MANILA, Dec. 9 (Xinhua) -- The Asian Development Bank (ADB) and Air Niugini Limited (Air Niugini) have signed a 35.8-million-U.S.-dollar financing package to help modernize Papua New Guinea's (PNG) national airline's fleet, improving its efficiency and further raising safety standards, the multilateral lender said on Tuesday.
According to the bank, this initiative will enhance PNG's domestic and international connectivity and contribute to the island nation's social and economic growth.
The package includes a 19-million-dollar loan from ADB's capital resources and a 16.8-million-dollar loan administered by ADB from the Leading Asia's Private Sector Infrastructure Fund 2.
The funds will finance the purchase of six Airbus A220-100 aircraft, replacing older models with more reliable, fuel-efficient planes.
Air travel is crucial to PNG's economy, as the country's challenging terrain limits land transport options, said the bank, adding Air Niugini plays a central role in connecting communities both domestically and internationally.
Founded in 1973, Air Niugini is PNG's national airline and a wholly state-owned enterprise, operating an extensive domestic network and international routes to Australia, Asia, and the Pacific. ■
