US allies oppose China to another electricity plan for PNG


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PORT MORESBY (Reuters) – The United States and three of its Pacific allies announced Sunday that they will work with Papua New Guinea to ensure that most countries in the country have access to electricity from here to 2030, while Western powers seek to contain China's economic influence in the region.

A local, sitting at a bus stop emblazoned with a China Aid emblem and an Asia Pacific Economic Cooperation (APEC) banner in the center of Port Moresby, the capital of the poorest nation in the group. 21-member APEC in Papua New Guinea, 15 November 2018. REUTERS / David Gray

Leaders from the United States, Japan, Australia, and New Zealand met in Port Moresby, PNG's capital, at the Asia-Pacific Economic Cooperation (APEC) Summit to unveil the plan , which aims to bring the electricity grid to 70% of the population by 13 percent currently.

PNG has 8 million inhabitants, four-fifths of whom live outside urban areas and have poor infrastructure. The developing country has become a turning point in the competing strategic efforts of Washington and Beijing to consolidate alliances in the region.

"This initiative will also be open to other partners who support the principles and values ​​that help maintain and promote a free, open, prosperous and rule-governed region," said a White House statement.

The four countries did not specify what type of energy production would be used, nor the cost of the plan. However, an Australian government spokeswoman told Reuters that her contribution would be $ 25 million ($ 18.3 million) in the first year of this initiative.

China has invested in development projects in the region, including the construction of a large hydropower plant in PNG under President Xi Jinping's flagship "Belt and Road" initiative.

Belt and Road was first proposed in 2013 to extend land and sea links between Asia, Africa and Europe, thanks to multi-billion dollar infrastructure investments from Beijing.

On Saturday, US Vice President Mike Pence spoke directly to Belt and Road in an APEC speech, saying countries should not accept debt that would compromise their sovereignty.

Australia, a faithful ally of the United States, has for decades enjoyed a largely unparalleled influence among the Pacific Island States. China has only recently focused its attention on the region with a large number of bilateral funding agreements with economies in distress.

(1 $ = 1.3633 Australian dollar)

Report from Charlotte Greenfield and Tom Westbrook to PORT MORESBY; Written by Jonathan Barrett; Edited by Sam Holmes

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