The opening ceremony was performed by Health Secretary Pascoe Kase and Australian High Commissioner Bruce Davis. The project is an initiative under an agreement between the governments of Papua New Guinea and Australia.
The High Commissioner's office says the developments include the renovation of the administration building and construction of a new academic building complex. The new building complex includes tutorial rooms, a computer lab, library and student mess.
"The new facilities, which have the capacity for more than 300 students, will deliver a conducive teaching and learning environment for both staff and students."
Security lighting has also been installed to enable students to access school facilities and ANGAU hospital for clinical practicals in the evenings.
The High Commissioner's office says the project was completed late last year and provided job opportunities and skills development for an estimated 90 local construction workers, who were involved in the construction of the facilities.
The Lae School of Nursing was established in the 1960s and has a longstanding relationship with Angau Hospital, which continues as the school's teaching hospital.
"Through Australia's partnership with Papua New Guinea, this assistance to the Lae School of Nursing will help to ensure the ongoing provision of adequately trained staff for the expanded facilities at Angau Hospital, as well as addressing potential shortages of skilled health workers throughout the country."