A new mortuary with a capacity of over 500 compartments including a cremation facility is to be built at Port Moresby General Hospital.
The chief executive of Papua New Guinea's biggest hospital, Dr Paki Molumi, told the Post-Courier newspaper that funding of US$15 million has been provided by the Indonesian government.
"We completed a feasibility study. We are into design stage," Dr Molumi said.
"The new mortuary will have a capacity of over 500, embalming facility, cremation facility, forensic medicine department and furneral services facility."
Overcrowding and breakdowns have hampered the mortuary for years.
Last week, the hospital said 64 compartment chillers in the main mortuary building have been out of service since Christmas, while a refrigeration container had also broken down.
This means, according to the director of medical services, Dr Koni Sobi, that there are 257 bodies and body parts, at the hospital and a mass burial is being prepared.
Dr Molumi said part of the funding from Indonesia will also go towards the hospital's intensive care unit.