Global Gateway

The EU ‘Support to Rural Entrepreneurship, Investment and Trade in Papua New Guinea’ (EU-STREIT PNG) programme is with a budget of EUR 85 million the largest grant-funded initiative of the EU in the country and in the Pacific, implemented by a consortium of UN agencies under the lead of the Food and Agriculture Organization (FAO). The programme has improved the lives of the people from East Sepik and Sandaun provinces of Papua New Guinea, by focusing on increasing sustainable and inclusive economic development of rural areas through improved economic returns and opportunities from cocoa, vanilla and fishery value chains while strengthening and improving the efficiency of value chain enablers, including the business environment, and supporting sustainable, climate-proof transport and energy infrastructure development. Supported infrastructure development includes the installation of off-grid solar energy generation, clearing of waterways, rehabilitation of rural airstrips, and rehabilitation and maintenance of feeder roads.

The ‘Upgrading of Rabaul’s Green Port’ is a blending project for a total of EUR 60.3 million with a grant from the EU and loans from the European Investment Bank (EIB) and the French Development Agency (AFD), including a requested EFSD+ guarantee for the EIB loan. The project will provide consultancy services for construction and project management, technical assistance, capacity building, and partially funding civil works investments. Civil works encompass the rehabilitation and enhancement of the two port wharves, a maintenance dredging operation, establishment of a site-wide stormwater drainage network and upgrades to the water supply and sanitation network the acquisition of new equipment, and enhancement of port’s operations with a focus on green port principles. This will ultimately contribute to territorial cohesion, inter-island connectivity, and the preservation of PNG’s natural heritage.

The Water Wise Communities Blending Project for a total of EUR 40 million with a grant from the EU and a concessional loan from the European Investment Bank (EIB). The project will provide water sanitation and supply systems for two district towns, Wau Waria and Namatanai as well as addresses the critical infrastructural enhancements that are needed in and around Port Moresby. 

The programme also integrates Technical Assistance, funded by the EU Contribution EUR 3M, to establish a Project Management Unit (PMU) within Water PNG. The PMU will oversee implementation, procurement, and project monitoring.

The Solar Hybridisation Project is a blended financed project with the below contributions from EU, ADB, and The Japan Fund for the Joint Crediting Mechanism (JFJCM):

EUR 129 270 000 (USD 151 250 000) total action’s investment, of which

• EUR 85 470 000 (USD 100 000 000) ADB loan
• EUR 25 000 000 EU grant & TA & fees
• EUR 10 250 000 (USD 12 000 000) counterpart contribution (equity)
• EUR 8 550 000 (USD 10 000 000) JFJCM grant 

The project aims to reduce Papua New Guinea’s reliance on costly and polluting diesel generation by introducing solar photovoltaic (PV) and battery energy storage systems (BESS) in the off-grid provincial centers of Kavieng (New Ireland Province) and Wewak (East Sepik Province). Both towns are currently supplied by aging diesel power stations operated by PNG Power Limited (PPL), resulting in high fuel costs, operational unreliability, and vulnerability to fuel supply disruptions.

The PNG Energy Programme is a blended financed project where the EU intends to provide EUR 9 million and the French Development Agency (AFD) comes with a concessional loan of EUR 20 million. The proposed program aims to improve electricity supply through: (1) rehabilitation and automation of the Rouna hydroelectric complex (12 MW capacity restoration); (2) solar installations at Alotau (700 kWp) and Moitaka (2 MWp) to reduce diesel dependency; and (3) substantial capacity building for PPL teams on operations, maintenance, and network stability management.