A high-level discussion on Papua New Guineas development progress between PM James Marape and a senior World Bank official ended on a high note with both parties expressing satisfaction on the countryโs development trend.
World Bank Managing Director for operations Ms Anna Bjerde commended PNGโs development progress, fiscal reform and the enhanced partnership with the World Bank.
Ms Bjerde was accompanied by senior World Bank leadership.
Significant Scale-Up of Support
During the meeting, Prime Minister Marape highlighted the significant upscaling of World
Bank support to Papua New Guineaโfrom US$475 million in 2023 to US$709 million in 2025.
This increase reflects growing international confidence in PNGโs reform agenda and
underscores the countryโs strategic importance in the Pacific region.
Key Projects and Initiatives
The Prime Minister acknowledged the World Bankโs crucial assistance in key sectors such as energy, education, youth employment, rural service delivery, and human capital
development. Among the flagship projects discussed were:
โข A US$204 million renewable energy project supporting clean and green energy
access;
โข A US$160 million education sector project to strengthen learning outcomes and
expand access;
โข A US$100 million second phase of the Rural Service Delivery Project to improve
basic services in remote areas;
โข Ongoing urban and youth-focused programmes in Lae, NCD, and other urban
centres.
โThese investments are not just about infrastructure โ they are about improving lives,
creating jobs, and lifting our people out of poverty,โ Prime Minister Marape said.
Economic Reform and Fiscal Responsibility
Prime Minister Marape reaffirmed his governmentโs target to return to a balanced budget by 2027, the first since 2010. He noted that over the past five years, the national budget
deficit has been reduced by approximately K1 billion each year, and that this trend will
continue into 2026.
โWe are charting a bold path to economic independence. After 2027, our focus will shift
from borrowing to aggressive debt repayment, and by 2033โ2035, we aim to be debt-free.
By 2045, we want to be a net contributor to the World Bank and IMF, not just a borrower,โ
Prime Minister Marape stated.
He also briefed Ms Bjerde on the Governmentโs economic vision, which he previously
shared with the IMFโs Deputy Managing Director in Washington, reaffirming PNGโs commitment to grow the economy through trade rather than aid.
Support for Broader Development Goals
Ms Bjerde welcomed Papua New Guineaโs ambitions and acknowledged the Governmentโs progress. She commended the countryโs strong fiscal direction and pledged the World Bankโs continued support, including in debt restructuring and climate resilience
efforts.
She also expressed interest in supporting the Governmentโs broader goals of labour
mobility, education partnerships, and poverty alleviation, while reaffirming the World Bankโs readiness to collaborate on clean energy expansion and environmental protection.
Future Engagements
Prime Minister Marape expressed appreciation for the World Bankโs growing engagement
in Papua New Guinea and extended an invitation to host the President of the World Bank in
a future visit. He stressed that partnerships must be grounded in long-term impact, not short-
term relief.
โOur ambition is clear: to grow our economy, create more opportunities for our young people, protect our environment, and become a stronger, more independent nation that contributes to the global development community,โ he concluded.