World Bank approves $100 million to expand rural services in Papua New Guinea

The World Bank Group has approved a US$100 million Rural Service Delivery Project Phase 2 (RSDP-2) to improve access to basic services and strengthen local planning across rural Papua New Guinea, according to a press release issued on August 10, 2026. Announced from Port Moresby, the initiative will scale a community-led development model to 12 provinces. The program is expected to benefit more than one million people. It places rural communities at the center of decision-making. The support aims to expand access to health, education, and essential services while creating job opportunities.

RSDP-2 builds on the first phase of the program, which reached more than 291,000 people across five provinces. That earlier phase showed that empowered communities can deliver services and infrastructure effectively and transparently. It also demonstrated that community-led approaches can lower delivery costs. The results provided the foundation for a larger second phase. The new program extends this proven model to a broader geographic footprint.

Under RSDP-2, communities will identify, plan, and implement projects most relevant to them. These include clean water, sanitation, health facilities, classrooms, rural roads, electricity, and livelihood activities. The design ensures that investments respond to local priorities and the needs of women, youth, and vulnerable groups. The program will support at least 800 community infrastructure and service investments. It will reach more than one million people, including 300,000 living in remote areas that are often underserved by development programs.

“RSDP demonstrates what can be achieved when communities play a leading role in shaping their own development,” said Han Fraeters, World Bank Division Director for Papua New Guinea, Solomon Islands and Vanuatu. The program will also help strengthen the Department of Provincial and Local-level Government Affairs, local-level governments, and Ward Development Committees. This support aligns with the Government’s vision for stronger community participation in planning and service delivery. It will provide a transparent platform for local governments, communities, and development partners. Together, they can continue collaborating effectively on rural development.

Financed through the World Bank Group’s International Development Association (IDA), RSDP-2 is expected to create over 39,000 job opportunities through community infrastructure works. It will also expand economic opportunities across rural areas. The program will support climate-resilient investments to help communities prepare for and respond to natural disasters. It also addresses other climate-related challenges facing rural populations. The initiative reinforces the World Bank Group’s commitment to inclusive, community-driven development in Papua New Guinea.