitigation and gender equity. Planned transport, energy, and water projects aim to facilitate significant economic opportunities and support increased access to services to expand employment opportunities, including for women. A proposed project to promote financial inclusion will support increased access to finance. ADB will continue to support public sector management reforms including the strengthening of state-owned enterprises.

Last updated: 2 May 2025

Spotlight on Papua New Guinea