The people of Papua New Guinea (PNG) can expect a major water project coming up that would transform the way clean water is accessed by the population.

This will be made possible through the EIB Global, the development arm of the European Investment Bank (EIB), with a $25 million financing to Papua New Guinea (PNG) to expand networks for drinking water in towns across the country and in the capital Port Moresby city. The project aims to bring steady supplies of potable water to an extra 400,000 people in Papua New Guinea.

The EIB Global support takes the form of a loan to the government of Papua New Guinea, the most populous Pacific island nation with more than 10 million inhabitants. State-owned utility Water PNG will carry out the project.

This concessional loan is supported by the European Union with a €13.4 million investment grant and €3 million for expert help to implement the project, in line with the EU’s Global Gateway investment strategy.

Only about a fifth of Papua New Guinea’s population has access to reliable water services. The EIB Global loan will finance new water connections in underserved urban areas and reduce water losses in Port Moresby. This in turn will support national efforts to increase urban water coverage to 95% by 2030.

“Our financing will help Papua New Guinea extend clean, reliable water services to more communities, improve living conditions and support more resilient and sustainable growth across the country,” said EIB Vice-President Ambroise Fayolle, who oversees its operations in the Pacific region.

“Investment in water systems is essential to improving public health and strengthening long-term development.”

The financing agreement was announced today, Tuesday 2nd June during the EU–Papua New Guinea Business Forum in Port Moresby city.

This project is part of Global Gateway, the EU’s external investment strategy for sustainable development.