Australia will join the US, Japan and New Zealand to roll out new electricity infrastructure in Papua New Guinea, promising to provide power to 70 per cent of its population by 2030.

Key points: Australia will provide $25 million to the project in its first year

Australia will provide $25 million to the project in its first year PNG Prime Minister says the project will be transformational to the country

PNG Prime Minister says the project will be transformational to the country More than half of PNG's power comes from hydro

At the moment vast swathes of PNG go dark at night. The Government estimates only 13 per cent of the country's population has reliable access to power.

The new initiative aims to lift living standards by providing power to essential services like schools and hospitals, as well as helping local businesses to grow.

It is also aimed at reasserting Australian influence within Papua New Guinea in the face of an aggressive infrastructure push in the country from China.

The Prime Minister Scott Morrison this morning signed a partnership agreement for the project with US Vice-President Mike Pence, Japanese Prime Minister Shinzo Abe, New Zealand Prime Minister Jacinda Ardern and PNG's Prime Minister Peter O'Neill.

Mr O'Neil said the project would be transformational for PNG.

"I believe very strongly we will be able to connect hundred of thousands of families right across he country" Mr O'Neill said.

"Perhaps uniquely for the leaders assembled here today, I know from direct experience that living without electricity is very difficult.

"I know the benefits will flow to our citizens because of this and improve service delivery and growth."

Vast swathes of Papua New Guinea outside the capital Port Moresby lack reliable access to electricity. ( Wikimedia Commons: MSchlauch )

So far only relatively modest amounts of money have promised — Australia will plough $25 million into the project in its first year, with New Zealand making a slightly smaller contribution.

The US and Japan have not yet said how much money they will put in.

The project will require new investment in power generation in the country, as well as new poles and wires across Papua New Guinea's rugged terrain.

At the moment more than half of PNG's electricity comes from hydropower, so Australia and its allies are likely to start by expanding hydro capacity in the nation.

Australia and its partners are also hoping to draw in private sector investment in order to help build infrastructure — although they say Papua New Guinea will need to simplify regulations in order to bring the money in.

Mr Morrison said the initiative would usher in new prosperity for the nation.

"We will always be here to support the people of PNG and their development," Mr Morrison said.

Mr Pence said it was "remarkable" to think of the impact the project would have on people's lives in PNG and it showed America's commitment to the region.

"Electricity will drive economic growth but as others have said, it will simply improve the quality of life for people across Papua New Guinea for generations to come," Mr Pence said.

ABC/AP