Australian Deputy Prime Minister Richard Marles speaks to the press during the NATO summit in The Hague, Netherlands, on June 25, 2025. Pierre Crom/Getty Images
Australian taxpayers have footed a $500 million redevelopment bill for Papua New Guinea’s (PNG) Lombrum Naval Base—over double the $175 million price tag initially announced by the previous Liberal-National government in 2018.
Labor’s Defence Minister Richard Marles confirmed the blowout during a rain-soaked opening ceremony on Manus Island alongside PNG Prime Minister James Marape.
The expansion, now officially His Majesty’s Papua New Guinea Naval Base (HMPNGS) Tarangau sits north of mainland PNG and is the largest security infrastructure project Australia has delivered in the region
The project’s inflated cost was partly due to the elongated delivery timeline.
“There have been a number of factors which have led to the cost, and part of that is the time that has been taken to deliver the project,” Marles told the ABC.
He cited COVID-19 disruptions and landowner disputes as key causes for the delay.
“But ultimately we’re really pleased with what has been delivered—at $500 million this is the biggest infrastructure project that Australia has ever undertaken in the Pacific,” he added.
The redeveloped base includes new working and living accommodation for the PNG Defence Force (PNGDF) and a medical centre for the base and surrounding community.
A government statement says the facility will significantly expand PNG’s sovereign defence capabilities and allow greater cooperation with Australia through joint training exercises.
