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Safer Water and Better Sanitation for PNG Will Reduce Health Hazards

MANILA, PHILIPPINES (14 December 2000) - Water supply and sanitation facilities will be upgraded in six towns in Papua New Guinea (PNG) as a result of a project for which a US$15.3 million loan was approved today by the Asian Development Bank.

The Provincial Towns Water Supply and Sanitation Project will provide more clean water for the towns of Kerema, Mendi and Wabag and new or rehabilitated sewage services for Alotau, Madang and Mt. Hagen.

In addition, the project will strengthen the capability of the PNG Waterboard, the executing agency, in the areas of operation and maintenance, and environmental management of its operations. The board will also have clearer sector planning and regulatory responsibilities as a result.

At present, less than half the urban dwellers have access to clean water and only one in five has a sewage connection. Defecating in the open is the only option for many communities in the urban fringes and most of the poorer settlements. Polluted water and an unsanitary environment expose people to intestinal diseases like diarrhea and typhoid.

"There is a strong need to improve the unsanitary conditions in these towns," says ADB project officer Daniele Ponzi. "We are helping the Government provide low-cost and sustainable solutions to the problem."

In addition, ADB agreed today to administer a project to provide low-cost sanitation facilities and a community health awareness program in PNG. This will be financed by a US$1.74 million grant from the Japan Fund for Poverty Reduction.

The total cost of the project is US$23.3 million. Aside from ADB, co-financiers include the Government (US$6.1 million) and AusAID (US$1.8 million). The ADB loan will come from its concessional Asian Development Fund. It will be repayable in 32 years, including a grace period of eight years. Interest will be one percent per annum during the grace period and 1.5 percent per annum thereafter. The project is expected to be completed by the first quarter of 2005.

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