The lack of infrastructure has been identified as a significant constraint to economic growth, poverty alleviation, and social development in the Highlands Region. Poor road conditions are adversely affecting the economy and exports. Incidence of poverty dominates the rural areas in PNG and the rural communities suffer from the lack of essential services such as education, health, and agriculture extension services, employment and markets for cash crop produce - due to the extremely difficult road conditions. The Highlands is the country's primary source of export earnings and national income and the roads facilitate the transport of minerals, including gold, petroleum products and agriculture products.
Travel times are lengthy and roads are unsafe in many areas.
Recurrent traffic interruptions have isolated some communities, contributing to worsening social conditions, increasing unrest and a breakdown of security conditions. It will lead to tangible income generation opportunities for the poor including employment and access to employment markets. The project will make a significant contribution to poverty reduction as it will help bring two million, mainly poverty-stricken, people into the mainstream economy and improve access to a health clinics and schools as well as to jobs. In particular, it will reduce the burden for rural women, the major producers and sellers of market commodities.