Papua New Guinea to expand drinking-water networks with $25 million in financing from EIB Global

This article is published in association with United Nations.

• EIB Global provides Papua New Guinea with €25 million concessional loan combined with a €16.4 million financial contribution by the European Union to increase availability of drinking water countrywide.
• Project to deliver potable water to extra 400,000 people in the country.
• This project is part of Global Gateway, the EU’s external investment strategy for sustainable development.

EIB Global, the development arm of the European Investment Bank (EIB), is providing $25 million in financing to Papua New Guinea to expand networks for drinking water in towns across the country and in the capital Port Moresby. 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 in Port Moresby during the EU–Papua New Guinea Business Forum.

European Commissioner for International Partnerships Jozef Síkela stated: “The new loan agreement, supported by the €16.4 million EU financial contribution, to improve access to clean water for an additional 400,000 people in Papua New Guinea shows that the partnership between the European Union and Papua New Guinea is delivering real impact. In line with the EU’s Global Gateway investment strategy, we work together to build modern infrastructure, create jobs, boost health, climate resilience, prosperity and quality of life for local communities.”

Papua New Guinea Secretary for Treasury Andrew F. Oaeke said:“The European Investment Bank is a valued partner in Papua New Guinea’s development journey. This framework loan under the EU’s Global Gateway strategy reflects our shared commitment to high-quality, sustainable infrastructure. Through this investment, we are strengthening the resilience of our urban water services against climate change and ensuring that our provincial centers are equipped to support a growing population and a vibrant, rural-based economy.”

EIB Global’s financing forms part of a $77.3 million Papua New Guinea water supply and sanitation programme, which the World Bank has supported since 2017. While the World Bank is financing works in six municipalities, EIB Global will support other towns.

Background information

EIBGroup 

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 Groupin 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.