Australia spends $500m on Papua New Guinea's Lombrum naval base expansion
The Defence Minister Richard Marles revealed the cost blowout after joining PNG Prime Minister James Marape at a rain-soaked ceremony on Manus Island to celebrate the return of the strategically critical asset.
The high-profile project has been hit with delays due to the COVID-19 pandemic and disputes with local landowners, and Mr Marles told the ABC that an elongated timeline explained the inflated cost.
"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," he said.
"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."
Mr Marles also insisted the massive investment would also pay strategic dividends for both Papua New Guinea and Australia, saying the new port was a "great asset" and a "tangible expression" of the growing defence ties between the two nations.
"This place at the end of the second World War was one of the largest US naval bases outside of the United States," he said.
"It was always understood then that what this represented was a gateway to the Western Pacific — and we've always understood this … as being a really strategically significant place for Australia and obviously Papua New Guinea."
Tuesday's handover comes just weeks before Australia and PNG are due to sign a landmark new defence treaty on the 50th anniversary of PNG's independence on September 15.
While neither government has yet laid out exactly what's in the agreement, both PNG and Australia have flagged it will be used to give defence forces' in both countries easier access to the others' military facilities.
Mr Marles told the ABC that the newly expanded Lombrum base was a "sovereign asset for Papua New Guinea" — but stressed that Australia's navy would be able to operate out of it under the pact.
"We want to be able to be able to operate out of each other's facilities, that's what the defence cooperation agreement will provide," he said.
"What we're building here is a base that's a great asset for PNG but also an asset that can also ultimately be used by Australia.
"You look at what we're about to sign [with PNG] and then you look at this base, you put it together, and this is a really big strategic step for our nation."
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