Western plan would see 70 per cent of population getting electricity by 2030, up from current 13 per cent
The United States and three of its allies on Sunday unveiled a US$1.7 billion plan to provide electricity and internet to much of Papua New Guinea (PNG), the first step of a plan that will counter China’s spending in the region.
Japan, Australia and New Zealand will join the US in funding the programme as reports emerged of tension over the wording of a final statement to be issued at the end of an Asia-Pacific Economic Cooperation (Apec) summit in the PNG capital Port Moresby.
China had its success on Sunday, with a Tongan official saying the Pacific nation had signed up to the “Belt and Road Initiative” and received a five-year deferral on a concessional loan just before it was expected to commence principal repayments.
The Western allies’ plan would see 70 per cent of PNG’s population getting electricity by 2030, from 13 per cent now, and was showcased as a demonstration of commitment to the strategically important Pacific region.
“We trust that this announcement… is proof that America and our businesses are investing in this region as never before,” US Vice-President Mike Pence told a news conference.
He said it was the first project under a cooperation agreement between the US, Japan and Australia to provide capital for infrastructure in the Pacific amid the West’s concern about Chinese influence in the region.
