15 Mar 2019

US and NZ still committed to PNG electricity project

From , 5:03 am on 15 March 2019

New Zealand and the US say they are committed to the Papua New Guinea Electrification Partnership despite the PNG government's awarding of major energy contracts to Chinese companies.

The US $1.7 billion partnership, which also involves Australia and Japan, aims to electrify 70 percent of PNG by 2030.

It was announced with much fanfare at November's APEC leaders summit in Port Moresby as part of a suite of aid announcements by Australia and its allies, widely seen as an effort to counter Chinese activity in the region.

However, PNG's opposition has claimed that the US was considering pulling out of the partnership because the government has been awarding contracts to companies from China without open and competitive tendering.

Johnny Blades gave this update.

Papua New Guinea's Prime Minister Peter O'Neill displays a document for electricity projects signed by Australia's Prime Minister Scott Morrison, Japan's Prime Minister Shinzo Abe, US Vice President Mike Pence and Prime Minister Jacinda Ardern.

Papua New Guinea's Prime Minister Peter O'Neill displays a document for electricity projects signed by Australia's Prime Minister Scott Morrison, Japan's Prime Minister Shinzo Abe, US Vice President Mike Pence and Prime Minister Jacinda Ardern. Photo: AFP