The Huawei project would tie in with Coral Sea submarine cable from Australia to Papua New Guinea and the Solomon Islands to improve internet capability in the country.
The Kumul cable would connect Port Moresby, Alotau, Popondetta, Lae and Madang.
"We would like to thank the people of China, who through the Exim Bank of China have agreed to fund this important domestic project," Duma said.
The National newspaper reported that the landing point is at Kila Police Barracks in Port Moresby and construction would be completed towards the end of the year. The Coral Sea undersea cable also has as its landing point Kila Police Barracks.
Infrastructure will come under PNG DataCo as the internet wholesale arm of Kumul Telikom Holdings.
Duma said Vocus would be doing the largely Australian-funded undersea link and "we are grateful to Australia for continuing to help us when we need them".
Papua New Guinea is expected to contribute 10% of the total cost for the construction of the Coral Sea submarine cable.
