On 21st January the signing ceremony of a Memorandum of Understanding took place between the Australian and PNG governments. This MOU was for an interest grant and concessional 25-year loan (totalling PGK1.48 billion/AUD580 million) for the development of PNG port infrastructure.

This historic agreement was signed between the Right Honourable Prime Ministers Scott Morrison (video conference) and James Marape.

In their speeches, Hon. William Duma (the Minister for State Enterprises), HE. Jonathan Philp (the Australian High Commissioner) and Kepas Wali (Chairman of PNG Ports) highlighted the need for port infrastructure development and identified areas where the funds would be allocated. They also reiterated the strong relationship between Australia and PNG.

PNG’s port infrastructure was built by the Australian government in the late 1960s and 70 before PNG’s independence. Since that time and with the exception of the recent development of Motukea port in Port Moresby and the Lae Tidal Basin, there has been very little maintenance. As a result, outports in the maritime provinces have fallen into disrepair. This injection of funds will have an immediate positive impact on the condition of these outports. A significant percentage of the funds will also go to the expansion of the Lae Tidal Basin facility.

The ceremony was held at APEC Haus in Port Moresby and was attended by dignitaries from the Papua New Guinean government, members of the Australian High Commission Mission, PNG Ports, and users of the PNG Ports facilities.

The press were in attendance in strength and following the signing of the MOU, PM James Marape took questions from the floor. This was followed by a traditional toast to the strong bonds that exist between Australia and PNG.