Papua New Guinea faces challenges in providing quality infrastructure that meets the needs of its growing population and allows it to fulfil its growth potential.

To address these challenges, the Economic and Social Infrastructure Program (ESIP) is working with partners in Papua New Guinea to support improved planning, prioritisation, delivery, and sustainability of economic and social infrastructure. Priority infrastructure sub-sectors for the Program include energy (on-grid and off-grid electrification); telecommunications (including internet services), water and sanitation, and other priority social infrastructure. ESIP is also supporting DFAT and international partners to advance Papua New Guinea’s state-owned enterprise reform agenda, which is improving the operational performance and financial sustainability of state-owned enterprises and helping them deliver better services.

The Australian Government priorities of gender equity, disability and social inclusion (GEDSI), along with emerging priorities of localisation and capacity strengthening, climate change, disaster resilience and environmental and social safeguards are integrated across the program’s operations and activities.

Key program outcomes for ESIP are:

• An increased number of capital projects being effectively planned, managed, and implemented by relevant Government of PNG agencies.
• Focal sectors have evidence based prioritized infrastructure plans and processes for their implementation and review.
• A legislative and administrative reform agenda exists to improve policies, regulatory structures, and planning for infrastructure investment.

Project results include:

• Support and advocate for the social and economic empowerment of women, girls and groups who are excluded from social, political and communal life in Papua New Guinea particularly regarding infrastructure development.
• Provide stabilization, intensification, and extension to energy grids; support towards cleaner and more reliable electricity services to communities not connected to major grids; and supporting the PNG Electrification Partnership.
• Establish and manage off-grid energy grant program, Pawarim Komuniti, with around 10,000 solar home kits to remote households, 770 outdoor solar streetlights, 60 indoor solar lighting systems, and 47 solar fridges installed in rural and remote communities in Papua New Guinea.
• Support the Department of Information, Communication and Technology to advance Papua New Guinea’s digital government agenda, enhance cyber security, and draft Government Digital Transformation Bill.
• Support transformation of government-owned enterprises responsible for critical services including energy, water, telecommunications, ports, and aviation.
• Provide social Infrastructure activities such as redevelopment of Kimbe Market, redevelopment of Daru General Hospital, redevelopment of Lae Main Market, and construction of a new, level-3 urban health clinic in Hanuabada, Port Moresby.

Project updates:

• Lae Main Market Redevelopment - Progress Update May 2025