The Australian Infrastructure Financing Facility for the Pacific will provide a USD150 million grant and concessional loan package to Papua New Guinea to support the repair and upgrade of key energy assets. The commitment was confirmed during Prime Minister Marape’s visit to Canberra on 8 February 2024.
The financing will be used in the refurbishment of Ramu 1 hydropower plant, construction of the Gerehu transmission substation and the installation of smart meters in businesses and residences across PNG.
Under its Pacific Climate Infrastructure Financing Partnership, Australia is also contributing to a new solar entrepreneurs partnership, which is expected to deliver rural renewable energy for up to 4,000 households in the Milne Bay and West New Britain Provinces.
These improvements will increase access to reliable and sustainable electricity for communities in cities towns and remote villages, allowing for improved economic opportunities and access to health and education services.