Australia will spend more than half a billion dollars upgrading ports in Papua New Guinea in a bid to strengthen trade ties and make sure critical infrastructure in the Pacific nation is safeguarded.
Prime Minister Scott Morrison and PNG Prime Minister James Marape met virtually on Friday to sign agreements for $580 million in upgrades and refurbishments to several priority ports, through a series of loans and grants.
Prime Minister Scott Morrison has signed a deal to upgrade Papua New Guinea’s ports.Credit:Alex Ellinghausen
The funding comes as Australia has committed to spending more in the Pacific to counter the influence of China, which has been accused of using “debt trap diplomacy” to saddle poorer nations with expensive projects they cannot afford.
“This is about enabling, supporting the sovereignty and the independence and the self-sufficiency of Papua New Guinea, and that has always been our absolute goal with all of our support interventions and assistance,” Mr Morrison said.
“This investment will improve trade and connectivity in the region, support economic recovery from COVID-19 and help safeguard the development of critical infrastructure in Papua New Guinea.”
Some of the ports are more than 70 years old. The investment will position Lae Tidal Basin, Papua New Guinea’s largest port, to become a regional hub to the Pacific by improving its capacity to service dedicated container ships from southeast Asia.
The agreements will also see works undertaken on Kimbe on the north coast of New Britain, Lorengau on Manus Island, Kavieng in New Ireland, Vanimo in West Sepik and Wewak in East Sepik.
Mr Marape said the deal continued the support rendered under the Papua New Guinea-Australia Comprehensive Strategic and Economic Partnership arrangement.
“Upgrades to these key ports will facilitate trade and investment opportunities for PNG local products to reach designated domestic and international markets, create local employment, stimulate economies of scale, and build business confidence to grow our economy,” he said.
PNG is one of the world’s poorest countries but is sandwiched between two of the world’s top 20 economies in Australia and Indonesia. Australia has increased its focus on the Pacific, after several high profile moves by China to invest in infrastructure in the region.
In 2018, Australia joined the US, New Zealand, Canada and Japan in a joint deal funding the electrification of a significant part of the Pacific nation, which at the time had more than 80 per cent of its 7.5 million people living without access to reliable electricity.
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