PORT MORESBY, PAPUA NEW GUINEA - ADB President Haruhiko Kuroda met with Papua New Guinea Deputy Prime Minister Don Polye, government ministers, and other senior government officials during his first visit to the country, as part of efforts to further strengthen ADB's already solid relationship with PNG.

ADB is currently working with PNG to help implement PNG's Medium Term Development Strategy (MTDS), as a basis for ADB's Country Strategy and Program (2006-2010) for PNG which aims to help PNG achieve its medium-term development goals.

ADB's Papua New Guinea's Strategy and Program anticipates total grant and loan financing of US$290 million for 2006-2008 with one major new priority investment per year supplemented by grant assistance and additional funding for successful ongoing projects. ADB supports the PNG Government's plan to reduce overall borrowing and focus on projects with high returns.

Some of the medium-term goals under the program include combating the spread of HIV/AIDS, private sector development, and making improvements to the transport sector.

"ADB is committed to helping PNG achieve economic self-reliance by pursuing a private sector-led economy," said Mr. Kuroda. "Private sector development is a key focus area for ADB, and PNG shows strong potential for it."

The rising incidence of HIV/AIDS in PNG remains a concern. A US$15-million ADB grant is currently supporting a new project to help the PNG Government control the spread of the infection. The project focuses on rural areas where communities are centered on mines, plantations, fisheries, and other high risk areas for the spread of the infection.

The latest Asian Development Outlook Report said PNG's economy grew 3.7% in 2006 mainly on strong commodity prices and favorable responses from mineral and agricultural sectors. The nation's relative stability and its sound economic management also contributed to last year's growth. Law and order issues remain a concern, while infrastructure needs should be strengthened, and public services delivered adequately for PNG's economy to expand at a faster rate.

PNG joined ADB in 1971, and as of end-2005 had already received a total US$927.6 million in assistance. The country's borrowing from ADB declined considerably in recent years, with only four new loan projects since 2001; a modest pick-up in lending levels is expected in the future.

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