The Asian Development Bank (ADB) has approved a $60.9 million loan to improve water supply and sanitation in urban communities in Port Moresby and Vanimo, Papua New Guinea (PNG).
ADB’s financing includes a $30 million regular ordinary capital resources loan and a $30.9 million concessional ordinary capital resources loan. The Government of PNG will provide $3 million in counterpart financing. An additional $1.5 million technical assistance grant from ADB will support digital systems integration, institutional strengthening and the exploration of public–private partnership opportunities.
“The project signals ADB’s renewed focus on strengthening urban services,” said ADB Country Director for PNG Takafumi Kadono. “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. 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 will enhance the reliability of piped water systems, rehabilitate wastewater infrastructure and strengthen the operational and financial capacity of state-owned utility Water PNG Limited.
More than 160,000 people — including those living in settlements — in Port Moresby and Vanimo will directly benefit from expanded access to a safe and reliable water supply. The project will also upgrade sanitation facilities to ensure treated wastewater is safely discharged and poses no risk to public health or the environment.
PNG has some of the lowest levels of access to water supply and sanitation services in the Pacific region. Rapid urban growth is placing increasing pressure on ageing infrastructure, while climate change — through prolonged dry periods, rising temperatures and exacerbated flooding — further threatens water security. The project incorporates adaptation measures to strengthen resilience and safeguard essential services.
In Port Moresby, the project will rehabilitate the Mount Eriama Water Treatment Plant, expand storage capacity and distribution networks, and reduce non-revenue water. It will also refurbish the Waigani sewage treatment ponds to improve effluent quality and environmental protection.
In Vanimo, where there is currently no reticulated water supply system, a new resilient system will be developed, including groundwater and spring sources, treatment facilities and metered household connections.
The project supports PNG’s National Water, Sanitation, and Hygiene Policy 2015–2030 and aligns with ADB’s Strategy 2030 Midterm Review, particularly its focus on climate action, digital transformation and private sector development.
ADB is a leading multilateral development bank supporting inclusive, resilient and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure and safeguard the planet. Founded in 1966, ADB is owned by 69 members, 50 of which are from the region.
