PNG and Japan have signed papers for a K246 million loan to upgrade the Port Moresby sewerage system project.
Foreign Affairs and Trade secretary Michael Maue signed the papers last Friday with Japanese Embassy charge d’affaires Kazunori Kawada.
Mr Maue said K209 million would be borrowed from the Japan International Bank of Development Cooperation (JBIC) while K37 million would be provided by PNG Government as counterpart funding.
He said he was pleased to finalise the loan following long discussions on the project proposal since 2004.
The signing of these documents would enable both governments to start negotiations on the loan component.
Mr Maue said the Port Moresby sewerage upgrading project was an important infrastructure developmental project for the city residents.
He noted that this was another impact project from the Japanese government, demonstrating the growing and significant level of bilateral relations existing between Japan and PNG.
Mr Kawada said his government was pleased to assist one of its closest bilateral allies in the Pacific in its development endeavours.