ADB Approves $60.9m Loan to Boost PNG Urban Water Access

The technical assistance component will support digital systems integration, institutional strengthening, and exploration of public–private partnership (PPP) opportunities.

The Asian Development Bank (ADB) has approved a $60.9 million loan package to upgrade water supply and sanitation services in Papua New Guinea’s capital, Port Moresby, and the northern town of Vanimo—marking its first water sector loan to the country in more than 25 years.

The financing package includes:

• $30 million in regular ordinary capital resources

• $30.9 million in concessional ordinary capital resources

• $3 million in counterpart funding from the Government of PNG

• $1.5 million in additional technical assistance grant funding

The technical assistance component will support digital systems integration, institutional strengthening, and exploration of public–private partnership (PPP) opportunities.

Renewed Focus on Urban Services

“This is an important milestone in our partnership with PNG—our first loan investing in the country’s water sector in more than 25 years,” said ADB Country Director for PNG Takafumi Kadono.

“It will expand access to safe water, improve public health, and build more resilient and sustainable water and sanitation systems for urban communities in both Port Moresby and Vanimo.”

The Urban Water Supply and Sanitation Security and Resilience Improvement Project aims to enhance service reliability, rehabilitate wastewater infrastructure, and strengthen the operational and financial performance of state-owned utility Water PNG Limited.

More Than 160,000 People to Benefit

The project is expected to directly benefit over 160,000 people, including residents of informal settlements, by expanding access to safe and reliable piped water.

Upgrades to sanitation systems will ensure treated wastewater is safely discharged, reducing risks to public health and protecting fragile coastal and urban ecosystems.

PNG currently has among the lowest levels of access to safe water and sanitation in the Pacific region. Rapid urban population growth has placed mounting pressure on aging infrastructure, while climate change—through prolonged droughts, rising temperatures and intensified flooding—has compounded water insecurity.

Climate Resilience and Infrastructure Upgrades

The project incorporates climate adaptation measures to strengthen resilience against extreme weather and water variability.

In Port Moresby, investments will include:

• Rehabilitation of the Mount Eriama Water Treatment Plant

• Expansion of water storage capacity and distribution networks

• Reduction of nonrevenue water losses

• Refurbishment of the Waigani sewage treatment ponds to improve effluent quality

In Vanimo, where no reticulated water supply system currently exists, the project will develop a new climate-resilient system using groundwater and spring sources, along with treatment facilities and metered household connections.

Strengthening Policy and Institutional Capacity

Beyond physical infrastructure, the initiative seeks to improve governance and financial sustainability in the water sector.

Digital systems upgrades and institutional capacity-building will support improved service delivery, revenue collection and operational efficiency.

The project aligns with PNG’s National Water, Sanitation, and Hygiene (WASH) Policy 2015–2030 and supports ADB’s Strategy 2030 Midterm Review, particularly its priorities on climate action, digital transformation and private sector development.

As urban centres in PNG continue to expand, the investment signals renewed international support to address chronic infrastructure gaps and build climate-resilient essential services—critical foundations for public health, economic growth and long-term sustainability.