World Bank Approves $100m for Rural Services in Papua New Guinea

More than one million people across rural Papua New Guinea are expected to gain better access to essential services after the World Bank Group approved US$100 million for the second phase of a community-led development programme covering 12 provinces.

The Rural Service Delivery Project Phase 2, known as RSDP-2, will give communities a direct role in deciding which local investments are most urgently needed, ranging from clean water and sanitation systems to classrooms, health facilities, electricity connections and rural roads. Financing will come through the World Bank Group's International Development Association, with the programme also supporting livelihood activities and stronger local decision-making.

Communities to Choose Projects Based on Local Needs

RSDP-2 will support residents in identifying, planning and implementing projects that respond to the everyday challenges faced within their communities, giving local people greater influence over how development funding is used rather than relying entirely on decisions made away from the areas receiving investment.

Women, young people and vulnerable groups will be included in local decision-making, helping communities choose infrastructure and services that reflect a wider range of needs. The programme is expected to support at least 800 community infrastructure and service investments, with about 300,000 people living in remote locations included among the more than one million expected beneficiaries.

World Bank Division Director for Papua New Guinea, Solomon Islands and Vanuatu Han Fraeters said the programme showed what could be achieved when communities take a leading role in shaping their own development.

Second Phase Builds on Support for 291,000 People

The new programme expands a model already used during the first phase of the Rural Service Delivery Project, which reached more than 291,000 people across five provinces and demonstrated that locally led projects could deliver infrastructure and services effectively while maintaining transparency and controlling costs.

Moving into 12 provinces will significantly increase the programme's reach, bringing community-led investment to areas where difficult geography and limited infrastructure can make the delivery of basic services particularly challenging.

Support will also go towards strengthening the Department of Provincial and Local-level Government Affairs, local-level governments and Ward Development Committees, giving institutions responsible for local planning greater capacity to work with residents and development partners.

More Than 39,000 Job Opportunities Expected

Community infrastructure works supported through RSDP-2 are expected to create more than 39,000 job opportunities, bringing an additional economic benefit to rural areas while new roads, utilities and public facilities are being built or improved.

Climate resilience will be included in project planning so communities can invest in infrastructure better suited to natural disasters and other climate-related pressures, an important consideration for remote settlements where damaged roads, water systems or public facilities can leave residents isolated.

The programme is expected to create a more transparent platform for communities, local governments and development partners to work together, while giving rural residents a stronger voice in decisions that directly shape their services and economic opportunities.