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FinObservatory

Chinese overseas lending / PNG

Papua New Guinea: debt owed to China

In 2021, Papua New Guinea is estimated to have owed China $2.31bn, equal to 8.9% of its GDP, which ranks it 40 of 126 borrowers in the panel by dollars owed. The estimated stock peaked at $2.80bn in 2014.

$2.31bn
Estimated total, 2021
rank 40 of 126
8.9%
Percent of GDP
2021
$1.14bn
Public and publicly guaranteed
2021
$1.18bn
Private non-guaranteed
50.9% of external

The estimated stock, 2000 to 2021

The largest single-year move in the estimated stock is 2011, when it rose by $618m.

Public and publicly guaranteedPrivate non-guaranteedPBoC swap drawings

Source: Horn, Reinhart and Trebesch, China’s Overseas Lending. Selection: estimated stock owed to China by Papua New Guinea, by year and instrument, 2000 to 2021. Zeros are estimated zeros (no known loans outstanding), not missing values. Methodology

Historical loan records from the 2021 release

These records come from the 2021 HRT Mendeley replication release, not the November 2025 refreshed stock panel charted above. The refresh uses the updated Franz, Horn, Parks, Reinhart and Trebesch methodology, so this table cannot be reconciled to the chart. The earlier release marks 12 loan-level records for Papua New Guinea as part of its debt-estimate sample, spanning 2000 to 2017. Comparable commitments are available for 11 of those loans and sum to $953m. These are gross commitments, not outstanding debt stocks. The stock methodology applies disbursement and amortisation profiles, with imputation where loan terms are missing, so the commitment sum must not be compared with the stock above. See the methodology. Terms are sparse by source: interest rate appears on 0 loans, grace period on 0, maturity on 0, any of the three on 0, and all three together on 0. The earlier file also carries 56 additional project rows for Papua New Guinea outside that sample, so they are not included in this table.

12
Loans in 2021 sample
2000 to 2017
11
Loans with CommitmentUSD
$953m
0
Loans with any terms
0 with all three
56
Rows outside 2021 sample
68 raw rows total
YearProjectCommitment, USDCommitment, source currencyTermsCreditorType
2017
Integrated Agriculture Industrial Parks in Western Highlands and Eastern Highlands
ID: PNG_66 · Source: Lowy Institute
$330mn/arate n/a | grace n/a | maturity n/a
China Export-Import Bank (Ex-Im)
State-owned policy bank
Loan
loan type n/a · borrower Central government
2017
National Broadband Network
ID: PNG_67 · Source: Lowy Institute
$51mn/arate n/a | grace n/a | maturity n/a
China Export-Import Bank (Ex-Im)
State-owned policy bank
Loan
loan type n/a · borrower Central government
2017
Goroka Town Water Supply
ID: PNG_65 · Source: Lowy Institute
$32mn/arate n/a | grace n/a | maturity n/a
Unspecified Chinese government agency
Unspecified Chinese government agency
Loan
loan type n/a · borrower Central government
2017
Telikom (PNG) Limited
ID: PNG_68 · Source: Lowy Institute
$1.53mn/arate n/a | grace n/a | maturity n/a
Unspecified Chinese government agency
Unspecified Chinese government agency
Loan
loan type n/a · borrower Central government
2016
New Enga Provincial Hospital
ID: PNG_64 · Source: Lowy Institute
$163mn/arate n/a | grace n/a | maturity n/a
China Export-Import Bank (Ex-Im)
State-owned policy bank
Loan
loan type n/a · borrower Central government
2016
Kokopo Town Sewerage
ID: PNG_63 · Source: Lowy Institute
$8.00mn/arate n/a | grace n/a | maturity n/a
Unspecified Chinese government agency
Unspecified Chinese government agency
Loan
loan type n/a · borrower Central government
2013
Port Moresby City Road Project
ID: PNG_59 · Source: Lowy Institute
$123mn/arate n/a | grace n/a | maturity n/a
China Export-Import Bank (Ex-Im)
State-owned policy bank
Loan
loan type n/a · borrower Central government
2012
Community College
ID: PNG_56 · Source: Lowy Institute
$35mn/arate n/a | grace n/a | maturity n/a
China Export-Import Bank (Ex-Im)
State-owned policy bank
Loan
loan type n/a · borrower Central government
2010
China Exim Bank provides $55m concessional loan for Integrated Government Information System
ID: PNG_46 · Source: AidData, Lowy Institute
$55mUSD 55,000,000rate n/a | grace n/a | maturity n/a
China Export-Import Bank (Ex-Im)
State-owned policy bank
Loan
Concessional · borrower Central government
2009
China Exim Bank provides loan to Papua New Guinea for construction of marine industrial zone
ID: PNG_42 · Source: AidData, Lowy Institute
$150mUSD 150,000,000rate n/a | grace n/a | maturity n/a
China Export-Import Bank (Ex-Im)
State-owned policy bank
Loan
Concessional · borrower Central government
2005
China aids the construction of the baba lilly road in PNG
ID: PNG_26 · Source: AidData
n/an/arate n/a | grace n/a | maturity n/a
Unspecified Chinese government agency
Unspecified Chinese government agency
Loan
loan type n/a · borrower Central government
2000
China loans $5 million to Papua New Guinea to support currency
ID: PNG_8 · Source: AidData
$5.00mUSD 5,000,000rate n/a | grace n/a | maturity n/a
Unspecified Chinese government agency
Unspecified Chinese government agency
Loan
loan type n/a · borrower Central government

Source: Horn, Reinhart and Trebesch, China’s Overseas Lending (2021 Mendeley replication loan file). Selection: 2021 replication loan records mapped to Papua New Guinea and flagged DebtEstimateSample = 1 in that release. This is an earlier source universe, not the records used for the November 2025 refreshed stock panel. CommitmentUSD is a gross commitment flow and is not comparable to the charted stock. Commitment stays in its source currency, and ProjectDescription is rendered as free-text data from the file. Methodology

Against what Papua New Guinea reports owing to all creditors

Papua New Guinea reported $19.71bn of total external debt to all creditors in 2021, of which $6.05bn is public and publicly guaranteed. The China estimate is 11.7% of the reported external total and 18.8% of the reported public and guaranteed stock. These are ratios of two different measurements, one estimated and one borrower-reported, and they are not a share of a single consistent total.

Measure, 2021Estimated, owed ChinaReported, all creditorsRatio, %
Total external debt$2.31bn$19.71bn11.7%
Public and publicly guaranteed$1.14bn$6.05bn18.8%

Source: Horn, Reinhart and Trebesch, China’s Overseas Lending (estimated stocks), and World Bank International Debt Statistics, borrower-reported via the Debtor Reporting System (all-creditor stocks). Selection: estimated external and PPG stock owed to China in 2021 against Papua New Guinea's reported DT.DOD.DECT.CD and DT.DOD.DPPG.CD for the same year. Drawn swap balances are excluded from the estimated column: they are a central-bank liability the Debtor Reporting System's long-term-debt concepts do not carry. Methodology