The cable will allow faster and more reliable internet connections in both countries. Papua New Guinea's existing undersea cable to Sydney is nearing the end of its useful life. Solomon Islands has no undersea telecommunications cable link, leaving it dependent on expensive and unreliable satellite communications, the High Commission says.
"For countries which are struggling with a number of development challenges, slow and unreliable internet connections are an obstacle to economic growth. It also hinders communities from building bridges with each other."
The High Commission goes on to say that World Bank research has found that improved internet access and connectivity could translate into additional gross domestic product of more than $US5 billion and close to 300,000 additional jobs in the Pacific by 2040.
"As a close neighbour and friend, Australia is committed to supporting Papua New Guinea and Solomon Islands to build their economies through sustainable development and resilient technologies, allowing e governance and the digital delivery of services."
This project will support Papua New Guinea and Solomon Islands' development of entrepreneurship, digital skills and their further integration into the global marketplace.
The High Commissions says the project is a realisation of Australia's International Cyber Engagement Strategy which sets out Australia's approach to help bridge digital divides across the Indo-Pacific.
"The project is evidence of Australia's 'Step Up' in the Pacific, as outlined in the Foreign Policy White Paper. The bulk of Australia's funding for this project will be from our Official Development Assistance Program. There will also be a contribution from partner governments."
The connection is expected to be completed in the second half of 2019.