Our economic assistance is designed to help PNG better convert its natural endowments into sustained broad-based growth, and create a more diversified economy, while maintaining economic stability. To support PNG's economic growth and prosperity, Australia focuses investments on:
- Economic stability: supporting improved macro-economic management, public financial management and economic reform.
- Infrastructure for growth: investing in high quality resilient and accessible infrastructure to drive economic growth.
- Shared and equitable benefits of growth: increasing trade, agriculture, and supply chains for more diverse livelihoods.
We are expanding our investment in PNG's economic and social infrastructure from around $200 million per year to over $250 million per year from 2025-26. Our investments are directed towards priority projects and stress quality and sustainability. Australia has also committed over $1 billion in highly concessional financing (loans and grants) for high-quality infrastructure development across PNG through the Australian Infrastructure Financing Facility for the Pacific (AIFFP).
As PNG's largest trading and commercial partner, we will continue to grow the trade and investment relationship to drive sustainable and efficient economic growth. Through the Australia-PNG Economic Partnership, we are working with PNG to promote agricultural trade by strengthening value chains in PNG's key export sectors. We are also:
- strengthening biosecurity quality, standards and capacity, and supporting market access and entry for selected products to boost PNG exports to Australia and the region. Through the PNG Biosecurity Twinning Program (2024-27), the Australian Department of Agriculture, Fisheries and Forestry is collaborating with PNG’s National Agricultural Quarantine and Inspection Authority (NAQIA) to strengthen and align regional biosecurity preparedness.
- strengthening PNG’s diagnostic capabilities through partnerships with CSIRO's Australian Centre for Disease Preparedness and the building of a polymerase chain reaction (PCR) laboratory in Port Moresby. The CSIRO partnership supporting PNG’s diagnostic capabilities and the new PCR facility will support PNG’s ability to strengthen export opportunities.
- continue to provide technical advice and capacity building support under the PNG Institutional Partnerships Program (PIPP) to advance our common economic objectives.
Related links
- Australia-PNG Development Partnership Plan 2024-2029
- Comprehensive Strategic and Economic Partnership
Australia-Papua New Guinea Economic Partnership (APEP)
The Australia-Papua New Guinea Economic Partnership (APEP) is an eight-year investment (2022-2030) to assist PNG in its efforts to achieve sustainable and inclusive growth to lift the standard of living for all Papua New Guineans. The Partnership will work across four areas of engagement – macroeconomic stability; public financial and revenue management systems; more efficient markets; and economic dialogue and partnerships – with gender as a cross-cutting issue. Agriculture and resources are sector focal areas, and Western Province is the focus of the Partnership's place-based approach.
Related documents
Australia-Papua New Guinea Economic Partnership (APEP) Midterm Report
PNG-Aus Transport Sector Support Program (TSSP)
The Transport Sector Support Program (TSSP) commenced in 2007 as a commitment to support the Government of PNG to achieve a safer, more reliable transport system, enabling economic and social development. This investment provides capacity building and technical assistance to transport sector agencies in the road, maritime and aviation sectors for improved governance and reform; support services for the transport sector coordination body – Transport Sector Coordination, Monitoring, and Implementation Committee (TSCMIC) and Secretariat; and policy advice, strategic direction, and financial and procurement oversight for the program.
Roads are critical to connecting communities to services and markets and allowing businesses to grow. As part of our bilateral program, under the Transport Sector Support Program Australia maintains more than 1,850 kilometres (or close to 40 per cent) of Papua New Guinea's national priority roads.
Economic and Social Infrastructure Program (ESIP)
The Economic and Social Infrastructure Program (ESIP) improves the prioritisation, quality, and sustainability of infrastructure investment in PNG. The investment works at the project, sectoral and national levels. It leverages project-level activities to create opportunities for deeper engagement in sector-wide planning and policy and enables the identification and resolution of broader national level policy, financing and planning reforms and partnerships necessary for sustained long term change.
Related documents
| Name of document | Year published | Type |
|---|---|---|
| PNG Economic and Social Infrastructure Program (ESIP), Design Document, April 2018 | 2018 | Design |
| PNG's Economic and Social Infrastructure Program (ESIP) Midterm Report | 2022 | Review and Management response |
Incentive Fund
The Incentive Fund is an infrastructure program that has been in operation since 2000 and is the longest running Australian aid program in PNG. It provides high-performing organisations with grants to improve service delivery or provide economic opportunities for the people of PNG. This investment supports activities in a wide range of sectors including health, education, water and sanitation, agriculture and rural development but with a new focus on innovation and private sector development. Over four phases of implementation from 2000 to 2021, the Incentive Fund delivered $270 million in development projects across PNG. A fifth phase began in July 2023 with a value of $150 million over 8 years.
Related documents
| Name of document | Year published | Type |
|---|---|---|
| Incentive Fund Independent Progress Report | 2012 | Review |
| Incentive Fund IV Design | 2014 | Design |
| PNG – Australia Incentive Fund: Review of Phase 1 to 4 (2021) | 2024 | Review and management response |
Related links
Australian Infrastructure Financing Facility for the Pacific (AIFFP)
The Australian Infrastructure Financing Facility for the Pacific (AIFFP) is partnering with the PNG Government and the private sector, to deliver lasting benefits for communities and the economy by responding to critical infrastructure priorities. The AIFFP finances quality, climate resilient infrastructure investments that adhere to robust social and environmental safeguards and maximises development outcomes, like job opportunities, during construction. The AIFFP has already committed over $1 billion in financing to support the delivery of infrastructure works in PNG.