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The Australian Government, ADB and the World Bank have been the main development partners contributing grant and loan finance for transport infrastructure projects, together with mainly grant technical assistance for project preparation and sector policy and implementation advisory services.

Others active in the sector are Japan (JICA) through bridge programmes and more recently China, through a specific road project supporting road access to the Ramu Nickel Project and new port at Basamuk Bay.

All three of the main development partners and JICA have indicated their intention to continue to support the development of the PNG transport sector. The Australian Government is currently reviewing the structure of its future support under the TSSP, which includes both project grant financing and advisory assistance. The form of technical assistance may change, but this review of the future funding envelope anticipates that the Australian Government will continue to give project investment support at similar levels as over the past five years and primarily in the roads subsector. The Australian Government’s financial assistance to road construction, rehabilitation and maintenance has averaged between K50 and K60 million annually, or 46% of the donor total support.

The ADB has been the second largest funder over the past decade but has increased its commitment to PNG through long term financing under its Multi-tranche Financing Framework (MFF) for main airport development (CADIP) and Highlands Region Road Improvement Programme (HRRIP). ADB is also supporting the port sector through Lae Port development and community shipping franchise services and small jetty construction through the CWTP. The Highlands Region Road Maintenance and Upgrading Project is also continuing under supplementary funding for the next few years covering second tier national roods and important provincial roads in the five Highlands Provinces. ADB’s support to the roads sector has been between K30 and K40million/year, or about 27% of the total donor assistance.

The World Bank’s recent activity has been through the Road Maintenance and Rehabilitation Project (RMRP) in six provinces outside of the Highlands, where its contribution has been around K23 million/year or about 18% of the donor assistance.

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