Development aid in Papua New Guinea
An overview of development aid in Papua New Guinea, including the country’s main aid donors and types of aid.
Lae’s Nadzab Tomodachi International Airport was redeveloped with Japanese aid funding. Credit: BAI
According to the PNG Treasury, the country received K2.73 billion in donor aid (composed of grants and loans) in 2025, a 25 per cent increase from the previous year. It estimated that PNG would receive K3.17 billion in aid in 2026, a 16% increase from 2025.
Profiles of PNG’s major aid donors follow.
Australia
Australia is PNG’s largest aid donor, providing an estimated K1.32 billion in total development aid to PNG in 2025.
Australia’s aid program that three stated goals: promoting effective governance, enabling economic growth and enhancing human development.
Key programs and projects delivered under Australia’s aid program include the PNG-Australia Governance Partnership, the Economic and Social Infrastructure Program, the Coral Sea Cable System, the Transport Sector Support Program, the Law and Justice program and the Australian Council for Agricultural Research’s PNG program, which focuses on enhancing PNG’s agriculture, fisheries and forestry sectors. More recently, it has began funding the upgrade of PNG’s ports through loans provided by the Australian Infrastructure Financing Facility for the Pacific.
With Japan, the United States and New Zealand, Australia is also a member of the Papua New Guinea Electrification Partnership, which has the stated goal of providing 70% of Papua New Guineans with access to electricity by 2030. Some of Australia’s support for this program is expected to be delivered through the Australian Infrastructure Finance Facility for the Pacific (AIFFP).
Australia’s Department of Foreign Affairs and Trade is the main coordinating agency for Australia’s aid program in PNG.
United Nations
The UN is a major donor to Papua New Guinea. In 2025, it dispersed K190 million in aid to PNG through various UN agencies.
The UN’s aid efforts in PNG are directed by a joint partnership document, the United Nations Sustainable Development Cooperation Framework 2024 – 2028, which is broadly aligned to PNG’s sustainable development goals.
Recent programs funded under the four aid pillars of ‘People, Peace, Prosperity and Planet’ include vaccination, hygiene and reproductive health programs, support for the 2019 Bougainville independence referendum, support for financial inclusion and market access support for PNG’s coffee sector.
The UN has an office in Port Moresby, which serves as a central hub for its agencies in PNG.
China
China has been a significant aid donor to Papua New Guinea over the the past decade. Chinese aid often takes the form of infrastructure or construction projects funded by concessional loans or donations. In 2025, it provided K298 million in aid, including loans provided by the China EXIM Bank and China Construction Bank.
Papua New Guinea signed up to China’s Belt and Road Initiative in 2018, a move aimed to boost PNG’s ‘trade, energy, infrastructure and industrial production capacity’.
Recent Chinese aid-funded projects include the Kokopo Town Sewerage Project, Butuka Academy of Papua New Guinea, and the International Convention Centre in Port Moresby.
China’s official development aid organisation is the China International Development Cooperation Agency (CIDCA).
United States
The United States has traditionally been an important donor to PNG, providing around US$300 million (K1.3 billion) in total aid to the country since 2000, according to the US Government’s website for foreign assistance data. Aid peaked in 2024 at US$68 million, including US$11 million in military funding, but looks to have fallen back to US$19 million in 2025, according to partial data for the year.
Programs delivered under US aid programs have included the K66 million Lukautim Graun (care for the environment) project, support for women entrepreneurs, disaster preparedness and support for HIV/AIDs.
With Australia, Japan and New Zealand, the US is also a member of the Papua New Guinea Electrification Partnership, which has the stated goal of providing 70% of Papua New Guineans with access to electricity by 2030. In 2019, the US initiated a 5-year US$60 million program in support of this partnership.
New Zealand
New Zealand disbursed K45 million in aid to PNG in 2025.
New Zealand’s aid to PNG prioritises investment in economic sectors and infrastructure, health, education, law and justice.
With Australia, the United States and Japan, New Zealand is also a member of the Papua New Guinea Electrification Partnership, which has the stated goal of providing 70% of Papua New Guineans with access to electricity by 2030. Its activities in this partnership include co-financing a line extension from the Ramu grid in the Tsak Valley in Enga Province.
The coordinating agency for NZ aid in PNG is its Ministry of Foreign Affairs and Trade.
Japan
Japan has had an ongoing aid program in PNG since 1974. It spent 189.18 billion Yen (K6.23 billion) on PNG aid between 1974 and 2018. It disbursed K142 million to PNG in 2025.
Its aid program is intended to align with the development objectives of PNG’s national planning strategy.
Its program has three areas of focus: strengthening the foundation of economic growth, the improvement of social services, and the environment and climate change.
Key projects delivered under this program have include the redevelopment of Nadzab Tomodachi International Airport in Lae (completed in 2023), the Ramu Transmission System Reinforcement Project, the rehabilitation of Alotau’s town market and fisheries facility, and the Port Moresby Sewerage System Upgrading Project.
With Australia, the United States and New Zealand, Japan is also a member of the Papua New Guinea Electrification Partnership, which has the stated goal of providing 70% of Papua New Guineans with access to electricity by 2030.
The coordinating agency for Japanese aid in PNG is the Japan International Cooperation Agency (JICA).
