2025.12.17
On December 9, the Asian Development Bank (ADB) signed a loan agreement for a total 35.8 million US dollars with Air Niugini Limited (Air Niugini), Papua New Guinea's national airline, of which 16.8 million US dollars will be provided through LEAP2.
This facility is delivered in partnership with Export Finance Australia (EFA), which is also providing a matching facility for up to 35.8 million US dollars.
LEAP2 is an ADB-managed fund with a commitment of up to 1.5 billion US dollars from JICA. It focuses on providing financing for high-quality private-sector infrastructure projects in ADB’s developing member countries in Asia and the Pacific. Projects supported by LEAP2 include initiatives to reduce carbon emissions, improve energy efficiency, and enhance access to affordable healthcare, education, and telecommunication services.
The proceeds of this loan will be used by Air Niugini to acquire six Airbus A220-100, replacing older models with safer, more fuel-efficient planes. Due to Papua New Guinea's challenging terrain and limited ground transportation, air transport is critical to its economy. Air Niugini plays a central role in connecting domestic regions and linking the country with international destinations. The new aircraft will improve Air Niugini’s operational capacity and provide safer, more comfortable transportation services. Furthermore, the new aircraft are expected to deliver over 20% better fuel efficiency compared to the older models, reducing costs and environmental impacts.
This project will introduce the aircraft that is highly safe, environmentally friendly, and economically superior in terms of life cycle cost, thereby contributing to the promotion of "Quality Infrastructure Investment."
The project will also contribute to Social Development Goals 9 (Industry, innovation and infrastructure) and 13 (Climate action).
Related Link:
JICA: Signing of “Asia's Private Infrastructure Fund 2 (LEAP 2)”: Promoting quality infrastructure investment in Asia ｜ News＆Publication - JICA
ADB:
ADB, Air Niugini Sign $36 Million Deal to Modernize Fleet and Improve Air Transport in Papua New Guinea | Asian Development Bank
Australia: Australia’s supports Papua New Guinea’s national airline upgrades | Minister for Trade and Tourism
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