EIB Global Financing to Help Strengthen Urban Water Systems and Climate Resilience in Papua New Guinea

EIB Global Financing to Help Strengthen Urban Water Systems and Climate Resilience in Papua New Guinea

(IN BRIEF) Papua New Guinea will expand and strengthen drinking-water networks with the support of $25 million in concessional financing from EIB Global, combined with a €16.4 million European Union contribution. The project will be implemented by Water PNG and is expected to provide reliable potable water access to an additional 400,000 people, while also reducing water losses in Port Moresby. The investment responds to a major infrastructure need, as only about one-fifth of the country’s population currently has dependable water services. It also supports Papua New Guinea’s goal of reaching 95% urban water coverage by 2030. The initiative is part of the EU’s Global Gateway strategy and sits within a broader $77.3 million water supply and sanitation programme supported by the World Bank, with EIB Global focusing on towns beyond the six municipalities financed by the World Bank.

(PRESS RELEASE) LUXEMBOURG, 2-Jun-2026 — /EuropaWire/ — Papua New Guinea is set to accelerate improvements to urban drinking-water access through new financing from EIB Global, which will support the extension and upgrading of water networks in towns across the country and in Port Moresby. The $25 million concessional loan is expected to help bring safer and more dependable water supplies to an additional 400,000 people, while strengthening essential infrastructure in one of the Pacific region’s most populous nations.

The project will be delivered through Water PNG, the country’s state-owned water utility, and will focus on expanding household and community connections in underserved urban areas. In Port Moresby, the investment will also target water losses, helping improve the efficiency of existing systems and making better use of available resources.

The European Union is providing additional support for the initiative through a €16.4 million financial package. This includes a €13.4 million investment grant and €3 million in technical assistance, which will help guide the implementation of the works. The combined support falls under the EU’s Global Gateway strategy, which aims to mobilise sustainable infrastructure investment and strengthen long-term development partnerships worldwide.

Access to reliable water services remains a major development challenge in Papua New Guinea. Only around 20% of the population currently has dependable water supply, making investment in water networks a priority for public health, urban development and climate resilience. The new financing is designed to support the country’s ambition to lift urban water coverage to 95% by 2030.

The agreement was announced in Port Moresby during the EU–Papua New Guinea Business Forum, highlighting the role of European development finance in supporting the country’s infrastructure priorities. EIB Vice-President Ambroise Fayolle said the investment would help more communities gain access to clean and reliable water while contributing to healthier living conditions and more sustainable growth. He also noted that strong water systems are central to public health and long-term development.

European Commissioner for International Partnerships Jozef Síkela said the EU-backed financing shows how the partnership with Papua New Guinea is producing practical benefits for local communities. He linked the project to Global Gateway’s wider objectives of supporting modern infrastructure, jobs, health, climate resilience, prosperity and quality of life.

Papua New Guinea Secretary for Treasury Andrew F. Oaeke described the European Investment Bank as a valued development partner and said the framework loan reflects a shared commitment to sustainable, high-quality infrastructure. He also pointed to the importance of preparing urban water services for climate-related pressures and supporting provincial centres as the country’s population and economy continue to grow.

The EIB Global operation forms part of a wider $77.3 million water supply and sanitation programme in Papua New Guinea that has been supported by the World Bank since 2017. Under this broader programme, the World Bank is financing works in six municipalities, while EIB Global will help extend improvements to other towns.

The European Investment Bank has worked with Papua New Guinea since 1978 and has built a portfolio of more than €250 million in the country. Its previous support has covered sectors including transport, energy, water, agriculture, mining and private sector development. More recent investments have focused on resilient infrastructure, including nine climate-resilient bridges that have improved access to markets and essential services.

EIB Group  

The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States. Active in more than 160 countries it is one of the largest multilateral development banks in the world. Outside the European Union, the EIB Group is devoted to increasing the impact of international win-win partnerships and is a key partner of the EU’s Global Gateway strategy. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives.

Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations. The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium-sized businesses and startups across Europe.

Photos of the EIB Group’s representatives and headquarters, logo files and video B-roll for media use are available here.

EIB Group in Papua New Guinea

The EIB has a long-standing partnership with Papua New Guinea, financing operations in the country since 1978. To date, the EIB’s total portfolio in Papua New Guinea exceeds €250 million, supporting both public and private sector investments, notably in transport, energy, water, agriculture, mining and private sector development. Recent EIB support has focused on strengthening resilient infrastructure, including the construction of nine climate-resilient bridges. These investments have improved connectivity, providing safer and more reliable access to markets and essential services for communities across the country.

About Global Gateway

Global Gateway is the EU’s positive offer to reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems. The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions. This approach aims to mobilise up to €400 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.

Media Contact:

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SOURCE: European Investment Bank