The Asian Development Bank (ADB) and Air Niugini signed a $35.8 million financing package to help Papua New Guinea’s national airline modernize its fleet, improve efficiency, and raise safety standards, ADB said. The deal will boost PNG’s domestic and international connectivity and support social and economic growth across the island nation.
The package includes a $19 million loan from ADB’s capital resources and a $16.8 million loan from the Leading Asia’s Private Sector Infrastructure Fund 2 (LEAP 2), administered by ADB. The money will go toward buying six Airbus A220-100 aircraft to replace older, less efficient planes. Officer-in-Charge of ADB’s Papua New Guinea Resident Mission Soon Chan Hong said the project shows ADB’s commitment to sustainable and inclusive development in PNG. “By supporting Air Niugini’s fleet renewal, we aim to improve the country’s connectivity, boost economic growth, and enhance air travel safety in the Pacific region,” Hong said.
Air travel is crucial for PNG’s economy, as the country’s rugged terrain limits land transport options. Air Niugini plays a central role in linking communities domestically and internationally. The new aircraft are expected to be 20 percent more fuel-efficient than older models, cutting costs and environmental impact.
LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from the Japan International Cooperation Agency. It backs sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and expand access to affordable health care, education, and communication services across ADB’s developing member countries. Founded in 1973, Air Niugini is PNG’s national airline and a wholly state-owned enterprise. It operates an extensive domestic network and international routes to Australia, Asia, and the Pacific, with a focus on safe, reliable, and efficient service.
