More than 400,000 people in Papua New Guinea are expected to benefit from improved access to clean drinking water following the announcement of a major new investment under the European Union's Global Gateway Initiative.

A highlight of the 5th European Union–Papua New Guinea Business Forum in Port Moresby was the signing of the Water Wise Communities Project Loan and Grant Agreement, which will support water infrastructure development and climate resilience initiatives across the country.

Under the agreement, the European Investment Bank (EIB) will provide a concessional loan of 25 million euros (approximately K126 million), while the European Union will contribute a grant of 16.4 million euros (approximately K83 million).

The combined investment of more than K209 million is expected to improve access to safe and reliable drinking water for an additional 400,000 Papua New Guineans while strengthening urban sustainability and climate resilience.

The funding forms part of the European Union's Global Gateway Initiative, which supports sustainable investment in infrastructure, renewable energy, water security, digital connectivity, and private sector development.

Speaking during the forum, European Commission Director for Asia, Central Asia and the Pacific, Peteris Ustubs, reaffirmed Papua New Guinea's importance within the European Union's Indo-Pacific strategy.

He said Papua New Guinea's strategic location, abundant natural resources and commitment to sustainable development make it an important partner for the European Union.

European Union Ambassador to Papua New Guinea Erika Hasznos said the Global Gateway Initiative aims to transform development commitments into practical projects that deliver long-term benefits.

The Water Wise Communities Project is expected to play a significant role in addressing growing demand for safe water services while helping communities adapt to climate-related challenges.

The agreement reflects the ongoing commitment of the European Union and Papua New Guinea to deepen cooperation in sustainable development and improve living standards through strategic infrastructure investments.