PORT MORESBY, August 10, 2026 — The World Bank Group has approved the US$100 million Rural Service Delivery Project Phase 2 (RSDP-2), which will help improve access to basic services and strengthen local planning and decision-making in rural communities across Papua New Guinea. The new support will expand a successful community-led development model to 12 provinces and is expected to benefit more than one million people.
RSDP-2 will support communities to identify, plan, and implement projects that matter most to them, including clean water, sanitation, health facilities, classrooms, rural roads, electricity, and livelihood activities. By placing communities at the center of decision-making, the support will help ensure investments respond to local priorities and the needs of women, youth, and vulnerable groups.
The program builds on the success of the first phase of RSDP, which benefited more than 291,000 people across five provinces. It demonstrated that when communities are empowered to lead their own development, they can deliver services and infrastructure effectively, transparently, and at lower cost.
- RSDP demonstrates what can be achieved when communities play a leading role in shaping their own development. The new program will support at least 800 community infrastructure and service investments and will reach more than one million people including 300,000 living in remote areas that are often underserved by development programs.Han Fraeters, World Bank Division Director for Papua New Guinea, Solomon Islands and Vanuatu
The program will also help strengthen the Department of Provincial and Local-level Government Affairs, local-level governments, and Ward Development Committees to support the Government’s vision for stronger community participation in local planning and service delivery. It will also provide a transparent platform that can help local governments, communities, and development partners to continue working together effectively.
Financed by the World Bank Group’s International Development Association (IDA), RSDP-2 is expected to create over 39,000 job opportunities through community infrastructure works and expand economic opportunities in rural areas. It will also support climate-resilient investments that help communities prepare for and respond to natural disasters and other climate-related challenges.
READ MORE: https://www.worldbank.org/en/news/press-release/2026/08/10/more-than-one-million-papua-new-guineans-to-see-improved-rural-services-through-ne
